Chapter 777: I Want to Reduce the Price (Second Shift)
Hold on to Celeron!
When Qin Feng announced that he would launch the Loongson 1st generation 300MHz chip, and the price would remain unchanged at the original price, the market was cheering.
This behavior of improving performance without increasing the price naturally makes the entire market, whether sellers or buyers, happy.
After all, it's the equivalent of spending the same amount of money and enjoying something better.
Naturally, there is nothing that is not happy.
Soon, it was fully available on the market. The chips that were not sold out before this were also recycled by Qin Feng and then recycled and remelted. If you let it go, you'll let those sellers smash it.
Of course, they can also sell at a reduced price. But in that way, firstly, it will not make money, or even lose money, and secondly, the reputation of Loongson is not good.
Therefore, Qin Feng directly asked the company to recycle. Recycling that can't be sold. Anyway, if it is recycled, it can be recycled and transformed, and then the frequency can be increased, and then it will be sold for a second time. In the meantime, the company only needs to pay a little renovation fee.
This cost is not high. But the word-of-mouth in exchange is not something that can be bought with this money.
After all, those merchants who use their enthusiasm, their love, and their patriotism to promote Loongson have a way to recycle, and they don't have to worry about smashing them in their hands when they buy too much and can't sell them.
When the Loongson 1st generation 300MHz chip was launched, it was immediately tested on the market.
The test results show that compared with Celeron 2mmx 233MHz, Loongson 1st generation 300MHz has an overall performance that is 50% stronger. Although the frequency is only a little higher, the performance improvement brought is very large.
This result also gave a shot in the arm to all businesses that support Loongson.
"Look, Loongson is amazing!" Many merchants who sell Loongson have put up slogans: surpass Celeron 2 50%, Loongson kills Celeron 2 in seconds!
Such a slogan is undoubtedly very motivating. Naturally, it also stimulated an increase in sales. For most of the users who buy computers, they do not have much professional skills and knowledge, and for the purchase of computers, a large part of the situation comes from two points: friend recommendation, and computer magazine recommendation.
But these two points are not as good as the sales pitch of the on-site promoter.
When you enter the computer city, when you buy a computer, you will have a general configuration in mind. However, then when the salesman tells you that your ideal configuration is more expensive, not as good as another product, not only the performance is similar, or even better, and the price is cheaper. Well, most consumers will waver.
Of course, there are also unshakable ones, which are to bite a brand to death. As a result, the other party said that there was no goods. If you want to buy it, you can wait two days. And usually, the vast majority of people go to spend money on things, and that is hoping to buy them on the same day.
Especially the computer, which can be used when you buy it, and you can be cool.
Therefore, the vast majority of people will choose to accept the promoter's pitch.
Now, look at Loongson's seckill Celeron 2, and in terms of data, this is indeed the case. Coupled with the cheaper price, this consumer naturally pays.
This sales volume is naturally rising.
Faced with this situation, Intel is extremely annoyed.
This is not to say that it plays the national brand and the emotional card. Intel doesn't care about this, and it doesn't care.
Because, this is your right. Just like Intel, if one day it is cornered by a foreign brand, it doesn't mind hitting a national brand. It's just that this kind of thing, for American companies, hasn't happened in all these years.
After all, the United States is the most powerful country in the world. Naturally, his company also has such confidence.
Intel is annoyed that this Qin Feng's IT company is too shameless.
Before that, it was the Pentium series. As a result, the performance is not as good as after that, and it is directly benchmarked against Celeron.
Although it is said, Loongson's positioning can only be compared with Celeron. However, you can't be shameless, just change the grade, without panting. Don't have a face!
"What now?" asked Grove a number of directors.
Qin Feng was so shameless that he directly changed the benchmark to Celeron 2, and he used 300MHz to fight Celeron 2 233, shouldn't it be normal to win. As a result, Qin Feng's propaganda here was so complacent.
This is a bit too shameless.
"He's just holding on to our Celeron 2!" Grove also had a headache.
Qin Feng made it clear here that he was barefoot and not afraid to wear shoes. It is to dump at a lower price. How do they deal with this situation?
There are only two ways to deal with it.
First, improve performance, surpass Loongson 1st generation, and let performance beat price. But this disadvantage is that this positioning is Celeron, not Pentium. Celeron 2's positioning is so low. If you want to improve the performance of Celeron 2, you have to replace it with the core of Pentium. If it is changed, will it still be Celeron? Then when the performance is up, will consumers buy Celeron 2 or Pentium 2? Obviously, this will impact the sales of Pentium 2.
Second, that is to reduce the price. Indeed, the price reduction is reduced to the price range of the Loongson 1 generation. In this way, Intel can still make money. But with that kind of thing, their margins are too low. This is not in line with Intel's usual money-making standards in the past.
However, seeing that Qin Feng's sales were gratifying, they really couldn't sit still.
"Let's cut the price!" Grove said after a moment's thought.
"How much will it take?" asked a number of directors.
This price reduction is indeed the best way to deal with it, but how much is the right price reduction?
"It's cheaper than Loongson!" Grove said calmly, "Either don't reduce the price, since you want to reduce the price, you must be cheaper than Loongson!"
"What!" exclaimed the crowd.
This Loongson is now sold within 580, and they will drop to a price of about 560. Don't look at it, it's 40 yuan less, 40 yuan a piece. This year, how can Intel Celeron sell 10 million or 20 million pieces, which is calculated, this time, it will make more than 100 million dollars less in net profits.
That's pure profit.
It's all in their hearts.
"It's not 560, it's going to drop the price to the 500 range in one go!" Grove said coldly.
"Within 500!" all the directors stood up directly.
That's outrageous, isn't it? This is directly 100 yuan. That is, the net profit of two or three hundred million dollars is gone all of a sudden.
Nowadays, prices are not as exaggerated as in later generations. Who's so comfortable with this?
"The price must be reduced!" Grove said, "this is the Chinese market!"
"The Chinese market is just a poor country! It is estimated that many men still wear braids and look sick!" A director ridiculed, "Is such a market worthy of so much attention and driving our global profits down!"
"That's it, it's just a poor country, so we don't pay attention to it! We didn't pay attention to the price of Cyrix when it was lowered! In the end, they didn't collapse. Consumers still chose us!" the rest of the directors echoed.