“We continue to look at all of our programs every single quarter and evaluate what’s important,” Cato says. “We heard loud and clear from our partners through most of 2020 and into this quarter that they’re still in a position where they needed the extended terms.”
Lenovo expects continued growth in the fiscal year that begins April 1st, citing data from a Forrester Research survey it commissioned last year suggesting that 50% of corporate employees feel their current PC is out of date.
“As we go into 2021, and even over the next couple of years, I think this is creating an environment where it’s not just a PC for the home, it’s a PC for every person, and so what used to be the home PC now is each one of your family members has a PC and everybody at work has a PC,” Cato says.
The federal government’s recent COVID-19 relief law, he continues, will help keep sales strong too. “The $900 billion stimulus package will continue to fuel some of that growth as we go into the first half of, of 2021,” he says, “but even as we get into the second half of the year, we still believe that there is demand that will be needed in the marketplace.”
IDC expects global sales of notebook PCs to climb 3.2% this year. Cato foresees even greater growth for Lenovo specifically.
“Lenovo in this particular market is still number three,” he says. “We have aspirations to continue to grow our business and take market share, and so there’s opportunity for us even if the market is not growing at the levels that we were seeing last year.”