On May 26, lenovo group earnings release, as of March 31, 2016, the group's annual income of $44.9 billion, down 3% year on year. A net loss of $128 million. In 26 evening performance report, although lenovo group chairman and CEO Yang yuanqing very optimistic about prospects, but he still has to face the PC and mobile phone at the moment the situation of both landslide.
According to the results, according to the 2015 fiscal year, lenovo PC sales fell 6% to 56 million units, the market is down 12% year-on-year. And global smartphone sales fell 13% year-on-year, sold 66 million units. At the same time, lenovo in the global smartphone market share fell 1.1% year-on-year, to 4.6%.
Lenovo's purchase of MOTOROLA in 2014, and earlier this year, lenovo's high-profile declared its independence had cell phone brand ZUC return to lenovo. If, under the condition of weakness in the global PC market, lenovo can rely on solid foundation king, so lenovo in smartphones have also slightly tired legs, back to the market, a new mode of thinking and new channel change, for lenovo slightly heavy, really hard.
According to the latest results, lenovo's mobile business while in Europe, the Middle East and Africa shows strong momentum, and the rose by 83%, and the asia-pacific region sales rose 96%, but poor performance in mature China and North America market, especially in the domestic market, only sold 15 million mobile phones. Mr Yang said lenovo mobile in China last year dropped a lot, mainly is the result of the adjustment.
Lenovo's mobile business is facing transition. Since the 2014 acquisition of MOTOROLA for MOTO integration process is always slowly. Last September, join lenovo MOTOROLA launched the first mobile phone Moto X Stye, lenovo group, senior vice President, mobile business co-president, Chen said that the two sides in the integration of organizational level has been completed, but there is still a need to integrate system upgrade, etc. That is mainly the integration of information systems. The integration of information system in fact is not easy, also the lenovo acquisition of IBM's PC business, for the integration of information systems for seven years.
In addition, lenovo mobile business in China market channels and positioning of the shift. In terms of channels, for a long time, from 80% to 90% of the lenovo mobile phone business in all rely on operator. Mr Yang said that the three operators have three formats, each require mobile phone customization, and low-end products, so lenovo has been unable to make a good product.
Lenovo mobile business is from operators low-end products to high-end products in the adjustment, and the lower part of the music mobile phone will be pure online operations, so walk quantity scale appear sharply is lenovo must go through the pain. At the same time, because of long-term severe since operators, lenovo in Internet channel system, or don't have advantage in the retail market, so the priority is to start to build a complete retail market channel system and further deepening and the integration of the Internet. As a result, lenovo's mobile business equals are cracking down on reshaping.
But careful observation can be found that whether the domestic market and the reshaping of the lenovo mobile. At present, the lenovo mobile phone layout, lemon positioning in one thousand yuan of low-end machine, ZUK's positioning in mainstream mid-range price of 1500-2500, while the corresponding Moto high-end market in more than 2500. Domestic mobile phone market is already a sea of deep red. In one thousand yuan machine, millet and meizu first, and in the high-end market, has headed by huawei, OPPO, vivo subsequent legion, the Internet and 360 Letv and cool is in the way. More cruel reality is, as a result of smart phones the downward trend in overall shipments are synchronous, so lenovo want to be easy to break.
Yang yuanqing said in the earnings announcement, lenovo will resolutely abandoned the past in the operators in the future market more low-end products, with better products and more deeper channels to cope with competition.
"We are not in a decline in sales or market share drop. Everyone can see it as a restart of the signal. We wish to make full use of ZUK in the past to establish a good business model, to develop products for customers. I'm bullish about China's development." Mr Yang said.
