"Manager Liu, we had completed our second order for netbooks. But there are still many comments asking us to continue to produce these cheap netbooks. Should we continue?" Yang Yuanqing asked excitedly.
If Lenovo can maintain their high netbook sales this year, then they will be the PC market leader!
Last year, the global PC sales were only slightly more than 200 million units. Huipu, Dell, Lenovo, IBM, Asus, etc. were in the top 5, followed by Apple, Toshiba, Samsung, Sony, Panasonic, Acer, etc.
Huipu and Dell's sales were about the same. They were only a few million units ahead of Lenovo.
Now, Lenovo's netbook sales had increased by 1 million units in a single quarter. With the growth of their other products, it was not impossible for them to become the world's top PC market from the third place!
Furthermore, the netbook sales will continue to increase.
Yang Yuanqing was very excited. He was confident of this goal and was looking forward to it.
He was the Deputy General Manager of Lenovo's PC business. There were rumors that Liu Chuanzhi wanted to step down from the CEO position, and he and the Deputy General Manager, who was in charge of the server industry, were the most likely candidates.
The server industry was not even in the top 5 in the world. It was only ranked 6th, and the PC industry might be the top. It was obvious who was better.
Furthermore, the overall profits of the PC industry were higher than the server industry. The PC industry was also Lenovo's strongest business. All Yang Yuanqing needed to do was to achieve something that no one else could do!
Now, this achievement was right in front of him, and he might achieve it. Even if he failed, he would still be able to become the world's second best. Next year, he would be able to become the world's number one.
Actually, Yang Yuanqing still had a strong competitor. Lenovo Kingsoft's Qiu Bojun. But Qiu Bojun had made it clear that he will not compete for the position of Lenovo's CEO. If not, with Lenovo Kingsoft's current strength, Yang Yuanqing might not even be a match for Qiu Bojun.
Liu Chuanzhi looked at the excited Yang Yuanqing and smiled. "Yuanqing, have a seat. Let's have a chat."
Liu Chuanzhi stood up and sat on the sofa in the office with Yang Yuanqing. Yang Yuanqing was indeed his favorite successor, and neither the Academy of Sciences nor Taihua Holdings objected to it.
At first, Liu Chuanzhi was hesitating between Qiu Bojun and Yang Yuanqing. But Qiu Bojun told him that he is not interested in hardware and does not want to compete for the position of Lenovo Group's CEO. This means Yang Yuanqing is the only person Liu Chuanzhi needs to consider.
"Yuanqing, the sales of netbooks have exceeded our expectations. But did you notice that the profits of netbooks are the lowest? The profit before taxes is less than 8%. Our other products' profits are more than 10%. This means that although this product is selling well, it doesn't make much money. "
Liu Chuanzhi starts to share his experiences with Yang Yuanqing. He really wants to give up his position as Lenovo Group's CEO within one to two years. A few years later, he will give up his position as Lenovo Group's Chairman. After that, he can enjoy his retirement in peace.
As for whether he can enjoy his retirement, he is not sure. But even if he is going to retire, he will do it when Lenovo becomes the world's number one company!
"Also, did you notice that all the major PC manufacturers had started to develop netbooks? This can be seen from AMD and Nvidia's orders. Once they introduce netbooks, the profits of netbooks will be further reduced. "
"Although we are the first to produce netbooks, they have the brand and market advantage. They might be able to suppress us. Our biggest advantage is our prices. But their production is also very high. Although our labor costs are cheaper, once they start to produce, their cost might not be higher than us. "
"Also, netbooks are different from laptops, but they are still taking over some of the laptops market share. Some people originally wanted to buy a laptop. Although they only used it to surf the Internet, watch movies, and so on, they had no choice but to buy a more expensive one. "
"But now, they have a choice, and they will buy cheaper laptops. We have opened up a new sales channel, and at the same time, our original products' sales will be affected. The impact is not significant now, but it will be significant in the future."
"That is to say, the popularity of this netbook is at the expense of our own interests. This market will only get smaller and smaller. When that time comes, where will we go? "
Yang Yuanqing looked at Liu Chuanzhi and knew this is a test for him. He thought for a while and replied seriously. "First, I think our priority now is to become the world's number one. Being number one and number two will bring great benefits to the company, let alone being number three. "
"Also, we can increase our volume and lower our cost. Right now, our netbooks are not as profitable as ordinary laptops. That's because we've invested too much in marketing. Now that we've made a name for ourselves, we'll invest less in marketing, which means that our profits will increase. "
"Our netbooks are selling well, and it will affect our other laptops and desktops. But the impact is not significant. The lifespan of netbooks is not long. It will last for five years, and we will be lagging behind in three years. "
"This lag is not only because our products are lagging behind. It is also because the development of software is getting faster, and the hardware requirements for software will be higher. It can be said that software will replace netbooks."
"I think the desktop market will get smaller in the future, and laptops will become the number one choice for personal entertainment and office work. That's why we must ensure that our desktop research and development is the best in the world. But for our laptops, we must ensure that we are the best in the world!"
"Now, the sales of laptops are increasing, and in two years' time, the overall PC sales will increase. But in two years' time, some PCs will be eliminated, and they will become our repeat customers. The population is growing, and the market is expanding. There will always be new demand, so I don't think the market will get smaller. Instead, I think the PC industry will go from a period of rapid development to a period of stability, and it will maintain this period for a long time! "
Liu Chuanzhi smiled. He is satisfied with Yang Yuanqing's answer. He had discussed this with Feng Yu, and both of them had the same opinion as Yang Yuanqing.
"Good. Then I agree to continue selling this netbook. The sales volume will still be 1 million units until they are sold out. After the other manufacturers introduce netbooks, our new product should be successful! "
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