Chapter 918 Price reduction
After the PC camp launched the popular chips, the entire Pangu camp was hit by the vital points.
The first one to be involved is naturally Pangu Computer Co., Ltd.
In April, the 9th generation of Pangu was at its peak in sales. The 9th generation of Pangu sold more than 5 million units in a single month. Together with the sales of Pangu 7th generation and Pangu 8th generation, the total sales in April hit a record high, with monthly sales exceeding 12.75 million units.
However, in May, Pangu Computer Co., Ltd.'s monthly sales fell by 8 million units. Among them, Pangu's monthly sales fell to 3.7 million units. Not only did the sales drop significantly, but it also had a huge impact on Pangu Computer Company's profits.
The sales of Pangu Computer Co., Ltd. have dropped so significantly, not to mention other Pangu compatible machine manufacturers. The entire Pangu compatible machine and hardware on the entire market have experienced a dive.
Originally, the number of computers sold in the entire Pangu computer field exceeded 30 million in April, which also broke the historical high. At the same time, the total sales of the PC camp in April were only 12 million, which was not as good as the Pangu camp.
However, in May, Pangu's marketing volume plummeted to 25 million units. At the same time, the sales volume of the PC camp returned to a new high of 17 million units.
What's even more terrifying is that ibm has launched a cost-effective computer, and its monthly sales volume has actually risen against the trend to 6 million units, setting the highest sales performance since the establishment of ibm. At the same time, the gap with Pangu Computer Co., Ltd. has also narrowed greatly.
Stimulated by positive news, ibm's company doubled in a month, breaking from a market value of US$50 billion to more than US$100 billion.
Intel's market value has soared by more than 2 times. It had already fallen to a market value of US$9 billion, but it rose to more than US$28 billion in more than ten days, which is not far from US$30 billion.
Even Microsoft, which has been marginalized in this world and is considered dispensable, has been revalued by the market, with its market value soaring 5 times from US$2 billion to over US$10 billion. Of course, Microsoft in this time and space is far from Microsoft in parallel worlds. Moreover, it is basically difficult to make profits in the operating system, and it is supported only by the profits of office software. However, the market share of office software is far less than that of history, and only one-third of computer users use Microsoft's office software.
At the same time, Pangu concept stocks in the US stock market all fell, with Amd's stock price plummeting 25%, falling below the market value of US$30 billion. It was once named Wang'an Computer, and now renamed Wang'an Technology, the office printing industry leader. Its market value exceeded US$20 billion at the beginning of the year, setting a record high, but in just one month, it plummeted 60%, falling to more than US$8 billion.
Although US technology stocks are currently in a bull market, the differentiation is so obvious!
The difference is a technological war!
When Pangu's camp was dominant, Pangu's concept stocks were generally bullish. When the market share of the PC camp began to bottom out, then the PC concept stocks began to soar.
At present, the PC camp is still confident and can regain market share through technology and business means. Without the later generations, American companies could not gain an advantage in the 5G communication era through fair competition, so they use political means to weaken China's ZTE and Huawei.
For the time being, the competition in the market is still only stuck in conventional commercial competition. Although it is very motivating, it is actually still a healthy market competition, which is more conducive to stimulating the continuous progress of technology and reducing the price of computer products.
...
June 1995.
Shenzhen.
Lin Qi's private villa brings together dozens of industry leaders, including Pangu Computer Co., Ltd.'s CEO, Xinchuangxin, Lishan Semiconductor, Amd, Wang'an Technology Company, and representatives of financial institutions on Wall Street.
This party was Lin Qi, with his personal influence, summoned the bigwigs from the industry to jointly plan the counterattack of Pangu’s camp.
"Technological leadership and backwardness are only temporary, which requires stimulation to work harder. Not being enterprising will not work in the technology industry. Technology companies that want to rely on past achievements will sooner or later go bankrupt. The PC camp is doing very well this time. As a competitor, I have to applaud them and relies on their upright technological leadership to move back to their disadvantages. And now, we are back in the situation where flagship products are lagging behind the other side, and we have to start working hard to solve problems and fight back with all our strength. We cannot make the market share of Pangu camp from mainstream to marginalization. We have to start working hard to work hard to solve problems and fight back with all our strength.
!Technical research and development is a must, and more resources and talents are needed to be invested in technical breakthroughs, especially process processes. I have asked factory technicians that equipment in the semiconductor industry actually has certain potential to be explored. At present, if the 0.5 micron equipment is thoroughly understood and some innovative improvements can improve the accuracy to 0.35 microns under the circumstances of little change. Of course, this takes time. What we need to do now and immediately do is reduce prices! The hardware that has lagged behind cannot maintain high prices, and needs to reduce prices quickly!"
"The price of Luban 1st generation CPU is recommended to be reduced to less than US$25. In this way, the production costs of Pangu 7th generation computers three years ago and Pangu compatible machines in the same period have further decreased. In this way, the chips of Luban 1st generation can be used as the entry-level machine of Pangu camp, and the host price will be reduced to less than US$300.
Luban's 2nd generation CPU is recommended to be between US$35 and US$50, and with Pangu's 8th generation as a reference system, the hardware cost of Pangu's 8th generation will be reduced to US$400.
The factory price of Luban 3rd generation is recommended to be adjusted to around US$120. If it is reduced to a lower price than the low-frequency version of Pentium 2nd generation, consumers further believe that our performance is really inferior to that of Pentium 2nd generation low-frequency version..."
Lin Qi directly gave the reference price: "Just like Intel's Jedi counterattack, we are the same. If we underestimate Intel's threat this time, then the market share will soon be reversed, and Intel will become the leader of the chip industry with the largest market share. And everyone here will suffer heavy losses due to the industry reshuffle! Therefore, we must look at the problem at the moment. The overall interests of the Pangu camp are the first, and upstream hardware manufacturers must reduce prices, reduce hardware costs, and allow downstream machine manufacturers and sales channels to attract consumers to pay at more competitive prices. Indeed, you can
If you don’t lower the price, you want to maintain huge profits. However, imagine how Intel has lived in the past six months? And, if this disadvantage lasts for a longer period of time, will Intel go bankrupt? Simply put, the profits of existing mature products are not important. The key is to stabilize the market share. The downstream partners of the entire industrial chain and supply chain must have confidence in our upstream manufacturers and believe that we can make money with us. Of course, these are not the most critical. The most critical is that we must continue to maintain our attractiveness to consumers. For the highest-end products, we must continue to innovate and lead.
This is the only way to sell high prices. It is not the leading position now. Therefore, you must not maintain high prices. You must keep reducing prices. You must be decisive. Don’t hesitate. If you break it, you will break it! At the same time, the authorization of the chip architecture of Luban 4th generation and the public sample chips, the three core manufacturers should have obtained it! In fact, we do not have any problems with chip design and patents. The key is the process. The existing semiconductor chip factories must layout the industrial mass production of 0.35 microns as quickly as possible, the faster the better! Luban 4th generation is based on the 0.35 micron process process, based on the current successful laboratory bleeding samples.
, the new single-core new energy can reach the high-frequency version of Pentium 2 chip, and multi-core has an absolute advantage! The faster the Luban 4 generation is put into production, the more beneficial it is for our entire industrial chain upstream and downstream! In order to show sincerity, I first said that the patent fees for the Luban architecture 1 to 2 generations are cancelled, and we encourage major chip factories to produce more cheap chips. Luban 3 generation, the patent fees are discounted to 0.5% of the chip price! As for Luban 4 generation, the patent fees for the first 10 million chips produced, we will refund the full amount. After 10 million, the patent fees will be restored to 2.5%.
There is no doubt that if Lin Qi only uses his authority to suppress chip manufacturers to reduce prices, it is estimated that only Xinchuangxin will be obedient, because Xinchuangxin is its own holding subsidiary.
But Lin Qi not only forced chip manufacturers to reduce prices significantly, but took the lead and lower the patent licensing fees for chip architectures. These patent licensing fees can earn more than one billion US dollars a year. It is no less than the net profit of any of the three major chip factories. After all, chip factories need to invest a lot of money to produce. In the semiconductor industry, the most expensive ones involved in wafer fabs are the most expensive. The technical content of chip design seems to be not low, but in fact, it is low-cost and high-profit. As long as an architecture can be popular in the market, then the energy source will continue to earn patent fees in the future.
As for chip architectures that cannot be accepted by the market, later generations can even find a bunch of free and open source architectures on the Internet. Some of the free and open source chip architectures are not bad, and are even more advanced and efficient than the existing chip architectures. However, because they missed the best development opportunity, they did not form a software and hardware ecosystem. Without a software and hardware ecosystem, even if they designed a chip, it would be useless.
Chapter completed!