After the launch of the Pangu multi-core host and the upgraded Pangu console, the sales of the Pangu console were driven all over the world.

In March alone, the Pangu 128KB upgraded version of the host replaced the original 64KB memory host, and this alone made the sales of about 1 million units per month, which were originally stable, skyrocket to 1.7 million units.

As a result, it was difficult to supply XRM16CPU to the factory in the Chinese mainland, and in the end, it had to purchase the XRM16 chip that Ricoh had just put into production.

Xinchuang Electronics buys from its own factory in mainland China at a cost of only $45 a piece. And the purchase from Lishan Semiconductor is only $48 a piece. However, Ricoh is limited by cost and sells up to $100 a piece. Well, since there is a $5 royalty to be paid per chip, it's actually a $95 purchase price!

Despite this, Lin Qi also had to scold Ricoh for taking advantage of the fire and robbing it! Using the chips he authorized to produce, he sold them to a new venture electronics company at a high price. And the new start-up electronics company is in dire need, so it has to accept this double price. Otherwise, it will not be able to meet the large number of orders in the market, resulting in greater losses.

In addition, the sales of the dual-core Pangu console also exceeded 100,000 in the first month, while the sales of the quad-core Pangu exceeded 15,000 units.

This sales volume basically did not disappoint Lin Qi, after all, the current Pangu console has not yet gotten rid of the positioning of "game console".

The "game consoles" in the future will have better graphics cards, memory, and more powerful CPUs, so the price will be much higher than the regular version of the personal computer. Office computers, is not high configuration requirements, can use the lowest configuration will never go to the high configuration, can use integrated graphics card, or CPU, GPU with the core graphics, will never be configured independent graphics card. Therefore, office computers in later generations are all bargains, because, what do you want to do with such expensive ones?

However, in the 80s, gaming computers were cheap, and few people would pay a high price for a game console. Since the 70s, consoles have been positioned at $100, and there are even a large number of low-end consoles under $50.

Office computers are more expensive in this era, because the first to popularize computer office in this era are often large multinational companies or self-motivated companies, and these companies are willing to pay a larger cost to purchase office computers for office efficiency. Therefore, office computers in this era can be bought at a good price.

Although the Pangu host has a high configuration, there is still a huge gap between various industry software and PC, so high-end users have not taken it seriously.

Users who have purchased the original Pangu console before will inevitably be a little resentful. Although 64KB of memory can be purchased at your own price for a 128KB memory, the current market price of a 128KB memory module is at least $65 or more.

In addition, the majority of old users who are excited about multi-core hosts and reluctant to eliminate old machines that have not yet reached the end of scrapping old machines still occupy the majority.

In order to stimulate the entire user group to upgrade to a new host, Lin Qi has deployed a global "trade-in" strategy.

The "trade-in" strategy values depreciation according to the newness of the machine, with a depreciation period of three years, and depreciation of one thousandth of each day from the date of purchase. That is, users who have purchased for three months can still convert 90% of the value. If the user agrees to trade in the old machine and buy a new machine with a higher value, then the old machine can be deducted from a part of the purchase amount.

For example, a user previously purchased a Pangu host for $398, and after that, with the old console and valid vouchers such as invoices and consumption receipts, the store will provide consumers with "vouchers" after valuing and recycling the old machine. Vouchers can only be used to purchase new console products from start-up electronics companies in the store.

Of course, the old machine after the trade-in also has a certain value. For example, some of the machines are in good condition and are basically similar to the new machines, which can be sold as refurbished machines to users in economically backward areas, so as to expand the user scale of the Pangu host.

Even a machine of average condition can be disassembled and a part of the original can be used as a spare part for repair. After all, the after-sales service of Xinchuang Electronics Company is as long as three years, and it is not realistic to use all the new factory parts for maintenance, so some of the parts of after-sales maintenance are recycled second-hand parts. Of course, even if it is second-hand, it will be used only to ensure the quality.

And this kind of "trade-in" service can also greatly stimulate consumers' desire to upgrade products. Originally, buying a game console might last five years or more. However, the introduction of a more powerful platform, and the fact that the old machine can be deducted from a part of the amount, is enough to stimulate a considerable number of consumers to be willing to pay for the new machine.

And the current dual-core gross profit is not very high, after all, 1MB of memory, is currently considered a top-level configuration, and the price accounts for half of the whole machine. But after all, the Pangu dual-core host, the whole machine can still make some profits, and it will not be like the previous Pangu console when it was first listed, it was sold backwards.

However, after the implementation of the trade-in policy, the dual-core Pangu host may not be able to make money. After all, a trade-in strategy is essentially a profit, and companies may not be able to make a profit from recycling old machines. If consumers buy dual-core Pangu hosts in the way of trade-in, then each machine of Xinchuang Electronics still has to be upside down for 50~100 US dollars.

Since the gross profit of the Pangu quad-core host exceeds 600 US dollars, the gross profit of each machine can reach more than 400 US dollars even after the implementation of the trade-in policy.

Through large-scale stimulation of some old users to replace the machine, and the old model of machine eliminated by the old users in developed countries is sold to the market including Chinese mainland.

In this way, consumers in low-income areas can be provided with cheaper computer products.

Moreover, the Pangu host, which is already cheap, is more cost-effective. Because, refurbished machines are sold for less than $300. In addition, you can enjoy the same after-sales service as a new machine.

In the process of selling refurbished machines, the new venture electronics company does not generate sales profits, on the contrary, because of the trade-in, and the recycled machine is sold at a lower price than the recycling price, an average machine will form a loss of 100~150 US dollars.

However, recycling these not very old machines and selling them as refurbished machines has greatly increased the market share!

After all, if the new start-up electronics company takes the initiative to reduce the price, it will make the old users dissatisfied. However, in the process, old users enjoy the "trade-in" service, but they will make a profit.

Some users who could not afford to consume the Pangu console and any computer, because the price threshold was lowered, began to own a Pangu console, then, they may continue to become loyal users of the Pangu platform in the future, because their usage habits have gradually been deeply tied by the Pangu operating system.

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"In the 80s, our Pangu has been difficult to get rid of the label of game consoles! At that time, users could not pay a high purchase budget for game consoles, so we couldn't make much profit on hardware. However, we are actively encouraging users to buy newer and more powerful hardware, and if the user community does not want to upgrade the hardware performance, we must also take steps to incentivize them to upgrade the hardware performance. Lin Qi said in an interview many years later, "If we don't keep the overall hardware performance of our user group ahead and continue to accelerate the speed of upgrading, then our entire ecosystem will be in danger." Therefore, we often consciously stimulate users to upgrade the hardware platform, not to make money on the hardware, but the hardware of the entire platform is more advanced, so that software manufacturers can develop better software and games! Through the active upgrading of hardware, the ecology of the Pangu camp is becoming healthier and healthier, and it has been ahead of the PC for more than 3 years in terms of games! Later, since the beginning of the Internet era, our compatibility has become better and better, after all, many popular applications on the Internet, such as browsers, websites, search engines, Instant messaging, blogs, and P2P downloads are the first to emerge from our Pangu platform!"

In fact, Lin Qi adhered to the strategy of not making money on hardware as a whole, and persisted until the 90s.

After the 90s, Pangea consoles adopted an open strategy similar to that of PCs, and handed over the power to produce compatible machines to manufacturers all over the world.

Not just open source, even open source. In the Internet era, the Pangu operating system has published the source code, so that computer masters all over the world can find mistakes and help them improve. In fact, after adopting open source, it was updated and modified by programmers all over the world, which made the Pangu operating system more powerful and safer.

Before the Internet era, Pangu hardware did not make money, but software made huge profits.

In the later Internet era, the patterns of new entrepreneurial electronics are far more abundant than those in the 80s. Later, many tech giants kept exclaiming -- and this money-making magic? Can the Internet still play like this? How did the people at the new startup come up with a good idea?