Rebirth of Fortune Soars
Chapter 778: Can't afford to fight a price war
Many Intel directors have expressed their incomprehension about how the price can be reduced so drastically.
"Those outside media exaggerate and say that China is poor. That may have political reasons. But you, too, are well-known people in society, and you are all knowledgeable people. How can you have such a superficial understanding!" Grove He scolded, "China was indeed poor once, but since they set up an open city, China's economy is booming!"
“Last year, China’s computer market had a transaction volume of 7.9 million units! We sold more than 5 million chips in China! In the future, I believe the number will double exponentially every year! China has a population of 1.3 billion, which is A very large market. If we give up, what we will give up is not just two or three billion dollars in net profit this year, but maybe tens of billions or even hundreds of billions of dollars!"
Grove said seriously.
"?" Many directors were shocked.
"I'm very serious!" Grove said with a serious face, "Don't underestimate the China Market. This market is very large and incredible. We must take it seriously!"
The crowd looked at Grove, lost in thought.
If all this is as Grove said, then it really needs to be treated with caution. Even letting profits is okay.
After all, being a person has to look at the long term. Rather than the petty profits in front of us.
"China has a population of 1.3 billion, and its GDP last year was 863.7 billion U.S. dollars! Although it is only one-tenth of the United States compared with the United States, it is ranked seventh in the world!" Grove said.
Everyone was really shocked this time.
Unconsciously, China's GDP actually ranks seventh in the world.
The world’s seventh GDP, plus such a large population. This market is huge!
"We support price cuts!" Many directors nodded.
As far as the overall situation is concerned, these directors are not ordinary people after all, and they are not stupid ignorant people. They also feel distressed about the profit of this price reduction, but if left alone, if the entire market is occupied by Godson, even in the low-end market, they will also lose a lot.
Especially, this is not just China. If Godson sits firmly in China, and then enters other markets, then you will be in trouble. They just realized the appearance of a terrible opponent.
Therefore, the danger must be suppressed in the cradle.
Therefore, feedback on the market soon came out.
The Celeron 2 processor was immediately reduced to an extremely low price of 480 yuan after it went on the market. This price is 100 yuan cheaper than the Loongson 1 generation.
Although the Godson 1 generation is 300MHZ, this performance surpasses Celeron 2. However, the price is 100 yuan, which is very tempting. In addition, Intel also plans to increase the processor frequency of Celeron 2 to 300MHz to deal with it.
However, due to inventory pressure, Grove decided to sell the 233, 266MHz and other chips currently on the market first.
Otherwise, if you now directly transition to 300MHZ, the chips before that are in vain. Qin Feng will take it back and modify it again. But for Intel, the price is too great.
After all, once Intel is recovered, it will be the global market. The chips involved are tens of millions.
This is what the old saying goes: The boat is good to turn around.
Qin Feng's side is good for recycling at any time, but Intel's side is not.
"480 yuan!" Qin Feng was shocked.
The price was a bit beyond Qin Feng's expectations. I didn't expect Intel to be so cruel.
"Qin Feng, shall we keep up!" Lei Jun's tone was also a little uncertain.
"Keep up! Since they want to play a price war, keep up!" Qin Feng said coldly, "Isn't it just a price reduction? Who is afraid of whom!"
"We sold it for 460 yuan, and then the shipping price, we also dropped to 360 yuan!" Qin Feng said.
"360 yuan! Then we will earn 10 yuan!" Lei Jun took a breath.
This is really not profitable. You know, this price is a price calculated by the company based on the evaluation of the cost of land, machinery and equipment, labor costs, and so on.
This has not yet calculated the huge scientific research expenses. This point is ruled out.
As a result, the company now only earns 10 yuan by selling CPUs. How can this make money? This is less than what the vendors earn.
Vendors can also earn dozens of yuan when they get the goods, but CPU OEMs only earn 10 yuan. This can no longer be regarded as making money, and even said that it will lose money.
After all, if you add the terrible research fees, you will lose.
"Qin Feng, if this continues, there will be no profit. We still have to do scientific research. The funds will not last long!" Lei Jun calculated it. "Not counting the investment in expanding production, we can last up to one year with funds!"
Before that, the CPU earned 50 yuan, which was okay. As long as the sales are large, small profits but quick turnover is no problem. But if it becomes 10 yuan, it won't work.
This one sold 10 million pieces and only made 100 million. Far from subsidizing the investment in scientific research and other projects.
"Let's lower the price first! As for funding, let's figure out a solution!" Qin Feng said in a deep voice.
In any case, we must hold on first.
"Sell for 460 yuan!" The many bosses on SEG Plaza were also a bit shocked by the price. This is a complete price avalanche.
Although they don’t know much about www.wuxiaspot.com, they also understand that Intel is a giant and has a lot of money. In such a price war, Qin Feng could not be an opponent at all.
If this continues, sooner or later Qin Feng will be struggling to make ends meet.
Finally collapsed!
But this kind of thing is also something they cannot intervene. They can't do much. All they can do is help Qin Feng sell more CPU.
The price war has officially started!
Qin Feng’s Loongson 1 sells for 460 yuan, and Celeron 2 sells for 480 yuan!
Between the two performances, Celeron 2233 is 50% worse than the Loongson 1 generation 300. The price is almost the same.
Under such a choice, consumers will undoubtedly still choose Godson.
However, Intel soon lowered the price again, this time it reached freezing point, and Celeron 2233 sold for 430 yuan!
"Qin Feng, what should I do?" Lei Jun was already trembling, completely unable to control the fear in his heart.
Intel only cut prices a little bit, but completely killed the living space of Godson.
Celeron 2 has been sold for 430 yuan. How much do you sell Godson?
Selling for 420 yuan, does the business make money? How much do you give to the merchant?
"At present, when the merchants get the goods, Celeron 2CPU can still make a profit of 20-30 yuan in those third- and fourth-tier cities. The second-tier dealers are about 380 yuan, and the first-tier dealers are probably the price of 360 yuan. Around yuan. If we want to drop, I'm afraid there will be no profit at all!" Lei Jun said, "Shall we follow up?"
Is this still a follow-up? The entire Kyushu IT Technology Co., Ltd. is full of sorrow.
Intel is too powerful! And they are too weak. Not only is the technology incomparable. The price advantage is gone now.
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