Lenovo (LVS) Cuts PC Shipments as Memory Shortage Drives Price Hikes and Restructuring

Lenovo (LVS) warned of mounting pressure on PC shipments as a worsening memory-chip shortage, driven by AI demand, squeezes margins and threatens production targets. The company has raised prices to offset surging memory costs and is accelerating its push into AI inference. Q3 revenue rose 18% to $22.2B, outpacing expectations of $20.6B, but net profit fell 21% to $546M, including a $285M restructuring charge. The $200M cost-cutting plan over three years aims to sharpen focus on AI inference, CEO Yang Yuanqing said.