Lenovo must become a more efficient company, they want their CEO Yang Yuanqing, and so is going to get to move heaven and earth to get it, of course. For starters will reduce staff by 5%, which are about 3,200 employees. They also come major changes in its two core businesses computers and phones.
The two challenges that lie ahead Lenovo are, firstly, revitalize sales of a declining market such as computers, and secondly, restructure the mobile division to achieve further growth. We remind you that here are a mess between Motorola and Lenovo, which work more or less independently.
The second quarter accounts speak of a decline of 51% in profits, for which today is the first computer manufacturer. Other revenues were increased by 3% over the same period last year.
It is understood that demand for computers has dropped in the quarter awaiting the arrival of Windows 10 If we’re going to see the sales of computers, we have a drop of 7%, with a total of 13.5 million units sold.
That does not stop to grow by 1.3% in market share to 20.6% placed with – so they will be running the business competition -. Lenovo’s desire is to have a market share of 30%.
Computers are a critical part of Lenovo in the accounts, making 7,300 million 10,700 million entered in the quarter.
Interesting facts about tablets. Business that has sold 2.5 million units, up 3.8%. This would make them stand as the third manufacturer of these products, with a share of 5.8%.
The reins to Motorola
The first thing you have to do is reduce catalog, there are too many phones in the house and possibly overlapping models too. That has to do with Lenovo and Motorola put at the same table and decide jointly what they will do with their new products.
During the period, Lenovo has put on the market 16.2 million phones, which is 2.3% more than last year. Of those, 5.9 million are from Motorola, which has fallen significantly, by 31%. The Chinese believe that Motorola will return to profitability in a couple of quarters.
No matter the numbers appear in Lenovo consider the reins of design, development and manufacture of mobile they have to pass Motorola. There are two well-defined fields of battle: the competitive Chinese market full of business, and the need to cut land with Apple and Samsung globally.