Lenovo (00992) enters the "fruit chain" and leverages greater space for high-end AI servers.

With the latest updates of Apple iOS 18.1, iPadOS 18.1, and MacOS 15.1, Apple is rapidly improving the AI capabilities of its devices. Industry experts say that this tech giant is just getting started and will be introducing more AI features. To support its ambitious AI strategy, Apple first sought help from Foxconn and Lenovo to establish a large AI server infrastructure to support the cross-device Apple Intelligence feature using its Apple M series chips. Apple realizes the need to enhance its data center capabilities to compete with tech giants like Microsoft, Amazon, and Google. While Foxconn has been a long-term iPhone supplier for Apple, its experience in producing AI servers for NVIDIA is particularly appealing to Apple. However, Foxconn cannot fully meet Apple's requirements, as Apple is seeking to enhance its server design and engineering capabilities, leading to Lenovo's involvement. This proactive approach highlights Apple's determination to catch up with competitors who are investing heavily in artificial intelligence infrastructure. Companies like Microsoft and Amazon have already begun building their own AI data centers to meet the growing demand for AI solutions, and Apple's accelerated progress reflects these trends. Lenovo will design and produce AI servers for Apple, making it a part of Apple's supply chain. This has quickly attracted market attention. Lenovo has been actively expanding its data center business in recent years, and this entry into the "fruit chain" undoubtedly opens up new growth opportunities for its high-end server business. Apple's supply chain system has long been known for its strict screening process, and being a part of it means that suppliers meet high standards in technical capabilities, quality control, and production capacity. Especially since this is Apple's first foray into AI servers, its requirements for partners are even more stringent. This collaboration undoubtedly highlights Lenovo's R&D and manufacturing capabilities in the AI server field. Compared to traditional suppliers, Lenovo's global production layout, end-to-end service capabilities, and the highest product stability in the world may be key reasons that attracted Apple. "From data centers to AI edge computing, Lenovo has been expanding its product portfolio in recent years, and this diversified capability aligns with Apple's future technology needs," an industry expert pointed out. The AI server market is experiencing rapid growth. According to market research firm IDC, the global AI server market is expected to grow at an annual rate of over 20% in the next five years. With the rise of generative AI, the demand for high-performance computing power in enterprises has surged, driving a substantial increase in the demand for AI servers. As a leading global technology company, Apple's demand for AI servers goes beyond hardware and involves deep optimization of software and hardware integration. Lenovo's involvement may be an important step for Apple to accelerate its AI ecosystem layout. However, for Lenovo, whether it can truly benefit more from this cooperation depends on whether it can expand other high-end customers through its collaboration with Apple. "Being an Apple supplier requires high technical and cost control capabilities," a supply chain analyst said. In the past, the "fruit chain effect" has significantly boosted the performance and market value of many suppliers. Companies like Luxshare Precision Industry and Lens Technology, for example, have seen a continued positive performance in the capital markets after joining Apple's supply chain. With Lenovo's entry into the "fruit chain," the market is eagerly anticipating its future market value growth potential. Behind this collaboration also reflects Lenovo's strategic choices in business transformation. In recent years, although AI PCs have brought the personal computer industry back to life, it is still a market of moderate growth until breakout applications appear, while AI, big data, and cloud computing are the main tracks for the industry's future. Lenovo's collaboration with Apple not only demonstrates its technical strength in the AI server field but also provides more possibilities for its positioning in high-value markets.