Lenovo Smart TV breaks or acquires Sharp China factory

Sharp may become a key player in Lenovo's layout of the smart TV market. The weakest link in the strategy. In the past two years, Lenovo has been copying its acquisition strategy for the IBM PC business in 2005, acquiring more market share through mergers and acquisitions in Japan, Europe, and Brazil. And for the smart TV field that Lenovo just entered last May, mergers and acquisitions are also a realistic choice.

On June 5, Lenovo announced a strategic cooperation with Sharp in the field of smart TV. In the Lenovo ’s K82, a 60-inch smart TV flagship product launched in July, Lenovo provided product design and user intelligent function experience solutions; Sharp provided sound quality, picture quality technology, and support for key components such as LCD panels, and was responsible for the whole machine manufacturing .

After experiencing the split between Sharp and Hon Hai, Sharp's solemn denial of cooperation with LeTV to Sharp's high-profile attendance at Lenovo's press conference, it seems to indicate that deeper cooperation between Lenovo and Sharp is slowly unfolding.

Low price for market

In the field of television, it seems that no one can escape the curse of "low price".

From the perspective of television, Lenovo is a new entrant. Many Chinese and foreign brands, including TCL, Hisense, Skyworth, Samsung, and Sony, have decades of industry experience. They have full product lines and strong channel control capabilities, and have already divided up the domestic color TV sites.

Lenovo set foot in the smart TV market last year, launching 55-inch and 42-inch K-series high-end smart TV products, priced at 14,999 yuan and 6,499 yuan, respectively. Affected by factors such as high prices and a single product line, Lenovo TV's sales in the past year have been poor.

After a year of consolidation, Lenovo adjusted itself to the traditional color TV industry's strategy of hitting the market with low-end prices and making profits with high-end. In the field of television, it seems that no one can escape the curse of "low price".

On June 5, Lenovo released the low-end A-series Smart TV 32-inch and 42-inch A21, which were launched in Jingdong Mall. The prices were 1999 yuan and 3699 yuan respectively. Obviously Lenovo has realized the importance of scale.

"This product of 1999 yuan has broken the bottom line of the price in the Android 4.0 TV camp." Chen Xudong, vice president of Lenovo Group and president of China, said, "This is a step for Lenovo to improve the layout of the smart TV industry." In terms of hardware, Lenovo One Changed the strategy of developing TV products independently, and announced the cooperation with Sharp. In addition to Sharp providing TV panels to Lenovo, the two parties may also cooperate in the fields of TV R & D and design.

For the future of smart TV, industry views are not uniform. Some people in the industry have said that traditional color TV manufacturers play smart is a concept, maybe not in two years. This year's new products confirm this. Skyworth's new "Tianci" system and Hisense VIDDA system both strengthen the "watch TV" function, and no longer emphasize smart applications such as games. Not long ago, the "4K Ultra HD TV Selection Standard" was released. For the first time, 4K TVs were strictly regulated in terms of screen, chip, system, image quality improvement technology, intelligent cloud, and appearance. The return of quality requirements.

"This market is not very mature. Like the concept of smart TV, everyone has not yet figured out. Lenovo hopes to let more people know about smart TV through a wave of popularization." Chen Xudong, vice president of Lenovo Group and president of China, believes that only after industry standards are formed In order to really promote the rapid growth of the business.

Channel is king

Lenovo pays more attention to e-commerce than traditional home appliance manufacturers and hopes to compete for more young users in e-commerce channels.

Traditional home appliance manufacturers are mainly offline, the first and second tier cities are mainly Gome, Suning and other chain stores, the third and fourth tier cities rely on regional agents, and the online e-commerce is for the purpose of clearing inventory. Lenovo, which is also from the manufacturing industry, has its own characteristics in channels. In the past year, Lenovo has paid more attention to e-commerce than traditional home appliance manufacturers. It hopes to compete for more young users in e-commerce channels.

At the new product launch event, Lenovo Group announced that it has reached a strategic cooperation with JD Mall, striving to achieve the goal of selling 1 million units in 3 years on the JD platform. In response, Lan Ye, Executive Vice President and Chief Marketing Officer of JD.com, said: "2013 is a critical year for the popularization of smart TVs in China. E-commerce platforms account for 10% of overall TV sales, which will increase 2 to 3 times this year. Through the precise marketing and social marketing of big data platforms to users, we can tap more young users who become the main body of smart TV purchase. "

In addition, Lenovo subdivides offline channels. According to Chen Xudong, in the first, second and third tier markets, Lenovo Smart TV uses Gome, Suning and other 3C stores as its main sales platform. The fourth and fifth tier markets expand their stores by cooperating with regional agents. It is worth noting that Lenovo TV will be fully sold in 30,000 stores nationwide this year, and will be fully entered into Lenovo PC + 3C stores.

M & A possibilities

Compared with other traditional color TV companies in the upstream resource supply chain (panel, production and manufacturing) control, Lenovo is undoubtedly lacking.

Currently, Lenovo Group and Sharp are jointly developing a 60-inch K82 smart TV, which is expected to be officially launched in July. The two sides also expressed that they will conduct closer cooperation in the future.

Recently, news about Sharp has continued. Earlier, LeTV's "Super TV" had announced that it had "deep" cooperation with Sharp, but the latter immediately issued a statement to "refute rumors"; Lenovo and Hon Hai both expressed interest in acquiring Nanjing Sharp factory in China, which is responsible for TV production, but the news It shows that the cooperation between Sharp and Hon Hai is not pleasant. Therefore, the outside world has always speculated that the two sides will reach cooperation at the capital level. To this, Chen Xudong said, "We will seize every opportunity to make Lenovo's business have a leapfrog growth. Lenovo has been looking for such opportunities." This opportunity may be acquired by Lenovo The Nanjing Sharp factory was opened. According to industry sources, Lenovo's acquisition of the Nanjing Sharp factory has been basically confirmed. Lenovo has already gone to Nanjing to conduct an inventory check of the Sharp factory. But before the contract was finalized, neither side would comment.

Fujimizawa Guiming, general manager of Sharp (China) Investment Co., Ltd. Audio and Video Business Division said: "We are very pleased to cooperate with the world-renowned IT company Lenovo Group. Lenovo has an Android-based smart UI and Chinese voice recognition technology 2. An application ecosystem dedicated to smart TVs that meets the needs of the Chinese market. These are the outstanding technical strengths that Sharp values ​​very much. Sharp has large-size LCD panels that maximize the performance of the panel, realize the highest picture quality TV technology, and have the ability to create High-quality TV production technology. In the development of smart TVs, we believe that Sharp and Lenovo are the best combination. Sharp and Lenovo will maintain a close cooperative relationship, coordinate innovation, and create products that users love more. "

Compared with other traditional color TV companies in the upstream resource supply chain (panel, production and manufacturing) control, Lenovo is undoubtedly lacking. At the press conference, Fujisawa Guiming emphasized the advantage of Sharp Nanjing factory. "From the module-the screen-the whole machine, the Sharp Nanjing factory has a one-stop production, and the products can be from 20 inches to 80 inches." As a manufacturer, Sharp has requirements on the production capacity of its factories, and it can use full horsepower to produce. "Chen Xudong said. When the global home appliance industry is at a low tide, whether Sharp and Lenovo can achieve a win-win situation through cooperation needs to wait and see.

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