Lenovo mobile phone: either rebirth or death!

Lenovo mobile phone: either rebirth or death!
After acquiring Motorola Mobility, Lenovo's mobile phone business began a series of adjustments in executives, brands and channels. Against the backdrop of the entire industry upgrade and fierce reshuffle in 2014, Lenovo's mobile phone business suddenly reached its development turning point: either rebirth or death. In the past five years, after the initial failure of LePhone, Lenovo fully adjusted its product, channel and brand strategies. Subsequently, its mobile phone business began to grow explosively and is now the second largest mobile phone manufacturer in China. However, behind the sales growth is the fact that Lenovo's mobile phones have been slow to make breakthroughs in the mid-to-high-end market. Over-reliance on the operator market has also caused its mobile phone business to basically hover on the edge of profit and loss. Under heavy pressure, Lenovo's mobile phone business has once again made comprehensive adjustments this year: 1. Acquisition of Motorola's mobile phone business. On January 30, 2014 (6:00 a.m. on the 30th day of the lunar year), Lenovo announced the acquisition of Motorola Mobility for 2.9 billion yuan, and began to prepare to enter developed overseas markets such as the United States, while also gaining an international mobile phone brand. 2. Senior management adjustments. In March this year, Lenovo's smartphone business management team was adjusted. Zhang Hui replaced Feng Xing as the head of Lenovo's smartphone business. Zhang Hui was the head of Lenovo's global consumer notebooks. He started his own business and then returned to Lenovo to be in charge of the LePhone business. He later became the CEO of Lenovo Compal. 3. Channels. Lenovo Mobile had previously tried to sell mobile phones through its own PC channels, but the results were very mediocre. Lenovo Mobile phones then began to be sold mainly through operator channels. After Zhang Hui took office, Lenovo's mobile phone business added an "open business unit" and will expand sales in e-commerce and traditional open markets this year. Reduce dependence on operator channels. 4. Brand. Lenovo will strengthen social network marketing based on hot spots this year and highlight the role of "Le fans" in brand communication. However, Lenovo's adjustment of its mobile phone business coincides with the background of the global mobile phone industry upgrade and pattern reshaping in 2014, especially in the Chinese market. This has added a great deal of uncertainty to Lenovo's mobile phone business adjustment: 1. Rapid upgrade from 3G to 4G. Relying on the full outbreak of the domestic 3G market and thousand-yuan smartphones in 2011, Lenovo's mobile phone business, which is highly aligned with operators, has also ushered in explosive growth. However, Lenovo was slow to judge the development of 4G mobile phones. When domestic manufacturers such as Coolpad, ZTE, Huawei, and even OPPO all turned to 4G, Lenovo was weak in the low, medium, and high-end markets. You know, China Mobile is ready to gradually stop subsidies for 3G mobile phones this year, and Lenovo's 4G will be accelerated. 2. Personnel changes. As the new head of Lenovo's mobile phone business, Zhang Hui's sales and execution capabilities are unquestionable. However, mobile phones are completely different products and operation models from PC business, which can be seen from Lenovo's previous LePhone and channel failures. Before the war, the change of leadership at the last minute also added uncertainty to Lenovo's mobile phone transformation. 3. Integration with Motorola's mobile phone business. Lenovo once successfully integrated IBM's PC business. Although it took eight years to finally get Liu Chuanzhi's approval, it is also a rare successful case and experience for domestic technology companies. However, the integration of Motorola's mobile phone business is expected to be completed in August. At this time, nearly three quarters of 2014 have passed, which will not help Lenovo's mobile phone business this year. Moreover, in China, since it has basically withdrawn from the Chinese market, the Motorola mobile phone brand is no longer fashionable or "cool" for young consumers. Lenovo's dual-brand strategy in the domestic market is unlikely to achieve significant results in the short term. In the international market, Lenovo still needs to devote a lot of energy to integrate Motorola's valuable design and R&D team, as well as the North American operator market, which is a huge test for Lenovo. 4. Tight capital chain. Lenovo's recent acquisitions have cost more than US$5 billion, and Lenovo is still seeking mergers and acquisitions in the domestic market. At present, Lenovo's cash flow is not sufficient, and it comes largely from bank loans and bond issuance. Faced with its own mobile phone business that "sucks money" and has very thin profits or even losses, and the "bottomless pit" of Motorola's mobile phone business that has huge losses, Lenovo's cash flow will be tested and the expansion of investment in the mobile phone business will be limited. 2014 marks the 30th anniversary of Lenovo's entrepreneurship. From a small workshop to the world's largest PC company, the road Lenovo has traveled and the hardships it has suffered are valuable experience for domestic technology companies. However, Lenovo's huge investment in the acquisition of Motorola Mobility shows that the mobile phone business is Lenovo's future in the consumer electronics market. In the changing landscape, Lenovo's mobile phone business is undergoing another drastic change. This is the choice and reality of Lenovo's mobile phone business. Therefore, for Lenovo, in 2014, the mobile phone business will either be reborn or die in the face of internal and external troubles.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.

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