Wang'an Computer has cut a total sales of US$4 billion a year, which looks beautiful.

Unfortunately, in terms of profit, it is far less "dignified" than Apple's strategy in later generations.

Because both sides are following the Motorola 68000 series technical route, the functions they need to achieve are similar. So at the hardware level, the cost of Wang'an's WPS computer is not much different from that of Apple's MAC-II.

Under Jobs' tough attitude, Apple always felt that the price of 1,500 after the same price was 2,400 to be priced to have dignity. Wang An was in the recovery period of the brand, in order to pursue sales and let new customers re-recognize the brand, the benchmark price was only US$1,980.

However, this low price was not caused by Gu Ao. It was not that Gu Ao did not want to pursue quality, but that Wang An's brand has always been inherited. If you want to change it, you cannot be too ambitious and achieve it in one step. That will only make the original fans feel insincere.

Throughout the late 1970s and mid-1980s, Wang An's office computer focused on the character design of "simplified functions and cheaper prices. It is the best price-performance ratio for offices and no waste."

When Wang'an's previous generation word processor was launched in 1982/83, the whole machine was sold for only US$1,200, making it the cheapest personal computer in the United States at that time.

Therefore, this is equivalent to Wang An's original character similar to Xiaomi in later generations. After Gu Ao took over, he could only follow the steps and gradually transform into advanced step by step.

This means that the gross profit after amortization of the R&D cost of a machine is only more than US$400. After deducting the distribution of dealers' channels, advertising and marketing promotion fees, it is generally calculated at 15 percentage points, and the theoretical net profit is less than US$200.

Moreover, there are several problems with this algorithm. The first is the amortization of R&D expenses. Computer companies of this level of magnitude generally amortize based on shipments of at least 1 million units. In fact, only 840,000 units were sold in the first year, which leads to the R&D expenses of each unit being spread on the books, which is dozens of dollars more.

On the other hand, the 15% marketing and promotion fee rate is only aimed at mature markets like the United States. Because both European and Japanese markets are developing in the first year, the benefits to make the degree must be greater and greater.

Not to mention anything else, just to use Tiankun’s Japan and European dealer channel network, Wang'an Company directly gave 3% of the company’s equity to Tiankun as the cost of channel use. This part can be worth hundreds of millions of dollars, and it will be more than 100 dollars per computer.

Perhaps many people don’t understand the account that “the illusory thing like channel usage rights can be exchanged for real shares”, so let’s give an alternative case that is easier for Chinese people to understand in later generations.

For example, around 2015, Goudong and two allocated about 40% of the company's equity, half of the 20% of the shares were bought by many other funds such as Tiger Fund, spending a total of 1.5 billion US dollars. There was also half of the 20% stake, which was bought by Tengyun's Little Ma Ge at that time, but Tengyun only paid $300 million in cash, plus a "traffic diversion right of the "shopping" button on the WeChat main interface."

In other words, after Tengyun investment, clicking the online shopping button in the main interface of WeChat will jump to Goudong's APP from then on. Therefore, considering that Tengyun and Tiger Fund have taken the same shares and the money paid is so much different, it can be concluded that the right to use the button in WeChat was sold for US$1.2 billion.

In this way, Gu Ao asked Tiankun to give Wang An a recommendation position in Japan, Europe and the United States, and it was worth 3% of Wang An's equity. This transaction was already very conscientious.

The R&D costs of less amortization and the additional marketing expenses for developing Japan and Europe in the first year were deducted. The net sales profit of Wang'an WPS computers was finally calculated, and the average sales profit was only more than US$70 per unit.

For computers with a price of 1980, the profit of hardware itself is only 70. In addition to the profits made by old businesses, the company's annual net profit is actually more than 100 million US dollars.

In the end, Gu Ao will use this report to show that his people and animals are harmless, his conscience price and low profits, and reduce the anger of Wall Street and investors.

Too many American public will not develop a rebellious mentality of hating the rich because Wang An's company "has lost money when it goes public and profits when it goes public."

It is best to make the rhythm and intensity of the company "turning losses into profits" appear to be smoother and more difficult in the eyes of the public.

It seems that Gu Ao has also spent many years of hard work to achieve it.

Instead of picking peaches and picking cheaper ones.

Not deliberately making low-quality asset prices in stock market crashes, and immediately making a huge profit after tricking leeks into getting out of here.

Everyone hates speculators.

So even if you make money by real skills, as long as you never make money, the curvature of change is too fast, people will think you are a speculator.

However, this report is obviously pretending to be low-key, concealing some minor problems in the algorithm.

According to this algorithm, the sales volume of more than 800,000 units this year has amortized all R&D costs.

Therefore, starting next year and even the year after, the company no longer needs to amortize R&D expenses in this project, and the net profit of a single unit will be at least 100 US dollars in the future.

In addition, selling 3% of the company's shares in exchange for new dealer channel use rights is also a one-time expense. Without this expense next year, there will be a lot of pure profits.

By doing this, Wang'an Computer Company's CFO privately estimated the accounts and reported to Gu Ao that the net profit of a single unit may rise from US$70 to at least US$200. If the software's net profit is evenly distributed, it can be three or four hundred.

This is easy to understand. If you work hard to depreciate costs until this year, there will be no more costs next year. The theoretical net profit margin will also recover from just 4% to 5% this year to 15% to 20% next year.

However, if Gu Ao just wants to reduce the hatred value, there is a very simple way to continue to cover up.

That is to immediately continue to research and development without stopping, without stopping on the credit book of history. In this way, if there are new R&D expenses, the cost will be increased immediately and the book profit will shrink instantly again.

Later generations Huawei often used this trick to lower book profits.

As long as the proportion of self-developed core technologies is higher and the acquisition is less, it is not easy to make financial statements ugly profits?

Boss Ren asked for a review several times during the year-end summary of the board of directors: Why does the book profit seem to be so much this year? Does it mean that there is insufficient R&D investment?

It is difficult for others to do a good job of doing a good job of doing a good job, so you have to make a fancy fiction. How can you do a bad job of doing an ugly job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of doing a bad job of

Gu Ao also wants to be a non-listed company. Of course, he also wants to be like the non-listed Huawei, so that his financial report is ugly and low-key.

Wall Street Financial Dog Go to Die.

It is time to find some new technical difficulties to open up the pit and lay out the situation.

...

With the expected report card of "4 billion US dollars in annual sales and more than 100 million US dollars in net profit", Gu Ao bid farewell to Silicon Valley, bid farewell to California, and returned to the East Coast, preparing to spend some time to reunite with his wife and children.

Then, it is time to continue to do something for the subsequent research and release, and find ways to continue to increase the cost of next year and the following year, and continue to play the role of harmless and unprofitable people and animals.

In early November, Gu Ao took Mina and flew back to Long Island Airport on his own special plane, and then took a helicopter to Greenwich Manor.

In November, New England was already quite cool, and the outdoor swimming pools and beaches were too cold to use. The trees around the manor began to wither, covering up the extravagant palaces of the super rich, making them look very low-key.

The children are almost half a year old. Because of their congenital conditions, professional and high-end maintenance, the children are growing up happily and can crawl. As soon as Gu Ao arrived home, he immediately took time to play with Xiao Sui and the children. His children don’t know how to call people, but at least they can recognize their father who has not seen him for three months.

Just after enjoying the joy of family life for less than half an hour, Li Ruotong quietly walked into the room and whispered that someone would like to make an appointment to visit.

Gu Ao put down his child's toys and sat down to let the female secretary report slowly.

Li Ruotong: "We are several executives of IBM. These days, we have been visiting Mr. Watson's house. They heard that you have returned from California and want to come over and have some tea. If it is convenient, please come over and have some tea the day after tomorrow."

"Haha, I have only been a few months ago and realized my strength. The change of arrogance at first and then respectful at the end is really fast." Gu Ao couldn't help but sneer.

He remembered how disdainful Thomas Watson, Jr., when he was moving to Greenwich with his wife who was about to give birth, when he first moved to Greenwich, when he visited his neighbors eight months ago, "If you think Microsoft can't control it in the future, you can come to him."

I don’t say I’m disdainful, at least I feel that it’s a great chance of not being used.

As a result, it was only eight months before the situation grew and the other grew a lot.

Although there is no big deal that happened to Microsoft, it still performs well after all, and its stock price continues to warm up. IBM is like other old companies that have been around for decades, without any storm or popularity.

The battlefield between Wang An and Apple has opened up a large wave of additional gaps in just a few months.

Apple did nothing and made in vain compensation equivalent to the price of thousands of computers. But the price was that its own product launch plan was slowed down by at least four or five months, and it lost hundreds of thousands of units expected sales.

Little Watson obviously felt that Gu Ao was a bit of a ghost, and maybe there was something useful in the future and it was necessary to keep a further friendship.

There is only eternal benefit.

"I promised him and said I would arrive on time the day after tomorrow."

"Okay, I'll make arrangements now." Li Ruotong went to do things respectfully.

After the female secretary left, Xiao Sui surrounded Gu Ao from behind, and her eyes turned slightly red and coquettish: "I just came back and I want to have a social engagement again."

Gu Ao didn't look back, but just patted Xiao Sui's palm: "You don't know how busy I am."

"I have no other meaning, I just want to say to you: My health has completely recovered two months ago." Xiao Sui calmed down, "Anyway, you have been in California with Mina these two months, and you probably forgot."

Of course, Gu Ao will not forget it. Since he is back, he will comfort him.
Chapter completed!