When the VCD manufacturers were puzzled or gearing up, the newly established Wanxian Electronics moved: Wanxian Electronics announced in December that the company's products will be in the New Year, after the war, the price of the product will drop by 500 yuan on the original basis!

This news, like a blockbuster aviation *blocked keyword*, caused a huge sensation in China.

VCD has been in the market since 1993, which has lasted three years and has completed the stage of being recognized by consumers. At the same time, as a new home appliance integrating viewing, listening and singing, VCD itself with unique functions and appropriate price does have great charm, and of course it will be favored by many consumers.

Until then, price has been the biggest reason for limiting VCD access to the majority of people's homes. Although after three years of development, the price of VCD has dropped from more than 5,000 in the initial market to more than 2,000 in 1996, but for the vast majority of ordinary families, this is still a large amount.

After all, it is still 1996, and the wages of the working class in the vast inland areas are basically still in the triple digits, and the income of the whole year is five or six thousand yuan, and it is still a very difficult decision for most families to spend two or three thousand yuan to buy a VCD.

But now Wanxian Electronics has announced another drop of 500 yuan, which basically means that for about 1,500 yuan, you can buy a fairy VCD.

Even for the working class in the hinterland, this is only three or four months' wages. Even for some peasant families, it is just a matter of selling a big fat pig!

What's more, the product I bought is still a fairy VCD that is known for its high quality and low price!

Because of Zeng Wei, a reborn person, the fairy VCD not only has guaranteed quality, but also far surpasses its peers in appearance design.

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The news released by Wanxian Electronics made those companies engaged in VCD production feel painless, they did not expect Wanxian Electronics to make such a move, after all, they are now the leaders in the industry!

Because of the big price reduction for three consecutive years, VCD's profit has been very weak, mainly because most of the VCD manufacturers need decoder boards imported from abroad, resulting in their high costs.

Of course, the biggest blow to this news is still those small workshops. Originally, the price of VCD was about 2,000, so that these small workshops of OEM production still had a certain profit margin, but if the price was reduced to 1500, then they would have almost zero profit.

This kind of price reduction is a big blow to everyone, more than half of the small workshops decided to stop production, and the remaining small and half small workshops have become less firm in their attitude towards the production of VCD.

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The reason why Wanxian Electronics has the confidence to announce another 500 yuan is that it naturally has its confidence. Because now Wanxian Electronics has been able to produce its own decoder boards, which has led to a significant reduction in the cost of VCD disk players.

According to the R&D department of Wanxian Electronics, as long as the output is increased to 400,000 units per month, the cost of VCD disk players will drop to less than 500 yuan!

In other words, even if the fairy VCD is sold at a price of 1,500 yuan, there is still a profit margin of nearly 1,000 yuan. Therefore, whether it is Wanxian Electronics itself or distributors, they can make a lot of profits.

Now, the biggest problem is to expand the production capacity, but also to expand the production line. After all, the original production line of Fairy Electronics, the production line of Jiawanyan Company, has a production capacity of only about 250,000 units per month, which is a small difference.

In fact, the expansion of the production line this kind of thing, it is difficult to say, easy to say, it is nothing more than a matter of money, Zeng Wei before the acquisition of Wanyan Company, instructed the company's senior management to do a detailed investigation of the materials required for Wanyan Company's expansion, and has been implemented to the specific implementation stage, so after the two sides formally decided to merge and acquisition, this action has been carried out.

By the New Year's Day of 1997, after two months of construction, part of the production line has been put into use, and the current monthly output has exceeded 300,000 units, and is continuing to work towards the scale of 400,000 units per month.

Before Wanyan's decoding board, it was mainly imported from C-Cube Microsystem Company, and the number was not very large, after all, the number of 2,000 units per month was considered to cost 2,000 yuan, and it was only more than 4 million, not to mention, that thing was not so expensive at all.

But now because of Tianli company, the decoder board has been produced and sold, and the cost has dropped sharply, but Zeng Wei believes that the cooperation with C-Cube Microsystem Company should not be weakened, after all, this is a semiconductor solution supplier that is very successful in digital video compression, transmission and decompression technology.

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Founded in 1988, C-Cube has been committed to the development of video digitalization, and the company has been recognized as the world's No. 1 supplier of EG digital semiconductor products for three consecutive years. The company has been nominated for an Emmy Award, the entertainment industry's highest award, for its success in the field of digital audio and video.

In the years that followed, the company designed and developed many important digital video application ICs. It includes VCDs, DVDs, digital cable set-top boxes, satellite set-top boxes, recordable DVDs, digital VHS, hard drive-based digital video recorders (DVRs), video products, EB dynamic video, broadcast video, etc.

Therefore, for Zeng Wei, it is necessary to seize the C-Cube and establish a closer relationship with it.

Mr. Jiang is more familiar with the relationship between Mr. Jiang and C-Cube, Zeng Wei entrusted him to have a good exchange with Mr. Sun of C-Cube, and made it clear that now Tianli Company is providing low-cost decoding boards, hoping that the two sides can obtain the necessary understanding on this issue.

Although Mr. Sun is now one of the shareholders of Wanxian Electronics, he basically stays in the United States and manages the C-Cube company, so so far, Zeng Wei has not met Mr. Sun.

After learning about the technical foundation and research direction of Tianli Company, Mr. Sun put forward a suggestion to cooperate in the establishment of a new research institute to jointly work in the field of video digitization.

In this regard, Zeng Wei has a more positive attitude, he even had the idea of acquiring C-Cube, although the scale of C-Cube is smaller, with only a few hundred employees, but their development momentum is good, and the future success can be seen as a clue.

The acquisition of C-Cube can be done for about 100 million US dollars, but some of the problems involved require some effort, so Zeng Wei sent his right-hand man, Gao Yuanyuan's brother Gao Fangfang, to negotiate with the senior management of C-Cube, hoping to take the opportunity to discuss cooperation to promote this matter. If you leave halfway through, press CTRL+D to save the current page to your favorites so you can watch it later!