What is Competitive Landscape of Lenovo Group Company?

Lenovo secured the top spot in the worldwide PC market in Q1 2025, shipping 15.2 million units for a 24.1% market share, an increase of 10.8% year-over-year. This performance extended its lead over the second-ranked competitor.

The company offers personal computers, tablets, smartphones, servers, and IT management software, serving both consumer and enterprise markets. Lenovo operates in over 70 countries and has a manufacturing footprint in more than 30 sites across 11 markets.

Lenovo is at the forefront of the AI PC category, exceeding its annual volume target for fiscal year 2024/25. This strategic emphasis aligns with industry trends and positions the company for future growth in advanced computing.

For fiscal year 2024/25, Lenovo reported a 21% year-on-year revenue growth to US$69.1 billion and a 36% increase in net income to US$1.4 billion. Non-PC revenue constituted approximately 47% of total revenue, highlighting successful diversification efforts.

Lenovo operates over 30 manufacturing sites worldwide, utilizing an 'ODM+ manufacturing model' and a 'global resources/local delivery model'. This extensive footprint provides significant flexibility and resilience, enabling rapid adaptation to market dynamics and supply chain disruptions.

The company prioritizes R&D, with expenses reaching US$2.3 billion in fiscal year 2024/25, a 13% increase year-on-year. This investment drives innovations in hybrid AI, including AI-enhanced PCs, which already represent a double-digit share of notebook shipments in China.

Lenovo benefits from strong brand recognition, particularly with its acquired brands like ThinkPad, known for commercial reliability. Its comprehensive product portfolio spans PCs, tablets, smartphones, workstations, servers, and IT management solutions, catering to a wide range of consumer and enterprise needs.

The company's 'end-to-end integrated global operations' enhance efficiency and competitive pricing. Strategic collaborations, such as the one with Cisco for integrated infrastructure and networking solutions, further strengthen its market position and ability to deliver advanced AI capabilities.

The personal computer market is experiencing a significant transformation with the rise of Artificial Intelligence (AI). AI-capable PC shipments are projected to exceed 100 million units in 2025, representing 40% of all PC shipments, and are expected to reach 205 million units by 2028, showing a 44% compound annual growth rate from 2024 to 2028. The demand for AI-powered laptops is anticipated to lead, making up 51% of all laptop shipments by 2025. Additionally, the end of support for Windows 10 in October 2025 is expected to drive a substantial PC refresh cycle, particularly in the commercial sector, boosting shipments by an estimated 4.3% year-over-year in 2025. The overall global PC market is forecasted to grow at a 9.1% CAGR through 2030, supported by hybrid work models and digital education initiatives.

While the AI PC trend presents a significant opportunity for Lenovo, the company also faces challenges such as economic uncertainty and geopolitical tensions, which could affect supply chains and pricing. The initial high cost of AI-enabled PCs is another hurdle, though prices are expected to decrease as the technology matures. Intense competition from established players like HP, Dell, and Apple, as well as emerging regional competitors, requires continuous innovation and strategic adaptation. Lenovo's ability to leverage these trends and mitigate risks will be critical for its continued leadership.

Lenovo is implementing a 'hybrid AI strategy' that includes ongoing investment in R&D for foundational AI technology and agentic AI breakthroughs. The company is integrating AI across its key offerings, such as Digital Workplace Solutions, Hybrid Cloud, and Sustainability solutions, while also expanding its AI-driven application ecosystem and developing AI super agents. Strategic partnerships are vital for accelerating digital transformation and expanding global reach, including diversifying manufacturing footprints in regions like the Middle East and Africa. The 'Lenovo 360' partner journeys are designed to streamline partner access to its AI, data management, and education portfolios, creating new revenue streams.

Lenovo's outlook in the competitive landscape appears positive due to its proactive stance on AI adoption, a diversified business model, and resilient global operations. The company's focus on innovation and strategic partnerships, as detailed in its Growth Strategy of Lenovo Group, positions it well to capitalize on emerging market opportunities and address future competitive challenges. Its ability to adapt to evolving consumer and enterprise demands will be a key determinant of its sustained market leadership.