DOCSLIB.ORG

Lenovo Group Ltd

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Lenovo Group Ltd Lenovo Group Ltd SELL: HKD 3.75(-27.04%) Equity Research Department 20 October 2016 Analysts Tan Hong You Lenovo Crash: Rebooting The PC Lead Analyst, Equity Research Giant [email protected] We are initiating coverage of Lenovo with a Sell rating and a HKD Juliana Tian 3.97 12M price target. Analyst, Equity Research 2Q16 Earnings Review Soo Wei Jie Wesley Total quarterly revenue down 6% y-o-y to US$10.1 billion Analyst, Equity Research due to slow growth or y-o-y industry declines in core Zhuo Yuxin business segments Analyst, Equity Research PC shipments declined by 2.3%, a 1.8 point premium over market; tablet business saw double digit growth premium to Basic Information market Last Closed Price HKD 5.14 MBG pre-tax profit margins improved 2.9 points due to the 12M Target Price HKD 3.75 transition to higher priced products, despite a 6% y-o-y +/- Potential -27.04% quarterly sales decrease to US$1.7 billion, Bloomberg Ticker 992 HK Equity DCG continues to face stiff challenges in mature markets, but GICS Sector Information Technology it strengthened its #1 market share position in China, GICS Sub-Industry Technology Hardware, increasing revenue 14% y-o-y, driven by growth in the Storage & Peripherals hyperscale business 1Y Price v Relative Index Regional performance: China, EMEA, and Americas sales 10 dropped 9.8%, 7.3%, and 6.6% y-o-y respectively; Asia 8 Pacific sales increased by 6.3% y-o-y 6 4 Investment Thesis Increasing urgency for Lenovo’s other growth engines to Lenovo Close HSI Rebased succeed given poor outlook and strong competition in Company Description primary PC business, exacerbated by its reliance on China Lenovo is a leader in providing innovative consumer, market, which is experiencing slowdown in growth. commercial, and enterprise technology. It focuses on 3 Inability of smartphone turnaround due to poor smartphone main business groups, namely PC, Mobile, and specifications that do not meet the consumers’ demand Enterprise, primarily operating in 4 regions – Americas, However, mobile growth engine unable to gain traction in China, Europe-Middle East-Africa, and Asia Pacific. smartphone market to replace declining sales in mature PC Key Financials market. Market Cap 57.098B HKD Basic Shares O/S 11.109B Catalysts Free Float Lenovo’s FY16/17 Q2 revenue to underperform 15 analysts’ 52-Wk High-Low HKD4.49 – HKD8.82 consensus of US$10.99 billion due to continued lacklustre PC Fiscal Year End 31-Dec-15 performance, and a failure in smartphone turnaround despite Motorola rebranding efforts (US$ M) FY15A FY16A FY17E FY18E Further strengthening of the greenback in December as a Revenue 46,295 44,912 46,416 48,416 result of a Fed rate hike, right before the financial year end, Gr Rate (%) 19.6 -2.99 3.35 4.10 will result in substantial currency translation losses for EBITDA 1,523 231 455 183 Lenovo Margin (%) 3.29 0.52 0.98 0.38 Net Income 970 -276 418 146 Valuations Margin (%) 2.10 -0.62 0.90 0.30 Our 12 month price target from date of coverage is HKD$4.66, ROA 0.03 -0.005 0.02 0.01 reflecting 66x our 2017E EPS of $0.06. ROE 0.20 -0.04 0.12 0.09 EV/EBITDA 9.05 12.32 5.41 4.94 P/E Ratio 18.79 14.37 10.21 8.97 Investment Risks Strong adoption of AR smartphones will improve MBG’s Key Executives performance and Lenovo’s top line, improving its position as Yang Yuan Qing Chairman & CEO a future growth engine to drive Lenovo’s top line Gianfranco Lanci Chief Operating Officer Successful merger and integration of Fujitsu’s PC business to Wong Wai Ming Chief Financial Officer improve PCSD’s performance and strengthen Lenovo’s PC market leadership, boosting valuations Company Overview Figure 1. Revenue by Business Group, FY15 Lenovo is a US$45 billion global Fortune 500 company and a leader in providing innovative consumer, commercial, and enterprise technology. 2.00% 10.00% It focuses on 3 main business groups, namely PC, Mobile, and Enterprise, primarily operating in 4 regions – Americas, China, Europe-Middle East- Africa (EMEA), and Asia Pacific. The company faces a challenging macro landscape due to significant currency volatility in key emerging markets, persistent declining of the 22.00% PC and tablet market, and slow growth in the smartphone market. However, to counter the adverse macro environmental conditions, Lenovo has taken decisive actions to drive growth. Through its largest 66.00% restructuring efforts, Lenovo has more than US$1.3 billion in annualized savings to make it more competitive in the future. In preparation for the age of “Internet of Things” and to achieve their vision of making life better and work more efficient by delivering smart PC Mobile Enterprise Others end-user devices, powerful infrastructure, all with connected services and apps, and the best user experience, Lenovo has made two key Source: Lenovo Annual Report 2015 acquisitions – Motorola Mobility and System X - to expand beyond their core PC business 2Q16 Earnings Review Total quarterly revenue of US$10.1 billion; down 6% y-o-y Figure 2. Revenue by Geography, FY15 (down 4% excluding FX impacts) Slow growth or y-o-y industry declines in core markets: decrease of 4.1% in PCs; drop of 11.1% in tablet shipments; flat server 16.00% industry shipments; smartphone market growth of 0.7% 28% In the PC & Smart Device Business Group (PCSD), Lenovo continued to outperform the market: PC shipments declined by 2.3%, a 1.8 point premium over market; tablet business saw double digit growth premium to market Despite a 6% y-o-y decrease of quarterly sales to US$1.7 billion, Mobile Business Group (MBG) pre-tax profit margins improved 2.9 points due to the transition to higher priced products 26.00% The Data Center Business Group (DCG) continues to face stiff challenges in mature markets, but it strengthened its #1 market share position in China, increasing revenue 14% y-o-y, driven by 30.00% growth in the hyperscale business Y-o-y decline in sales across China, EMEA, and Americas were 9.8%, 7.3%, and 6.6% respectively; sales in Asia Pacific increased by 6.3% y-o-y Asia Pacific EMEA Americas China Moving forward: PCs will focus on high growth segments and Source: Lenovo Annual Report 2015 leverage industry consolidation to resume growth; smartphones will leverage innovative, differentiated products and continue to shift to higher price bands to drive growth and turn around this business; data centers will continue to expand in hyperconverged technology, and improve profitability in the Figure 3. Lenovo Phab 2 Pro – World’s First hyperscale business Tango-Enabled Smartphone Industry Outlook Shrinking PC market In the short and medium term due to persistent sluggish demand According to the IDC Worldwide Quarterly PC Tracker, worldwide PC shipments in 3Q16 totalled nearly 68 million units, which is a 3.9% y-o-y decline. In the near term, the PC market is expected to further decline: growth in 2016 is now expected to be about 2% below earlier projections, as conditions have been weaker than expected, and in 2017 there will be progressively smaller declines. In the medium term, the PC market will continue to shrink, with IDC forecasting global PC shipments to decline from 256 million in 2016 to 249.2 million in 2020, which represents a - Source: Lenovo 0.7% CAGR. 1 This is due to the persistent sluggish demand for PC as consumers are not Figure 4. PC Shipments by Product Category buying new computers even if they need to buy one. Instead, they are and Regions (Shipments in Millions) buying tablets and smartphones as they are easier to use, more secure 160 and more portable. Moreover, the availability of free Windows 10 upgrades has delayed the necessity of purchasing new PCs. 137 140 131.3 124.7 PC market continues to be highly competitive 120 112.1 The stage of the PC industry life cycle can be described as mature, and the 100 85.9 industry is saturated with companies like Dell, Sony, HP, Apple and 81.4 Gateway. Over the past several years, price competition in the market for 80 73.1 64.7 63.9 66.6 PC have been particularly intense. 60 38.8 Increased levels of competition naturally led to price competition and 40 30.7 damp margins. Macroeconomics issues may lessen spending by 20 consumers and corporations and could be exacerbated if local and non- branded makers react by reducing already low prices. Companies risk 0 Desktop Notebook Total margin in favour of market share by trading considerably lower prices for shipment growth. Mature (2016) Mature (2020) Emerging (2016) Emerging (2020) Currency volatility to adversely affect industry bottom line Continued volatility in currency markets in 2016 will likely affect large Source: IDC technology companies with significant sales and costs overseas. Companies pricing products in USD globally may be less impacted by volatility. Yet, manufacturers weighted toward consumer products or Figure 5. Top 5 Vendors, Worldwide PC those with large cost exposure via R&D expenses may be more affected. Shipments, 2Q16 Companies with overseas sales and distribution channels may also be hurt, even with additional hedging that may have occurred amid volatility in 2015. Given Brexit’s impact on the euro, pound and yen, which are 27.70% 21.20% major operating revenue or expense currencies for hardware firms, currency impact may substantially widen over 2H.
Load more

Recommended publications
  • Determining the Feasibility of a Modular Smartphone: a Systems Analysis Areeb Shahjahan – U5559531, ENGN2226 – T13, 14 October 2015
    Determining the Feasibility of a Modular Smartphone: A Systems Analysis Areeb Shahjahan – u5559531, ENGN2226 – T13, 14 October 2015 Abstract In a fast paced technology industry, companies are releasing smartphone models annually and consumers are inclined to change smartphones approximately every 2 years. A modular smartphone is a hardware customizable mobile phone made up of separate individual components. This research project aims to determine the feasibility of a modular smartphone using systems analysis methodologies. Problem scoping incorporated a survey-based qualitative analysis along with quantitative data triangulation. The specifics of the system were then examined through anthropometric and ergonomic considerations as well as material and energy factors. As a result, design recommendations included having three models sized 4”, 5”, and 5.5” (diagonal screen length) with suitable lock button positioning, and the option of a synthetic leather backing or metallic finish. Taking an environmental approach comes at a significant monetary cost; a comparative life- cycle cost analysis of a traditional smartphone and an environmental smartphone was used to deduce this. Extended analysis included optimizations in two specific scenarios: a boot-up time optimization and a NFC pay-wave feedback system. The holistic result of this investigation was that the modular smartphone is a feasible venture given that hardware and software developers dedicate separate divisions to this project and communicate comprehensively, along with a marketing strategy aimed at mainstream smartphone consumers. 1.0 Introduction The smartphone become increasingly evident in society due to its vast range of features reaching far beyond simple voice calling and texting – this includes multimedia (audio/video), internet browsing, instant messaging, widespread application databases and high resolution cameras (Suki, 2013).
    [Show full text]
  • Lenovo Mobile Business Group
    Lenovo Mobile Business Group Smartphone Portfolio 2016 September 2016 2015 Lenovo Confidential. All rights reserved. Agenda OS & Group B2B Product security update focus Portfolio updates 2015 Lenovo Confidential. All rights reserved. THE LARGEST PRODUCT LINE OF THE MARKET 2015 Lenovo Confidential. All rights reserved. Innovation in our DNA ShatterShieldTM Built-in Projector Convertible 4th Moto MODs display tablets generation Transform your phone 2015 Lenovo Confidential. All rights reserved. Global market positions A strong leader #1 #1 #3 #5 PC PC + tablets X86 servers Smartphones Record 20% worldwide #1 spot in broader Including both ThinkServer +63% YoY market share PC + tablet market and System x Server (out of china) IDC 2015 2015 Lenovo Confidential. All rights reserved. Key successes in B2B smartphones Great leap forward ! +SMB channel… 2015 Lenovo Confidential. All rights reserved. 2016 Products 2015 Lenovo Confidential. All rights reserved. 2016 Roadmap -- Pure Android -- Price Aggressive -- Best-in class components -- Consensual Design -- Splash/scratch proof -- B2C centric -- Innovation Moto Z Moto G4 K5 High > Mid > Entry High > Mid > Entry 2015 Lenovo Confidential. All rights reserved. - a unique proposition Purest Android -Fastest OS upgrade Best in-class Security ITSecure manager and ready IT manager friendly - Compatible with all the major MDM/EMM solutions -Top-end security : o Motorola is the only manufacturer to deploy Android upgrades / Security patch on all its portfolio o The most seamless OS upgrades providing the latest security and management features through Android For Work o Pure Android solution for hassle-free deployment and improved security → The first true alternative to Samsung in the B2B space Get more on what matters most 2015 Lenovo Confidential.
    [Show full text]
  • Lenovo: Being on Top in a Declining Industry
    ALI FARHOOMAND LENOVO: BEING ON TOP IN A DECLINING INDUSTRY Our overall results were not as strong as we wanted. The difficult market conditions impacted our financial performance. Yang Yuanqing, Chairman and CEO, Lenovo1 For the first time since the 2008 financial crisis, Lenovo, the world’s largest PC maker, not only had failed to increase its revenues and profits, but had a net loss. Lenovo’s market share was still growing, but the PC market itself was shrinking about 5% annually [see Exhibit 1]. Lenovo had hoped that the US$2.91 billion acquisition of the Motorola Mobility handset business in 2014 would prove as fruitful as the company’s acquisition of IBM’s Personal Computing Division a decade earlier. Such hopes proved to be too optimistic, however, as Lenovo faced strong competition in local and international markets. Its position among the smartphone vendors in China dropped from 2nd to 11th between 2014 and 2016, while its worldwide market share shrank from 13% to 4.6%. In 2016, its smartphones group showed an operational loss of US$469 million.2 In response, Lenovo embarked on a two-pronged strategy of consolidating its core PC business while broadening its product portfolio. The PC group, which focused on desktops, laptops and tablets, aimed for improved profitability through market consolidation and product innovation. The smartphones group focused on positioning the brand, improving margins, streamlining distribution channels and expanding geographical reach. It was not clear, however, how the company could thrive in a declining PC industry. Nor was it obvious how it would compete in a tough smartphones market dominated by the international juggernauts Apple and Samsung, and strong local players such as Huawei, Oppo, Vivo and Xiaomi.
    [Show full text]
  • “Phonebloks, Or a Phone Developed by Its Future Users”: User Experiences of a Forum About a Modular Phone Concept
    “Phonebloks, or a phone developed by its future users”: User experiences of a forum for a modular phone concept Master‟s thesis Victor DESEILLE University of Jyväskylä Department of Languages English July 2015 JYVÄSKYLÄN YLIOPISTO Tiedekunta – Faculty Laitos – Department Humanities Languages Tekijä – Author Victor DESEILLE Työn nimi – Title “Phonebloks, or a phone developed by its future users”: User experiences of a forum about a modular phone concept Oppiaine – Subject Työn laji – Level English Master‟s Thesis Aika – Month and year Sivumäärä – Number of pages July 2015 62 Tiivistelmä – Abstract In late 2013, a project caught my attention as being interesting to me and potentially a lot of others, innovative, and environmentally friendly: a modular smartphone project called Phonebloks. This timing fitting perfectly the start of my Master‟s thesis as well as my personal interests, I observed it to see how it would develop. The official website which was created let users debate in order to decide where this Phonebloks project should go, so I decided to focus my efforts on it. This thesis describes perceptions of users regarding an online forum about a new kind of modular phone, called Phonebloks. On this forum they can debate about the future of the phone. I based my analysis on research on forums as well as user perception and involvement. I used 869 comments from the forum, and content analysis, with a code book, quantitatively and slightly qualitatively. It was found that communication is widely polite, with very little negative behavior throughout the forum. It was also discovered that visual stimulation, with images instead of text enables more debate since it draws more attention to the topics.
    [Show full text]
  • We Have Launched 10 Inspiring Case Studies With
    Case studies: Sustainable solutions for transforming the smartphones and ICT sector How to offset How it works • Client buys new phones or sells old ones, and your phone pays CTL a fee per phone • CTL arranges collection of scrap phones in Closing the Loop (CTL) is a Dutch social enterprise Africa operating between Europe and sub-Saharan Africa. It was founded after Joost de Kluijver saw how mobile • Local community gains environmental health phones turn into harmful e-waste in developing and financial benefits countries. Second-hand phones are valuable in low-income countries, and can contribute to several • CTL sends the phones to certified recyclers Sustainable Development Goals. However, their • Waste is safely converted into resource. contents – for example heavy metals and flame retardants – also create a dangerous waste problem. Client benefits Two-thirds of used phones shipped from Europe and the US are sent to countries lacking safe e-waste • Client achieves a smaller CO2 and materials recycling infrastructure. After their second or third footprint, plus positive social impact life, they are dumped or processed in a way that • Tangible results allow better engagement harms health and the environment. At the other end with employees, customers and investors of the equation, mining for new materials causes devastating environmental and social impacts. CTL • Client has a commercial advantage with uses a circular economy approach to reduce the more sustainable services when bidding for harms of smartphones at the start and end of their contracts where sustainability is valued. lives. This ‘one-for-one’ model creates a memorable story Business model for clients and their stakeholders: for every phone a CTL sets up systems in several African countries to client buys, they offset its new metals and prevent bring scrap phones to the proper recycling facilities.
    [Show full text]
  • Smartphone Sustainability Assessment Using Multi-Criteria Analysis and Consumer Survey
    DEGREE PROJECT IN ENVIRONMENTAL ENGINEERING, SECOND CYCLE, 30 CREDITS STOCKHOLM, SWEDEN 2017 Smartphone sustainability assessment using multi-criteria analysis and consumer survey JANIS GEDUSEVS KTH ROYAL INSTITUTE OF TECHNOLOGY SCHOOL OF ARCHITECTURE AND THE BUILT ENVIRONMENT DEGREE PROJECT IN THE BUILT ENVIRONMENT, SECOND CYCLE, 30 CREDITS STOCKHOLM, SWEDEN 2017 Smartphone sustainability assessment using multi-criteria analysis and consumer survey JANIS GEDUSEVS Supervisor PhD.Rajib Sinha Examiner Monika Olsson Supervisor at Tech Buddy AB Tahero Nori Degree Project in Environmental Engineering KTH Royal Institute of Technology School of Architecture and Built Environment Department of Sustainable Development, Environmental Science and Engineering SE-100 44 Stockholm, Sweden Acknowledgements I would like to thank Tahero Nori for hosting and supervising my graduation internship at Techbuddy AB. Also I would like to express my gratitude to PhD. Rajib Sinha and Monika Olsson for supervising and counselling my graduation internship. Finally, I would like to express my gratitude to all of my friends and family for support during my studies at KTH Royal Institute of Technology Stockholm. 1 Abstract Sustainability is a fairly new emerging business concept for manufacturing industry and this this thesis will specifically focus on smartphone sustainability. In 2015 there were 1.86 billion smartphone users and it is estimated to increase to 2.87 billion in 2020. Currently the average lifetime of a smartphone is 21 months and according to Consumer Technology Association the technical life expectancy of a smartphone is 4.7 years. The European Commission approximated that from 17–20 kg of electronic waste is produced per person per year and that smartphones are contributors for increase of electronic waste.
    [Show full text]
  • Single Use Goes Circular–An ICT Proto-Practice for a Sustainable Circular Economy Future
    sustainability.hapres.com Article Single Use Goes Circular–An ICT Proto-Practice for a Sustainable Circular Economy Future Ines P. Junge Department of Informatics, University of Oslo, 0316 Oslo, Norway; Email: [email protected]; Tel.: +47-91528394 ABSTRACT Design research within information and communication technology and human-computer interaction is well poised to link relevant artefacts’ lifecycle phases, such as the end-of-life with design. From a lifecycle thinking perspective, this paper investigates aspects of product longevity, interrogating what sustainable product lifetimes in a sustainable Circular Economy mean. The potential of the latter concepts has not yet been fully exploited. Also, the power of stakeholders, e.g., of designers and consumers, has not been synergistically combined. However, fulfilling this potential might facilitate a transition towards more sustainable future societies. The present work draws inspiration from an extreme case of “single use” cameras. In particular, it uses the notion of “practices” as a basic unit of design to articulate the desired linkages in lifecycles. “Single use” practices then serve as an epitome of a “borrowed for use” scenario, which—transferred to the mobile phone—results in a proto-practice. As outlined and argued in this paper, the proposed proto-practice might exact a more profound change compared to previous concepts or lived practices. It is a specific example of designing for the Circular Economy using the mobile phone, which also epitomises how designers and consumers collectively can address temporalities, rebound-effects and design trade- offs in general. Developing proto-practices and with them setting goals that might have been out of reach previously, is proposed as a central component for future design research.
    [Show full text]
  • S119 Proceedings Papers Schischke
    ® Road to 2030: Sustainability, Business Models, Innovation and Design 22nd International Conference 04 –05 March 2019 Business School for the Creative Industries (BSCI), University for the Creative Arts (UCA), Epsom, Surrey, KT18 5BE, UK Venue partner Karlijn Arts Annik Magerholm Fet University for the Creative Arts Policy & Sustainability Manager, SkyNRG Vice-Rector, Norwegian University of Science & Living Light and Technology (NTNU) Camille Baker Bashir Makhoul Reader, Interface and Interaction, School of Vice Chancellor, UCA Communication Design, UCA Jin Min Michele Bonanno School of Environment and Natural Resources, Founder + Editor in Chief, Impakter Renmin University of China Strategic partners Laurent Bontoux Lisbeth Ottosen Business School for Senior Foresight Specialist, EU Policy Lab, Joint Department of Civil Engineering, Technical the Creative Industries Research Centre (DG JRC), European Commission University of Denmark (DTU) Katherine Boxall Augusta Maria Paci Impakter Deputy Director, BSCI, UCA Technology Director, Consiglio Nazionale delle newdesign Kat Braybrooke Ricerche World Green Design Researcher, Sussex Humanities Lab, University of Bernice Pan Organization Sussex Founder & Creative Director, DEPLOY Martin Charter Charlotte Rutter Director, The Centre for Sustainable Design ®, Course Leader, BA Fashion Marketing Management BSCI, UCA BSCI, UCA Ichin Cheng Adrian Smith Director, Sustainable Innovation Lab Science Policy Research Unit, University of Sussex Matt Crane Mathy Stanislaus CEO, Monty’s Bakehouse Fellow
    [Show full text]
  • Fairphone Celebrates Over 5 Years of Fairphone 2 with Unprecedented Android 9 Software Update
    Fairphone celebrates over 5 years of Fairphone 2 with unprecedented Android 9 software update With the release of Android 9 for Fairphone 2 on the 5th anniversary of the phone, Fairphone fulfils its longevity promise and outlines the roadmap for the Fairphone 3 and Fairphone 3+ Amsterdam, the Netherlands, 25.03.2021 - Fairphone, the Dutch social enterprise building a market for ethical smartphones, has announced it has reached the milestone of five years of Fairphone 2 hardware and software support, as it confirms Google certification of Android 9 for Fairphone 2 and a multi-staged rollout of the software. Fairphone’s unique modular design makes it easy for customers to use their phones for longer - lowering their environmental footprint. Fairphone 2, launched five years ago, was the world’s first modular smartphone. The phone’s concept and design were the first of its kind, making it revolutionary for the electronics industry. In total, around 115,000 Fairphone 2’s were sold. Producing the first modular phone presented new challenges for Fairphone in the supply chain, particularly around spare parts availability. The company had to learn to accurately forecast how many spare part components were actually needed in the long-term as well as how long the manufacturers of specific components would keep producing the required spare parts. Ensuring spare parts availability can be especially complicated when phone production ends. In fact, more recently Fairphone experienced challenges with the supply chain and had to permanently go out of stock of the Fairphone 2’s bottom module. As well as hardware, software is also a key component of smartphone longevity, with chipset vendors such as Qualcomm playing an important role in software development.
    [Show full text]
  • 2016/17 Annual Report Stock Code 992
    Lenovo Group Limited | 2016/17 Annual Report Stock Code 992 Different is better ABOUT LENOVO Lenovo (HKSE: 992) (ADR: LNVGY) is a US$43 billion global Fortune 500 company and a leader in providing innovative consumer, commercial, and enterprise technology. Our portfolio of high-quality, secure products and services covers PCs (including the legendary Think and multimode YOGA brands), workstations, servers, storage, smart TVs and a family of mobile products like smartphones (including the Moto brand), tablets and apps. Join us on LinkedIn, follow us on Facebook or Twitter (@Lenovo) or visit us at www.lenovo.com. CONTENTS 04 FINANCIAL HIGHLIGHTS 08 CHAIRMAN AND CEO STATEMENT 12 LENOVO MANAGEMENT TEAM 16 MANAGEMENT’S DISCUSSION AND ANALYSIS 44 CORPORATE GOVERNANCE REPORT 95 AUDIT COMMITTEE REPORT 103 COMPENSATION COMMITTEE REPORT 116 SUSTAINABILITY OVERVIEW 130 DIRECTORS’ REPORT 148 INDEPENDENT AUDITOR’S REPORT 153 CONSOLIDATED INCOME STATEMENT 154 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 155 CONSOLIDATED BALANCE SHEET 157 CONSOLIDATED CASH FLOW STATEMENT 158 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 159 NOTES TO THE FINANCIAL STATEMENTS 247 FIVE-YEAR FINANCIAL SUMMARY 248 CORPORATE INFORMATION different creates better Moto Z and Moto Mods FINANCIAL HIGHLIGHTS 2017 2016 Year-on-year For the year ended March 31 US$ million US$ million Change Group Results Revenue 43,035 44,912 (4)% Gross profit 6,106 6,624 (8)% Gross profit margin (%) 14.2 14.8 (0.6) pts Operating expenses (5,434) (6,686) (19)% Expense-to-revenue ratio (%) 12.6 14.9
    [Show full text]
  • Pre-Print Version – a Final Version of This Draft Was Published As
    Pre-print version – A final version of this draft was published as Hielscher, Sabine; Jaeger-Erben, Melanie; Poppe, Erik (2020): Modular smartphones and circular design strategies: The shape of things to come? In: Tudor, T., & Dutra, C. J. (Hg.): The Routledge Handbook of Waste, Resources and the Circular Economy.: Routledge, S. 337–349. Modular smartphones and circular design strategies: The shape of things to come? Sabine Hielscher, Melanie Jaeger-Erben, Erik Poppe Technische Universität Berlin Modular smartphones and circular design strategies It is widely acknowledged that transitions towards a circular economy (CE) are based on the complementary development of circular business models and design strategies (Stahel 2016, Agrawal/ Bellos 2016, Bocken et al. 2017, Ellen McArthur Foundation 2018). Among the most prominent design strategies are modular product architectures that break products down into components that can be independently and easily replaced or reused (Agrawal/ Ülkü 2013, Proske et al. 2016). Modular product designs have been around for over 50 years (Starr 1965). In the beginning, it was mainly seen as an opportunity to decrease lead times in the production process and later, it became a means to offer customized products to the masses. It was only with the upcoming of the CE debate in the last decade that modular product designs are linked to more sustainable consumption patterns. From the perspective of producers and manufacturers, modularity allows an extension and simplification of services, since modules can be replaced easier in case of malfunctions and/ or upgraded in case of changing customer needs or technological advancements. In addition, the product’s storage and redistribution can become more straightforward.
    [Show full text]
  • Future Feasibility Analysis on Modular Smartphones
    Future feasibility analysis on modular smartphones Ziwei Chen University of Twente P.O. Box 217, 7500AE Enschede The Netherlands [email protected] Permission to make digital or hard copies of all or part of this work for In 2016, the project Ara was cancelled by Google personal or classroom use is hereby granted without a fee, provided that unexpectedly. Modular smartphones have shown copies are not made or distributed for profit or commercial advantage and to have significant positive impacts on the material that copies bear this notice and a full citation. To copy otherwise, republish, culture, the way how smartphones are used, and to post on servers or to redistribute to lists, requires prior specific permission longevity extension for most components, even if they and/or a fee. The 35th Twente Student Conference on IT 2021, Enschede, are difficult to be the mainstream now. The Netherlands. ©Copyright 2021, University of Twente, Faculty of Electrical Engineering, Mathematics and Computer Science. 1 Keywords ABSTRACT E-waste, Modular smartphone, sustainability, Google Project Ara, life cycle, obsolescence A smartphone has become an essential partner in our daily life. The demand for new devices is rapidly increasing and thus the large number of 2 Introduction electronic waste (E-waste) has become big issues. Premature obsolescence is one of the main reasons E-waste is increasing rapidly throughout the whole why the longevity of smartphone is much shorter than world as the demand for new technologies is growing expected. This results in the fact of generating a rapidly [1]. Mobile devices contribute significantly to huge amount of E-watses from smartphones.
    [Show full text]