Lenovo Seeks AI Growth With Global Factory Expansion Following Strong Q2 Results

Lenovo announces global expansion plans to diversify its supply chain, address geopolitical risks, and meet growing computer industry demand.

November 15, 2024 5:00 PM

2 MIN READ

Eva Robinson

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Lenovo

he world’s biggest PC maker is currently having most of its operations and factories in China.

However, according to chairman Yang Yuanqing, Lenovo plans to diversify its supply chain and open more operations centers outside the country in order to maintain protection during the recent geopolitical uncertainties. It should be mentioned that with this Lenovo expansion, more Lenovo careers will be available worldwide for computer engineers and AI experts.

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Yang Yuanqing states that it is still too early to predict the next US administration's policies after the recent elections, but he believes that the PC maker has an advantage compared with its competitors because Lenovo has a more diverse manufacturing strategy and balanced revenues worldwide.

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Lenovo reported this Friday that its second-quarter revenue increased 24% compared to last year. This increase was mainly supported by the computer sales boom of Lenovo computers powered by artificial intelligence, which were able to handle more complex workloads.

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On the other hand, for the quarter ending September 30th, Lenovo computer company reported revenue of up to $17.9 billion. This incredible increase in revenue has managed to surpass the analyst's expectations of $16.0 billion, as stated by LSEG data.

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Also, Lenovo's computer net profit surpassed the analysts' estimates and recorded an increase of $359 million compared with the expectations of $331.7 million.

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Regarding Lenovo's worldwide computer shipments, the company recorded an increase of 3% to 16.5 million units for the September quarter. Despite this increase, Lenovo computers still managed to keep their leading role, with about 24% of the entire market share.

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However, it’s important to mention that in the computer industry, the worldwide PC shipment has dropped 2.4% from last year.

Currently, the increased demand for computers powered by artificial intelligence has become a major growth aspect for the computer industry because it can urge manufacturers to accelerate the production and launch of new products designed specifically for artificial intelligence tasks.

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Lenovo, a computer company, revealed its first computer powered by artificial intelligence in China in May, months before launching it worldwide in September.

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Chairman Yang anticipates that AI PCs will form up to 25% of Lenovo shipments by 2025, increasing to as much as 80% by 2027. To capitalize on this artificial intelligence trend, Lenovo computer company has strengthened its AI server and its software business.

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Also, Lenovo's computer net profit surpassed the analysts' estimates and recorded an increase of $359 million compared with the expectations of $331.7 million.

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However, it’s important to mention that in the computer industry, the worldwide PC shipment has dropped 2.4% from last year.

‍

Lenovo, a computer company, revealed its first computer powered by artificial intelligence in China in May, months before launching it worldwide in September.

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