Lenovo Increases 2025 PC Shipment Prediction After High Earnings
Lenovo's net income increased by 44% to $358.5 million, or approximately Rs. 3,027 crore, In the September quarter.
Ankush Pandey
Lenovo Group Ltd. increased its forecast for worldwide PC shipments in 2025 after announcing better-than-expected earnings, claiming AI features will contribute to growth in the upcoming year.
The CEO of Lenovo, Yang Yuanqing, told Bloomberg News that, following the company's earnings on Friday, the PC market will grow during the current quarter. Citing the need for AI PCs and the Windows 11-enabled replacement cycle, he increased his expectation for global shipments in 2025 to double-digit percentage growth from a previous prediction of 5% to 10%.
"If US President-elect Donald Trump decides to impose tariffs on foreign goods after formally returning to the White House, Lenovo is not particularly disadvantaged against its key competitors," Yang noted.
Lenovo, a company located in Beijing, reported in a filing on Friday that its net income increased by 44% to $358.5 million, or approximately Rs. 3,027 crore, for the September quarter. In contrast, an average estimate of $343.3 million, or approximately Rs. 2,899 crore, is used. Revenue surpassed analyst estimates as well, increasing by 24% to $17.85 billion (around Rs. 1,50,738 crore).
While competitors like Dell Technologies Inc. and Apple Inc. reported decreases, industry researcher IDC reports that the company's quarterly PC shipments increased 3% from a year ago. According to Bryan Ma, vice president of IDC, "the market is taking a break before entering the year-end buying period."
Microsoft Corp., the company that makes Windows, is assisting PC manufacturers in their push this year to incorporate artificial intelligence capabilities to lure customers into an upgrade cycle. Future success in the sector will depend on how this new generation of AI PCs is received as it recovers from recent downturns. It's still unclear if the general public will be interested in these more expensive products.
Lenovo's investment in AI extends beyond end-user gadgets. Another important component of the company's investment in emerging technology is its infrastructure solutions division, which supplies servers to major clients. Lenovo believes the division is driving development by providing data center gear that speeds up calculations and training of AI models.
Steven Tseng and Sean Chen, analysts at Bloomberg Intelligence, noted in research before the earnings release that "Lenovo's data center segment could grow substantially on AI server order wins and improving the supply of Nvidia's GPUs, though profitability may remain subdued."
