Recently, Lenovo Group released second quarter earnings in 2017, the report shows Lenovo PC business profit reduction of 21% to $ 291 million; mobile phone business loss of $ 129 million; data center business loss of $ 114 million, Lenovo Group's consolidated revenue fell 0.4 % Of the company's net loss of $ 72 million, which is already the second time since 2015, Lenovo fell into a loss. Insiders believe that Lenovo this time the loss may be sustained.
Affected by the loss, Lenovo shares fell continuously, the Internet's criticism, analysts bearish, has been overwhelming. "International Finance News" also shouted "Lenovo score minutes to play face, Yang Yuanqing is not far from the resignation? & Rdquo ;.
Lenovo mobile phone lost to Huawei, the computer lost to HP, and once again into a loss of quagmire, Lenovo what happened? Lenovo can also be back to life?
In the field of personal computers, Lenovo has a ride away, and now its share is still the world's first. But in the IT hardware terminal "mobile terminal" today, Lenovo in the mobile business and no advantage. Whether in the international market, or in the domestic market are so.
Lenovo is China's IT hardware giant in the few companies located in Beijing, in the field of mobile phones have been tied in the "China Cool" and the four brands, ZTE, Huawei, Cool three far in Shenzhen, and only Lenovo is located in Capital Beijing.
In addition, the high-level corporate network of senior contacts and super prestige, but also decided that Lenovo is bound to ease in many areas. Lenovo founder Liu Chuanzhi known as the whole of China's business community godfather character & mdash; other big brother, such as Wang Shi can only be called a field of "Godfather". In the eyes of many people, it seems that only Ren Zhengfei and Liu Chuanzhi side by side.
This kind of "geographical advantage" and "ldquo; prestige advantage" can be transformed into real productivity. In fact, regardless of the personal computer's government orders, or smart phone operators custom, Lenovo is far more than competitors. In China's three major telecom operators customized mobile phone market, Lenovo market share long ranked first, which in China Mobile's performance was particularly evident.
But with the industry changes, this advantage will be instantly transformed into a disadvantage. Cheng also Xiao He, defeated Xiao He. Because, too dependent on the operators, will inevitably lead to the construction of social channels to ignore, as well as the lack of investment to create a brand.
The greater negative effect of the customization of the operators is the depth of the brand & Lenovo brand in the field of mobile phones far less than in the field of personal computers, so it has been in the process of creating a brand. In this process, customization allows manufacturers to directly face the consumer, hinder the growth of its brand. So, Lenovo mobile phone is far less famous than Lenovo computer.
The more critical point is that the operator customization stressed that the number of users must attract enough users is the operator's primary strategy, which means that the direction of the main machine must be low-cost machine, which will hinder manufacturers of high-end machine development Of the investment, but also easy to form a brand in the minds of consumers "not inflow" and the impression.
Ultimately, its brand is easy to stay in the low-end market & ldquo; in-place & rdquo ;. With the millet and so on, the rise of the mobile phone brand, the low-end mobile phone market is divided into a lot of share.
It can be seen that in the smartphone era, Lenovo has not been able to replicate its advantage in the sales era of the PC era. Among them, there are subjective reasons, but the objective reasons are also very important. Because, in the world IT hardware industry changes in the pattern, personal computers and smart phones two products, already have a completely different competition model.
Mobile phone does not work, PC fell, of course, Lenovo was thrown off the first, more because the opponent becomes stronger. Hewlett-Packard, for example, in order to win back to the original market share taken by Lenovo, HP began to focus on research and development and innovation. In order to cater to the young groups, the introduction of thin and light notebooks and gaming notebooks, a rejection of old and conservative ideas and shapes.
In fact, HP targeted the Chinese consumers, specifically hired a local star spokesperson. And innovation at the same time, is more quality after-sales service, and the past can be said to be completely different. However, Lenovo has become the first, the attitude becomes arrogant and conservative, in the face of market changes, it stubbornly insisted.
In addition, the original "l" with the acquisition of the current Lenovo complain bitterly. The acquisition of Motorola and IBM dragged the Lenovo hind legs.
According to Bloomberg News, Lenovo needs to repay $ 3 billion in debt by 2020. While Motorola and IBM did not give Lenovo to bring sustainable and considerable profits. Lenovo combined with Motorola launched a modular mobile phone in China's mobile phone market is almost no water, and sales are far behind Huawei, millet and VO behind, in the hearts of young consumers, Lenovo's mobile phone is almost equal to not exist.
While IBM's server business did not bring up sales. Even in Rod Lappin, Lenovo's senior vice president of sales and marketing, the over-consolidation of servers and PC business is the main reason for the decline in PC business.
Lenovo's busy in the acquisition of the monster from the acquisition, its competitors are lightly packed, polished his most sharp spear, began to attack.
Huawei and millet in China after the success of the smart phone market, have to go out of the country, Sword India, which will have Lenovo attack potential, coupled with Samsung and Apple, Lenovo's market share in India also maintained very difficult.
Lenovo in recent years, the development is quite ring true, the development of mobile phones did not pick up, even dominate the notebook business for many years with the first gap widening farther.
Recently, the market research firm TrendForce sent statistical reports show that the second quarter of this year, notebook shipments, HP continued to remain the first, shipments reached 9.25 million units, the market share of 23.4%, 8.5% increase over the first quarter. Ranked second in the Lenovo, the second quarter shipments of 8.05 million units, the market share of 20.1%, compared with the first quarter grew by only 0.3%, while in it after Dell, Asus and Apple performance is also very good, the growth rate Are about 10%.
Lenovo's PC business has just lost the world's largest PC brand position, replaced by HP. In fact, the first quarter, there are institutions that Lenovo has been HP's take the world's largest PC brand position, the majority of institutions in the second quarter agree with this conclusion, the loss of this position for it is obviously a considerable blow.
PC and tablet PC business has been the most important source of revenue for Lenovo Group, accounting for about 70% of total revenue. According to the Lenovo earnings report, by the shortage of parts and costs, to the end of June the second quarter, its personal and Tablet PC total sales fell 7% to 14.5 million, the market fell 3% year on year, revenue year on year, to $ 7,050,000,000 , Profit fell 21% year on year to $ 291 million. The current Lenovo group can be described as embattled.
Dragged down by overseas acquisitions
Lenovo problems in the blind overseas acquisitions. In early 2014, Lenovo Group announced a $ 2.9 billion acquisition of Motorola.
How much can this deal contribute to the company? From the performance point of view, did not help, but is dragged. As of the end of March 2016, Lenovo's mobile business income of $ 9.779 billion, an increase of 7%; but after deducting accounting and other costs, mobile business pre-tax operating loss of $ 469 million, even if Lenovo Group then rich, can not casually Buy buy buy
As early as a year ago, Lenovo's last fiscal year, the mobile business on the loss of $ 370 million. Lenovo was explained at this time, said the acquisition of Motorola is completed in October 2014, short-term difficult to see results. Motorola's profitability is indeed to be improved, but this performance is indeed unexpected. But after a year, Lenovo's mobile business not only did not pick up, pre-tax loss is expanded by 26.7%.
In fact, the acquisition of Motorola and IBM to Lenovo debt. Lenovo needs to pay $ 3 billion in debt by 2020. Many analysts suspect that Lenovo has sufficient funds and innovative strategies to reverse this performance decline?
Obviously, Lenovo is re-plunged into the loss of the Board, business growth stagnation or even back, coupled with long-term interest pressure, Lenovo's day is indeed more and more tough.
At the end of 2013, at the China Entrepreneurs Club held entrepreneurs Association, I asked Liu Chuanzhi: "The future of Lenovo is to want to do big or want to do strong? "Liu always hesitated for a while, said:" first big, and then stronger! " & Rdquo;
Therefore, Lenovo's strategic orientation at that time is bigger, the layout itself reflects the desire to make big. To judge, we can easily understand why Liu Chuanzhi hope that the road in the international fast forward, why his mind is a "Lenovo chart" and "
Yang Yuanqing uphold the will of Liu Chuanzhi, through a series of mergers and acquisitions, Lenovo Group PC business once made the world's first, and rely on the cost advantage, access to the hard earned profits. That time, as CEO, Yang Yuanqing do not really bad, but compared with its salary, giving "cost" with the impression of bad, like the NBA in the lol & middot; Deng, Ryan & middot; Anderson, high-paying low-energy bad contract.
But today, even those who have always been confident of Lenovo's future, and those who admire Liu Chuanzhi have to admit a reality: Lenovo Group has been precarious.
Lenovo executives said to me privately, "Lenovo's mobile business has been completed, PC business can only maintain the status quo." Liu Jun return to Lenovo, has been unable to make people think of imagination - this is not a Steve Jobs-style story, but a sub-road story, the introduction of sigh feeling. & Rdquo;
Lenovo use mistakes
In the selection of people, Liu Chuanzhi insisted: "in the enterprise to develop successors, from the enterprise to find more suitable people, which is more conducive to the implementation of long-term strategy."
Liu Chuanzhi selection of successor when the year, there are many options, and finally he elected Yang Yuanqing, is also talked about the uproar.
It is said that 22 years ago, Liu wrote a letter to Yang Yuanqing. In the letter, Liu Chuanzhi described the conditions for the selection of successors: "Select the successor is like looking for a girlfriend, it is necessary to choose a beautiful, but also choose to love their own, if the other beautiful, but not enough to love themselves What is it? & Rdquo;
This letter seems to be nonsensical, but revealed the true idea of Liu Chuanzhi: First, the successor must have the ability, two successors must be able to inherit the founder's ideas and ideas.
Yang Yuanqing then served as general manager of Lenovo CAD, within two years of the CAD sector from sales of more than 30 million to more than three million As Lenovo 2 characters, the Lenovo brand made the first in China, in one fell swoop to break the dominance of foreign brands to dominate China for many years, this record has been maintained until now. In other words, Yang Yuanqing market development ability no doubt, in line with Liu Chuanzhi successor one of the conditions.
Liu Chuanzhi has publicly said: "Yang Yuanqing like me & rdquo ;.
From Liu Chuanzhi wrote to Yang Yuanqing's letter can be seen, loyalty and heritage is the first, the ability is the second, and the combination of the two Yang Yuanqing the best, as Liu Chengzhi successor logical.
However, the era of change, especially in this market, electronic products, how competitive, there is a saying is that individuals are doing mobile phone, we can see the status of the market today, so Yang Yuanqing still maintain this old school of business methods, how the future, it is Worrying.
Perhaps as Liu Chuanzhi may not be a good successor, do not know now Liu Zhizhi's view is changed? Whether to choose Yang Yuanqing success and regret it?
Yang Yuanqing since the succession of Liu has been controversial, accurate almost all condemning, he has repeatedly made public in the public hope that the outside world to give more time and tolerance.
May 28, 2016, the US financial media CNBC announced the honorary chairman of Lenovo Group Chairman Liu received the CNBC Asia Leadership Award for Lifetime Achievement Award, the next day, Yang made a microblogging expressed congratulations to Liu, called " Go to & rdquo ;. But it is embarrassing is this microblogging hot commented by the point of praise one of the most reply is: Liu Chuanzhi biggest mistake is the wrong successor, do not know what Yang Yuanqing will feel.
Of course, Lenovo's mobile phone lost to Huawei, the computer lost to HP, Yang is not all wrong. Landslides and fissures, sediment, big and small wrong, there are always a few should not be responsible by Mr. Yang Yuanqing. Just as Lenovo Group in 33 years of history, seize some opportunities, but also missed a lot of opportunities. On the whole, missed far more than its income, at least the result so.
Lenovo did not keep up with the rhythm of the mobile Internet era, has been obsessed with their past glory, no technical personnel training and reserves, in the initial stage of the mobile phone with the younger brother of Lenovo, Lenovo's strategic mistakes cost, look now Huawei's mobile phone to understand.
In fact, Lenovo's gene is created by Liu Chuanzhi, the old era to the Lenovo opportunity, the Internet era ruined its opportunities. To Liu Chuanzhi's pattern will only choose Yang Yuanqing such people, Sun Hongbin was shot, Lenovo's culture is doomed to the outcome of today, and Lenovo's culture is created by Liu Chuanzhi, who can not change, Yang Yuanqing is also made out of this culture It is part of it.
Lenovo executives told me that "Yang Yuanqing has done everything, but the Lenovo Group is still shaky, from the height of its arrival has been farther and farther. Old Lenovo Group of the shadow, the most hope to become a monumental image, increasingly blurred. "When a person's ability can not match his ambition, or that he spells his life, do everything he can no longer close to his ambition step, he will feel deeply depressed, and even despair, I believe Yang Yuanqing's heart will Was troubled by this frustration and despair.
Stingy of the association, R & D investment less than Huawei 1/10
Huawei and other domestic IT companies in the occasion of triumph, the old Lenovo is downwind, into a loss of quagmire. Where is the root cause?
I learned from the R & D investment to find the real reason, and give Lenovo a new nickname & mdash; & mdash; "stingy of the association & rdquo ;. According to public data, the last 10 years, Lenovo's total investment in research and development is less than 1/10 of Huawei, the gap can be described as worlds apart.
According to a quarterly report in 2017, Lenovo's current sales expenses increased 13% year on year to $ 665 million, accounting for 6.64% of operating revenue.
Lenovo said the increase in sales costs is due to increased advertising and promotional costs. However, Lenovo's current R & D expenses fell 18% to $ 292 million, accounting for 2.92% of revenue.
This data shows that Lenovo R & D costs are reduced; quite strange is that the sales cost but in the increase, and sales costs significantly higher than the R & D costs. There are people in the industry lamented: "Lenovo seems to no longer seem to focus on technology research and development. & Rdquo;
In fact, Lenovo & ldquo; do not pay attention to "R & D has long been reflected. In the 2014-2016 fiscal year, Lenovo's R & D costs were $ 1.221 billion, $ 1.941 billion, $ 1.362 billion, accounting for 2.64%, 3.32%, 3.16% of revenue, which is the highest R & D expenditure in recent decades Accounting for.
Contrast Huawei, Huawei in 2015, 2016 R & D costs were 50 billion yuan, 76.4 billion yuan, R & D expenditure accounted for 12.8%, respectively, 14.6%.
Over the past 10 years, Lenovo accumulated R & D expenses of 6.85 billion US dollars (about 46 billion yuan), far less than Huawei 2016 year of research and development costs.
In addition, Lenovo's current inventory rose 18.91% year on year to 3.178 billion US dollars, accounting for the proportion of assets rose nearly 10 percentage points to 37.07%. This also shows that the rapid increase in sales costs at the same time, sales are not increased, but a substantial increase in inventory.
These financial data show that Lenovo's operating conditions are "non-virtuous cycle" trend, it is likely to lack a balance between marketing and research and development.
Comparison of Huawei and Lenovo's two models, behind the guts and boldness of the different. Initially, Huawei took the line similar to Lenovo, are trade and technology line.
But later, because Ren Zhengfei's superhuman courage and boldness, he made a bold decision, so that Huawei took the technology-driven line, but also doomed the difference between the two.
Liu Chuanzhi said, like Ren Zhengfei, like Huawei, really out of a very unique path, which I think we can not do, this is his long term. Huawei really put the technology in front, dare to use a lot of investment to go, really in the country was successful, his courage and boldness is what I do not have. & Rdquo;
Now, Lenovo realized their own problems, but also intended to reform. Sunset industry can not, hoping to save through the emerging industries. Lenovo high-profile announcement into the field of artificial intelligence and large data, from these two aspects to achieve the Wai Wei save Zhao.
Be aware that artificial intelligence and large data require high upfront investment and capital, data, servers, technology and talent, and all need to spend high amounts of money. In China, BAT own data under the premise of high investment in artificial intelligence and large data. Lenovo, on the one hand that to make achievements, on the other hand, but lower R & D costs, have to say is different.
In addition to large data and artificial intelligence, Lenovo also through the VR to save themselves. But in fact, the entire VR field has not appeared in the leader, such as Lenovo, such a serious loss is not too much hope. Moreover, VR and artificial intelligence, but also burn business. Although Lenovo mouth that is willing to spend money, but in fact, this money is also estimated to be very distressed
Too much emphasis on "big country dividends" and "
In the strategic investment, Liu Chuanzhi has been advocated "do not put eggs in a basket, adhere to the diversified development & rdquo ;. Liu Chuanzhi said in an exclusive interview with reporters: "We started from 2000 to do the preparation of non-related diversification. I would like to let the business live longer, want to do a hundred years old, so Lenovo decided to do a non-related diversified business, not the eggs in a basket.
But can not deny that Lenovo too much emphasis on "big country dividends" is also a fact. Long-sleeved dance of the Lenovo entrepreneurs start very clearly, China's biggest advantage is the market and special national conditions, as long as the use of superb "trade means" as much as possible to eat the market share is the winner. Do not eat, that is a fool.
In fact, the outside world questioned the association at the same time, many people have ignored Lenovo is no longer the previous association, this enterprise has long been "fission" and "rdquo ;. Financial data does not look good "Lenovo" is actually "Lenovo Group" and its CEO is Yang Yuanqing, and the greater association is "Lenovo Holdings", it is the former parent company, chairman of Liu Chuanzhi.
At present, by Liu Chuanzhi control of Lenovo Holdings Limited has three funds, has invested in Divine Digital, Lenovo Star, Rongkezhi, is odd financial, Hankou Bank, Shenzhou car rental, Bai Bo oral, Jiaruo agriculture, music Car, and more than 400 companies, involving IT, real estate, investment and modern service industries and many other plates, and "Lenovo" Lenovo Group is only a subsidiary of Legend Holdings, despite its sales Income accounted for the bulk of the former. A noteworthy fact is that in recent years, Legend Holdings Hony's investment "limelight" has overshadowed the Lenovo Group, and Zhao Ling Huan in the financial media in the popularity is catching up with Yang Yuanqing.
IT hardware "big country dividends" may be exhausted, but other industries may not, they may be in the ascendant. "The big holdings of the investment holding company of the road, in fact, is the use of equity ties," take-all "this big country in every field, which is the most effective way to grab the" big country dividend "ralph lauren pas cher. Of course, it also means that the company may really have to stay in the "trade" and "r" the stage.
As the king of the personal computer field, Lenovo has not been able to brand advantage "translation" to the smart phone era, which is its financial data is flat, and widely questioned the root causes.
On the one hand, in the two generations of personal computers and mobile terminals, there are essential differences in the competitive landscape of manufacturers, which makes the past successful experience no longer applicable, not the implementation of enterprise management is not effective. On the other hand, Lenovo's own "business" and the gene also determines its performance in technological innovation, compared with the original R & D, it is more like to quickly eat the "big dividend" and "rdquo ;.
In fact, today's Lenovo has long been not "sell" the computer's "hardware business in Zhongguancun." "The association is being transformed into an investment holding company (speculative company), with equity investment means, through funds in various industries free arbitrage, Lenovo in access to" big country dividends "on the road to go faster and faster The
It can be said that Lenovo is an important model for the growth of Chinese enterprises: it is a "rational person" in the most appropriate time, it will make the most favorable choice. This utilitarian growth path, the outside world can not be moral judgments, but left a lot of thinking about Chinese enterprises.
Only to death and then born
Lenovo can also be back to life? The problem seems to be some exaggerated Lenovo crisis. But Lenovo has been close to the edge of the cliff. PC and notebook fall, the field of mobile phone defeat, so that the pride of the company had to face up to their status quo.
Mobile phone not, PC fall, Lenovo's revival of the battle how to play?
August 18, Lenovo held in Beijing, China's strategic and cultural management of all cadres will, at the same time, presided over the meeting is two into the two Lenovo "veteran" Liu Jun.
Lenovo has always been good at playing the market fierce Liu Jun has returned, to quickly grab the market share in the market, naturally can not take profits as a priority, and the current market environment does not allow it to sound strategy to respond to competitors challenges, the second half See under the leadership of Liu Jun will be how to bring the domestic PC and smart phone market changes.
Lenovo's power to dry Liu Jun return, published in the day of the report, conducted an internal speech. Known to "muddy hands, playing the revival of the war & rdquo ;.
Lenovo's loss behind the three business transformation is the good and bad in the transition, and to the final formation of a comprehensive positive, in addition to the need for time, PC business in maintaining competitiveness at the same time how to better balance sales and profit relationship The
How to move the business as soon as possible in China, especially the data center business, how to achieve a comprehensive and balanced growth of the global market, for Lenovo is still a challenge still exist.
Liu Jun pointed out at the meeting, "some people lack the courage of adventure, seeking is calm, lack of win mentality and adhere to the goal, as long as do not count the number of OK. Organization lost bloody, used to use the old experience to do new things, or even only command, do not run a line, refused to suffer. "This actually points out the Lenovo now the problem, the tail can not afford, can not introduce new. Put yourself in the first position for too long, forget that there are many people around the eyeing.
The meeting is the pioneer of Lenovo reform. In the future planning, Liu Jun that China should change the future of China's strategy, to create ecology and services, change the past the boss for the atmosphere, the reconstruction of corporate culture.
In addition, Lenovo also need a warrior determination of broken wrist, give up the business can not be profitable, clear the direction of the future, rather than a piece of radish vegetables, what popular what to do. There is news, Lenovo contact Fujitsu phone, which is extremely inconsistent with the status quo of Lenovo, hoping to give up this through the trade to save the company's ideas.
Innovation as a technology company's first cornerstone, Lenovo is still a large lack of talent, talent, training talent, are urgent things.
Either outstanding, or out. Lenovo need to set the death to epigenetic, if not, do not think the king returned.