Lenovo Group announced that its third-quarter results for the year ended December 31, 2016 showed that the quarterly turnover of the mobile business group (MBG, including Moto brand and Lenovo branded smartphone) was approximately US$2.2 billion, down 23% year-on-year. Global smartphone sales fell 26% year-on-year, while its market share fell to 3.5% year-on-year.
Just two weeks before the release of the earnings report, Lenovo just announced the news of former Samsung executive Jiang Zhen as vice president of Lenovo. Jiang Zhen will be responsible for product strategy and product management of MBG China business, including product portfolio, product planning and operation. . Lenovo MBG is co-president by Qiao Jian and Aymar de Lencquesaing, the former responsible for China business and the latter responsible for international business. After Jiang Zhen joined, his report was Qiao Jian.
Lenovo hopes to reverse the decline of the mobile phone business by changing coaches. However, at least from this latest financial report, the burden on Jiang Zhenâ€™s shoulders is still not light.
According to the financial report, in the last quarter, MBG's turnover was 2 billion US dollars, a year-on-year decrease of 12%, and the pre-tax loss was 156 million US dollars. Earlier quarter revenues were $1.7 billion, down 6% year-on-year, and pre-tax losses were $206 million.
In the third quarter, MBG's pre-tax loss still reached $112 million. Lenovo CEO Yang Yuanqing said in an interview that we will completely reverse this (referred to as MBG) business.
In order to turn losses, the MBG department has taken a lot of measures, including the acquisition of Motorola, the introduction of high-end models, personnel adjustments, and the recently launched integrated brand line.
However, from the third quarter earnings report, sales in Europe, the Middle East, Africa and Latin America are still driving the growth of mobile business sales. Regarding the situation in the Chinese market, the financial report explained that the income in China continued to fall due to the adoption of a non-low price and high sales market strategy.
Earlier, consulting firm Gartner released a report that in the fourth quarter of last year, global smartphone sales reached 432 million units, an increase of 7%. Among them, Apple's mobile phone accounted for 17.9%, Samsung ranked second, accounting for 17.8%.
In contrast, Lenovo's global smartphone sales fell 26% year-on-year during the quarter. This situation has also directly led to a decline in the market share of Lenovo's smartphones. Among Chinese mobile phone manufacturers, Huawei, OPPO and vivo are strong competitors. In the fourth quarter of 2016, Huawei and OPPO accounted for 9.5% and 6.2% of global smartphone sales, respectively.
The impact of the mobile business on the overall performance of Lenovo Group is also continuing. The financial report shows that the Group's third quarter turnover was US$12.2 billion, down 6% year-on-year; net profit was US$98 million, down 67% year-on-year.
In addition to the mobile business, Lenovo's PC and smart device business revenue increased 2% year-on-year to US$8.598 billion. The data center business group (DCG, including servers, storage, software and services) had a turnover of $1.1 billion in the third quarter, down 20% year-on-year. According to the financial report, this decline is also due to the increase in the cost of major parts of the industry due to supply constraints.
It seems that not only the mobile business, but also the data center business has yet to find a breakthrough in growth, because the above reasons may exist for a long time.
According to the financial report, data center business revenue accounted for 9% of the group's total revenue in the third quarter, mobile business accounted for 18%, and personal computer and smart device business accounted for 70%. The business share of each department is basically the same as the interim results.
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4. Optical cable stranding: stranding several extruded optical fibers with the strengthening unit.
5. Squeeze the outer sheath of the optical cable: add a layer of sheath to the stranded optical cable.
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