Lenovo is intensifying its supply chain diversification efforts and expanding its AI-driven product portfolio in response to geopolitical uncertainties and the evolving global technology scenario.
Amid increasing global geopolitical tensions, Lenovo has declared plans to broaden its manufacturing footprint beyond China, which currently houses the majority of its production facilities. Chairman Yang Yuanqing revealed that the company aims to open new manufacturing facilities in regions like Saudi Arabia, leveraging its partnership with the kingdom’s Public Investment Fund. This move comes as geopolitical tensions, such as potential US tariffs on Chinese imports, prompt companies to reduce dependency on single-country manufacturing hubs.
Lenovo operates over 30 factories across nine countries, giving it a competitive edge in mitigating supply chain risks. Yang stated that this diversified approach aligns with the company’s balanced regional revenue streams, helping it adapt to fluctuating global trade policies.
Strong Financial Performance And AI-capable PC Growth
In its fiscal second quarter, Lenovo reported strong financial results, with revenue surging by 24 per cent year-on-year to USD 17.9 billion, surpassing market expectations of USD 16.0 billion. Net profit for the quarter reached USD 359 million, exceeding analyst projections of USD 331.7 million.
A key growth driver was the rising demand for AI-capable computers, which Lenovo identified as a transformative force for the global PC market. The company’s global PC shipments rose by 3 per cent to 16.5 million units in the September quarter, commanding a 24 per cent market share, even as overall industry shipments declined by 2.4 per cent.
Lenovo’s first AI-powered PCs, introduced in China in May, were rolled out globally in September. The company anticipates that AI PCs will comprise 25 per cent of its shipments by 2025, increasing to as much as 80 per cent by 2027.
Expanding Infrastructure And Cloud Solutions
Lenovo’s Infrastructure Solutions Group, which includes server and IT solutions, reported over 60 per cent revenue growth in the September quarter, fueled by the demand for AI workloads in data centers. The Solutions and Services Group, focused on cloud-based enterprise offerings, also saw a revenue boost to USD 2.2 billion from USD 1.9 billion in the same period last year.
