Silicon Valley
Chapter 292 Hongnian Computer
Spielberg went to persuade David Geffen, Henry was thinking about how to layout the Chinese market.
China's internet has grown by leaps and bounds in the latest wave of listing sprees. In fact, not only China, but other countries as well.
Nasdaq has never been this crazy.
The rise of the Internet has really stimulated everyone and all countries!
The speed of Internet development in China has accelerated, but the income of Chinese people has not been so fast. Most Chinese people can't afford a computer, so Henry intends to launch a cheap computer! His idea is to acquire Apple to make high-end computers in the future, and then recreate a brand to make low-end computers. Open up the Chinese market with low-end computers and deploy Internet cafes. It will take a long time for home PCs to become widespread in China. Therefore, controlling Internet cafes is equivalent to controlling the entrance to China's Internet!
At present, Hongnian Technology, which is rooted in China, is the most suitable for low-end computers!
Another reason for Henry's busy layout in China this time is that on March 26, 1994, the Mobile Communications Bureau of the Ministry of Posts and Telecommunications of China was established. Prior to this, Qualcomm has been lobbying the Chinese government to adopt the cdma network. This time, the establishment of the Mobile Communications Bureau of the Ministry of Posts and Telecommunications of China is also the result of Qualcomm's efforts! Because the Mobile Communications Bureau of the Ministry of Posts and Telecommunications decided to use the cdma network.
This decision is of great significance. If other mobile phone manufacturers want to sell mobile phones in China, they must use Qualcomm's cdma technology, and the patent fee is huge! If the GSM network is used, Williams Electronics has to produce GSM phones, isn't it just to give money to others?
Usually, after a telecommunications company chooses a network standard, it will only upgrade on this basis, it will not say that I am using cdma now, and then immediately change to gsm. How much does it cost to build! The Mobile Communications Bureau of the Ministry of Posts and Telecommunications is the predecessor of China Mobile. Think about how many people will be mobile users in the future, how many mobile phones will there be, and how much patent fee will be paid to Qualcomm for each mobile phone? Is there any saliva left...
At present, the mobile phone developed by Williams Electronics has also been completed and sold all over the world. How can there be less China! And Williams pagers have also been developed, which are in urgent need of sale in China!
Henry has a deep understanding of the land price in China, and it will only go up in a crazy way. Many people may not be able to buy a house after working all their lives! Too Nima scary!
Therefore, taking advantage of the current cheap, the first enclosure is to say, the first step is to establish a Williams retail store!
Building a retail store in an enclosure isn't much of a problem, just a few more teams from Williams Electronics!
The key now is, how to make low-end cheap computers? Hard disk, display screen, memory and other components are okay to say, the key is the processor!
The processors designed by ARM are not suitable for personal computers, and Henry must find a new company that produces microprocessors!
Henry's first thought was Cyrix, which was founded in 1988 as a company specializing in cheap processors. Moreover, it is quite awesome, it is the third largest microprocessor manufacturer in the world after Intel and AMD! However, the market value of Cyrix is not high. Although it is called the third, it is far from the previous two, and because it is cheap, it is less profitable.
In 1997, it was acquired by National Semiconductor Corporation at a price of 550 million, and then was acquired by VIA Electronics. The fate was bumpy!
But at this moment, Cyrix is exactly what Henry needs!
Henry immediately initiated an acquisition request to Cyrix in the name of Williams Electronics, and Cyrix was also very happy to accept the negotiated offer. If Cyrix can rely on the mountain of Williams Electronics, the company will definitely grow faster!
In just one week, the two sides reached an agreement after three rounds of negotiations. Williams Electronics raised $500 million in Cyrix, holding a 75% stake.
In fact, Cyrix is currently in a very bad situation. Since Intel launched the Pentium processor in 1993, it has killed the Quartet. Cyrix will inevitably be severely impacted. The further back, the lower the market value! Cyrix is eager to find a way out of the predicament, and joining Williams Electronics is a good choice!
After winning Cyrix, Henry asked Cyrix to design a cheap processor chip specifically for the Chinese market, and then asked Hongnian Technology to produce computers. Williams Electronics can dump its products in China, such as hard drives, memory, monitors, etc. The more production, the lower the cost, even if it can't make much money in the Chinese market, but because of the low cost and strong competitiveness , can seize more market share in the international market, on the one hand to strengthen itself, on the other hand to suppress opponents.
Japan's current economy is not good, and electronic products are also on the decline, but South Korea has suddenly emerged, and the speed of its rise is too fast, making Henry have a feeling of palpitations, so it is extremely necessary to suppress them! And product price reduction is the most effective means!
Subsequently, Hongnian Technology established a computer department, but its main task was to engage in the research of computer motherboards and complete machines, and the rest of the components were all provided by Williams Electronics.
Work is in full swing, and Williams retail stores are popping up in a major city every three days, and it's growing fast.
A month later, Cyrix specially designed a cheap processor called 486ZG for the Chinese market on the basis of other 486 chips, and its manufacturing cost was less than 1,000 RMB.
After that, Cyrix assisted Hongnian Technology to develop motherboards based on the 486ZG processor. Although the United States has imposed a strict blockade of semiconductors and chips on China, this kind of technical support belongs to the normal category. If Chinese customers use Intel chips, Intel has to send people to help them develop the whole machine, or even send a technical description document. Otherwise, how can others develop on your products!
With the assistance of Cyrix, Hongnian Technology spent more than three months developing its own motherboard. Soon after, Hongnian Technology produced a prototype - Hongnian Computer. The manufacturing cost of Hongnian computer is only 3000 RMB!
After a period of testing, there is no major problem with Hongnian Computer, and it can be mass-produced and released!
During this period, Williams retail stores have also been rolled out in major cities in China, with a total of more than 300 retail stores, of which 45 have been renovated and can be opened for business! But currently the only products that can be sold are Williams pagers, Hong Nian computers, and iPod music players!
As for the Williams mobile phone, the time is not yet, at least until the Mobile Communications Bureau of the Ministry of Posts and Telecommunications has completed the construction of the cdma network!
At present, China's computer companies are relatively famous, such as Lenovo, New Wave, etc., but their computer prices are really too expensive, basically tens of thousands of yuan.
The cost of Hongnian computer is 3,000 RMB, and the retail price is only 3,500 RMB. Earning 500 RMB is not too much. Lenovo's computer cost is estimated to be about 4,000, but it is so expensive to sell, one can imagine how much it has earned!
Lu Jian roared, Henry is coming to break this situation!
(To be continued ~^~.)
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