"Mr. Lin, even if the first generation of Kirin loses, we can guarantee that the profit of the new venture communication company this year will exceed 1.5 billion yuan. At this stage, we can feed the terminal business by making profits from the base station business. Wang Dayou, general manager of Xinchuang Communications Company, said, "Resolutely support, the overall interests of the group company ......"

"Come on!" Lin Qi said with a smile, "Don't be cheap and sell well, the first generation of Kirin will be able to make money in the future." The cost should be within half a year, it should be able to cut below the shipping price of 1999 yuan, and within a year, 1500 yuan, I see no problem. ”

"It's not our own decision, it's the price of the hardware of the other brother units of the group company. and the supply price of other units in the industrial chain. Wang Dayou said, "Of course, the new venture communication is a listed company, and it can't lose too much, and the overall profit must grow." ”

"En!" Lin Qi nodded, "The current trend is that telecommunications equipment makes money with its eyes closed, and both domestic and foreign countries are the peak seasons for the telecommunications equipment industry." But...... The telecommunications equipment market ultimately has a limit, and even more, the equipment is sold to operators, and most of the operators will be natural monopoly oligopolies in the future, and equipment manufacturers will naturally be weak in the future in terms of bargaining power. Therefore, the gross profit margin will not be too high, and it will not be able to engage in the software ecology. Selling mobile terminals to consumers, operating systems, browsers, and even, software download malls and payment wallets in the future can produce huge benefits. At this stage, mobile phones are like this, and in the future, the evolution speed will be much greater than that of computers. Computers are now just more and more advanced in hardware, and in terms of functions, I don't think there will be major changes. But mobile phones, the future will continue to change, the market will be bigger and bigger, you must seize the historic opportunity!"

"Of course!" Wang Dayou said, "Boss, next year will really be mass-produced, our unit will take the lead, and each employee will buy a Kirin 1 generation!"

"......" Actually, it is not that the employees of the new venture communication company do not buy the Kirin 1 generation, but that at present, in order to supply to the market, internal employees want to buy it is not approved. After the real mass production, the production capacity will be squeezed out, and the internal special supply channel will be provided, and the employees of the province will have to be constantly played monkeys like ordinary consumers, and they will not be able to grab mobile phones, and their mentality will collapse.

For Lin Qi, not to mention that the Kirin 1 generation mobile phone is losing money now, even if it has not been profitable, it is not a big deal.

Because, Kirin mobile phone is not only the layout of the mobile Internet ecology, more importantly, in terms of hardware, the CPU is its own, the running memory particles are its own, the flash memory particles are its own, and soon, the communication baseband chip started by GSM will also be produced by itself.

Just driving the production capacity of its own hardware is a great contribution. For example, the communication baseband can not only be sold to itself, but also to other companies that make mobile phones. In later generations, Qualcomm, MediaTek, and Samsung all sold communication basebands and bundled CPUs.

Of course, because Qualcomm's patents in communication baseband are more comprehensive, the family bucket sold is more cost-effective than several others. Therefore, in the mobile phone SOC market, Qualcomm is basically the only one.

Although Samsung's SOC substrates are generally exported, because Samsung is a self-produced and self-sold company, Samsung's COC shipments are not low just by relying on internal digestion.

Basically, Samsung sells mobile phones, memory modules, solid-state drives and other products, in essence, to drive the shipment of chips from its own semiconductor factories. A multi-pronged approach has made Samsung's semiconductor chip industry the world's largest market share in the future. Even Intel's market share in its semiconductor business is even lower than that of Samsung's semiconductor segment.

As far as the semiconductor market is concerned, where the number of shipments and market share determines life and death, sometimes the amount of market share really determines life and death. It's like Samsung's DDR4 8G memory module, when it was just listed, the lowest price even hit $20 a piece, and the lowest price in China even reached 150 yuan a DDR4 8G memory.

This kind of new product is launched and dumped at a loss, and it is not the first time that Samsung has done this. Samsung makes memory particles, the most difficult period, even $10 products to sell under $3, not to mention the gross profit margin, net loss of 70%! Sell 10 yuan of products lose 7 yuan, change to other merchants, I'm afraid it's panicked, can't do this at all. However, Samsung is going against the trend, not only to make a big loss, but also to increase production capacity and continue to lose even more. This kind of counter-cyclical investment, which is to seize the market at a loss, competes in internal strength, and after boiling the opponents to death, the profits will skyrocket.

In the DARM memory chip market, Samsung has lost money for at least more than ten years since it started investing. It wasn't until the 90s that it was profitable. After the memory particle market became profitable and became the hegemon. Samsung continues to invest against the trend and expand production capacity at a loss to seize the market, which is used in the LCD panel industry. Japanese and South Korean counterparts have hesitated,Samsung in the late 90sThe financial crisis against the trend of investment LCD panels,The more you lose, the more you expand production capacity,After that,Panel、The first in the TV and other markets,It was also taken away。

After the market is occupied, especially the most basic hardware production capacity, after being mastered by it, it will naturally do whatever it wants. I often do some things like manipulating the price of LCD panels and manipulating the price of memory particles.

Later, DDR4 memory was gradually accepted by the market and became the mainstream. Samsung naturally began to do whatever it wanted, and its conscience was eaten by profits. The ex-factory price of memory particles has skyrocketed because ...... Monopoly can really do whatever it wants! As a result, the DDR4 8G memory module on the market has skyrocketed from the lowest price of 150 yuan to the highest price of more than 1,000 yuan. Even later, the memory module was reduced to about 500 yuan, but there was still a huge gap from the 150 yuan DDR4 sold at a loss during the initial listing period.

Therefore, the biggest cost of the most basic semiconductor hardware is actually the initial investment, and the biggest loss is not to sell a $10 product at a low price of $3, but ...... There is no market for products, and the factories and equipment with huge investments are abandoned. This loss is far more than selling the product at a loss. Because, even if you sell a product at a loss, you are generating cash flow. Even, the loss is only a financial loss, and the depreciation of machinery and equipment is included in the cost of products. In fact, not counting the costs of the depreciation of the machine, the production itself and the sales itself, in fact, make money.

If the machine can't be started, the production capacity of the huge investment can't be released, and that kind of loss is something that a capitalist like Lin Qi will also feel painful.

It is also involved in all aspects of the industrial chain, unlike manufacturers such as Xiaomi and OV in later generations, all the hardware is purchased, so it is impossible to do it at all, and there is no need to sell the product to a lower cost than the hardware. After all, the hardware belongs to someone else's, and this kind of assembly-based mobile phone manufacturer, in essence, is only similar to the supermarket purchase and sale, and it cannot be regarded as an industry that really involves core technology.

Only like Lin Qi involves the core industry, terminal shipments, and drives their own chip shipments. The capacity and shipments of chip factories drive orders for lithography machines and other semiconductor manufacturing equipment and raw materials. Doing business with yourself can form a closed loop......

Of course, in the end, it is still necessary to stimulate external orders, consumer orders. It is equivalent to the fuel and driving force for the continuous self-improvement, recycling and development of the close industrial chain within the Department of New Entrepreneurship. The orders of the consumer market are transmitted layer by layer in the internal upstream and downstream industrial chain, and most of the benefits and benefits are left in the huge system of new entrepreneurship, which has become the nutrients for the growth of the entire system, and the downstream layer by layer conveys the interests to the upstream and core of the industrial chain. It can even be said that the industrial chain involved in the Samsung empire is larger and more complex than that of the Samsung empire in later generations.

In this regard, Lin Qi, the founder, couldn't help but sigh that unconsciously, he had created an unprecedentedly huge scientific and technological complex. Its current volume should be larger than IBM, Microsoft, Intel, and Samsung combined.