Lenovo, a global technology leader, anticipates a significant increase in demand within the PC segment during the latter half of the year.
This surge is expected to be fueled by integrating artificial intelligence (AI) features and the upcoming upgrade to Windows 11 in Lenovo’s products.
Shailendra Katyal, Managing Director at Lenovo India, shared this outlook during a recent media roundtable, as reported by Financial Express.
AI Integration Key Driver of Demand:
Katyal highlighted the significance of AI-driven enhancements in driving demand, particularly within the commercial PC market. Lenovo’s annual revenue in India, totaling $2 billion, sees PCs contributing 54 percent.
Notably, Lenovo’s performance in the Indian market has surpassed global benchmarks, outpacing even markets like Japan.
Lenovo’s Market Position and Performance:
Despite a tepid performance in the PC market in 2023, marked by flat sales, Lenovo maintains its position as the second-largest player in the segment, boasting a commendable 17 percent market share.
Katyal attributed the recent slowdown to enterprises awaiting AI advancements before initiating asset refresh cycles for laptops and PCs.
Looking ahead, Lenovo anticipates low-single-digit growth in the PC market for the current year, with a potential uptick to high single digits in the upcoming financial year (FY25).
The company is banking on on-device generative AI functionalities, including Microsoft Copilot and instant translation, to drive productivity among users and enterprises.
Focus on AI-Native Devices:
Luca Rossi, President and EVP at Intelligent Devices Group (IDG), Lenovo, envisions a landscape where 70 percent of devices will be AI-native within two to three years.
He emphasized the gradual integration of AI capabilities across Lenovo’s product roadmap, initially focusing on the premium segment.
Expansion Plans and PLI Scheme:
Lenovo is among the 27 companies eligible for India’s IT hardware production linked incentive (PLI) scheme. With manufacturing facilities in Puducherry, the company plans to expand production capacity for Motorola phones and laptops.
Additionally, Lenovo intends to produce servers in India, as stated by Matthew Zielinski, the company’s executive vice president and president for the international market.