BEIJING, Feb 12 (GeokHub) — Lenovo Group has warned of mounting pressure on global PC shipments as an intensifying memory-chip shortage disrupts the technology supply chain, even as the company pivots aggressively toward artificial intelligence infrastructure.
Speaking after the release of its third-quarter financial results, Chief Executive Yang Yuanqing said the world’s largest PC manufacturer has raised product prices to offset soaring memory costs driven largely by surging demand for AI-related hardware.
“We anticipate continued pressure on PC unit sales,” Yang said, adding that the company remains confident in its ability to expand overall revenue and protect profitability despite the headwinds.
AI Demand Strains Traditional PC Market
The shortage of memory components — critical for laptops, desktops and servers — has tightened supply across the industry. Analysts attribute much of the squeeze to the rapid expansion of AI data centers and high-performance computing, which require large volumes of advanced memory chips.
As a result, PC manufacturers are facing thinner margins and potential production slowdowns.
Lenovo reported third-quarter revenue of $22.2 billion, an 18% increase from a year earlier and above market expectations. However, net profit declined 21% to $546 million, weighed down by restructuring costs totaling $285 million.
Excluding one-time charges, adjusted net profit rose 36% to $589 million, reflecting stronger operational performance.
Strategic Shift Toward AI Inference
The restructuring initiative is designed to sharpen Lenovo’s focus on the rapidly expanding AI inference market — the stage where trained AI models are deployed to generate responses and insights in real time. The company expects the global AI infrastructure market to triple by 2028.
Lenovo said the restructuring program could reduce costs by up to $200 million over the next three years, helping reallocate resources toward AI server development and advanced computing solutions.
Its digital infrastructure division — which includes AI server operations — posted 31% revenue growth during the quarter, although it recorded a modest operating loss as investments accelerated to scale AI capabilities.
The company’s AI server business delivered strong revenue expansion, supported by demand for rack-scale systems built on advanced GPU architectures. Lenovo also introduced new enterprise-grade servers optimized for AI inference workloads in collaboration with leading chip manufacturers earlier this year.
Core Device Business Remains Key Revenue Driver
Lenovo’s personal devices segment — including PCs, tablets and smartphones — continues to account for roughly 70% of total revenue. That division reported a 14.3% revenue increase during the quarter, highlighting resilience despite shipment pressures.
Industry observers say Lenovo’s strategy reflects a broader shift among hardware makers: balancing near-term supply constraints in traditional PC markets with long-term growth opportunities tied to artificial intelligence infrastructure.
As AI adoption accelerates globally, demand for servers and high-performance systems may help offset volatility in consumer computing, positioning Lenovo to navigate one of the most significant structural transitions in the tech sector.
