Lenovo anticipates a surge in demand within the PC segment during the latter half of the year, fueled by the integration of artificial intelligence (AI) features and the anticipated upgrade to Windows 11 in their products. Shailendra Katyal, Managing Director at Lenovo India, highlighted this outlook during a media roundtable held on Wednesday, according to a report by Financial Express.
Katyal emphasised the significance of AI-driven enhancements in driving demand, particularly within the commercial PC market. With the annual revenue in India totalling $2 billion, PCs contribute a substantial 54 per cent to Lenovo's overall revenue. Notably, Lenovo's performance in the Indian market surpassed global benchmarks, even outpacing markets like Japan.
The observations by Katyal come against the backdrop of a tepid performance in the PC market in 2023, marked by flat sales according to industry analysts. Despite the subdued market conditions, Lenovo maintains its position as the second-largest player in the segment with a commendable 17 per cent market share. Katyal attributed the recent slowdown in this sector 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 tech giant is also banking on on-device generative AI functionalities to drive productivity among users and enterprises. These features, including Microsoft Copilot and instant translation, promise lower latency, reduced power consumption, and enhanced code execution speed.
Luca Rossi, President and EVP at Intelligent Devices Group (IDG), Lenovo, envisions a landscape where 70 per cent of devices would be AI-native within the next two to three years. He emphasised the gradual integration of AI capabilities across Lenovo's product roadmap, with an initial focus on the premium segment, while speaking with PTI.
Meanwhile, Lenovo is along the 27 companies eligible for for IT hardware production linked incentive (PLI) scheme in India. The company has manufacturing facilities in Puducherry and plans to also expand the production capacity of Motorola phones and laptops.
Matthew Zielinski, the company's executive vice president and president for the international market, stated that the tech company also plans to produce servers in India.