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Lenovo Further Gains Momentum in First Quarter FY 2017/18

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By Modupe Gbadeyanka

Behind the strength of its 3-wave strategy, Lenovo’s business transformation continued to gain traction during the first quarter, delivering solid profitability in its core PC and smart devices business, and revenue and profit improvements in targeted growth areas, including the data center and mobile businesses.

Fuelled by new investments in people and products, Lenovo’s Data Center Group (DCG) introduced the most comprehensive product lineup in its history, with the new ThinkSystem and ThinkAgile portfolio, and continued to build out its end-to-end sales organization. Similarly, Lenovo’s Mobile Business Group launched significant new products led by the Moto Z2 Force, available now on all major U.S. carriers, and ramped up its branding efforts worldwide.

“In the first quarter this fiscal year, we had stable performance as we executed our 3-wave strategy with commitment. We maintained our industry leading profitability in PC, built the foundation in mobile and data centre, and further invested in ‘Device + Cloud’ and ‘Infrastructure + Cloud’ powered by Artificial Intelligence,” said Yang Yuanqing, Lenovo Chairman and CEO. “We have made solid progress on every front of our strategy. Particularly MBG continued to improve, and is on track to breakeven by second half of this fiscal year. DCG gained good momentum as well. As the two new growth engines gain speed, we believe the sustainable results will soon follow.”

For its first fiscal quarter ended June 30, 2017, Lenovo’s quarterly revenue was US$10 billion, flat year-over-year, but an increase quarter-to-quarter of 4.5 percent. First quarter pre-tax loss was US$69 million, with a net loss of US$72 million.

Operating profit was up US$110 million quarter-to-quarter. The Company’s gross profit for the first fiscal quarter decreased 11 percent year-over-year to US$1.4 billion, yet remained flat quarter-to-quarter, with gross margin at 13.6 percent. Basic loss per share for the quarter was 0.66 US cents, or 5.15 HK cents.

Lenovo introduced its 3-wave strategy, namely balancing PCSD growth and profit, accelerating our DCG and MBG growth engines, and investing in non-hardware areas, to both meet today’s market dynamics while positioning the Company for longer-term profitable growth. Lenovo is investing in core technology and next-generation platforms that will help customers move towards a smart internet era where all smart devices will be connected to the cloud and powered by Artificial Intelligence (AI).

While Lenovo is focused on new technologies with our ‘Device + Cloud strategy’, the Lenovo Capital and Investment Group (LCIG), the Company’s provider of IoT solutions, reached a first quarter milestone of over three million users on its Global API platform.

In addition, as Lenovo continued to expand its ecosystem, LenovoID (a unique identification of directly reachable users across Lenovo devices) reached 225 million users in the first quarter. The progress Lenovo is making in its non-hardware businesses, such as software, services, and big data, is already gaining significant traction and winning new customers.

At its third annual Tech World event, held last month in Shanghai, Lenovo demonstrated several new consumer and commercial products, such as SmartVest wearable technology and daystAR glasses to help with industrial maintenance. Lenovo also announced a US$1.2 billion investment in AI research and development, and is pursuing smart solutions and partnerships in the manufacturing, healthcare and transportation sectors.

Business Group Overview

In our PC and Smart Devices (PCSD) business group, which includes PCs, tablets and smart devices, the average selling price of our PC + tablet products improved 7.8 percent year-over-year, meaning that customers were gravitating to Lenovo’s more innovative, higher-end products. Despite industry-wide component shortages and subsequent cost-hike pressures, Lenovo maintained its industry-leading profitability.

PCSD revenue was US$7 billion, with flat growth year-over-year. However, quarter-to-quarter, PCSD revenue grew 4.8 percent. Pre-tax income was US$291 million and pre-tax income margin fell to 4.2 percent, mainly due to the industry-wide increased component costs.

Lenovo’s PC business in the first quarter recorded share gains in Asia Pacific, Europe and Latin America, and worldwide shipped 12.4 million units. In China, where Lenovo still enjoys almost 36 percent market share, the Company appointed a strong new consumer-focused leader to run its PCSD business. In North America as well, where the PCSD business has been flat, new leadership is now in place to help boost sales.

Lenovo’s Mobile Business Group (MBG), which includes Moto and Lenovo-branded smartphones, saw encouraging revenue growth outside of China to US$1.7 billion, 7.6 percent increase year-over-year. As an example of the Company’s continuing momentum in this business, Lenovo achieved its publically-stated goal of selling three million Moto Z smartphones within the first 12 months.

For the second consecutive quarter MBG has continued to grow revenue and improve profitability, with revenue up two percent year-over-year to US$1.7 billion and a pre-tax income margin improvement of 2.2 pts. during the same period.

With 11 million smartphones shipped in the first quarter, Lenovo grew 12.3 percent year-over-year outside of China, driven by significant gains in both Western Europe and Latin America, up 137 percent and 56 percent respectively year-over-year.

Lenovo’s Data Center Group (DCG), which includes servers, storage, software and services, continued to focus on the transformative actions that will help drive long-term DCG competitiveness, such as strengthening our sales teams, investing in the channel, revamping our product lines, building our brand strategy, and adding new partnerships.

These actions helped to stabilize the business outside of China in the first quarter with quarter-to-quarter revenue growth of 14 percent. Particularly encouraging was the year-over-year revenue growth in Western Europe and North America of 11 percent and eight percent respectively, including quarter-over-quarter revenue growth of 22 and 19 percent respectively. In both geographies, new leadership, a restructured sales organization, and new products are beginning to pay the expected dividends, and we expect that trend to accelerate into other geographies, including China, as we execute our DCG transformation worldwide.

Another positive sign in DCG was a pre-tax income margin improvement of 1.7 pts. quarter-to-quarter. In addition to these financial indicators, DCG set 42 world-record benchmarks on the new Intel platform, more than any of our competitors and Lenovo continued to be the world’s fastest-growing super-computing provider, number 1 in China and under recent new leadership there, secured a major win with Peking University.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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OPay, Coinbase, Others Crash as Cloudflare Suffers Another Glitch

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Daudu Gotring OPay

By Adedapo Adesanya

Cloudflare Incorporated, a business providing cloud-based services to various enterprises, said in a note on Friday it is investigating issues with its Dashboard and related Application Programming Interfaces (APIs).

Numerous companies and services, including payments platform like OPay as well as Canva, Coinbase Global Incorporated, Investing.com , Shopify Incorporated, and Zoom Video Communications Incorporated, all appeared to crash, with some seeing “500 internal server error” and “Please check your internet connection and try again”.

The global outage has left many users unable to access these key services as this disruption has not only affected individuals but also businesses relying on these platforms for their operations.

Customers using the Dashboard or Cloudflare APIs are impacted as requests might fail and errors may be displayed, the company said on its status page.

In its latest update, Cloudflare added that “a fix has been implemented,” with the firm monitoring the results.

Users from all over the world have taken to social media platform X (formerly Twitter) to voice their frustrations over the issue.

This is Cloudflare’s second major disruption in nearly a month, following another incident in November that affected services like Spotify and ChatGPT.

At the last outage, Cloudflare’s services were largely restored within three hours, and fully restored after approximately five hours.

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Google Unveils AI Skilling Blueprint for Africa

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Google AI Skilling Blueprint for Africa

By Modupe Gbadeyanka

As part of broader Africa-focused Artificial Intelligence (AI) initiatives, Google has launched the AI Skilling Blueprint for Africa, designed to help governments build a future-proof workforce.

The programme provides governments with a comprehensive, step-by-step guide to formulate national skilling strategies. It focuses on developing three critical cohorts: AI Learners, who will gain foundational AI literacy; AI Implementers, professionals upskilled to integrate AI tools into their work; and AI Innovators, deep technical experts dedicated to building the next generation of AI solutions.

Africa is home to the world’s youngest and fastest-growing population. The continent shows immense potential for AI-driven economic growth.

However, new research highlights a significant challenge: while optimism for AI is exceptionally high, reaching 95 per cent in Nigeria and 76 per cent in South Africa, 55 per cent of firms across the continent report needing AI talent more than financing. Closing this skills gap is key to unlocking Africa’s opportunity.

Google’s Vice President of Government Affairs and Public Policy, Doron Avni, explained that, “The AI Skilling Blueprint provides a clear roadmap for governments to build the workforce of the future.

“By also investing in AI-ready data and expert local organisations and partners, we are helping build the interconnected ecosystem needed for a prosperous, AI-driven future for the continent.”

As part of its broader initiatives, Google also announced $2.25 million to support projects building trustworthy public data sets for AI by the UN Economic Commission for Africa (UNECA), the UN Department of Economic and Social Affairs (UN DESA) and PARIS21.

This contribution will help national statistical offices modernize their infrastructure and empower decision-makers with the reliable data they need to address challenges from food security to economic growth.

“For Africa to drive sustainable development, evidence-based policymaking is indispensable. This requires accessible, reliable, and AI-ready data.

“This effort is a crucial step forward. By building a Regional Data Commons, we can empower African institutions with the data and tools they need to make strategic choices that will drive growth and prosperity,” the Executive Secretary of the UN Economic Commission for Africa, Claver Gatete, said.

Finally, building on its $7.5 million Google.org Skilling Fund commitment, Google announced the first set of expert social impact organizations who will receive funding to execute on projects consistent with its skilling mission, including FATE Foundation and the African Institute for Mathematical Sciences (AIMS), which will embed advanced AI curricula into universities; and JA Africa and CyberSafe Foundation, which will advance crucial work in online safety and digital literacy.

“We are incredibly proud to partner with the African Institute of Management Sciences on the Advanced AI UpSkilling Project, with support from Google.org. This groundbreaking initiative is a direct response to the urgent need for deep AI competencies in Africa, empowering tertiary institutions, lecturers, and students in Nigeria, Ghana, Kenya, and South Africa.

“This strategic support aligns perfectly with FATE Foundation’s mission to foster innovation and sustainable economic growth across the continent, ensuring Africa is fully equipped to lead in the global technological future,” the Executive Director for FATE Foundation, Adenike Adeyemi, stated.

“We live in an age defined by rapid technological change and our mission at JA Africa is to ensure that African youth are not left behind. However, even as we engage our youth in more digital programs and encourage AI literacy, we are fully aware of the harmful effects of unchecked online exposure and, therefore, invest equally in protecting their data, physical safety and mental wellbeing.

“Through this support from Google.org, we will give young people the tools, knowledge, and confidence they need to navigate the digital world safely and responsibly,” the chief executive of Junior Achievement Africa, Simi Nwogugu, remarked.

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Zoho Updates All-in-One Business Software Platform Zoho One

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Zoho One Update

By Modupe Gbadeyanka

Global technology firm, Zoho, has enhanced its all-in-one business software platform known as Zoho One with improve security, and deeper intelligence across all over 50 applications.

The company improved the user interface, placing context at the centre of the user journey and removes traditional boundaries between applications.

Spaces now organise tools by purpose—such as Personal, Organisation, and Department-specific groups—enabling employees to access what they need without switching between apps. A centralised search bar spans the entire ecosystem, allowing users to find information or trigger workflows instantly.

An enhanced Action Panel provides a full view of upcoming meetings, unread messages, pending tasks, and other key updates, helping employees remain informed regardless of which app they are using.

The updated Dashboard consolidates data from Zoho and third-party apps into one central hub that can be customised using pre-existing or bespoke widgets.

The platform also introduced Vani, a new visual-first collaboration space that supports brainstorming, planning, and creation through diagrams, whiteboards, mind maps, and integrated video calling.

A central integrations panel enables administrators to monitor and configure all connections. Foundational integrations bring application-specific portals—Zoho or third-party—into a single unified portal. Practical tasks such as domain verification and authentication can now be configured more easily.

The new Smart Offboarding feature introduces outcome-based integrations, allowing organisations to transfer department ownership, manage employee device data, and determine data access rights within a single workflow, ensuring smooth transitions.

Also, Zia, Zoho’s AI assistant, is now accessible throughout Zoho One, providing unified intelligence that supports decision-making and improves productivity. Zia can aggregate and contextualise information from various platforms, including third-party systems such as Google Workspace, and present it as clear, actionable insight.

Zia Hubs, the platform’s intelligent content management system, now has a dedicated space where contracts, meeting recordings, and other important assets are automatically organised. Through Zia Search, employees can quickly surface relevant information without navigating multiple locations.

In addition, Ask Zia, available from the bottom toolbar, enables prompt-based searches across Zoho One, providing quick visibility into schedules, tasks, recent interactions, and other key details.

Commenting on the changes, the Country Head for Zoho Nigeria, Mr Kehinde Ogundare, said, “The Zoho One update reflects how work has evolved from using individual applications to operating within a unified platform.

“Zoho One customers are not simply licensing apps; they are choosing a solution that allows Zoho to handle the technology while they focus on productivity. The enhancements announced today deliver a cohesive experience built on unified integrations, context, and data.”

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