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Dialogue Yang Yuanqing: Lenovo successfully crossed the turning point and opened the full speed forward mode.

via:博客园     time:2018/8/16 14:43:15     readed:345


Wang Pan, author of the first line of Tencent

On Aug. 16, Lenovo Group (00992. HK) released its first quarter results as of June 30, 2018. In the first quarter, Lenovo Group's revenue jumped 19% to $11.9 billion, a record high for the same period, which meant that Lenovo Group's revenue continued to accelerate for four consecutive quarters. Meanwhile, Lenovo's pre-tax profits during the reporting period amounted to $113 million, up $182 million from a year earlier.

In an interview with Tencent's "Frontline" and other media, Yang Yuanqing said that the global PC market had warmed up in the last quarter, while Lenovo's growth was higher than the trend, so it achieved more than expected results.

Regarding Lenovo's mobile business, Yang Yuanqing said that Lenovo Mobile will focus on Latin America, North America, China and India, hoping to turn losses into profits as soon as possible. In the last quarter, Lenovo Mobile has seen significant growth in both North America and Latin America, and the Z5 handset released in China has outperformed Lenovo's expectations. In India, we want to regain market share.

Yang Yuanqing said that the main strategies of Lenovo's mobile business are: 1. Reduce costs, and be confident of reducing Motorola's costs to less than $1 billion this year; 2. Motorcycle will focus on the mainstream products, mainly on Motorcycle G and Motorcycle E; 3. focus on the core competitiveness of the market, on the one hand, North America and Latin America, Lenovo. Mobile is very good in North America, and now only Samsung and Apple are the two big brands, and Motorola just offers more choices, so Lenovo has triple-digit growth in North America; emerging markets, Lenovo will focus mainly on China and India, with different brands and product portfolios from North America and Latin America.

Yang also said that Lenovo's data center business grew nearly 70% in the last quarter and will continue to grow at a high speed in the next quarter.

The following are some of the answers to Yang Yuanqing's interview with Tencent's first line media.

Question: what is the trend of global and Lenovo PC shipments in the future?

Yang Yuanqing: Last quarter, the global PC warming, if from the sales point of view, is a positive growth, if from the turnover point of view, the growth is faster. Lenovo's growth is faster than the general trend, for example, in commercial PC, it is stronger than its competitors.

Question: where is the confidence of Lenovo Mobile to win back the India market?

Yang Yuanqing: In our future mobile business, Motorola will focus mainly on Latin America and the United States. Last quarter we surpassed the trend in Latin America and achieved three-digit growth in North America. We hope to turn MBG into a deficit.

Emerging markets, mainly China and India, are not competitive enough with Motorola's brand. At present, successful brands in China are all Chinese brands. In China and India, we need to have different products and strategies in Latin America. Motorola will be mainly located in the high-end market, Lenovo will focus on the low-end market, such a combination will help us improve competitiveness.

The Indian market is closer to the Chinese market. We will adopt a dual brand strategy in India. Motorcycles will focus on the mid-to-high end and off-line markets. Lenovo will focus on the mid-to-low end and on-line markets. We agree that this will be very effective. Online profit making consumers emphasize the cost performance, and give the channel providers enough profit margins under the line.

Question: the market is uncertain. Is the company expected to grow steadily in the second half?

Yang Yuanqing: we believe Lenovo has turned the corner of achievement. Our performance improvement will accelerate further, our good performance is not only a quarter, many quarters in the future you will see good results. Not only will our core PC and tablet businesses maintain double-digit growth, but our data center business will also maintain a 50% growth rate and turn losses into profits as soon as possible. We will focus on the Latin American, North American, Chinese and Indian markets and hope that MBG will turn losses into profits as soon as possible. With these three core engines, we believe that Lenovo's business will become better and better.

Revenue from services will grow further, which will lead to Lenovo's successful transition, with revenue of $460 million in the past quarter, the first time we've reported earnings.

Not only did we hand in good results from the last quarter, but we are confident that we will grow in both the current quarter and the coming quarters, whether it's sales growth or profit improvement. For example, data center business grew by 70%. We believe that this quarter will maintain almost the same growth rate.

Question: what is the progress of Lenovo Mobile in China?

Liu Jun (Executive Vice President and Chief Executive Officer of Lenovo Group): When we released our products last quarter, we released Lenovo Z5 products in an extreme way. After the release of the mobile phone, there are three main points of feedback: first, we are very approving of the positioning of this product, second, the product has been widely praised, the third shipment situation is far beyond expectations.

At present, we will do three main things: first, do a good job in mass production delivery, Z5 is still relatively out of stock; second, in October this year, we will release the next wave of products, its impact will be no less than Z5; third, rebuilding channels, online more easily restored, offline channels need some time At present, we are now immersed in the recovery of offline channels.

Question: why can Lenovo Mobile grow significantly in North America and Latin America?

Yang Yuanqing: There are not many choices for users in North America, mainly Apple and Samsung. Both North America and Latin America are dominated by operators who are eager for more choices. We took advantage of this opportunity to keep our sales growing, so we achieved near-triple-digit growth in North America and exceeded expectations in Latin America.

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