LENOVO Targets All PCs to Gear with AI Functions in 2027

　　Luca Rossi, head of LENOVO GROUP (00992.HK) -0.160 (-1.524%) Short selling $16.78M; Ratio 20.193% s Intelligent Device Group (IDG), told The Nikkei its plan to equip all new personal computers (PCs) with AI capabilities in 2027. When developing AI computers, Lenovo will consider the language, culture and regulations of each market and will cooperate with partners in different regions. In the China market, the group is working with BABA-SW (09988.HK) +0.350 (+0.472%) Short selling $162.96M; Ratio 23.013% .

　　Rossi said that the global PC market is envisioned to remain flat this year, and then start booming again in the next two years. It is estimated that Lenovo's growth will be between 5% and 10% next year, and about 5% in 2026. With more than 300 million computers already 3-5 years old, and Microsoft ending support for Windows 10 next year, demand for replacement of computers is expected to expand in the coming years.

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　　He continued that many consumers will purchase AI-equipped computers to replace their old ones. Although AI PCs make up for less than 10% of the overall PC market this year, they may reach 50% or 60% by 2026.

　　Currently, Lenovo's Motorola mobile phone business has improved its profitability thanks to strong performance in the Latin American market. Rossi said that the goal is to achieve double-digit growth in the smartphone business in the next 2-3 years. He believed that Europe and Asia will be the next growth markets, whereas Japan and India are likely to be the top priority markets, partly because these two markets see a greater demand for high-end phones.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-24 12:25.)

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