Chapter 888: Intel Corporation's Anxiety

On December 1, 1994, 25,000 self-operated brand experience stores opened by Xinchuang Electronics Group around the world were fully launched for sale of Pangu 9th generation computers, and the sales curve once again steeped upward.

On December 1, the day of the offline distribution of Pangu 9th generation computers, 570,000 units were sold. Among them, 68,000 units were sold through Internet e-commerce channels, and the rest were sold through offline channels.

As of December 5, nearly 2 million Pangu 9 generations have been sold in offline channels. At the same time, the cumulative sales of Pangu 9 generations also exceeded the 3 million mark.

It was officially sold on November 11, and in less than one month, it sold 3 million units. The sales amount exceeded 450 million US dollars. Not only is Pangu Computer Co., Ltd. the fastest growing generation of consoles in the initial sales since its establishment.

Of course, this is based on the global average price of more than $1,500 per unit, and if the price is reduced by $200, sales growth is expected to be even more rapid. However, doing so may be beneficial to the overall interests of the Pangu camp, but it is not conducive to the profits and valuation of Pangu Computer Co., Ltd.

To put it simply, the current Pangu Computer Co., Ltd. is positioned to grow its own revenue and profits, rather than the growth of the user scale of the Pangu camp and the expansion of the Pangu ecosystem.

It's not that the growth of shipments and user scale is not important, but such a large pattern of Pangu ecology is the overall situation controlled by Xinchuang Electronics Group Company.

Pangu Computer Co., Ltd. is now only one of the high-end compatible machine manufacturers in the Pangu camp. The core technology of the real Pangu camp, such as operating system and CPU, is still controlled by the new venture electronics group company.

Moreover, with the opening of the technical standards of Pangu Computer, which allows compatible machine manufacturers to develop, produce and sell Pangu compatible machines on the basis of paying patent fees, the development of Pangu ecology is no longer the main responsibility of Pangu Computer Co., Ltd., but the responsibility of the entire market, all compatible machine manufacturers and supply chain manufacturers.

Of course, the development direction of Pangu's computer technology is still controlled by the new venture electronics group and the Lin Meng technology company behind it.

In the early days of Pangu Computer, it was not for the strategic purpose of hardware profits, but basically around shipments. Through the growth of shipments, we will acquire a large number of users and establish an ecological environment for computer systems.

From November 11, 82, Pangu 1 was released, mainly to snatch the cake of the home game console market in the early days, and became the biggest beneficiary after the collapse of Atari. Because it was mainly in the home game console market at the beginning, the performance of the Pangu 1st generation 16-bit console is far ahead compared to the 8-bit game console. Therefore, Pangu 1 was sold for three years, and it was not until 85 that the more advanced Pangu 2 generation was launched. Basically, Pangu 1~2 generation products have built a strong game console ecosystem, and their advantages in game software are still stronger than any opponent. More than 70% of the world's game software is sold on the Pangu computer platform, which also makes it difficult for any opponent to compete with the Pangu camp in the field of game software.

Since the release of Pangu 2 in 85, the new venture electronics group has carefully expanded the Pangu ecology to the general computer market other than home game consoles. Of course, at the beginning, it was still far inferior to the PC that was booming, so the main focus was on the performance of the game, audio-visual entertainment. In terms of entertainment, it is stronger than the PC, and the price is only one-fifth to one-quarter of the PC models at that time! The advantages in entertainment and price have enabled Pangu to steadily expand the scale of users in the early days.

After that, the 3rd generation of Pangu began, because of the merger of Wang An Computer. The weakness of the office printing of the Pangu system has been compensated. Wang An Computer transformed into the printer market and no longer sold word processors. The combination of Pangu computer and Wang An printer broke out into a stronger offensive force.

Starting from the 4th, 5th, 6th, 7th and Pangu notebooks 1~3 generations, each generation has performance improvements and innovations, and the cost performance has always surpassed that of PC, and the advantages of game audio and video have been maintained. This has also led to the continuous growth of Pangu's market share, but after all, it is fighting against thousands of compatible PC manufacturers and hundreds of thousands of supply chain vendors and software developers in the entire PC camp. So, it's basically hard to go any further.

In 1991, Xinchuang Electronics Group took the initiative to give up the monopoly of Pangu computers and opened up the Pangu compatible machine standard, after this measure, a large number of PC compatible machine manufacturers and PC hardware industry chain manufacturers who were originally hostile to the Pangu camp gradually eliminated the hostility, but began to invest a lot of money and technology to develop Pangu platform products.

After the open standard, a large number of computer brands began to span the two camps of PC and Pangu, and the shipments that were almost stagnant were also because the Pangu camp took the initiative to open the production license of compatible machines, which led to the beginning of the 90s, a large number of compatible machine manufacturers regained growth space, and these growth were mainly brought about by the opening of Pangu compatible machines.

Today, the PC camp has relied on the advantage of compatible machines becoming the mainstream, and it no longer exists. Because, compatible machine manufacturers began to pay more attention to highlighting their own brands, and the production of PCs or Pangu is not the focus of the propaganda of these compatible machine manufacturers. Basically, the compatible machine manufacturers in the PC camp at the beginning rarely don't step on two boats now!

……

As of December 10, according to the statistics of the world's mainstream technology media in the first half of December, the computer shipments of the Pangu camp were about 13 million units, while the PC shipments were only 2.85 million units...... CPU orders further prove that this data is true!" Intel's senior management is in an urgent meeting.

Not only CEO Glover listened to the report with an ugly face, but even Gordon Moore, the founding father of Intel Corporation, was invited to the conference room to discuss a clever plan to help Intel through this difficult time.

"Now it seems that users have no trust in the X86 chip. Both in terms of performance, reliability, and price are very unsatisfactory. Grove looked at everyone, "Even though we have the world's most advanced process, when the mainstream competitors are still in the 0.5 micron process, our 0.35 micron has been used for more than a year, and the 0.25 micron production line is currently in mass production." But...... The biggest problem is not that our technology is backward, but that the market does not buy the most advanced technology!"

"Let's cut the price!" said Gordon Moore, "the most effective way at present is to reduce the price!386 chip, which now costs up to $5, is as profitable as the factory price of $10." 486 chips, which can be considered down to $20 and multi-core $35. As for the Pentium chip with a floating-point operation BUG, after changing the BUG, change the name, reduce the price promotion, and if you buy $50 a piece, it is no problem to only make profits from industrial production. Rather than selling at a high price, it is better to reduce the old product to a cost-effective level. ”

"But if you go down like that...... Users can't stand it. Pentium chips, many users are bought at a price of more than 300 or 400 US dollars, and it has dropped to 50 US dollars in more than 1 year. Grove hesitated.

"I mean, provide preferential prices to compatible machine manufacturers, and let the manufacturers who take the goods at the preferential price keep the price secret, and don't disclose the real price to the market. Gordon Moore said, "The old product line can be maintained without losing money, and it's fine." The continuous shipment is also to avoid the complete disappearance of X86 chips in the market. In any case, we must have a large number of users to use our products. As for the victory or defeat, the victory or defeat will depend on the updated products in the future, and the Pentium 2nd generation multi-core chip with 0.25 micron process process must be mass-produced and shipped quickly. And next year's goal is to achieve 0.15 microns or even 0.1 microns. With more advanced technology, the clock frequency of the chip is increased to the extent that it is 50% or even twice as advanced as the competition, even if their architecture is more advanced? The process is far more important than the architecture design!"

Intel's chip architecture was not the most efficient from the start. For example, the early competitors in the field of complex instruction set chips, 6502, Z80, and 680x0, any architecture, actually have certain advantages over Intel's x86 architecture. However, later, Intel improved the architecture and process on the one hand, and relied on the compatibility advantages of a large number of users to overcome the difficulties again and again and regain the leading advantage in market share.

And those opponents who once threatened Intel's market share have now mostly become the tears of the times. Even if you make a living, the market share is very small, and you only eat in niche areas.

The XRM-based chips and Pangu computers of the new venture electronics group are undoubtedly the most difficult opponents that Intel has encountered. However, Intel believes that it is much more difficult for Chinese manufacturers to make breakthroughs in process manufacturing than American manufacturers. U.S. manufacturers can import the best process equipment in the world, and they can use it when they see which equipment is good. However, at present, many equipment of Chinese manufacturers cannot be imported from the world, and can only rely on their own research and development. It is precisely because of the realization that the knowledge, experience, and equipment involved in the process of the semiconductor industry are becoming more and more complex, so Gordon Moore takes it for granted that the process advantage will become a winning weapon to completely defeat the Pangu computer camp.