The PC Market’s Return To Growth Is Set For 2024

Lenovo sees signs of a long-awaited recovery across the technology sector. In the second quarter ended October 31, 2023 they delivered year-over-year gross profit margin improvements, solidifying their position as leaders in the PC and AI markets. According to IDC, there is an expected growth of 3.7 percent in global PC shipments by 2024, indicating continued market expansion.

  • December 18, 2023 | Author: Alan Strakey
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Lenovo Group recently announced financial results for the second quarter ended October 31, 2023, reporting a revenue of $14.4 billion and a net income of $273 million. Despite revenue falling from the previous year, Lenovo's sales were higher than last quarter, while its gross profit margin improved year-over-year to 17.5 percent, the best second quarter ever.

According to Lenovo, these numbers indicate a trend toward recovery in the technology sector and are promising signs that the company will soon resume its year-over-year growth.

2023 PC Market Shows Signs of Recovery

Despite facing challenges in the market, Lenovo's most prominent business, the Intelligent Devices Group (IDG), remained in the number-one position globally for PC shipments and activations. The group saw a 12 percent increase in revenue compared to the previous quarter. This was higher than the historical average of 8 percent quarter-over-quarter growth since the group's formation in its 2019 fiscal year.

Lenovo’s PC business shows signs of stabilization and a potential year-on-year recovery for the final quarter of 2023. Despite a decline in the available PC market due to channel inventory back-up, the company believes it could remain higher than before the COVID-19 pandemic in the long run. 

Additionally, Lenovo is optimistic about the emergence of advanced AI PCs that focus on enhancing productivity. Lenovo recently announced a $1 billion investment to develop AI-optimized devices and technology innovation further. This strategic move holds importance for enterprise customers as it will bring significant changes in computing, productivity and collaboration, driving growth and prompting companies to upgrade their PCs.

Return to Growth is Set for 2024

The good news for PC vendors is that according to market research firm IDC, global PC shipments are projected to grow by 3.7 percent year-over-year in 2024, totaling  more than 261 million shipments. The number of shipments in the period will be higher than the 259.6 million recorded in 2018, but it will still be lower than before the pandemic hit in 2019.


IDC noted that the commercial PC market will continue to be intriguing for years. The firm anticipates that advancements in AI and other technologies will introduce challenges and uncertainties. Furthermore, 2025 could boost the aging PC market as Microsoft plans to discontinue official Windows 10 operating system support.


Overall, Lenovo is looking good coming out of its second quarter. With a channel first mindset and broadened focus on AI, Lenovo is expected to drive impressive PC performance and profitability for partners under its Lenovo 360 program. 

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