Huawei's entry into the notebook truth: PC is profitable and only a small fight

Analysts believe that Huawei urgently needs a PC product for supply chain integration, channel development, talent cultivation and brand accumulation.

â– Reporter Ma Yan

Recently, news about Huawei's need to make laptops has been released, but Huawei's terminal responded to the "Securities Daily" reporter yesterday, "Do not comment on market rumors."

However, according to the "Securities Daily" reporter, although the recent news about Huawei's entry into the PC field has its own speculation, Huawei's decision to do a laptop is basically certain.

In fact, China is already producing tablet computers. According to sources, the Securities Daily reporter revealed that the notebook computer that Huawei is going to produce is a split-type, which can be used as a tablet computer.

But the PC has become a red sea. Is Huawei really going to enter?

The notebook market is profitable

According to data from IDC, the global market, in 2015, global PC shipments fell 10.4% to 276.2 million units, down 10.4% year-on-year. IDC expects PC sales to continue to decline in 2016, with a decline of approximately 3.1%. However, laptops with removable keyboards such as Microsoft's surfacebook products are expected to help slow down the PC market. After accounting for such products, PC market sales will achieve a positive growth of 1%-2%.

The decrease in PC shipments means that the PC market has reached a certain level of saturation, and PC manufacturers have invariably increased their selling prices through new generations, and have maintained a high level of business for a long time without increasing or even decreasing sales. profit. In other words, the PC market has formed a benign competitive environment.

According to Wang Yang, the research director of iSuppli China, Huawei's involvement in the PC is a profitable notebook.

In an exchange with the "Securities Daily" reporter, Wang Yang said that looking at Lenovo's situation last year, it is known that laptops make more money than mobile phones.

According to Lenovo’s just-released third-quarter results report as of December 31, 2015, the PC Group (PCG, including PCs and Windows tablets) had a quarterly turnover of $8 billion and a pre-tax profit of $405 million. . The total pre-tax loss of the mobile business group was $30 million.

Completing the product line to enhance the brand image

However, although the PC market is profitable, the PC market has formed a benign competitive environment. Although the threshold of hardware is shrinking, the rise of new brands is even more difficult.

Unlike the mobile phone market, which is frequented by Black Horse, the PC market is relatively stable. Lenovo, Hewlett-Packard, Dell, Asus, Acer, etc. have long been in the Windows market. Even though the sales of Apple Mac have continued to rise in recent years, they have not changed. Some market patterns.

Huawei wants to replicate the success path of its mobile phone black horse in the PC market, which is difficult.

However, perhaps Huawei is not too ambitious about the PC market. In an exchange with the "Securities Daily" reporter, Wang Yang believes that Huawei is a notebook, just like it is a watch, it is a one-stop terminal experience of Apple, from mobile phones, watches, tablets to personal computers, providing a full range of products.

In Huawei's current terminal layout, products such as mobile phones, tablets, watches, etc. have been involved, and only PCs and other corresponding PC products are missing.

Although Huawei's mobile phone business reached a new high in 2015, with shipments exceeding 100 million units, in the face of the slowdown in the growth of the entire mobile phone market, it will be very difficult for its mobile phone business to maintain such rapid growth in the next few years. The turnover of the tablet and smartwatch business is also difficult to be a "sales shipment". On January 13, Huawei CEO Ren Zhengfei said at the company's 2015 market work conference that Huawei terminals should dare to exceed 100 billion US dollars in sales revenue within five years. As far as Huawei's layout in the terminal market is concerned, it is inevitable to meet this goal to complete the notebook business.

Wang Yang pointed out to the "Securities Daily" reporter that the production of notebook computers is to find a foundry, and the entry cost is not high. Launching a cool new product and continuing to enhance Huawei's style in the minds of consumers will help to enhance Huawei's brand image.

It’s hard to make a gambling


However, some analysts pointed out that Huawei is innately lacking the system genes of Apple. At least for a long time, it is difficult for Huawei to complete the short board on the seamless connection of each terminal.

Wang Yang also believes that Huawei's so-called laptop is just a small fight.

Another analysis pointed out that unlike other tablet giants, Huawei's layout in the PC business is almost zero. On another level, Huawei urgently needs a PC product for supply chain integration, channel development, talent cultivation and brand accumulation. Of course, it also makes some preparations for technology. Regardless of the final future of the PC, Huawei needs to bet on it. The same thing is that Xiaomi has seen this.

Wang Yang pointed out that Huawei has nothing to do with laptops, not to kill Xiaomi.

But whether it is Xiaomi or Huawei, even if it introduces notebook products, it is difficult to continue the glory of mobile phones in the market.

And, compared to Apple's one-stop experience, the success of the Samsung Galaxy series seems to be more worthy of Huawei's emulation. Huawei's main business for consumers is still mobile phones and tablets. It is more valuable to rely on PC profits by increasing the brand image through the release of notebook products and increasing the brand premium of mobile phones and tablets.