Lenovo set to benefit from increased demand for PCs and IT infrastructure in post-pandemic world
- Lenovo reported a 64 per cent year on year drop in profit for its fiscal fourth quarter ending March 31
- Revenue slid to US$10.6 billion from US$11.7 billion in the same period a year earlier
China’s Lenovo Group, the world’s largest PC maker, said on Wednesday that the company is ready to benefit from a “new normal” in the post-pandemic period as companies around the world beef up their IT spending to meet a surge in demand for teleworking.
“We are seeing many of our customers increase their spending on IT infrastructure,” Yang Yuanqing, Lenovo’s chairman and CEO, said during a conference call on Wednesday, adding that remote working, e-commerce, online gaming and tele-health could help increase demand for the company’s PC and smart devices.
The coronavirus outbreak, which has spread to 216 countries and regions and killed more than 310,000 globally, has forced millions of people to work from home after workplaces were shut down to limit the spread of infections.
Some of the biggest US tech firms including Amazon, Facebook and Google have extended their work from home policies while Twitter was reported to be allowing most of its global employees to work from home indefinitely.
Yang said the increased demand for IT infrastructure could last over a long period as companies ramp up their digital transformation amid Covid-19, which would be a boon for Lenovo’s businesses such as servers, storage systems, software and services.
“No matter whether it’s [about using the] public cloud or private cloud, you need to add [IT] infrastructure to meet work-from-home requirements,” he said.
