Chapter 836 Price Increase and Profit, Luxury Route
"Pangu Computer Co., Ltd. will be more and more inclined to the high-end market. Pangu learning series consoles, low-end models do not contribute much profit. Gao Tian said, "Starting in March 94, the Pangu 6th generation production line will also be shut down, and after that, the 7th and 8th generation series will be maintained. The 7th generation is the mainstream configuration, and the 8th generation is the high-end configuration. But we will no longer be the same as before, the obsolete flagship will be transformed into a cheap learning model, because we find that after the old production line is converted into a learning model, the profit is not very high, but it increases our management costs and occupies a lot of capital and resources, and scatters our energy on obsolete products that are destined to be eliminated. Therefore, in 94, we transferred the Pangu 6th generation production line and the previous Pangu learning series brand and production line to Lenovo at a friendly price of 10 billion yuan, allowing Lenovo to use the Pangu learning series brand for marketing. Basically, the low-end Pangu learning model, which accounts for about 20 million units shipped, will be cut. Because, although the shipment of Pangu learning models is good, and the revenue is even 13 billion Hong Kong dollars, relatively speaking, it only achieves a net profit of about 100 million yuan. This model, which is purely entry-level and cheap, will be abandoned by Pangu Computer Co., Ltd. in the future. ”
Originally, Lenovo in history had the habit of picking up garbage, constantly acquiring overseas obsolete technology companies and assets, thinking that it was cheap. In fact, this has led to Lenovo getting farther and farther away from technology companies, and the more it is in the limelight, the more Lenovo can't grasp it.
Now Lenovo, although the major shareholder is the new entrepreneurship department, has changed slightly. But...... Still can't change the habit of picking up garbage, Pangu Computer Co., Ltd. doesn't want to eliminate the technology and product line, Lenovo accepts it, and has already pulled a loan from the bank.
Although, the assets given to Lenovo are outdated goods with backward technology as a whole. However, if it is operated properly, it can still make money. For example, although the Pangu 6 generation is about to be eliminated, there are still some users who can't afford the Pangu 7 and Pangu 8 generations and are buying the Pangu 6 generation. Because, the current price of Pangu 6 is below 2600 yuan.
For some learning purposes, it is a very cost-effective computer.
"In the future, Pangu computer desktops will not pursue market monopoly and absolute market share, and shipments of 100 million units or more are not the goal of Pangu Computer Co., Ltd. It's enough to maintain 50 million desktop shipments a year. If the average price of the whole machine is maintained above $1,000, the desktop business will contribute no less than $50 billion in revenue a year, and the net profit will reach 10%, which is not too difficult. Users of high-end models don't care about a price increase of 5% or more, so it's not too difficult to get a gross profit. On the contrary, the more low-end models want to make money, unless they have a conscience and have a high price and low allocation, it is like squeezing oil in a stone crevice. This market, I admit that it is still a certain profit, which is equivalent to a cigarette butt, and you can smoke it when you pick it up. But we are not ready to be low-end, only ready to point out the future direction of the Pangu compatible machine, what will the future models and technologies look like, at least more than half a year ahead of the compatible machine. After our Pangu 8th generation is shipped, it will be at least from May to June 94 that there will be other compatible machine manufacturers who can launch similar products. Because, the core CPU, large-capacity memory modules, etc., are given priority to us, and only after our products are used, will they go to other compatible manufacturers. ”
"Laptops, the future will be the focus of efforts. In 94, there will be 5 generations of Pangu notebooks with different inches such as 12, 13, 14, 15, 17 and so on. Pangu 5th generation notebook, the price will appear echelon, divided into 3999 yuan, 4999 yuan, 5999 yuan, 9999 yuan and other different grade configurations, CPU chip is waiting for the mass production of Luban 2 generation mobile version of the chip, laptop can achieve mass production...... In addition, the Pangu 5 generation notebook will be equipped with a DVD drive and a digital camera...... In the future, the notebook business, the goal is the same as the desktop, set at the sales target of 50 million units, at present, in terms of desktops, our quality is not necessarily with the compatible machine widening the gap, everyone is doing the same. But for laptops, we can make a bigger difference in quality. In the future, the goal of the laptop business is also 50 billion US dollars. ”
In addition, displays and peripheral hardware will become the third main business of Pangu Computer Co., Ltd. The future target is $20 billion. ”
In addition, Pangu Computer Co., Ltd., in response to Mr. Lin's call, attaches more importance to the future Internet-related layout. For example, we use our own technical advantages to lay out the server industry. At present, in China, Japan, South Korea, Singapore, the United States, the United Kingdom, France and other markets, actively carry out related technology research and development and marketing, at present, the server business, although only 2 billion US dollars of annual revenue, and most of the new venture electronics group and other affiliated companies procurement, but in the future, we will increase the marketing of more Internet companies and government departments. In the long run, I believe that the Internet server business will be expected to provide market share and profit ...... that is no less than personal consumption."
"Basically, the future development plan, Pangu Computer Co., Ltd., will hope to grow into a technology giant with annual revenue of more than $150 billion and an annual net profit of $20 billion in five years. Basically, it is to take the scale of the current new venture electronics group as a model, and strive to be close to the scale of the current new venture electronics group......"
Gao Tian's report time was more than 10 minutes.
In addition to Lin Qi's ability to speak for a longer time, that is, his report is the longest. Of course, this is also because of the importance of Pangu Computer to the new entrepreneurship department.
At present, nearly half of the revenue of Xinchuang Electronics Group is Pangu Computer. In fact, a lot of the revenue contributed by other non-Pangu computers is also related to Pangu computers.
After the 93-year-old Pangu computer has opened up the compatible machine market, Pangu Computer Co., Ltd. began to continuously raise the price of new products, and the price of the new machine leaving the factory has continued to rise. Of course, although the price increase has increased the configuration, although the profit margin has not increased much, the profit that can be generated by a single computer has increased. For example, if you sell a computer for 2,000 yuan a year, the profit is 200 yuan. And now a computer of 8,000 yuan may make a profit of 800 yuan. It seems that the profit of the same amount of sales, the profit is hardly much changed.
But consumers are limited, if persuaded consumers from the 2000 yuan configuration, rise to 8000 yuan configuration. This means that with the same number of consumers, it is possible to get four times more sales and profits than before.
This is also the gradual development from cheap and popular consumer goods to high-profit luxury goods.
If you want to make a profit, what management to use to optimize is nonsense.
To a certain extent, everyone has scientific management and processes. If you want to save costs, you either have a dark conscience, reduce labor costs, and after compressing wages, there may be room to reduce prices. But this is not advisable, you can lower wages, then, workers will reduce quality.
In addition, it is to do addition and subtraction, that is, to reduce the hardware configuration, high price and low configuration to achieve higher profits. However, this is also not advisable, after being discovered by consumers in the long run, they will not choose too black brands in the future.
In fact, the most royal way to increase profits is to raise prices confidently and make products develop in the direction of luxury goods.
In the past, Pangu computers could not do this, because they needed high, medium and low-grade computers to expand the market share of Pangu computers and maintain the vitality of the Pangu ecosystem.
However, now that compatible machines are opened, the low-end market ceded by Pangu Computer Co., Ltd. will soon be filled by other manufacturers. Even if the price of Pangu computer shares is limited and the price has lost some low-end computer users, other Pangu compatible machines will use low-end products to retain these consumers.
Pangu Computer Co., Ltd. does not need to rush the volume and scale of shipments, but only needs to expand the scale of profits, and naturally it can run all the way towards the luxury route and increase prices all the way.