5g opportunity and recovery of PC market

category:Finance
 5g opportunity and recovery of PC market


On the evening of October 20, Lenovo launched nearly 10 PC products online, including four new notebook products of Yoga series and two models of yoga27 multi-functional integrated computer, Xiaoxin series notebook and tablet.

According to Lenovo, the new autumn products of Lenovo will appear on the eve of double 11 to provide more choices for users. After the new product was released, Lenovo officially announced that it would open the pre-sale at 0:00 that night.

Behind the launch of a number of PC products is the stimulation of market demand. According to the third quarter global PC market report released by IDC, the global PC industry has recovered as a whole due to the demand for online office and games driven by the epidemic, among which Lenovo ranks first in the world.

However, one of the current situations is that no matter Huawei, Xiaomi, oppo, etc. are increasing the lot market, PC products are the key link. In the situation of head mobile phone manufacturers entering the PC market one after another, it is not easy for Lenovo to maintain a leading position in the PC market.

It can be foreseen that a fierce battle in the PC market is imminent. But for Lenovo, the challenge is much more than that.

PC market rises, leading gap narrowed

The popularity of early PC terminals opened the prelude of the Internet era.

Lenovo Group was founded in 1984 by the Institute of computing, Chinese Academy of Sciences, with an investment of 200000 yuan and 11 scientific and technological personnel. In 1990, Lenovo launched its first computer. In 1994, Lenovo listed in Hong Kong.

This year, Lenovo also creatively set up an employee stock ownership meeting, distributing 35% of the dividend rights to each employee. In 1997, Lenovo computer ranked first in China with 10% market share. In the following ten years, through the reform of internal and external business philosophy and technological innovation, the company gradually reached its peak.

However, with the advent of the mobile Internet era, the PC terminal market has been declining. According to Gartner, the global PC market shipped more than 259.4 million units in 2018, down 1.3% from 2017, the eighth consecutive year of decline since 2011.

However, in 2020, the PC market began to show signs of recovery. On October 13, according to the third quarter global PC market report released by IDC, the global PC industrys overall shipment volume rose due to the demand for online office and games driven by the epidemic. Lenovo continued to maintain its leading position since the second quarter, ranking first with 23.7% market share, with a shipment volume of 19.27 million units. HP, Dell, apple and Acer ranked second to fifth.

Image source: IDC

From the data point of view, HP and other manufacturers follow closely in the market share, Lenovo PC in the global market share can not be called absolute advantage.

According to the global PC market report released by IDC in 2018, Lenovo PCs global shipment volume is 58.815 million units, and the Chinas shipment volume is 19.01 million units, more than the sum of the second to sixth place. In 2019, Lenovo PC will ship 1.783 billion units in the world, accounting for 24.84% of the market share; HP, the second largest, will ship 1.717 billion units, accounting for 23.92% of the market; Dell, the third, will ship 1.246 billion units, accounting for 17.36% of the market.

In contrast, although the overall market of the global PC market has significantly increased, the gap between leading enterprises is narrowing.

In addition, it is worth noting that, in addition to Lenovo, HP, Dell, apple and Acer, others have also maintained a large market share since 2018.

This is consistent with the characterization of the hot market - more and more manufacturers are entering the PC market. In September this year, Huawei, deeply affected by the U.S. ban, launched a new notebook matebook series to further consolidate its 1 + 8 + n strategy. Before Huawei, Xiaomi, which opened the lot product line early, also had a lot of tablet PC products on the market, which won the popularity of young consumers.

However, in the fierce industry competition, Lenovo is also on guard. At the ces2020 conference, Lenovo demonstrated thinkpadx1fold, the first PC product, to announce technical capability, highlighting Lenovos greater ambition in maintaining the industrys leading edge.

Lenovo may be a proud buyer

In the end consumer market, strong companies like Huawei will certainly face Lenovo if they want to expand the lot market in the future. Sun Yanbiao, President of the first finance and Economics Institute, no doubt told Lenovo that the great challenge facing Lenovo in the future is mobile phone research.

Its worth mentioning that Lenovo bought Motorolas mobile phone business from Google for $2.9 billion in a period of declining mobile phone business. In 2014, when the acquisition was completed, Lenovo and Motorola ranked among the top three in the world in terms of joint mobile phone shipments, second only to Samsung and apple. In the following years, Lenovos mobile phone business began to fall behind, regardless of technology accumulation or business strategy.

However, Motorolas recognition in the European and American markets still gives Lenovo a lot of room for development. In May 2019, according to the US first quarter smartphone share list released by canalys, there are two Chinese companies in the top five: Lenovo and TCL. Among them, Lenovos shipment volume was 2.4 million units, a year-on-year increase of 42%, and its share increased to 6.5%.

As a result, industry analysis shows that the advent of 5g aircraft change tide, plus Sino US trade friction, Lenovo with US capital background may usher in some opportunities. A person familiar with the industry told the time finance and economics that Huawei, which was discussed recently in the industry, would sell glory. One of the possible takers, Shenzhou digital, is a company invested by Lenovo. This also shows that Lenovo may be the buyer behind it.

But in addition to the industry competition and opportunities, from the perspective of Lenovos own business development, the decline of mobile phone business has become a reality. According to the Times financial observation, in recent years, nearly 80% of Lenovos business revenue comes from PC, while mobile phone business only accounts for about 10%. The overall revenue growth has gradually slowed down.

Some market analysts believe that good enough PC business has supported Lenovo, but relying too much on a single business will make it face the ceiling soon.

Lenovos corporate gene is a marketing driven enterprise. Its original route is to trade, industry and Technology (trade first, then technology research and development), which makes Lenovo not have many technical advantages in making mobile phones. Therefore, over the years, Lenovos competitiveness in the field of mobile phone business is getting worse and worse. Liang Zhenpeng, an economic observer of science and technology industry, made financial analysis to the times.

Sun Yongjie, an analyst of science and technology industry, told time finance that Lenovos innovation ability is undeniable in terms of hardware innovation of folding screen mobile phones, but its frequent high-level personnel adjustment in the past reflects its uncertainty on mobile phone mobile strategy. A clear business strategy, the stability of team members, and product technology research and development are all the keys to Lenovos mobile phone business. For future development, sun Yongjie analyzed to the times finance and economics that Lenovo should at least seize the advantages of PC business under the situation that terminal manufacturers are constantly entering the PC industry. It is said that 5g brings opportunities to manufacturers. At least from the present point of view, how to combine PC business well with 5g and how to use 5g to reflect the innovation power of PC products are the key points for Lenovo to make efforts. Sun Yongjie said. Source: time finance editor: Shi Chengchao source: time finance editor: Yang Bin_ NF4368

Sun Yongjie, an analyst of science and technology industry, told time finance that Lenovos innovation ability is undeniable in terms of hardware innovation of folding screen mobile phones, but its frequent high-level personnel adjustment in the past reflects its uncertainty on mobile phone mobile strategy. A clear business strategy, the stability of team members, and product technology research and development are all the keys to Lenovos mobile phone business.

For future development, sun Yongjie analyzed to the times finance and economics that Lenovo should at least seize the advantages of PC business under the situation that terminal manufacturers are constantly entering the PC industry. It is said that 5g brings opportunities to manufacturers. At least from the present point of view, how to combine PC business well with 5g and how to use 5g to reflect the innovation power of PC products are the key points for Lenovo to make efforts. Sun Yongjie said.

Source: Times financial editor: Shi Chengchao