May 24, Lenovo Group released its new fiscal year performance report.
In the 2017/2018 fiscal year, Lenovo Group revenue of 45.4 billion U.S. dollars, up 5.38% year-on-year, but the net loss reached 189 million U.S. dollars. On the specific business side, Lenovo Group's personal computer and smart devices business has risen 7.66% to $32.379 billion a year year-on-year, with mobile revenues down 6% to $7.241 billion.
2018 is a key year Lenovo Group, and from this year Lenovo Group of various movements, focusing on intelligent network equipment to become the group's next wave of development priorities.
After the release, Lenovo chairman and CEO Yang Yang issued an internal letter saying that it will further strengthen the PC and tablet industry leading profitability and market position in the mobile business sector continue to reduce losses.
Reduce the cost of mobile phone business 30% During the reporting period, Lenovo Group's personal computer and smart equipment business achieved a turnover of 32.4 billion U.S. dollars, accounting for about 71% of the group's overall revenue, contributing most of the revenue source.
Lenovo said the data grew 8% per cent from the previous fiscal year, at a rate higher than the average global market growth of 3%. In the earnings, Lenovo said the PC business had surpassed HP, returning to the top of the world, winning double titles for turnover and sales.
However, in the financial year, Lenovo Group reported in the financial results of the year by the increase in the cost of parts, personal computers and smart equipment business, excluding pre-tax profit of 1.459 billion U.S. dollars, excluding pre-tax interest rate fell 0.5% to 4.5%. Compared to the slightly warmer PC market, the handset business did not let Lenovo group happy how much. During the earnings period, Lenovo Group's mobile business revenue of 7.241 billion U.S. dollars, down 6% year-on-year, accounting for the group's overall revenue of about 16%.
Excluding the Non-cash costs associated with mergers and acquisitions, the operating losses in the retrospective period were $463 million trillion. Lenovo bought Motorola Mobile from Google in 2014, when the bid was 2.9 billion dollars.
Since the 2015 fiscal year, Lenovo Group mobile phone business revenue has been declining trend, 2015/2016 fiscal year for 9.8 billion U.S. dollars, 2016/2017 fiscal year for 7.7 billion U.S. dollars, 2017/2018 for the fiscal year 7.2 billion dollars. "The overall failure of the mobile phone is up to expectations," Yang said in a report on the results of the performance communication, "to optimize the brand strategy and business model in emerging markets, to take action to reduce costs by 30%, to prepare for the return of business to health."
' For the mobile phone business, Lenovo also said in its earnings report that it would continue to strengthen the Latin American and North American markets and reduce spending by focusing on the development of profitable markets so as to achieve a significant reduction in future losses.
From the action taken by Lenovo Group on mobile phone business, stop-loss becomes a top priority.
When will the new smart-things engine work? "Although we have faced many challenges at the beginning of the Ober years, we have crossed the inflection point and entered the upward channel again, thanks to the strong implementation of the three-wave strategy," Yang said in an internal letter.
' But from the PC, mobile, data center of the various business, hematopoietic capacity growth trend is not obvious.
From the volume of shipments, the global PC market is already a ' sunset industry '; The mobile phone business, Lenovo Group has been slow to get rid of the haze of losses, while the faster growth of the data center business, the fiscal year, although the income of 4.394 billion U.S. dollars, but still not out of the deficit.
Earlier this month, Lenovo Group was excluded from the Hang Seng index, and then plunged into a 5G poll ... Liu Huafang, an IT industry analyst, told the Daily economic news that Lenovo was facing four major challenges at the present stage: a shrinking domestic handset business and a strong 2-B business rival, such as cloud computing;
PC growth depends on big customers, brand aging, and consumer dialogue ability decline. Lenovo Group is also trying to break the current silence. The reporter noted that May 8, Lenovo Group chairman and CEO Yang announced that Lenovo Group formally set up a new smart equipment business group.
After the organization upgrade, Lenovo's original PC and smart Devices business Group, mobile business group will be integrated into the smart equipment business group, with the original data center business group Synergy. In his 24th performance communication, Yang also said Lenovo was adjusting its organizational structure to adapt to the new era of smart things networking.
The next step is to accelerate the convergence of computing and communication technologies, build a new UDs platform to connect users, devices and services, and build competitiveness around IoT devices, large data and artificial intelligence technologies. Liu June, executive vice president of Lenovo Group, said earlier in an interview with the Daily economic news reporter that from the PC Internet to mobile Internet, the next wave of Lenovo look smart thing.
The needs of customers in the Internet of things are very fragmented, but like PCs and smartphones, they are a very large market. Lenovo Group hopes to be able to transform from a traditional it enterprise to a pan-it product, program and service provider. Under this plan four sections, of which the first big plate is the Intelligent Object Joint section.
' said Liu June. In the global market, Lenovo Group has a strong PC sales channels, market research agencies Counterpoint China, the director of Jian Jianmeng told reporters, purely sales of their own PCs, mobile phones and other products a bit wasteful channel resources, with this advantage, Lenovo can better expand, cut into the smart home and other products of the retail industry