Chapter 292: Hongnian Computer

Spielberg went to persuade David Geffen, and Henry was thinking about how to lay out the Chinese market.

In the recent wave of IPO frenzy, China's Internet has grown by leaps and bounds. In fact, this is true not only in China, but also in other countries.

The NASDAQ has never been this crazy.

The rise of the Internet has really stimulated everyone and all countries!

China's Internet development has accelerated, but the income of Chinese has not been so fast. The vast majority of Chinese can't afford computers, so Henry plans to launch cheap computers! His idea is to buy Apple for high-end computers in the future, and rebuild a brand for low-end computers. Open the Chinese market with low-end computers and lay out Internet cafes. In China, it will take a long time for home PCs to become widespread. Therefore, controlling Internet cafes is equivalent to controlling the entrance to China's Internet!

At present, Hongnian Technology, which is rooted in China, is the most suitable for low-end computers!

Another reason why Henry was busy with the layout of China this time was that on March 26, 1994, the Mobile Communications Bureau of the Ministry of Posts and Telecommunications of China was established. Previously, Qualcomm had lobbied the Chinese government to adopt the CDMA network. This time, the establishment of the Mobile Communications Bureau of the Ministry of Posts and Telecommunications of China can be regarded as the result of Qualcomm's efforts! Because the Mobile Communications Bureau of the Ministry of Posts and Telecommunications decided to use the CDMA network.

This decision is of great significance, because if other mobile phone manufacturers want to sell mobile phones in China, they must use Qualcomm's CDMA technology, and the patent fees are very large! If they use the GSM network, Williams Electronics will have to produce GSM mobile phones, isn't it just giving money to others?

Usually, a telecom company chooses a network standard and only upgrades based on it, not saying that I am using CDMA and then switching to GSM right away. The Mobile Communications Bureau of the Ministry of Posts and Telecommunications is the predecessor of China Mobile. Think about how many people will be mobile users in the future, how many mobile phones will there be, and how much royalties each mobile phone will have to pay to Qualcomm......?

At present, the mobile phone developed by Williams Electronics Company has also been completed, and it is marketed all over the world, so how can it be without China! Moreover, the Williams pager has also been developed. These are urgently needed to be sold in China!

China's land prices, Henry is deeply aware of the fact that they will only "rub and go" upwards, and many people may not be able to buy a house after working all their lives!

Therefore, taking advantage of the cheap now, the first step is to establish a Williams retail store!

It's not a big problem to build a retail store on a piece of land, just send a few more teams to Williams Electronics!

Now the key is, how do you make a low-end cheap computer? The display, memory, and other components are okay, the key is the processor!

The processor designed by ARM is not suitable for personal computers, and Henry must find a new company that produces microprocessors!

Henry's first thought was Cyrix, a company founded in 1988 that specialized in supplying cheap processors. Moreover, it is quite awesome, and it is the third largest microprocessor manufacturer in the world after Intel and AMD! Cyrix does not have a high market capitalization, although it claims to be the third. But compared with the previous two, the difference is very far, and because it is cheap, the profit is also less.

In 1997, it was acquired by National Semiconductor Company at a price of 550 million, and then it was acquired by VIA Electronics.

But at the moment. Cyrix was exactly what Henry needed!

Henry then made a takeover request to Cyrix in the name of Williams Electronics, and Cyrix was happy to accept the negotiation offer. If Cyrix can be backed by the mountain of Williams Electronics, the company will definitely grow faster!

In just one week, the two sides reached an agreement after three rounds of negotiations. Williams Electronics raised $500 million in Cyrix, a 75% stake.

As a matter of fact. Cyrix is in a very bad situation at present, since Intel launched the "Pentium" processor in 1993, it has been killing all sides, and cyrix has inevitably been violently impacted, and the further it goes, the lower its market value is! Cyrix is eager to find a way out of its predicament, and joining Williams Electronics is not a good choice!

After taking Cyrix, Henry asked Cyrix to design a cheap processor chip specifically for the Chinese market, and then let Hongnian Technology produce computers. Williams Electronics can dump its products in China, hard disks, memory, monitors, etc., the more production, the lower the cost, even if it can't make much money in the Chinese market, but because of the low cost and strong competitiveness, it can seize more market share in the international market, on the one hand, to strengthen itself, on the other hand, to suppress the opponent.

Japan's economy is not good now, and electronic products are also going downhill, but South Korea has sprung up, and the speed of its rise is too fast, so Henry has a feeling of palpitations, so it is extremely necessary to suppress them!

Subsequently, Hongnian Technology established a computer department, but its main task was to engage in the research of computer motherboards and complete machines, and the rest of the components were provided by Williams Electronics.

Work is in full swing, and Williams retail stores are moving to a major city every three days, and the pace of development is fast.

A month later, Cyrix designed a cheap processor called "486ZG" for the Chinese market on the basis of other 486 chips, which cost less than 1,000 yuan to manufacture.

Later, Cyrix assisted Hongnian Technology in the development of motherboards based on the "486ZG" processor. Although the United States has imposed a strict blockade on semiconductors and chips against China, this kind of technical support is normal. Chinese customers use Intel chips, Intel has to send someone to help them develop the whole machine, the worst must send a technical documentation, otherwise, how can others develop on your product!

With the assistance of Cyrix, Hongnian Technology spent more than three months to develop its own motherboard. Soon after, Hongnian Technology produced a prototype - Hongnian computer. The manufacturing cost of Hongnian computer is only 3000 RMB!

After a period of testing, there is no big problem with Hongnian computer, and it can be mass-produced and sold!

During this time, Williams retail stores have also been rolled out in major cities in China, with a total of more than 300 retail stores, of which 45 have been renovated and can be opened!

As for Williams mobile phones, the time is not yet yet, at least until the Mobile Communications Bureau of the Ministry of Posts and Telecommunications has built the CDMA network!

At present, China's computer companies are more famous for Lenovo, New Wave and so on, but their computer prices are really too expensive, basically tens of thousands of yuan.

The cost of Hongnian computer is 3,000 yuan, and the retail price is only 3,500 yuan, so earning 500 yuan is not too much. The cost of Lenovo's computer is estimated to be about 4,000, but it is so expensive, you can imagine how much you earn!

Lu saw the injustice and roared, Henry is coming to break this situation!

(To be continued.) )