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Yang Yuanqing's performance anxiety: Lenovo's three major business revenue decline

via:博客园     time:2017/5/26 15:32:17     readed:1618

Lenovo's turnaround in 2016, but Lenovo's overall performance is not optimistic. The revenues of the group's three major businesses are on the decrease. Lenovo once again into an eventful year. For the first time in four years, Lenovo lost its PC global boss for the first time, while its smartphone business is not improving.

PC, mobile phone, data center business revenue fell PC, HP took the throne, Yang Yuanqing again will, looking forward to quickly revive results

Lenovo's turnaround in 2016, but Lenovo's overall performance is not optimistic. The revenues of the group's three major businesses are on the decrease.

Lenovo once again into an eventful year. For the first time in four years, Lenovo lost its PC global boss for the first time, while its smartphone business is not improving.

Lenovo has three major business income

In May 25, 2017, Lenovo released its full year results for the fiscal year 2016/2017, with an annual profit of $490 million before tax and $535 million in profits attributable to equity holders. Prior to Lenovo's net loss of $128 million in fiscal year 2015/2016.

Although realized losses, but the overall performance of Lenovo is not optimistic. The group's annual revenue was $43 billion, down 4% from a year earlier. Behind this, Lenovo's three major businesses are reducing revenue. Personal computer and smart device business revenue fell 2% to $30 billion 76 million. Revenues from mobile services fell 10% to $7 billion 707 million. Data center business revenue fell 11% to $4 billion 69 million.

Behind the decline in business revenue, Lenovo's two major business sales are also declining. Its PC sales last year fell 1% to 55 million 700 thousand units. Personal and tablet PCs totaled 66 million 600 thousand, with market share down 8%. Lenovo did not give smartphone sales data, said only 22% year-on-year decline, the market share fell 1.1 percentage points to 3.5%.

These data show that Lenovo with a loss in 2015, Lenovo once again into an eventful year. This time, Lenovo is regarded as the foundation of the PC business challenge, at the same time had been high hopes for the mobile phone business is still lackluster. These trends have been revealed more than a month ago.

Micro-blog returns to poetry

In April 12th, IDC released data, the first quarter of 2017, HP PC shipments of 13 million 140 thousand units, Lenovo shipments of 12 million 320 thousand units; HP's global market share of 21.8%, Lenovo 20.4%; HP PC market share of more than Lenovo, ranked first. Previously, since the third quarter of 2013 to the fourth quarter of 2016, Lenovo has maintained 15 consecutive quarters of global PC first.

After sitting on the throne of the global PC boss for more than 3 years, he was taken away by HP and a series of changes took place in lenovo.

After more than a month, 23:32 on May 15th, Lenovo Group, former executive vice president Liu Jun made a micro-blog: lying to the wind and rain, off the ice dream. It is the Song Dynasty poet Lu You "November 4th storm after two", the former two are

4 minutes later, Yang Yuanqing used his mobile phone Lenovo Moto Z forward Liu Jun micro-blog, and commented: by our armour, not broken. This is not the end of Kroraina is the Tang Dynasty poet Wang Changling's seven army "

The morning of May 16th, Yang Yuanqing announced that Liu Jun will return to the association in micro-blog, served as executive vice president and President of Chinese district leadership group, China platform and Chinese PCSD business. Tong Fuyao will serve as senior vice president and President of China group after.20 minutes, Liu Jun forward Yang Yuanqingwei bo,

Liu Jun was born in 1969, Beijing, nearly nine meters tall, likes to wear a sports pants and casual T-shirt, many people called him

Liu Jun has made several advances at the core of Lenovo's management. Lenovo's acquisition of IBM's global PC business, Liu Jun once from Lenovo Group COO position to leave, until October 2007 to return to lenovo. In June 2015, Lenovo officially announced that Liu Jun was unable to reverse the decline in mobile phone business, and now he is back again.

In May 19th, Liu Jun released micro-blog for Lenovo Yoga applauded, in May 24th, Liu Jun released micro-blog said,

Obviously, the veteran has done a small war preparations.

In PC, by mobile phone

Liu Jun graduated from the Tsinghua University in 1993 joined Lenovo, served as a computer desktop, consumer research, IT, planning departments, business executives and so on, in the 2005 acquisition of IBM PC business, as Chinese COO, senior vice president of global supply chain, global consumer business group president, and the acquisition of Motorola mobile, chairman of Motorola management committee. In the eyes of the outside world, Liu Jun was once called "legend number two" and was regarded as "Yang Yuanqing's successor".

Behind this title is Liu Jun's success on the PC battlefield.

Liu Jun has a lot of exclusive creation, he PC first proposed in the global market segments, creating a consumer and commercial computer computer from consumer computer and set up the brand, new millennium, let the home computer, personal computer is blue, blue and other bright pearl shell shell, including yoga PC, Liu Jun unceased.

Because of his remarkable performance in the PC field, Liu Jun was appointed to take charge of Lenovo's mobile phone, creating a new future for the group.

At that time, smart phones are still in the 3G era of customized pull operators, Lenovo operators in the channel has made great achievements, the development of rapid. During the peak period, Lenovo's 80%-90% mobile phone business relied on carrier channels. In July 2012, Lenovo smartphone sales completed beyond NOKIA, in the domestic market after Samsung, to the first quarter of 2013, its sales also maintained more than 200% growth.

In 2014, Lenovo took over Motorola's mobile business from Google at $2 billion 900 million, a year when Lenovo bought IBM

However, to the industry's surprise, the acquisition of moto did not bring 11

IDC data show that from 2013 to 2015, Lenovo Mobile Phone shipments in China market share declined year by year. In 2013, Lenovo China area accounted for 11.9% of the market share, ranking second; by the end of 2014, Lenovo smart mobile phone came in after, millet and Samsung ranked third, the market share of 11.2%, Lenovo in 2015, China area fell out of the top five rankings for the first time.

Yang Yuanqing criticized Lenovo's mobile phone division

Chen Xudong as Lenovo phone

Chen Xudong's dismal exit

Just as Lenovo's mobile phone business is on the decline, Chen Xudong is leading a new mobile phone brand ZUK. ZUK is Lenovo's Internet phone model by millet changes. In 2014, the ZUK project, in 2015, Lenovo affiliated magic workshop was established, the official operation of ZUK, Chen Xudong is the project leader.

When Chen Xudong was in a modular mobile phone is not listed on the show friends, Chen Xudong also shows the projection assembly cool features.

Chen Xudong took over the mobile business, put forward their own ideas: Lenovo Mobile Service biggest problem lies in

But Yang Yuanqing only gave him 10 months. As the mobile phone business continued to suffer losses, in November 2, 2016, Yang Yuanqing announced by internal mail, Qiao Jian took over Chen Xudong became Lenovo MBG business steering. Chen Xudong tends to be marginalised in the smartphone business.

There was a sign when Chen Xudong took over, when Yang Yuanqing said in an internal speech:

Liu Jun is in a better position

After Lenovo's global PC boss was taken away by HP, Yang Yuanqing quickly hired Liu Jun, an experienced PC business.

In a Lenovo insider, after Liu Jun took over lenovo mobile phone business, it is difficult to get out of the past successful experience. Lenovo PC To B is unrivaled in the world, by the end, large customers, distributors mode, and government relations are very good. And this experience, in today's customer oriented consumer market, may not work.

According to statistics released by AdDuplex as of May 22nd, Lenovo's HP and DELL slipped to third, using Win10 notebooks.

For more than a year after leaving Lenovo, Liu Jun spent time watching the project and investing in the United States

But before Liu Jun, did Yang Yuanqing have enough patience? Beijing News reporter Liu Suhong


A badly needed one

Since 2015, Lenovo has been a number of senior executives or run away, accompanied by Lenovo's frequent business restructuring over the past two years. Some commentators believe that the recent series of initiatives Lenovo, and its business predicament is closely related.

The debate surrounding Lenovo's dilemma has been avoided for more than ten years at the helm

Thirty years of age, stepped in

In 1989, Yang Yuanqing graduate, then joined Lenovo, became Lenovo's first batch of open recruitment of College students.

In less than four years, the state lifted the import licensing system for high-tech products and drastically reduced import tariffs on computers. A large number of foreign computers into China, Lenovo and other domestic PC manufacturers market share plummeted, facing an unprecedented crisis.

Chen Xudong recalls, Lenovo Group from 1984 to early 90s, business can be completed in early 1993 schedule, but failed to achieve, after Liu Chuanzhi of Lenovo internal staff made a substantial adjustment, and set up the computer division.

Yang Yuanqing, who was going abroad for advanced studies, was successfully retained by Liu Chuanzhi, becoming the general manager of Lenovo computer division and holding the power of R & D, production, sale and finance. In order to snatch the market and foreign brands, Yang Yuanqing decided to launch E series microcomputer cheaper, that year, Lenovo completed the sales target, the next few years, Lenovo computer sales Yang Yuanqing led almost every year to maintain the growth rate of 100%.

In the book <> and Lenovo, Liu Chuanzhi explained why, 30 years old Yang Yuanqing in a little accident An important juncture of life and death. Liu Chuanzhi was very impressed, he called Yang Yuanqing, said to send him to Hawaii to participate in HP's global agencies meeting. Yang answered:

Yang Yuanqing finally failed to disappoint Liu Chuanzhi, and also succeeded in building his own position in Lenovo, which was hard to shake. This time, Yang Yuanqing started

Now, Yang Yuanqing has not had a few white hairs in high and vigorous spirits of youth, also climbed up to his temples. As Lenovo's performance fell sharply in 2016, tensions and anxieties became a footnote to Yang Yuanqing.

Liu Ren describes Yang Yuanqing in the book ".Com> in China":

Self rescuer in the mire

Before Liu Jun's return, Yang Yuanqing had just learned a set of annoying data. According to IDC reports show that in the first quarter of this year, HP's PC shipments more than Lenovo has become the industry leader.

PC business has always been Lenovo special skills, is the main source of revenue. In this year's Lenovo global pledging conference, Yang Yuanqing had domineering that PC is Lenovo's core business,

The association missed the title, so Yang Yuanqing suddenly realized,

Lenovo's dilemma is not the only slide in the PC business. Lenovo sold only 4 million 700 thousand units in China in 2016, less than the fraction of the first OPPO mobile phone.

The smartphone business used to be Yang Yuanqing

Unfortunately, from the beginning of fiscal year 20152016, Lenovo has begun to suffer a continuous loss because of the mobile phone business, and Yang Yuanqing has therefore been questioned as

Yang Yuanqing announced Liu Jun's departure by means of an internal mail. It was interesting that he was Chen Xudong, who had recently left lenovo.

Yang Yuanqing frequently adjust the executives to convey two signals, first, he was second on the current business development is not satisfactory, and he did not give up the mobile business, hope that through coaching way to wake up the sleeping lion head that lenovo.

Why do mobile phone, Yang Yuanqing actually made many internal reflection, he believes that the mobile phone is not the same as with PC, mobile phone is really the product, the product is not good, what are not, rely solely on the market, it is impossible to guarantee the sales marketing.

Lenovo mobile phone business stalled, millet, HUAWEI, as well as many Internet mobile phone brands have found their own differentiation route. Although, Lenovo launched the VIBE, Le Meng sub brand, but the effect is not ideal, the final selection by Yang Yuanqing in vitro incubation way to realize the Lenovo Internet transformation, but unfortunately, a year after the return to the association ZUK.

At the World Conference on mobile communications in early 2017, Yang Yuanqing called out

Even if the criticism of the body, Yang Yuanqing still retains its own rhythm. He does not deny that Lenovo is experiencing some difficulties, but at the same time he believes that Lenovo is enough to help themselves. After all, this thing, as early as more than 20 years ago, he did it. Beijing News reporter Intern Cui Chenfeng Ma Jing

Science and technology, I said

The layout of the future, Lenovo and time to make friends

Whether Chen Xudong or Liu Jun, Lenovo does not give them too much time to change.

And Lenovo old chat, found that in 1999 Lenovo has been in the layout of the Internet, FM365 was a key idea of the Internet is very advanced, but because it has not brought forward cash flow, too much money and was abandoned. After Lenovo abandoned, Sina and other portals rise, and soon found a profit model.

History can not be assumed, but from FM365, to the PC business, and then to the smart phone business, you can see the performance of Lenovo anxiety.

To the outside world, Yang Yuanqing was a considerate gentleman. However, in the face of the saturation of the traditional PC market, mobile phone business has been losing money, Yang Yuanqing needs to prove himself.

For Lenovo, such a large enterprise, how to innovate is a particularly interesting topic. Industry watch Sina, Sohu occasion, micro-blog but with short video, such as deus ex encirclement, tour has become the main cash flow of Sohu.

Conversion from the Internet to the mobile Internet is not a time to destroy a thousand li a day, company, on the contrary, good companies and entrepreneurs can exactly find the value of time.

In this future war, Lenovo should have the courage and mind to be friends with time, give innovation time and motivation, and have an innovative assessment system besides the fault tolerance mechanism, performance and KPI single assessment index. So, Lenovo will not ageing.

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