Reborn since 1993

Chapter 708: Repulse the Three Armies
If the production cost of the first generation of Shenzhou computers can be reduced to around 25 yuan and the selling price is set at yuan, it would be equivalent to a profit of around yuan, with a profit margin of around %!

This 25% profit is enough for Dongling Hi-Tech to recover its R&D and production costs, as well as the fees paid to channel dealers, sellers, advertisers, etc.

In terms of profit, the first generation of Shenzhou computers could not compare with the terrifying 66.7% profit margin of Apple in its previous life, which means that the profit from selling a $667 mobile phone was $.

Of course, Apple’s profit does not include R&D costs, production costs, advertising costs, etc., but it is already terrifying.

Now is the era of the most lucrative profits for electronic products. To be honest, a 25% profit margin for a computer is only average. Brands such as Compaq and Dell can achieve it. Some computer manufacturers, such as Asus, can achieve an annual profit margin of more than 33%.

However, there has never been a computer manufacturer that can reduce the computer price to less than one thousand US dollars and still achieve a gross profit margin of around 25%. Shenzhou Computer will be the first to try it out, making money while doing it, and by the way, overturning the table after making the money!
Shenzhou Computer not only wants to sell computers, but also wants to be the company that controls the pricing power of domestic computers.

If Shenzhou computers can sell well, it will not only benefit the computers, but also the entire industrial chain that relies on Dongling Hi-Tech will be able to make a living!

A number of hardware manufacturers include chips from Doxin Semiconductor, memory bars from Shenzhou Storage, panels from Oriental Optoelectronics, mice from Yindeng, shells from Hanxi New Materials, graphics cards from NVIDIA, and so on.

There are also companies like Tianya, Himalaya Radio, Xishanju, Kingsoft, and Jiangmin Antivirus that are all set to make a fortune.

Shenzhou Computer is equivalent to a platform. With it as the foundation, the higher its sales volume, the more the hardware and software companies on this platform can benefit from it.

Even in the Internet age, the computer platform can become a huge incubator, recommending a website to users through built-in software and pop-up windows, thus supporting the establishment of one website after another.

In the past, although Xiaomi claimed that the hardware profit margin was only 5%, this does not mean that Xiaomi only made that 5%. In fact, selling the phone was just the beginning of making money for Xiaomi.

When selling mobile phones, Xiaomi does control the hardware profit at around 5%. At least that's the number that appears in the financial report, regardless of whether it's a sleight of hand or not.

After selling the machines, Xiaomi earned 74 billion yuan a year from advertising revenue, and its net profit reached a terrifying billion yuan, equivalent to % of the profit. This is much more profitable than selling mobile phones.

Shenzhou Computer certainly does not need to drive up computer prices like Xiaomi does and then make money in other areas.

But for Shenzhou Computer, which has just made its debut in the computer industry, the most important thing is sales!
Only by surviving in the computer industry can Shenzhou Computer consider launching higher-profit high-end models of computers and notebooks, etc.

Only if Shenzhou Computer survives, a number of Dongling Hi-Tech companies including Dongxin Semiconductor, Shenzhou Memory, Oriental Optoelectronics, BOE, Kingsoft, and Xishanju will be able to truly stand up!

Dongxin Semiconductor's chip and lithography machine business, and even the future artificial intelligence era, will be able to make great strides. In the future Internet era, Shenzhou Computer will also be able to lend a helping hand to Tianya Company. These are all closely connected to Shenzhou Computer.

Therefore, in terms of price, Shenzhou Computer still needs to maintain a certain advantage in order to successfully open up the situation.

"I see!"

Chen Tao said with a bitter face that as the general manager of the Shenzhou computer project, all the dealings with various suppliers fell on him.

Even if Li Dongling asked the Dongling Hi-Tech headquarters to help Chen Tao coordinate with various suppliers, even if a considerable portion of those suppliers were part of the Dongling Hi-Tech parts industry chain, it would not be so easy to get them to cut their losses, and there would be a lot of wrangling.

When Li Dongling left Dongling High-Tech Department, all parties who had just participated in the Shenzhou Computer Conference call also began to take action, and the number of people from various companies traveling to and from Hanxi continued to increase.

In the domestic computer industry, this kind of movement, especially the news coming from various computer suppliers, made a number of domestic computer brands understand that Dongling Hi-Tech and Shenzhou Computer are about to start their sprint!
……

"You didn't find out anything?"

"There is no news about the pricing and product configuration of Shenzhou computers?"

When Guo Wei walked into Lian Xiang's office, he saw Boss Liu in a rage. The man who was being scolded by Boss Liu lowered his head and dared not breathe.

After experiencing last year's turmoil, Lenovo has slowly recovered, because in the domestic computer industry, there are very few companies that can compete with Lenovo.

Even though Lenovo was exposed by Shenzhou Storage last year and a lot of negative information was revealed, there is still no brand in China that can replace it, as it has received support from a number of overseas computer component manufacturers such as Intel, Samsung, Toshiba, and Sharp.

Ultimately, Lenovo's pricing and product configuration are unrivaled in China. It is like among computers that cost 10,000 yuan, Lenovo's is the most cost-effective.

Faced with this situation, users have no choice but to choose Lianxiang even if they are unwilling!
After the beginning of this year, Lenovo is planning to launch the "Cancer" model computer of the Gemini series, preparing to sell it as a hot-selling product.

But at this time, news about the Shenzhou computer began to spread in the world again, and this time the news was very detailed. There were even rumors that the Shenzhou computer would be officially released soon.

Moreover, not only domestic media leaked the news, but even Hong Kong and overseas media also reported it, which made Boss Liu pay some attention. Even though Boss Liu had said in a media interview before that Lianxiang was not afraid of any rivals in China, Lianxiang's only rivals were overseas brands such as IBM, Dell, and HP.

But words are just words. Only the domestic computer industry, including Lianxiang, knows whether they are afraid of Shenzhou Computer.

As a brand that has proven itself and the company with the highest annual revenue in the domestic technology industry, only Dongling Hi-Tech knows how much pressure it faces when it launches products.

"Boss Liu, we really can't get any information about this. Dongling Hi-Tech's confidentiality measures have always been the best among domestic technology companies.

This time, the news came from Hong Kong media, which first reprinted the news from America. IBM has confirmed that it will supply computer hard drives to Shenzhou Computer. Other computer component manufacturers have also reported news. It seems that the research and development of Shenzhou Computer is almost completed! "

The man who was scolded by Boss Liu complained bitterly.

Since the day it was founded, Dongling Hi-Tech has introduced a set of R&D confidentiality measures to focus on protecting the R&D department. It is not easy to obtain intelligence from the R&D department of Dongling Hi-Tech.

Looking at the man in front of him, although Boss Liu was full of anger, he also knew that it was useless to get angry at him, so he waved his hand and asked the man to leave.

"Mr. Liu!"

Guo Wei came in and placed a pile of documents on Boss Liu's desk. "These are some promotional plans for Gemini Computers!"

"Put it here!"

Read more latest popular novels at 6.9*shuba!

Boss Liu frowned and said that even though he was in power, he felt a little tired.

At this time, Boss Liu inexplicably thought of Ni Guangnan. At that time, although there were some disagreements between him and Ni Guangnan, he didn't need to worry about the technology.

When Ni Guangnan was at Lenovo, Lenovo's computer technology in those years, no matter where the components came from, was always ahead of other brands in terms of configuration, and could even compete with foreign brands.

Now, Lenovo has almost given up on developing its own technology and fully embraced overseas component manufacturers such as Intel, but correspondingly, it also needs to rely on the other party for technology.

Therefore, when facing the Shenzhou Computer this time, Boss Liu was actually unsure. He didn't know what level of machines Shenzhou Computer would produce, nor did he know what kind of components Intel and other component manufacturers would provide him. This unknown is what makes people most uncomfortable.

"The Shenzhou computer has not been released yet, and no one knows when it will be released. If we lose our composure at this time, it would be a serious mistake!"

Guo Wei did not leave, but said to Boss Liu that it was obvious that the failure last year had not been without impact on Boss Liu.

"I know it too!"

Boss Liu said helplessly, "But the Shenzhou computer is right there, and no one knows what tricks it will use.

If we release a new computer now and mass produce it, and then the Shenzhou computer is suddenly released, then all our computers will be piled up in the warehouse.”

This is the most helpless thing for Boss Liu. If they just released a new computer and put it into mass production, and then Shenzhou released a machine with more advanced performance and cheaper price than their new computer, then the machines they wanted would all be piled up in the warehouse and gathering dust.

By then, not only will there be huge losses, but the stock price will collapse and the reputation will be lost. Boss Liu is afraid of this, which is why he is so furious.

"New machine... please stop selling it!"

Boss Liu hesitated for a moment, but still spoke to Guo Wei.

"How long will the release be delayed?" Guo Wei asked in surprise.

Boss Liu's face was also somewhat uncertain, "Let's wait and see what happens at Dongling Hi-Tech!"

As if they were in sync, when the media reported that the Shenzhou computer was about to be successfully developed, a number of domestic computer brands including Lenovo and Great Wall announced in tacit understanding that the release of new computers would be temporarily suspended!

Only various overseas computer brands, such as IBM, Toshiba, etc., have their own pricing systems. They are not afraid of Shenzhou computers and do not think that a domestic brand of Shenzhou computers can affect themselves, so they continue to do their own thing.

The Shenzhou computer, which has not yet been officially released, has forced out various computer manufacturers, established its own brand in the industry, and allowed the domestic technology industry to once again directly see the influence of Dongling Hi-Tech!

(End of this chapter)