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Lenovo CEO Sees Growth for PCs Starting in 2021
May 24, 2020

​Despite, the Q1 results which were down 20% Y/Y and 31% sequentially, Lenovo chairman and CEO Yang Yuanqing expects the global PC market expand in the next 2-3 years as demand for notebooks and other PCs enabling work from home sustain momentum even after the pandemic eases, The company registered revenues of US$50.7 billion for the year, with net earnings surging 12% on year to US$665 million.

Table 1: Q120 PC Shipments, Share, Growth

Source: IDC

Yang stressed Lenovo's PC shipments which were up 8% Y/Y in 2019 despite the US-China trade rows and CPU shortages, offset by growth rates for all types of PC including slim notebooks, Chromebooks, gaming models and workstations, which were all higher than market averages,  Lenovo’s PC production was disrupted after the Chinese New Year holiday due to the coronavirus outbreak, but its supply chain partners have gradually resumed normal operations since the start of March. Even its handset production lines in Wuhan, the epicenter of the outbreak, have resumed 100% capacity utilization since the end of the month. Supply chain players have shown mixed views about how long the pandemic-induced demand for notebooks and other PCs will last. Martin Wong, president Compal Electronics - a Lenovo ODM partner - has said that demand for commercial notebooks will persist into 2021, but Quanta Computer and Wistron have both reported relatively low order visibility for the second half of 2020. Notebook components suppliers were even more conservative about their shipment prospects. Some said brand clients have softened their order placements since May, and some noted they have been told to slow down materials stocking starting in the third quarter to avoid high inventory levels.