The consumer electronics market is currently experiencing an exciting upturn, largely driven by a combination of government subsidies and aggressive promotional campaignsAs the festive shopping season approaches, various smart terminal products have witnessed a notable surge in sales, marking a significant period of growth in the sector.

On November 11, IDC released a pivotal report indicating that the recent suite of policies aimed at boosting consumption has sparked a remarkable growth in the electronic consumer marketAlongside this, the annual “Double 11” sales event, traditionally a major shopping holiday, has extended its promotional period, providing additional momentum for smart device sales.

Lenovo Group, a frontrunner in the consumer electronics landscape, has proactively embraced these consumption-boosting initiativesBy engaging in promotional events and offering multiple consumer benefits, Lenovo has managed to achieve impressive sales figures during this period

The company’s strategy is anticipated to yield robust growth in its core business involving smart terminal products.

One of the driving forces behind this growth is the evident rise in the consumer electronics sector, spurred by government incentivesIn recent years, China has made significant strides in promoting consumption, designating electronic products as a key category for its “trade-in” policySince August, various local governments have begun to roll out these policies, providing subsidies of 15%-20% on electronics purchases from brands like Lenovo and Apple, which has invigorated consumer enthusiasm and strengthened market dynamics.

During this promotional phase, major sales events have positively impacted the consumer electronics landscapeNotably, this year’s “Double 11” event started a month earlier than usual, and the prolonged promotion cycle has significantly revitalized the electronic devices market, leading to increased activity in online sales channels.

From a product perspective, forecasts regarding the PC market are particularly telling

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According to IDC, it is estimated that China's PC shipment volume will reach 40.3 million units in 2024, with online sales accounting for 21.3 million and offline sales at 19 millionIn the smartphone segment, IDC predicts a 5% increase in smartphone sales throughout 2024, with offline sales channels comprising 30.4% and online channels making up 48.6%. Additionally, tablet sales through online retail channels are expected to capture 47.5% in the last quarter of 2024, with a year-on-year growth of about 5% in tablet shipments via major e-commerce platforms.

Thanks to subsidy policies and promotional activities, China's consumer electronics market is expected to maintain robust growth in the fourth quarterConcurrently, the global consumer electronics market is poised to showcase significant growth potentialIt is observed that the international market has stabilized and is now on a path of recovery, with essential categories such as PCs, smartphones, and tablets experiencing continuous positive growth over the last four quarters

According to data from agencies like IDC and Canalys, global PC sales rose by 1.3%, while smartphone sales grew by 2%, and tablet sales surged by 20.4% in the third quarter of this year.

This upward trend in growth is likely to sustain itself, especially with the anticipation of global holiday promotions propelling consumer devices through the remainder of the yearIDC forecasts indicate that total global smartphone shipments will reach 1.23 billion units in 2024, reflecting a year-on-year increase of 5.8%. Furthermore, the combined sales of PCs and tablets are projected to rise by 2.6% to reach 398.9 million units.

During this stable recovery within the electronics sector, the rise of AI-enabled terminals is unlocking new opportunities for growthDevices such as AI PCs and AI smartphones are rapidly reshaping the consumer electronics landscape, becoming increasingly pivotal forces in driving long-term market expansion

This year marks the onset of rapid development for AI PCs, with their penetration likely accelerating in subsequent years, as Gartner predicts that by 2025, 43% of PCs will qualify as AI PCs, witnessing a staggering growth of 165.5% in shipments over that period.

In summary, the consumer electronics environment, buoyed by direct subsidies and significant sales events such as “Double 11,” shows signs of strengthening market demandFurthermore, a longer-term perspective recognizes that the industry stands at the cusp of an AI innovation cycle, where products like AI PCs and AI smartphones are maturing and penetrating the market more deeply, indicating a steady course toward positive growth trajectories.

The performance of leading AI PC manufacturers aligns closely with the thriving consumer electronics marketLenovo Group, as a prominent player within this sector, is poised to experience substantial revenue growth

This burgeoning trend is already evident in the performance of the company’s PCs, tablets, and smartphones during the third quarter.

According to IDC data, during the third quarter, Lenovo Group's PC shipments outpaced the overall market growth, experiencing a year-on-year increase of 3% and expanding its market share to 24%, solidifying its position as the global leaderDuring this year’s “Double 11” shopping event (from October 31 to November 1), Lenovo’s PC category dazzled with remarkable performances, clinching 23 top spots in computer categories on major e-commerce platforms, particularly excelling with its lightweight and gaming laptop productsAdditionally, Lenovo's tablet sales also showed commendable results.

In the smartphone sector, Lenovo’s Motorola brand has been expanding its reach globally, seeing around a 30% surge in sales during the third quarter and noting a significant increase in market share

Notably, the vertically folding Motorola smartphone has garnered considerable consumer interest, achieving a 30.8% market share in this specific segment during the second quarter, making it the top contenderOn the tablet front, Lenovo’s performance in China this past quarter saw it ascend to become the fifth-largest tablet manufacturer in the country, contributing to a 14.7% increase in global shipments.

Encouraged by this growth in consumer electronic sales, Lenovo’s IDG division, focusing on PCs, tablets, and smartphones, is projected to continue its upward trajectory in the fiscal year 2024/25, particularly in the second fiscal quarter (July-September). Multiple investment banks are optimistic about Lenovo’s performance prospects, adjusting their expectations for growth; for instance, CITIC Lyon predicts an over 15% increase in Lenovo’s IDG revenueMorgan Stanley forecasts that Lenovo will achieve total revenues of $17.1 billion, exceeding earlier predictions by 2% largely due to its PC business’s contributions.

An aspect deserving attention is Lenovo Group's strong strategic positioning in the AI terminal domain, which will provide significant impetus for the long-term growth of its IDG business

Currently, Lenovo is pursuing a mixed AI development approach, comprehensively promoting the AI upgrade of smart terminal products, thus crafting an integrated multi-terminal strategy, under which it has introduced the “Tianxi AS (Integrated)” AI terminal experience systemThis system features Lenovo’s proprietary AI assistant, driven by its self-developed local large model, “Tianxi Model,” enabling natural language interactions and acting as users’ “personal AI assistant” to enrich their experiences across work, learning, and daily life scenarios.

Up to now, Lenovo Group has launched numerous products within the AI PC categoryIts core product lines, including ThinkPad, ThinkBook, and Yoga, have all rolled out corresponding AI PC versionsIn the second quarter, Lenovo consolidated its leading market position with AI PCs, with Canalys reporting a staggering 228% quarter-on-quarter growth in AI PC shipments