Reborn since 1993

Chapter 1278 Flowing Water Competes First, Unending Waves

Everyone understood what Li Dongling meant by "fundamental base"—it wasn't just about entering the computer industry, but about planting Dongling Hi-Tech's flag in that industry!

Dongling Hi-Tech's core business consists of leading the entire industry, such as digital cordless phones, electronic dictionaries, and repeaters. These industries are currently considered Dongling Hi-Tech's core business and its backyard.

In these industries, there may be many brands operating in the same industry, but the real leader of the entire industry, and the one that controls the majority of the profits, belongs to Dongling High-Tech.

In these core markets, very few brands are willing, or to put it bluntly, to challenge Dongling Hi-Tech's position anymore, because users have already accepted the concept that the Shenzhou brand is the best in the industry.

If you want to buy an electronic dictionary or a repeater, as long as your family's financial situation allows, or if you want to buy a high-quality product with guaranteed after-sales service, then you should basically buy a Shenzhou.

If the budget is insufficient, other brands will be chosen; this is the core business of Dongling Hi-Tech.

In the core market, the performance is quite stable. For example, digital cordless phones still bring in $1.7 billion in revenue for Dongling Hi-Tech every year.

This market has basically stabilized. It's unlikely to explode again, but it's also unlikely to decline immediately. It still exists in places like old Europe and America. Relying on the existing market, Shenzhou Digital Cordless Phones can basically make money passively!

Similarly, in the computer industry, Li Dongling also needs it to become the new foundation of Dongling High-Tech.

"While maintaining its position in the domestic market, Hasee Computer is about to embark on a global era!"

"Becoming the seventh largest company in the industry is not the end for Hasee Computer; I hope this is just the beginning!"

For a very long time, the computer industry will remain one of the most profitable sectors in the electronics industry. Even in the era of smartphones, computers continue to be shipped steadily.

In fact, desktop computers are like televisions at home; you can do without them, but you can't live without them. Sometimes, especially for office work, homework, online classes, etc., you still need to use them at crucial moments.

Even more than 20 years later, computer giants such as HP and Dell can still earn three to four billion US dollars in net profit from their computer business every year.

The reason why outsiders believe that the PC industry has completely declined is thanks to the extremely low net profit of a certain world's largest computer manufacturer. This has led people who see the news to doubt that the computer industry could have declined to such an extent.

The key issue is that the revenue ratio is so high, it's really bizarre. Who knows which link in the chain went wrong? Anyway, they just don't make money. They sell far more computers than Apple, Dell, and HP, but the profit is appalling.

As for whether computers will completely decline or even disappear in the future, that's something for another twenty or thirty years.

Even in its decline, the computer industry has managed to create the hype surrounding AI computers, giving it a brief resurgence. Whether this is just hype or a true game-changer remains to be seen, and it will take at least five or even ten years to see the results.

Li Dongling then turned his gaze to Chen Tao and asked, "Technology Department, what projects and plans does Shenzhou Computer have for next year?"

"Next year, the technology department will mainly divide Shenzhou's computer project into three parts."

The first plan is to launch the Hasee 3rd generation computer!
The second is the Hasee A2 all-in-one PC project, and finally... Hasee is preparing to test the waters with laptops!

Chen Tao explained Shenzhou's plans in the computer industry: "The plan for Shenzhou's second-generation computer is to equip it with a 250-nanometer chip developed by Dongxin Semiconductor, which basically catches up with the current mainstream computer configuration level in the world."

Shenzhou Computer will officially begin its full-scale international expansion next year, competing in the international computer market with brands such as Compaq, Dell, HP, Toshiba, and Fujitsu!

Next year, the global PC market will basically be dominated by 250-nanometer chips. If Dongxin can break through the 250-nanometer chip barrier, it means that Dongxin's chip advantage over Intel has changed from being more than three generations behind to being only one generation behind!
Although Dongxin's chip technology is still inferior to Intel's, at least it is no longer a nobody or something that can never be caught up with.

As for Hasee Computer, since Li Dashan's initial design for the company was to produce domestically made computers, core components should be sourced from Dongling High-Tech's component supply chain as much as possible.

This rule can be said to have somewhat hampered the development of Hasee computers. After all, other computer brands, whether domestic ones like Lenovo and Great Wall, or foreign ones like IBM, Compaq, and Dell, are frankly all "assembled computers".

This means sourcing chips, graphics cards, hard drives, screens, etc. from companies such as Intel, ATI, Toshiba, and Sharp for assembly.

Dongling High-Tech sources its components from its own supply chain.

This model is not as flexible as assembling a machine in the early stages, as it can purchase parts from various manufacturers and switch suppliers if necessary.

But the longer it goes on, the more profound Dongling Hi-Tech's internal strength becomes. For example, this year Dongling Hi-Tech's computer shipments have exceeded five million units, while costs have continued to decrease.

After large-scale mass production, the yield rate of Dongling High-Tech's component supply chain has continued to improve, and the supply price has naturally continued to decrease. The cost of the Shenzhou 2nd generation computer has decreased by at least one-third compared to the first generation.

Once on the international market, Hasee Computer gained the confidence to challenge those established computer giants. For example, if two computers both sell for $1,500, Dongling Hi-Tech's higher profit margin allows them to allocate more funds to advertising and promotion, and to offer discounts to distributors and agents to help them sell Hasee Computers.

As for venturing into laptops, it's only a matter of time. The laptop market is booming, and Dongling Hi-Tech can't afford to miss out.

Li Dongling nodded in agreement with Chen Tao's words and said, "Have Dongxin Semiconductor accelerate the R&D project of 250-nanometer chips. Also, the cooperation with AMD cannot be stopped. We must continue to develop high-end Phenom chips suitable for all-in-one PCs with AMD!"

The Wing Loong chip is the chip used in Shenzhou all-in-one PCs. It was mainly funded by Dongxin Semiconductor and the technology was provided by AMD, so it was essentially led by AMD.

The huge sales of Hasee all-in-one PCs have brought AMD a lot of revenue from the Hasee all-in-one PC project.

For example, with Shenzhou all-in-one PCs, for every Phenom chip used, a quarter of the Phenom chip's profit is given to AMD.

But there's no other way; Dongxin Semiconductor can't compete in high-end games, so it has to hire AMD as a boosting service. The other party charges high prices, and Dongxin has no choice but to accept!

Those who are technically inferior have no right to bargain.

"For the Shenzhou 3rd generation to penetrate overseas markets, the quality of its components must reach the level of mainstream computers. I don't need to elaborate on the quality. In addition, it needs to have its own unique features!"

"Nowadays, computers are no longer just used for traditional office work; people also use them for internet access and entertainment."

Shenzhou Computers is determined to make the most "user-friendly" computers in the industry. Whether it's optimizing office software, websites, or entertainment games, Shenzhou aims for excellence!
In addition, the audio-visual and gaming functions must be enhanced, especially for large-scale 3D games, which must be run smoothly on Hasee computers.

The Hasee computer project team will be jointly responsible for this with the software department!

Li Dongling looked at Chen Tao, then turned to Jiang Tao beside him, "Shenzhou must become a high-end computer brand, both domestically and internationally, and become a benchmark computer brand. We must let users know that bringing a Shenzhou computer home will never disappoint them."

Before buying a computer, you should compare it with other brands like Hasee!

Chen Tao and Jiang Tao, the heads of the two major technical departments within Dongling High-Tech, exchanged a glance, both noticing the headache on each other's faces.

Li Dongling has always had very high requirements for product performance, which has always put a lot of pressure on the technical department.

Of course, this is relative; the technical department receives the most funding and enjoys the best treatment and benefits.

The technical department has been given such good conditions, so they definitely need to work hard; this is an equal exchange.

However, according to Li Dongling's requirements, the development of the Shenzhou 3rd generation computer was more challenging than the previous two generations, and it required optimization for international office software, internet software, and large-scale games.

This requires the technical department to invest a lot of money in cooperation with these foreign companies. After all, you have to spend some money to get them to cooperate. Then, a large number of people need to be added. Just thinking about the money that needs to be spent makes Jiang Tao's scalp tingle.

In contrast, Li Dashanren's senior brother Chen had the demeanor of a great general, sitting there calmly and composedly.

But in reality, Chen Tao was already numb, just like when De Gong electrocuted Tang Enbo. Chen Tao was also electrocuted.

Since taking charge of the Dongling High-Tech Department, Chen Tao has faced immense pressure every year. However, despite the pressure, his account balance has grown by several digits each year.

In addition, as a R&D professional with a technical background, Dongling High-Tech fulfilled all of Chen Tao's needs and expectations for this profession.

Although the battle is tough, Chen Tao has already tackled many tough challenges over the years. Don't forget, he holds the title of the number one technical expert in mainland China!

Zhu Zhaojiang, general manager of Shenzhou Mobile Business Unit, who is seen as having plans to make Shenzhou Computer a new core business for Dongling High-Tech, stood up.

"Next year, Shenzhou Mobile will launch the second generation of Shenzhou Global Pass, as well as folding, sliding, and rotating screen mobile phones with the same configuration but different styles and colors."

In addition, Coolpad, positioned in the mid-range mobile phone market, and Transsion, targeting markets in South America, Eastern Europe, and Africa, will also be launched.

It is expected that next year, Shenzhou's mobile phone division may launch multiple models, aiming to maintain Shenzhou's position in the high-end mobile phone market while gaining as much global mobile phone market share as possible!
Shenzhou Mobile's goal is to propel Dongling High-Tech's mobile phone business back into the top three global mobile phone shipment rankings within three years!

Zhu Zhaojiang spoke to the executives of Dongling High-Tech about Shenzhou Mobile's grand vision.

(End of this chapter)