Lenovo was able to raise PC prices despite having annual memory inventory reserves

Chinese giant Lenovo is setting prices amid a memory crisis

Lenovo, the world’s largest supplier of ready-made personal computers (PCs), has a more resilient position in the face of the memory market crisis than many competitors thanks to its experience and scale. Nevertheless, even with memory inventories for the entire current year, the company is forced to raise prices on its own devices.

Earlier Reuters reported that Lenovo CEO Yang Yuanqing announced PC price increases as a way to partially mitigate the impact of rising memory costs. According to him, PC sales may face pricing pressure, but the company believes it can increase revenue and maintain profitability.

Financial results for the last quarter
* Revenue grew 18 % to $22.2 billion.
* Net income fell 21 % to $546 million. Part of the decline is due to one‑time write‑downs of $285 million related to restructuring. These expenses are planned to be reduced to $200 million over three years.

Excluding the one‑time write‑downs, adjusted net income rose 36 % to $589 million.

Profitability by segment
Segment Revenue (growth) % of total revenue PCs and smartphones +14.3 % ~70 % Digital infrastructure (servers, AI) +31 %
The digital infrastructure sector ended the quarter with an operating loss of $11 million due to active investments in its own AI infrastructure. However, revenue from AI servers grew by about twenty percent, confirming rising demand.

Growth strategy
Lenovo forecasts that the capacity of the server AI‑infrastructure market will triple by 2028. The company is already shifting investment from model training to inference (running already trained models) to respond more quickly to customer needs.

Thus Lenovo maintains its leading position in PC and smartphone sales but must adjust prices due to rising memory costs. At the same time, it continues investing in AI infrastructure, expecting significant demand growth in the coming years.