(Yicai) Nov. 18 -- China’s Lenovo Group saw a 44 percent surge in profit for the fiscal second quarter, mainly thanks to a jump in sales of smart products such as personal computers that use artificial intelligence to perform tasks beyond the capabilities of typical PCs.

Profit was USD359 million in the three months ended Sept. 30, the world's biggest PC maker said in a financial report released on Nov. 15. Revenue jumped 24 percent to USD17.9 billion.

Income from its smart devices business, including PCs, tablets, and smartphones, rose 17 percent to USD13.5 billion, the Beijing-based company noted.

AI PCs accounted for 14 percent of notebook shipments in China last quarter, up from 5 percent the previous three months, Yang Yuanqing, chairman and chief executive of Lenovo, told Yicai. A similar growth trend was seen worldwide and AI PCs will likely drive a steady recovery in the PC market, potentially making up almost 80 percent of the total by 2027, he added.

Non-PC revenue made up nearly 46 percent of Lenovo's total income in the quarter, up more than 5 percentage points from a year ago. It is expected to exceed 50 percent soon, according to Yang.

Income at the company’s Infrastructure Solutions Group soared 65 percent to a record high USD6.5 billion, while that at its Solutions and Services Group rose 13 percent to USD2.2 billion.

Lenovo’s revenue in China jumped 26 percent, mainly thanks to its PC business, the firm noted, adding that income from the Asia-Pacific region (excluding China) rose 28 percent, while that from Europe, the Middle East, and Africa climbed 22 percent, and 16 percent from the Americas.

AI's potential lies in large language models and text-based applications and in delivering value through personal and enterprise data, Yang pointed out. Lenovo is optimistic about hybrid AI and will go on investing in the field, while also aiming to deepen its efforts in developing intelligent solutions to accelerate digital transformation and smart upgrades, he added.

Regarding the intelligence of personal devices, Lenovo is expanding beyond AI PCs by investing in tablets, smartphones, and augmented and virtual reality headsets, with the data generated by these devices to be centrally managed and used to create smart personal systems. The firm plans to hike investment in infrastructure and smart solutions to bolster its capabilities in this area.  

Editor: Martin Kadiev