Lenovo: Reducing cost and raising gross profit margin pay attention to digital home

On the afternoon of May 27, Lenovo executives said it would balance low gross margins by reducing costs and increasing efficiency.　　In the face of the development of triple-net integration, Lenovo Group will keep a close eye on the digital family. According to Lenovo's 2010-year earnings, its sales in China rose by 57% in cloak, with market share rising 2% to 28.7% from last year.　　Operating profit of 109 million U.S. dollars, operating profit margin of 5.5%. A number of investment banks have previously expressed concern about Lenovo's lower profit margins in the future. Lenovo's chief financial officer, Wong, said at the earnings communication meeting that the expected growth momentum would continue.　　But as the product mix continues to tilt at low prices, parts prices will weigh on margins in the new fiscal year.　　Wong says it will boost its gross profit margins by boosting its efficiency and compressing costs, while sales of some computer components are expected to boost profitability. "We use rapid growth to gain share," Wong said. "Low gross margin, with high efficiency to balance."　　"Liu said that the group's original IBM Department of the legacy of the IT system to improve, which will lead to global cost savings and operational efficiency of the increase." In fiscal year 2010, Lenovo's research and development costs fell slightly, and Yang attributed it to the development and layout of the adjustment. "China's cost, efficiency, are relatively good." We have shifted the research and development layout to China, the United States and Japan have reduced, but our overall research and development capabilities will not be affected.　　Yang said he hopes to use innovative products to separate rivals to boost profitability. Yang said he is concerned about the new opportunities brought about by the combination of digital home and triple net. Because the way you watch TV changes, if you don't pay attention to the digital home, the desktop market may be engulfs.