Recently, Lenovo Group released its fiscal first quarter earnings report for the fiscal year 2017/18 as of June 30, 2017. The financial report shows that Lenovo's net loss for the quarter was $72 million, the first loss in six quarters, while analysts estimated a net profit of $32.9 million.
According to the financial report, for the three months ended June 30, Lenovo's consolidated revenue fell 0.4% year-on-year to US$10.12 billion, and gross profit fell 11% year-on-year to US$1.365 billion.
According to the business segment, Lenovo Group's PC and smart device business revenue increased by 0.2% year-on-year to US$7.05 billion. Revenue from the mobile business increased 2% year-on-year to $1,746 million. Revenue from data center business decreased by 11% year-on-year to $971 million, and other goods and services revenues were $290 million. Affected by the financial report data, as of 11:08 on the 18th, Lenovo shares fell 3.39% to 4.56 Hong Kong dollars.
Just in July this year, Yang Yuanqing said at a press conference to increase online sales, so that Lenovo's annual income will increase by 12 billion US dollars within three years, otherwise it will resign from the CEO position and said: "I don't want to resign, I am confident that we are You can accomplish your goals without worrying about it. Shareholders should be more patient. If you want to see the results, be patient."
As everyone knows, the PC industry has become thin and hard, and it is difficult to generate large profits. In the mobile phone industry, Lenovo has changed from China Coollink to a mobile phone manufacturer that is almost negligible in China.
Compared with the sale of 15 million mobile phones in China in 2015, Lenovo’s performance in the Chinese market fell directly by an order of magnitude in 2016. It sold only more than 3 million mobile phones, and its sales ranking has already reached 10, and its performance has not even caught up. 360 mobile phone.
The PC and tablet business has been Lenovo's most important source of revenue, accounting for about 70% of total revenue. According to Lenovo's earnings report, due to parts shortages and rising costs, the total sales of personal and tablet PCs fell 7% year-on-year to 14.5 million units in the second quarter of June, while the market fell 3% year-on-year, with revenues unchanged at $7.05 billion. Profits fell 21% year-on-year to US$291 million.
In order to maintain Lenovo's strength in the PC field, Lenovo also retrieved Liu Jun, who was responsible for the mobile phone business, to lead his Chinese PC business. In addition, Lenovo is also cooperating with JD.com to promote its annual online sales revenue to reach 80 billion yuan within three years.
In the mobile phone section of “Difficultâ€, Lenovo’s Motorola brand still faces many difficulties, with sector revenue accounting for 17% of the total. According to the financial report, the revenue of the mobile business increased by 2% year-on-year to US$1.746 billion. The pre-tax operating profit margin increased by 2.2 percentage points year-on-year. However, if the non-cash expenses related to mergers and acquisitions were excluded, the pre-tax operation still suffered a loss of 1.29. One hundred million U.S. dollars.
PC and server business integration, which affects performance?The financial report shows that Lenovo's data center business revenue decreased by 11% year-on-year to 971 million US dollars, the reason, Lenovo executives attributed it to the company's over-integration. According to related media reports, Lenovo executives admitted that the company's excessive integration of PC and server business led to a decline in sales of x86 server business acquired from IBM.
In the last cycle before IBM divested x86 servers, the company's server revenue was $2.33 billion. In the first quarter of 2017, IBM's server revenues still reached $831 million, and Lenovo's $731.5 million. Subtracting IBM’s previous revenues to Lenovo’s and IBM’s current revenues yielded a difference of approximately $750 million.
Rod Lappin, senior vice president of global sales and marketing at Lenovo, explained that the company had let the existing PC sales team be responsible for selling servers, hoping to take advantage of the PC sales team to capture the market, but the fact is that PC sales staff Did not have the right skills or contacts, so that the company did not have the right dialogue with the right people. This has led to a decline in sales to a certain extent. After the reorganization, Yang Yuanqing said that Lenovo's data center business now "shows some signs of stability."
Previously, Lenovo Group unswervingly implemented the “three-wave strategy†to maintain its mobile business and data center business while maintaining its PC. Especially in the third wave of strategy, that is, the third wave of infrastructure + cloud, equipment + cloud driven by artificial intelligence, Lenovo will invest 1.2 billion dollars in the next three years to ensure its success.
Earlier, Lenovo Chairman and CEO Yang Yuanqing said: "If Lenovo did not think about transformation, today can hand over a very beautiful transcript, PC product line earns more than one billion dollars in the year, can be comfortable. But only With the transformation, Lenovo Group can be sustainable and have a place in the future AI battlefield. Lenovo has never hesitated and hesitated. The current strategic direction is very clear, and must not be blinded by short-term financial data. It is a company with a future and is a leading company in the era of artificial intelligence."
For Lenovo, Yang Yuanqing is often a respectable brother.Yang Yuanqing is a representative of the Chinese IT industry. In 2001, he took over from the hands of Liu Chuanzhi and began to take the helm of Lenovo. In 2004, leading Lenovo's acquisition of IBM's personal computer business, this snake swallowing merger made Lenovo become a symbol of Chinese companies' internationalization. In July 2013, Yang Yuanqing won the peak of his career, because Lenovo became the world's largest personal computer supplier. For more than a decade, under the leadership of Yang Yuanqing, Lenovo has been an international company with operations in more than 160 countries around the world.
In fact, Yang Yuanqing’s challenge to himself is not from now on. From the first day he entered Lenovo, the challenge seems to have not been broken. In 1989, the 25-year-old Yang Yuanqing entered Lenovo's work. However, his first job as a high-school student graduated from the University of Science and Technology of China turned out to be sales.
The unyielding character makes Yang Yuanqing, who is obscured, gradually gain a foothold in Lenovo. In 1994, Lenovo established the Microcomputer Division headed by Yang Yuanqing. In that year, foreign brands entered China in a big way. Yang Yuanqing withstood the pressure and made Lenovo a unique domestic brand. Yang Yuanqing was hailed as a “sales wizardâ€. Also let Liu Chuanzhi look at him. In 1996, Lenovo's market share in the Chinese market exceeded that of many foreign giants, ranking first, thus establishing Yang Yuanqing's position in Lenovo.
In November 2015, Lenovo, headed by Yang Yuanqing, handed out a quarterly financial report with a huge loss of 714 million US dollars. This is the first time in a single quarter of Lenovo's losses in the past six years. Many people attribute the huge losses to Lenovo's acquisition of Motorola Mobility. Many insiders believe that "this is a loss-making business."
Yang Yuanqing said, "For Lenovo, I think that whether we buy Motorola or we buy IBM servers, it is in line with our strategic requirements. Why do we want to do mergers and acquisitions like Motorola, because it is a scale industry to do mobile phones, The biggest bottleneck now is the bottleneck of patents. If we don't buy Motorola, we have made an assessment. We have to pay more than 20% of the patent fees to third parties. We question our loss in the third quarter of last year, but I think I can imagine this loss. You have to lay off employees in the United States, you have to transfer some of the functions to China to integrate with these teams in China. You lay off employees in the United States, and you have to pay compensation for an employee."
In the past few years, in the personal computer business, Lenovo has maintained its global dominance, and the mobile phone business ranks fourth in the world. However, in China, the performance of Lenovo's mobile phone business is not optimistic. It once ranked second in the Chinese market. Now, they have been overtaken by latecomers such as Huawei and Xiaomi.
For Lenovo, Yang Yuanqing said, "I think we are still the Internet, the mobile Internet industry is good, the pioneer of the times, but then we may not do Baidu, not Ali, not Tencent, we are doing Lenovo, we are In the era of the Internet, the personal computers we provide are very suitable for the use of Internet users. We also provide easy-to-use smart terminal products in the era of mobile Internet."
It is said that under Yang Yuanqing's work, the subordinates often feel a little nervous. Because Yang Yunqing is very strict, even a little iron-faced. In 2015, because Lenovo's mobile phone business has not improved, Yang Yuanqing was so hot that a mobile executive who had been fighting with him for many years was eventually replaced.
In the eyes of Lenovo's young employees, Yang Yuanqing is often a respectable brother, they can call him "Yuan Qing" directly. For Lenovo's management, "Yuan Qing" often seems less cordial. It seems that he is very strict and he is said to be quite harsh. It is shocking to launch a fire.
5000 Puffs Vape,Puff Plus Puff Bar,Posh Puff E-Cigarette,Disposable Puff Series Vape Pen
Guangzhou Yunge Tianhong Electronic Technology Co., Ltd , https://www.e-cigarettesfactory.com