Chapter 834: Hurting People with Ben (Second Update)

When Jiang Yong contacted Xiangjiang to deal with his Xiangjiang passport incident, Loongson's 300MHz, 333MHz, and 366MHz chips of the first generation officially landed in overseas markets.

This is a new page in the history of Huaxia chips.

Huaxia chips, from scratch, and then from the domestic market, to the international market, only took one year.

This year can be said to be the time for the rapid development of Huaxia chips.

Although this is still the last bit of residual heat of the Cyrix chip, it is Qin Feng who brings it into play.

After entering the international market, whether it is Europe and the United States, or Asian countries such as Japan and South Korea, or even some small countries, Huaxia Loongson has forcibly entered the market by virtue of its absolute price competitive advantage and performance advantage.

The price of 420 yuan is 440 yuan for Loongson 1st generation 300MHz chip, 440 yuan for Loongson 1st generation 333MHz chip, and 460 yuan for Loongson 1st generation 366MHz chip. Such crazy prices make the market basically powerless.

You must know that the corresponding chip processor speed of Celeron 2 at the same price is Celeron 2 233MHz, 266MHz, and 300MHz. The Loongson 1 generation itself has to compete with the performance of Yang 2, which is slightly better at the same frequency.

Now the frequency is 100MHz faster, and its performance is more than 50%, and the price is equal. You say, how can this be done!

No matter how much consumers believe in the brand, it will not be difficult to get along with money.

Therefore, the 1st generation of Loongson, with its absolute price advantage, has fought its way out.

The market share is rising.

From the original market share of 0, in just a few days, the daily installed capacity has risen to an astonishing 30%. Almost half of the low-end market is occupied by Huaxia Loongson.

This rate of improvement is very scary.

Intel, for its part, has been forced to hold a meeting to discuss the matter.

How to deal with it?

If we reduce the price at present, it will completely break the entire price system. In fact, the price of Celeron 2 has reached a minimum line for Intel, and if it drops again, it is not that they can't make money, but their profits are too small.

Moreover, it will directly affect the price positioning of the Pentium 2. After all, you can't always have a difference between the two, several times, or even 10 times.

In that case, how can the Pentium 2 still sell? Your performance itself is only one or two times as bad at most, but the price is nearly 10 times higher. What does this make consumers think?

No matter how loyal the consumer is, he will consider whether he is wronged.

This will inevitably force Intel to lower the price of the Pentium 2 to a reasonable range, so that consumers are willing to spend.

"This guy is stumbling with us on price! Does he have the strength!" one of the directors was furious.

In terms of strong financial resources and technical reserves, Intel is a galaxy that kills Loongson in seconds.

Even AMD does not dare to fight a price war with Intel. Before that, it was Cyrix that fought the price war, but as a result, it was swallowed up and acquired.

Now, Qin Feng actually dared to come to fight a price war, he simply didn't know whether he was alive or dead.

"It used to be like this. But recently, I saw some reports about Qin Feng from the Internet. "Gordon Moore came up with a report.

This is a report from Huaxia that Qin Feng and Huaxia's four major banks have reached an agreement to set up a third-party trading platform to provide credit fund guarantees for all online purchases. Gordon Moore said.

"What does it matter?" asked the many directors.

"In terms of the characteristics of Huaxia, this means that Qin Feng has the support of the four major banks of Huaxia behind him. His funds, absolutely not. If we want to fight a price war, I'm afraid it will be very troublesome!" Gordon Moore said, "If we continue to fight, I'm afraid it will be a lose-lose situation." And he has the support of Huaxia Bank behind him, and we can't fight the entire bank!"

Everyone frowned.

"But according to their technical capabilities, they will definitely lose money, and they will lose money when they leave the factory, and then he will still air transport it to the major markets, and this cost is not cheap. Counting tariffs or something, his chip has a lot of losses!"

"According to the information I have so far, Huaxia Loongson, in the overseas market, loses about $10 for every piece sold!" said Grove, the president.

"At a loss of $10 a piece, he still sells it!" everyone complained.

This is simply hurtful. Is there a mistake?

"He's making money in the market at a loss!" Grove said, "If you include R&D and the rest of the associated advertising costs, etc., let's say he sells 10 million pieces a year, then he will have a net loss of more than $1 billion a year!"

Losing $1 billion a year is terrible for any company.

In particular, this is still 10 million pieces, and according to the current trend, Qin Feng may sell more than 20 million pieces. This loss is even more.

"Then should we lower the price and give him a heavy blow?" suggested a director.

"No, that would destroy our price system. Moreover, even if we reduce the price, it will not affect him too much. He followed suit with a price reduction, but only for a few dollars. He still loses!" Grove said, "With the support of the four great Chinese in China, he can afford to lose." ”

"What then?" the crowd complained.

Facing a company like Qin Feng is really tricky.

"I propose to improve the performance of Celeron 2 as soon as possible to cope with the frequency increase of Loongson. Secondly, unite with Huaxia Company to crack down on Qin Feng. "The reason why Qin Feng dares to do this is that he has now created a perfect ecological chain." ”

The perfect ecological chain?

"Have you noticed that Qin Feng first brought American cable modem technology to Huaxia, making Huaxia's network flourish? Secondly, it acquired Cyrix chip company, then created QQ social media software, and then created a third-party credit platform. And now, QQ Farm proves that it can make money. Online games, very profitable. During this period, his series of actions led to a decline in the price of the global personal computer market. Last year, a computer sold for about $1,500, but now you can buy one for $1,200 or even $1,000. Grove muttered.

"This has led to an increase in the number of computer users, but also an increase in the number of Internet users. And these network users can be turned into actual network consumers. Qin Feng is using CPU price reduction to drive the entire industry to reduce prices, so as to lower the threshold of the personal computer market and allow more people to enter the Internet. He's losing money here, but he's making it back in other ways. Do you know how much money he can make from one QQ farm?" Grove looked admiring.

While they were still focusing on their immediate interests, Qin Feng had already thought of the future.