DeepSeek Expands Edge AI Access

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On the afternoon of February 20, after Lenovo released its financial results for the third quarter of the 2024/25 fiscal year, the term "DeepSeek" became a common buzzword among attendeesThis highlights a significant shift in the conversation surrounding artificial intelligence (AI) and its positioning in both the business and technological world.

During a media interaction, Lenovo’s CEO, Yang Yuanqing, shared insights on this new AI frontierHe emphasized that DeepSeek exemplifies a crucial direction; artificial intelligence is not confined to the cloud but can be integrated efficiently at the edge, allowing individuals to enjoy the benefits of generative AI while simultaneously safeguarding personal data and privacyThis dual focus marks a progressive step in how companies should approach AI application.

At present, Lenovo has fully integrated its AI PCs, AI smartphones, and AI tablets with the robust DeepSeek-R1 cloud modelA notable announcement during this event was the impending deployment of the DeepSeek model on edge devicesThe unveiling of several AI workstations and all-in-ones, pre-installed with multiple versions of DeepSeek and Qwen, represents the company's initiative to make advanced AI tools readily accessible to the massesYang insists that DeepSeek provides a feasible pathway for democratizing AI and accelerating its adoption in various business processes.

This vision becomes even more tangible when juxtaposed with Lenovo's remarkable financial performance announced that dayThe company's revenue reached 135.1 billion RMB, demonstrating a 20% increase year-over-year, marking the highest quarterly revenue in three yearsAll core business units achieved double-digit growth, with net profits soaring by 106% to 4.98 billion RMBNotably, revenue from non-PC related business surpassed 46% of the total, showcasing a significant shift in their operational focus.

Examining the company’s various ventures, there is a clear synergy between the growing popularity of AI and its applications worldwide

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Favorable conditions such as Windows 11 system upgrades and a burgeoning "replace your old for a new" policy have contributed to a surge in the PC industryIn China, Lenovo reports that AI PCs now make up 15% of the notebook marketFurthermore, research firm Gartner predicts that 2025 will witness accelerated recovery in the PC market, with AI PC penetration expected to exceed 165% compared to the previous yearProjections suggest that by 2027, AI PCs could command an impressive 81% market share.

In the past, the smartphone market was fiercely competitiveAfter Lenovo acquired Motorola's mobile business, it found itself mired in difficulties, facing staggering losses of up to $1 billion annually, with a bleak outlookHowever, Lenovo chose not to abandon shipInstead, it embarked on a series of bold strategic adjustmentsThis included significant investments in product development aimed at technical innovation, conducting in-depth research on varying consumer demands, and optimizing mobile performance, design and functional characteristics.

Through relentless effort, Motorola's mobile business successfully turned its fortunes around

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Recent data highlights a notable 21% increase in revenue year-on-yearThe brand has successfully positioned itself among the top five in global shipping volume in markets outside of ChinaIts performances across various regional markets have also been impressiveIn traditional core regions like North America and Latin America, Motorola has maintained its strong presence while consistently winning consumer trustMeanwhile, in the Chinese market, a combination of precise market positioning and marketing strategies led to an astonishing 156% revenue growth, showcasing remarkable progressIn the Asia-Pacific region, products tailored to local preferences achieved a 155% increase in revenue, compelling Motorola to expand its market share continuallyThe Europe, Middle East, and Africa markets also saw healthy growth, with a 28% increase in revenue year-on-year, solidifying the brand's foothold.

Additionally, thanks to the enhanced revenue from its Cloud Service Provider (CSP) business segment, the Infrastructure Solutions Group (ISG) returned to profitability this fiscal quarter, with revenue climbing nearly 60% to 28.3 billion RMBThis turnaround underscores Lenovo's competitive strategy and adaptability in an ever-evolving economic landscape.

In the interview, Yang further shed light on Lenovo's latest developments in the Middle EastJust two weeks prior, he visited Riyadh, the capital of Saudi Arabia, to lay the groundwork for a local manufacturing plant, meet with various governmental departments, and connect with potential clientsHis observations highlighted the government's commitment to transformative initiatives, revealing promising growth opportunities for Lenovo in the regionThe establishment of a sophisticated manufacturing base, innovation and client demonstration centers, along with flagship retail stores are to fuel the company's growth across all business lines locally

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