Cutting edge technology

Introduction: According to data released by IDC, Lenovo won the first place in the global PC market share in the fourth quarter of 2018. This is the second consecutive quarter after it has surpassed Hewlett-Packard. It is a good thing to have a lead in the PC market, but for it the future is focused on how to develop new business.

According to data released by IDC, Lenovo won the first place in the global PC market share in the fourth quarter of 2018. This is the second consecutive quarter after it has surpassed Hewlett-Packard. It is good to consolidate your lead in the PC market, but for it the future is focused on how to develop new business.

The PC market is languishing

By the third quarter of 2018, the global PC market has experienced a decline for 14 consecutive quarters, indicating that the industry has been languishing. According to data released by IDC, although global PC shipments have increased in the fourth quarter of 2018, reversing the previous trend, but the growth rate is only 2.4%, and the future growth of global PC shipments still exists. doubt.

The main reason for the continued decline in PC shipments was the lack of innovation in the PC industry. Smartphones have gradually replaced some PC functions, which has led to a decline in global PC shipments. Change, Bai Ying Technology believes that under such a trend, the possibility of continued PC shipment growth in the future is not large.

The emergence of two-in-one tablet and ARM notebook products is not good news for the current PC giant. Apple's two-in-one tablet iPadPro uses its own ARM architecture processor. Google's chromebook has been popular in the US education market. Chromebook mainly uses ARM architecture processor, and Intel's main ally, Microsoft, which dominates the PC market, also ARM notebooks have been launched in cooperation with Qualcomm, which has impacted the current stagnant PC market.

As the upcoming 5G may also impact the PC market. 5G will promote the development of industries such as the Internet of Things. New products such as wearable devices that have been developed for many years may cause impact on products such as PCs and smart phones. From the rapid development of technology, it can be seen that the emergence of new technologies will often promote new products. Appear, this pairIt is obviously not good news for PC products that have appeared for decades, but it may aggravate the sluggish PC market.

Lenovo's focus is on how to develop new business

Lenovo is still dominated by PC business. The results of the third quarter of 2018 (the second fiscal quarter of FY 2019) showed that the personal computer and smart device business responsible for PC business accounted for 74% of its overall revenue, and mobile and data center businesses accounted for their overall revenue. 13%, 13%.

In the case of the PC market fading, Lenovo continues to focus on PC business. In the future, if the global PC business declines again, its performance will likely decline. In the PC market, Lenovo is also working with HP. Fiercely compete for the market share first position, and the split and restructured HP showed a steady growth momentum in the PC market, posing a great threat to it; the CT camp leader is in the PC market, especially Lenovo dominates In the domestic market, Huawei and Xiaomi continue to exert their strength in the PC market, which poses a threat to Lenovo.

Bai Ying Technology believes that Lenovo continues to consolidate its leadership in the PC market and needs to work on emerging businesses, but its mobile phone business seems to have made it difficult to make progress in the mobile phone industry. The share of the domestic smart phone market is gradually increasing to the four domestic mobile phone brands of Huami Ouwei. The top six in the global market are Samsung, Apple, Huawei, Xiaomi, OPPO and vivo, which ranked the third largest mobile phone in the world. The brand's Lenovo has lagged far behind these mobile phone companies. From now on, it is difficult to compete with these six major mobile phone brands in both the domestic market and the international market. The performance in the third quarter of 2018 also shows the camp of its mobile phone business. The year-on-year decline was 15%, showing a trend of continued contraction.

The good news is that Lenovo's data center business is growing rapidly. It is now the fourth largest server supplier in the world. Its published results in the third quarter of 2018 show that the revenue of data center business has increased year-on-year. 63% is the fastest growing among its three major businesses, and the proportion of data center business to overall revenue has been comparable to that of mobile phone business. It is expected that this business will soon surpass the mobile phone business to become its second largest business.

Bai Ying Technology believes that the data center business should be Lenovo's most promising new business, it is worth investing more resources to support the development of this business, andCompared to the PC and mobile phone industries, the server industry is less competitive and has higher profits. If it continues to achieve rapid growth in the industry, it will help it increase profit margins. Of course, Lenovo should also beware of Huawei, its main competitor in the domestic server market. Huawei is growing faster in the server industry than it is, and both companies are focusing on the domestic server market. How to prevent Huawei from catching up will be the biggest challenge.

In general, Lenovo's renaissance in the PC market is a thing that deserves to be happy, but its PC and data center businesses are facing huge challenges when they are not toasting. A little inattention will be surpassed by competitors, and its net profit margin is still low, with a net profit margin of only 1.3% in the third quarter of 2018.

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