Chapter 552: Dell Is a Good Company (First Update)
The investment cooperation agreement between the Eastern Group and the City of Austin is simple and grand. The so-called simplicity is not like in China, where the leader first takes the stage to speak for half an hour, and then the leader gives a congratulatory speech for 20 minutes, and the official speech without any nutrition can consume several hours.
Before the two sides officially signed the agreement, the current mayor of Austin took a few minutes to introduce the city's overall plan for the development of high-tech industries to the media at the scene. Later, on behalf of the Oriental Group, Li Xuan briefly elaborated on the various projects included in the investment.
More than 30 media attended the signing ceremony, including NBC, CBS, and ABC, as well as mainstream newspapers such as The New York Times, USA Today, and The Wall Street Journal. When Li Xuan and Mayor Austin finished signing and exchanging the text of the cooperation agreement, the flashing lights of a row of long guns and short cannons flashed in front of the signing table.
Li Xuan stretched out his right hand and shook it with Mayor Austin, while also turning his head and showing a warm smile in front of the dazzling flashing lights. He flew across the Pacific and North American continents, from Hong Kong to Austin, just to show his face in front of reporters!
You must know that Li Xuan has been interviewed by the media less and less in recent years, but he has been the richest man in the world for many years, and his news value is very high. It can be said that Li Xuan's personal appearance in attending the signing ceremony can at least raise the enthusiasm of the media for reporting, which is why he came to the United States on purpose.
The signatories exchanged the text of the cooperation agreement, then opened a glass of champagne and toasted together. At this point, the whole event is coming to an end. Li Xuan was undoubtedly the most popular figure in the media at the scene, and reporters had a rare opportunity to catch him, so they gathered around him and threw him all kinds of questions.
"Mr. Lee. The company's annual report for the fiscal year 1988 has just been released. The sales growth rate of ABC series computers is lower than the market expectation, what is your comment on this?" A female reporter squeezed in front of Li Xuan with her small figure and flexible movements.
Li Xuan smiled and nodded at her, his gaze seemingly casually swept over the badge pinned to her proud chest, which turned out to be a reporter from the Wall Street Journal.
"As the largest shareholder of Aikang, I am very satisfied with the recent performance of the stock price of the listed company! **** Baron and all the management of Aikang Company have presented a satisfactory answer to all shareholders!" Li Xuan said with a chuckle.
iKang Company in the past 1988. A total of 507 were sold. 50,000 computers, but nearly 8% lower than the consensus forecast of 5.5 million. But instead of falling, Aikang's share price rose more than 15% in the week after the statement was released.
This is because Akon's computer sales are lower than expected. Operating income and net profit were better than market forecasts. After several years of development, the proportion of personal computer business in the overall revenue of Aikang is decreasing.
The company is transforming from a PC manufacturer to an IT company that provides total computer and networking solutions. Aikang company's product line. In addition to the most widely known ABC series of computers. Products such as workstations, servers, routers, switches, and more are also available.
"Mr. Li, I'm Smith of "Austin Political Observer", is it because the PC industry is too competitive because the ABC series of computers of Aikang Company is not selling well?
Have you ever heard of Dell, which has just been listed on the NASDAQ market with a financing amount of up to $30 million, and Wall Street is very optimistic about this emerging computer company that has been established for less than four years!" The reporters were obviously not satisfied with Li Xuan's answer. So another local reporter continued to ask along the lines of the female reporter just now.
Li Xuan smiled lightly. How could he not have heard of the famous Dell company. And Michael Dell, the founder of Dell, was a student at the University of Texas at Austin.
Because of the influence of Li Xuan's butterfly, Compaq, another famous computer company, seems to have disappeared without a trace. But this Mr. Dale still stubbornly followed the trajectory of his previous life, dropped out of Austin after his freshman year, and began a brilliant entrepreneurial career.
"I am honored that Mr. Dell said that my deeds inspired him! I have to say that Dell is a very special company in the personal computer industry. It has a unique choice of direct sales model, which saves a lot of distribution costs by leaving aside the middleman link, and can provide users with greater price concessions!"
In a recent interview with the New York Times, Dale himself did say that Li Xuan was his idol. The big guy who could only look up to in his previous life has now become his admirer, which makes Li Xuan quite proud.
However, he quickly retracted his smile and continued lightly: "You have been struggling with the problem of ABC computer sales, in fact, in my opinion, the predictions of those securities analysts are completely dispensable. Because they are not the real operators of the enterprise after all, they cannot have a comprehensive and intuitive understanding of the development plan of the enterprise.
For example, Dell can quickly gain a foothold in the personal computer market through direct sales at low prices. However, as a leader in the global personal computer market, Aikang needs to consider not only how many computers to sell, but also to guide the entire industry to compete in an orderly manner!
The sales volume of ABC series computers last year was slightly lower than the expectations of the outside world, which is actually the result of the company's initiative to adjust!
The ABC-3 computer has been on the market for nearly seven years since July 1981. Due to its excellent performance, more than 200 companies around the world are producing its compatible machines. The current sales of ABC-3 compatible phones still account for half of the global PC market.
Since April last year, the Aikang Company has taken the initiative to announce that it will stop the production of ABC-3 computers ahead of schedule and give up this part of the market to other enterprises! This is the most important reason why the computer sales of the Aikang Company last year were slightly lower than the expectations of the outside world!
With the launch of the company's new generation flagship model ABC-6, Aikang's computer sales this year will definitely usher in a round of substantial growth!"
Li Xuan's words were high-sounding, and he desperately put gold on his face. In fact, to put it bluntly, with the price of ERM-1 processors falling again and again, ABC-3 has been reduced to a low-end product.
Many compatible machine manufacturers have begun to discontinue the ABC-1 and ABC-2 compatible machines, which are too backward in performance, and have shifted their production focus to the ABC-3 compatible machines. This made it unprofitable for Aikang to continue to produce ABC-3, and it was simply discontinued ahead of schedule.
However, the new model ABC-6 could not be connected in time, so the sales of ABC series computers were lower than expected. But even so, Aikang sold more than 5 million computers last year. The company's PC business alone generated more than $6 billion in sales and more than $1 billion in profits.
Dell, which makes local reporters in Austin proud, has a market capitalization of only $85 million after its listing on the Nasdaq. Although Dell's recent stock price has also ushered in a wave of upward movement driven by the good news of Iconli. However, Dell's total market value is only far from 100 million, which is only one-tenth of the profit of Aikang's personal computer business last year.
The two are not rivals of the same size at all, and Dell needs to develop at least three or five years at a high speed before it is qualified to become an opponent of Aikang! In fact, Li Xuan is not only not worried about the rise of Dell, but is happy to see it!
In the first few years of the 21st century, Dell successfully defeated a series of competitors such as IBM and Hewlett-Packard, and climbed to the top of the world's computer sales.
One of the most striking features of Dell's operations is that it does little to no research and development of its own. Dell's model is actually to purchase parts from upstream suppliers, and then assemble them into computers for shipment according to the needs of user orders.
A company like this will only be an enforcer of the existing rules of the game, not a challenger or disruptor. So the cooperation between Dell in another time and space and the Wintel alliance is very good. For example, Microsoft gave Dell a price of $50 less for the Windows operating system than for other companies.
The personal computer system built by Li Xuan actually has three cores, the first is the ERM architecture processor, the second is the East series operating system, and the third is the ABC series of technical standards. Regardless of how the market share of the industry changes, the Eastern Group only needs to firmly control these three points to grab the most lucrative benefits.
Therefore, Li Xuan does not care about the change in the market sales share of Aikang at all, but is more concerned about whether the system he has built is challenged. Like IBM, relying on its own profound technical background, it is fully capable of jumping out of Li Xuan's system.
Therefore, the Oriental Group is both wooing and guarding against IBM, and for companies like Dell that will not challenge the existing system at all, Li Xuan will give strong support. Dell's increase in market share will help Li Xuan control the entire computer industry.
Through its technological monopoly on processors and operating systems, the Eastern Bloc has reaped the largest share of the computer industry's profits. It is also necessary to throw out some bones to the other hungry wild dogs. As for Aikang, its vision has begun to rise from selling ABC computers to making money by selling ABC computers to making money by selling the technical standards of ABC computers.
"Actually, I was very interested in talking to Mr. Dale himself, because the old president of CUHK has always refused to cancel my student registration and always urged me to go back to school. I don't know if the principal of the Austin branch office also called him often, and asked him to donate some money or something in the name of discussing his studies, after all, Mr. Dale is now a multimillionaire!" Li Xuan said with a smile in a tone from a person who had come over. (To be continued.) )