Has been changing but why did the Lenovo cell phone fail to do it?

On the evening of August 5, Cool Group released a notice of a major board member change, saying that Guo Deying, an executive director, chairman of the board, and chief executive of the company, resigned from his position on the board of directors and only served as chairman of the honorary board. LeTV founder Jia Yueting was appointed as the Cooling board. Chairman and chairman of the Nomination Committee.

This move means that LeTV will formally take over the full control of Coolpad, and it means that the era of the traditional mobile phone brand represented by "China Cool Joint" will be completely over.

The change of the king's flag at the head of the city, and the cool sentiment of "China Cool Alliance" at that time, is now degrading. Compared with Coolpad, Lenovo also failed in the mobile business, but even if the mobile phone business fails completely, Lenovo cannot immediately move toward the abyss. However, in the face of the continuous development of the mobile Internet, Lenovo does not dare to give up on the mobile business.

So, what's the status of Lenovo Mobile today? Why did you come to this step and how will Lenovo's mobile business start up next?

Lenovo's mobile business status

Lenovo's 2015 full-year financial report released on May 27 this year showed that Lenovo’s revenue was US$44.9 billion (approximately RMB294.54 billion), a year-on-year decrease of 3%; net loss was US$128 million (approximately RMB840 million). , And 2014 net profit of 829 million US dollars.

The financial report shows that in 2015 Lenovo's smartphone market global sales increased by 63%, but sales growth mainly comes from emerging markets such as Latin America, India and Russia. Due to the unfavorable performance of the Chinese market and North America, Lenovo’s global mobile phone sales reached 66 million units, down 13% year-on-year.

It is reported that in 2015, Lenovo’s smart phones sold only 15 million units in the Chinese market. This figure lags far behind that of Huawei, Xiaomi, OPPO, vivo, Meizu and other domestic mobile phone manufacturers.

The mobile service has not been able to open up a new phase in the domestic market, and Lenovo’s business transformation has also been questioned. Yang Yuanqing, chairman of Lenovo Group, said in an internal letter that the association’s organizational structure was split earlier that he hopes to make a comeback in the mobile business.

In the recent interview with the media, Lenovo’s senior vice president Chen Xudong also bluntly stated that the biggest problem of Lenovo Group is that the mobile phone is not doing well. He said he is reshaping the Lenovo mobile phone brand. “Lenovo still has a difficult period of one or two years.”

Where is Lenovo wrong?

With the advent of the smart-phone era, Lenovo Group, which had been ranked among the top 500 companies in the world with the world’s first market share of PCs and notebooks, saw a new growth segment. Since 2010, he has joined the battlefield of the smart phone market.

The industry often compares Lenovo's mobile business with Huawei's. The two companies have basically the same mode of operation in the field of smartphones in the past few years and both rely on operators.

Since 2013, almost all smart phone manufacturers have begun to focus on the layout of the Internet's online channels. This has also led to the rapid rise of millet phones that rely on online mode. Faced with the rapid rise of the online model, Huawei quickly changed and established Huawei’s Internet mobile phone brand Huawei glory. Huawei has also established a brand strategy that focuses on high-end models and honors low-end thousand-yuan machines.

In contrast, Lenovo did not start to awaken until the end of 2014 and set up a magical workshop for its Internet brand. ZUK Z1, the first mobile phone of the Magical Workshop, was only released in mid-August 2015. The online layout of Lenovo has been a full 3 years later than its competitors. At this time, the original online channels have begun to show a weak state, and competitors have begun to sink to the "offline channels."

In addition to channels, the more critical reason for the failure of Lenovo Mobile is on the product. In recent years, Lenovo Mobile has formed a situation with sales but no brand. Although Lenovo Mobile has always been thinking about creating a strong brand, it has not been successful intermittently.

At first, Lenovo placed high hopes on its acquisition of Moto. Lenovo positioned its Moto X series in the high-end ranks. Although the series is similar to the iPhone in terms of price, the series is far lower than the experience and hardware configuration of the product. Domestic flagship models, the market feedback is also mediocre, and even few people interested.

On the surface, Lenovo’s mobile phone positioning is almost perfect. Moto is taking the high-end flagship route. ZUK and VIBE brand positioning are medium and high-end, while Le Lemon continues to take the low-end route. Although putting the eggs in multiple baskets at the same time can increase the success rate, the simultaneous operation of multiple brands also makes Lenovo even more exhausted. Yang Yuanqing had previously stated that there were 1-2 brands that were finally successful and that they were successful for Lenovo.

The complicated product line made it impossible for consumers to form a brand awareness of Lenovo mobile phones. The other four brands were completely targeted at different markets, making it impossible to form a unified and coordinated internal operation and allow the entire business to differentiate into different camps.

The frequent departure of Lenovo’s mobile business executives is also seen as an important factor in the failure of Lenovo mobile phones. In 2015, Feng Xing, Liu Jun, Zhao Kelin and other senior executives fled, and frequent personnel changes made the development of mobile services difficult. The formation of a stable situation also revealed the chaotic situation behind the entire business.

How to fight?

After several years of turbulent adjustments, Lenovo also began to reshuffle its brands, product lines and channels this year in an effort to return to the mainstream echelon of the domestic smart phone market.

ZUK has released ZUK Z2 Pro and ZUK Z2 phones after returning to Lenovo, but Lenovo has not announced any specific sales. In the face of increasingly fierce competition in the smart phone market, Lenovo's attempt to rely on ZUK to win the Chinese market is not as easy as it seems.

In June of this year, Lenovo released two modular mobile phones, Moto Z and Moto Z Force. Lenovo positioned its modular mobile phone in the next long-term strategy and established a $1 million award fund to encourage innovative development of Moto Mods module developers. .

In Lenovo's view, modular mobile phones are the trend of mobile phone development in the future, but it seems that the application of modular mobile phones is not widely used, and the current mobile phone replacement is fast and the price is not expensive, I believe it is more for many consumers. Prefer to buy a new machine instead of tossing a modular phone.

Perhaps how to build a product that makes consumers trustworthy is what Lenovo should do at present.

Although Lenovo Mobile has set a goal of relying on music, ZUK, and MOTO to complete the "turnaround," it is just that everything, as Chen Xudong said, cannot be accomplished overnight. Whether this "turnover" will be a protracted war or if Chen Xudong said it is just a year or two, we can only wait and see.

This article from the Tencent News client from the media does not represent Tencent News's views and positions.

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