Lenovo Plans to Open More Manufacturing Facilities Beyond China

Lenovo's Chairman Yang Yuanqing stated that they plan to further diversify their supply chain and open more production facilities outside of China in response to the current global geopolitical uncertainties. Most of Lenovo's facilities, the world's largest computer manufacturer, are located in China. Yang mentioned to Reuters that while it is still too early to predict the policies of the new U.S. administration, Lenovo's more diversified production base and sourcing strategies, alongside balanced regional revenue streams, give them an advantage over competitors in mitigating such risks. He also indicated plans to open a facility in Saudi Arabia following a significant investment agreement with the Saudi Public Investment Fund.

In the quarter ending September 30, Lenovo reported revenue of $17.9 billion, exceeding analyst expectations of $16.0 billion. Net profit reached $359 million, compared to analyst forecasts of $331.7 million. Lenovo's global PC shipments rose 3% in the September quarter to 16.5 million units, maintaining a 24% market share. According to IDC, global PC shipments across the industry fell by 2.4% year over year.