Delhi Delhi: Lenovo will further diversify its supply chain and plans to open more manufacturing facilities outside China amid global geopolitical uncertainty, Chairman Yang Yuanqing said. Most of Lenovo's plants, the world's largest PC maker, These are in China, a common situation in the electronics industry that creates potential vulnerabilities as US President-elect Donald Trump is threatening to impose 60 percent tariffs on Chinese imports.
Yang told Reuters that while it is too early to predict the new US administration's policies, Lenovo has an edge over competitors in hedging such risks through its more diversified manufacturing base and sourcing strategy, as well as balanced regional revenue streams. Is achieved. While China remains its main manufacturing base, Lenovo operates more than 30 factories in nine different markets. Yang said the company plans to open facilities there in Saudi Arabia following a major investment deal with the kingdom's Public Investment Fund.
On Friday, Lenovo reported a 24 percent increase in its fiscal second-quarter revenue compared with a year earlier. This was partly driven by sales growth of computers that can handle artificial intelligence workloads as the global personal computer industry has shown signs of recovery. The Chinese technology company reported revenue of $17.9 billion for the quarter ended Sept. 30, beating analysts' expectations of $16.0 billion, according to LSEG data. Net profit reached $359 million, compared with analysts' estimates of $331.7 million. Lenovo's global PC shipments grew 3 percent to 16.5 million units in the September quarter, maintaining its 24 percent market share. Industry-wide, global PC shipments declined 2.4 percent from a year earlier, according to research firm IDC.
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