Broken Billions is a prelude to see how Lenovo will interpret server movements

News Background: Lenovo today announced its 2013-2014 third quarter financial report. This is another amazing news following the acquisition of the IBM X86 server business and the Motorola handset business. Because Lenovo Group third-quarter revenue as high as 10.788 billion US dollars, for the first time more than 10 billion, creating a milestone. The same period last year was 93.58 billion US dollars, with simultaneous growth of 15%. Third-quarter net profit of 265 million yuan, compared with 200 million U.S. dollars in the same period last year, an increase of 32.5%.

According to IDC data, Lenovo has been the largest PC supplier in the world for three quarters in a row with a global market share of 18.5%. In the world's top seven PC markets, the Group occupies the first place in five markets, Lenovo In the third quarter, global PC sales reached 15.3 million for the first time in a row for 19 consecutive quarters to outperform the overall industry, outperforming the industry as a whole by 14%.

Lenovo sold 17.3 million units of smartphones and tablets. The Group continued to be the fourth largest supplier of smartphones in the world with a market share of 4.8% and a 47% year-on-year increase in sales volume. Lenovo's global tablet sales hit a record high of 3.4 million units, up more than 300% from a year earlier.

The author has always agreed with "against the current boat is not back is" this sentence. As we all know, now the traditional PC market is not the downturn, PC makers like the upstream of the boat, who block, the more violently set, the easier it is to advance, for which any manufacturer needs to carry out their own boat " Transform "or" upgrade. " One of the most outstanding none other than the association, with its excellent results so that we see the most "against the water" helmsman.

Broken Billions is a prelude to see how Lenovo will interpret server movements

Lenovo's third quarter earnings report shows that its PC business growth is superior to the overall industry 14 percentage points, sales of mobile devices increased by more than 300%. However, 37% of the Group's total global revenue comes from China. Only PC in foreign markets occupies a leading position. Meanwhile, the profit of mobile devices and PC products is low, but it does not bring enough to Lenovo despite the large shipments Of the proceeds, which for the implementation of the PC + strategic association is like the short bar in the barrel effect, it is bound to fill the short board by acquisition. To this end, in January 2014, Lenovo acquired the IBM X86 server business, the end of the month is acquired from the hands of Google's mobile phone business.

Lenovo Yang Yuanqing announced the acquisition of IBM X86 server business that day: enterprise-class product gross margins will be more than 20%, much higher than the PC. Compared to the PC, this is a big profit, competitive pressure on the market.

In terms of the server business, Lenovo has fully deployed the enterprise product market since the ThinkServer was released in June 2012. And from the first quarter of 2011, Lenovo occupy the domestic server market share top. However, before the acquisition of the IBM X86 server, the share of Lenovo servers in the international server market was small. After the acquisition, Lenovo server global market will have more than 14% market share, becoming the third in the global market, the domestic market share of 22% or more, sit tight in the domestic market first.

The domestic market has a large number of small and medium enterprises, there are a lot of demand for the X86 server. Lenovo in the acquisition of IBM X86 server business at the same time, IBM 7500 is the staff and 1,500 contract employees in the technology, design and other aspects of the original Lenovo server to provide strong support, which can better meet the majority of China x86 Users in the areas of big data, cloud computing, high performance computing, IT infrastructure integration and other areas of demand, while digging deep potential for services, technical support will be more in-depth and meticulous, solid domestic market while squeezing competitors.

For foreign markets, the original IBM x86 server in the global market has a very good market share, 8.1% ranked third in the world, has a very rich customer resources and brand efficiency. After its acquisition, Lenovo acquired the 5-year license to use the IBM brand. With these 5 years, Lenovo can make international customers recognize and recognize Lenovo servers through years of experience in running PCs.

Lenovo acquired IBM PCD in 2005, after eight years of fought, finally got the top spot in the market. With years of experience in management and marketing on the PC side, plus the IBM brand to be acquired, some intellectual property rights and its global customer base, Lenovo's revenue from the enterprise server business will be the focus of future earnings. one. Of course, just doing the terminal equipment is not enough to meet the needs of global enterprise users, to make better services, better solutions is Lenovo in the future development of an indispensable part. So, Lenovo Q3 revenues break billions of dollars is only a prelude to the PC + program, can deduce a wonderful server movement, yet to be tested by time.