Neglect and domestic PC: Lenovo is too large ridge need fupan what?

Recently, Lenovo's market performance for the year unsatisfactory, chairman of Legend play baby games Holdings, Lenovo Group Lenovo founder Liu Chuanzhi thrown facing the development of the fourth channel in view of the large ridge of the new Lenovo 2016 Annual Meeting speech, and that the fourth channel large ridge still able to live. So the fact that really the case? Recently, Lenovo's market performance for the year unsatisfactory, chairman of Legend Holdings, Lenovo Group Lenovo founder Liu Chuanzhi thrown facing the development of the fourth channel in view of the large ridge of the new Lenovo 2016 Annual Meeting of speech and association have been crossed before The three big bucket, for example, that the association previously had a three Kaner, after careful even painful recovery disk summary, finally took out the method, with a big breakthrough, but also points to a new height, so this article four large ridge is still able to live. So the fact that really the same as Liu Zong said three banks and through it before? Lenovo or thought about it for a fourth hurdle, exactly what the recovery disk? Here, we might first look Liu Chuanzhi said Lenovo had had three big Hom. The first threshold in 1994, foreign brands inroads into China, local brands almost the whole army collapsed, the association set up a computer business unit, headed by Yang Yuanqing, broke through this ridge; the second is in the late 1990s, Dell The direct model "landing" China, Lenovo with war three years once mouthing, until the end of 2004 and finally to win the dual mode of marketing; the third is the Lenovo acquisition of IBM PC brief loss, back to achieve a breakthrough. In fact, these three banks in the process than ever before Lenovo Liu Zong put much more complex and difficult. Here we do not need to repeat them, we just want to say is that the association of these three banks had played two most important factor is PC and the Chinese market. Especially in the third over Hom in Lenovo, Lenovo's Liu return the focus will turn to the PC market, Lenovo China market from overseas, not only saved the prevailing Liu Chuanzhi said Lenovo has been at the precipice PC (equivalent to Lenovo), and Later in the aspirations of its global PC market and lay a solid foundation. So today, the association of these two factors on how well it? Lenovo mention unsatisfactory performance, most commentators agree that Lenovo Mobile (mainly referring to smartphone) poor performance dragged down the association, but no one knows, need to integrate acquisitions, integration takes time. All this require still occupy 70% of Lenovo's revenue and strong support close to 100% of the profits of the PC business, but the market performance over the past year, Lenovo's core PC business is not ideal. Maybe someone here (including Lenovo) will argue, Lenovo PC business should be the most healthy, how will the performance is not satisfactory? Here we may recall that at the time under Lenovo's business performance in 2014 of the PC. In 2014, sold 60 million units Lenovo PC, an increase of 8.4 percent, based on this, the association has developed sales of 70 million sets of PC in early 2015, the global market share reached 23 percent of target. But by the end of last year, according to IDC and Gartner statistics play baby games about Lenovo's PC shipments in 2015 was only 57 million units, year on year decline of 3.6% and 3.1% of the global market share of 20.7% and 19.8%, not only did not complete Year sales of 70 million units of the target (only completed about 80 percent), even worse than 2014 sales. Decline in sales, resulting in the first half of last year, Lenovo PC revenue fell 9%, at the same time, Lenovo's revenue in the past three quarters was significantly lower year on year; the rate of change in pre-tax profits have been declining in the past two quarters More negative growth, such as pre-tax profit in the third quarter 2015 fell 16.8 percent; pre-tax profit margin of 5.6 percent from a year ago to gradually decline to 5 percent. That is, as the core business of Lenovo's PC business in the past year, not only decline in sales, revenue, profit margins are also in decline, and that this is the first negative growth in Lenovo PC in the case of PC trend lower. To know Previously, Lenovo PC sales and revenue is not only growth, but also basically double-digit growth, which only shows that Lenovo after the acquisition of Motorola's mobile and IBM x86 server business to neglect the PC market competition. Decline in sales, bringing the revenue decline. Over the past three quarters, Lenovo PC revenue fell significantly; the rate of change in pre-tax profits declining in the last two quarters of negative growth is the pre-tax profit in the third quarter 2015 fell by 16.8%; EBIT margin from a 5.6% historical gradual decline to 5 percent. And according to Lenovo for Motorola's mobile integration process, at least in its effect to become apparent in 2017, president of the mobile business (Lenovo Chen Xudong at CES accepted the media interview, he said Lenovo mobile phone business to make adjustments at least until 2017 to be effective). This means that in the past two years, is still the core of Lenovo's PC, not only related to the association's revenue and profit, more things related to restructuring of success. Some might say this, PC industry running out of space, the association again how hard vain, this really true? According to statistics, there are 500 million sets worldwide use for at least five years old PC is still in use, while in China the figure was 55 million units, of which 30 million consumer notebook, business desktop PC 2500 million units, the use of more than four years The PC to reach 150 million units, the use of more than six years, PC has reached 30 million units. According to IDC PC average life cycle of computing, desktop is 6.5 years, the notebook is 4.5 years. It seems the PC market, especially in China's PC market space is still there, to see how Lenovo's PC business, and look at how to fight the. In addition to neglect PC business, in the marketing strategy, Lenovo also has ignored the Chinese market wrong. For example, in the smart phone market, according to Lenovo shipped 70 million last year calculated that the smart phone shipments in the domestic market, at best, at around 30 million. Because, according to market research firm Strategy Analytics recently released 2015 report shows that China's smart phone shipments OPPO No. 5 was 33.2 million, while the association did not enter the top five. Indeed Lenovo mobile phone business is currently 70% came from overseas markets. In contrast, sales in China last year for the first time breaking 100 million mobile phone manufacturers Huawei its Chinese market still accounted for 60 percent, while millet shipments of 70 million in the domestic market basically to be seen, although the industry believes that China's smart phone market growth slowdown and fierce competition, but based on a large user base, the market space is still there. Of course, we are not here to deny association main overseas market strategy, but had served as the Chinese smartphone market, second only to top-ranked Samsung Lenovo Why give up the domestic market to competition it? In addition, since 50% of Motorola's mobile main overseas markets are from South America and other emerging markets, while emerging market handset prices low (according to Chen Xudong said, the price of mobile phones in emerging markets is only 100 US dollars), Lenovo revenue and increase profits is rather limited, compared with last year, Huawei, Vivo, OPPO and other models in the 2000-3000 yuan have increased shipment volume to see, even from the perspective of the value of revenues, profits, the domestic market is not necessarily play Frozen Games inferior to overseas markets, especially the main association of overseas emerging markets. It is because of lax Chinese market, leading Lenovo's income share in China from 37% to 27%, pre-tax profit growth rate from more than 15% reduction by more than half over the last two quarters of decline of up to 18% and 11.8%, pre-tax profit in the first quarter of 2015 declined sharply by 21.2% year on year change in the latest quarter, pre-tax profit (excluding restructuring and one-time expenses) decreased by 37.6% more, pre-tax profit also fell by 29.3%. In order to prove the importance of the Chinese market, we are here to introduce the industry association for the analysis of the domestic PC market, supplemented, if that is the domestic PC sales price fell 10% or 20%, Lenovo's pre-tax profit fell by 26.4% or 52.8%; if Lenovo's PC shipments in China fell 10 percent or 20 percent, the company pre-tax profit fell by 13.2% or 26.4%. It shows the importance of the Chinese market for Lenovo. In summary, we believe that the reason why the association over the previous three Hom, precisely because the PC and the Chinese market, and today's decline is because ignoring these two key factors. So if the thought of the future of Lenovo to fourth hurdle, then, for the PC business and the need to re-market recovery disk, combined with their actual PC and to develop strategies and tactics of the market, it will not only be difficult over the ridge, there are likely to become associate The "Waterloo."