Chapter 305: The unprepared price war is coming
Since MOS was acquired by Cammod, the company has gradually lost its product development capabilities and enterprising spirit, and has single-mindedly eaten the old capital of the 6502 processor.
The chip is supplied not only to Cammeux's own products, but also to gaming manufacturers such as Atari, Ronva, Mattel and other gaming processors, even though the Atari 2600 and other products compete with Cammeut's products.
The 6502 processor is a processor from the mid-seventies, and the sales of this chip have been very good for so many years, which has already made MOS companies eat a lot of money. Its manufacturing costs have been declining over the years, so much so that Cammod has been able to rely on the chip to continuously introduce cheap products to the market.
If a better processor suddenly appears in the chip market to compete with the 6502 for the market, then buyers who are already tired of the 6502 will definitely want to try it!
Then MOS, which has lost the ability to develop new products, will definitely want to reinvest in the research and development of new products, and at that time, a large amount of research costs will force MOS to extract the profits earned by the 6502 chip, so that the cost of the product will continue to increase, which can bring financial trouble to Commodore, and it will have to support the product research and development work of MOS. Kangmaode's chip procurement costs and operating costs will rise, so it is okay for its products to maintain low prices, but Kangmao wants to further reduce prices, I am afraid it will make them feel painful!
Wang Huichang said to Lin Qiangsheng, and the two bad guys were planning to take advantage of Kang Maode. After the plan was agreed, Wang Huichang immediately took action, inviting several major game companies in the market to visit Dongxing Semiconductor and Pentium Computer Company in Silicon Valley.
Lin Qiangsheng took Cammodal as a rival very seriously from the beginning, because the C64 computer sold really well in history. It has set a sales record of 22 million units, and the total sales volume is nearly $10 billion at the lowest price in history at $440!
A series of products are sold by them like this, everyone has to respect Kangmaode!
Lin Qiangsheng also repeatedly emphasized with Wang Huichang that the company is an important competitor of Pentium Computer, and Wang Huichang also knows that if you do not advance in the mid-range computer market, you will retreat, and the relationship between the competition between the two companies is inevitable, so he himself is also very interested in the company.
But Cammex doesn't seem to think that Pentium will be their main competitor, after all, before the release of the C64, Cammoder and Apple were already known as the veteran company of personal computers. At that time, there was no shadow of Pentium Computer Company.
At the end of February, Camatec abruptly announced that it was cutting the price of its VIC-20 keyboard computer to $199. Lowering the price of the C64 to $499 is an incredible attempt to intimidate other competitors.
The lawsuit between Commodore and Pentium is still ongoing, and Commodore has not succeeded in preventing Pentium's Celeron computer from going public, and its application to the San Francisco District Court for an injunction has been denied. In the face of competition from Celeron computers, Cammodsy was dismissive. Jack Trumor had wanted to further expand the market share of the C64 computer. Seeing that the price of $592 had no competitive advantage over other low-end computers on the market, he immediately decided to cut the profit margin of nearly $100 and reduce the price to less than $500!
"Johnson & Johnson, the retail price of the C64 has dropped to $499!" Wang Huichang called Lin Qiangsheng and said.
"Hey, hey! It was originally a low-end cheap computer, and this cut was $100, who could fight like this with Camamoder! Lin Qiangsheng also felt that it was tricky, Kangmaode Company was too much to sell computers as turnips, and it was really unlucky to meet such a competitor!
"Pit daddy?" Wang Huichang laughed, the boss's adjective is really appropriate. Originally, he was a little nervous when he encountered such news. But after the boss made such a mistake, his mood suddenly relaxed a lot.
"I suggest that the company launch a low-end computer with an 8-bit processor, and our Celeron should not be at the same level as the C64, and there is no need to fight a price war with it!" Wang Huichang said to Lin Qiangsheng.
Lin Qiangsheng thought about it. The launch of an 8-bit low-end computer can also enrich the product line, but the only bad thing is time, and the launch of low-end products at this time is a little bit of a blow to brand building!
"It's better to be cautious, Celeron was originally defined as a low-end personal computer product for the home and school market, and now our company will hurt the feelings of buyers by launching a lower-end personal computer!" Lin Qiangsheng said to Wang Huichang from the perspective of consumers.
"Alas, $499, directly cut one-fifth of the price, Commodore is too extreme! I think its price reduction will catch many manufacturers off guard! Wang Huichang shook his head and said.
Yes, the sudden price reduction of C64 is indeed a heavy blow to the computer market, and many small and medium-sized computer manufacturers are stunned!
Not only did the market disruptor drop the price of the C64 by a fifth, but it also slashed the price of one of its keyboard-based input devices to $199. However, the performance of this VIC20 is very poor, it needs to be connected to a TV and can only enter 22 bytes at a time, this is a product that is about to be discontinued by Cammoder to disrupt the market.
In the face of such a crazy price war, many manufacturers in the market are also tired of parrying and lowering the prices of their products accordingly. The price war came so suddenly, so violently, that the computer market immediately entered an invisible and tragic battle, TI99/4A, 16KAtari400, and RadioShackColorComputer, which have no monitors, have lowered their prices, making the market even more chaotic.
But the only good aspect is that from the consumer's point of view, it is easier to choose a product that you are satisfied with. When people find that the price of computer products that used to cost more than 1,000 dollars has been reduced so much since the beginning of the new year, the most excited is the computer enthusiasts with little money but a large amount!
From what was an expensive product at the end of last year, it has become a cheap product this year. This change made many people unable to accept it for a while. They rushed into the electronics store of the electronics chain store with a few hundred dollars in their pockets, comparing the performance of various products.
If you interview these people, you quickly realize that consumers have been waiting for this moment for too long, and they are looking forward to the advent of cheap products. However, the market has always been controlled by some manufacturers, and now there are finally manufacturers who have significantly reduced the price, which makes many people who are waiting and see immediately decide to join the ranks of buying.
Although the price of Pentium's high-end computer has been reduced to $2,200, it is clear that the impact of low-end and cheap computers has caused the sales of this computer to continue to decline.
Although the company also launched the Celeron computer, the price of $598 still discouraged many people, and even if there was still good sales, it did not distance itself from the C64 computer.
After all, the $499 C64 actually meets the needs of most buyers, and the Celeron computer does not improve much performance in this regard.
For this case. Lin Qiangsheng knew that he had to adopt a decisive strategy to teach Kang Maode a thorough lesson, so as to interrupt its arrogance, such a spoiler would always cause trouble for others if he did not die!
Lin Qiangsheng got together with Wang Huichang and Li Jing to study countermeasures. Cammodore's low-price strategy has indeed left many manufacturers scrambling, including Pentium Computer. Lin Qiangsheng couldn't hold his breath in the face of this situation, and he anxiously rushed from Los Angeles to San Francisco and then to Silicon Valley.
"Is it possible for us to do direct sales products, skip the intermediate links and directly carry out factory direct sales to push down the price again?" Lin Qiangsheng asked Wang Huichang and the others.
Wang Huichang pondered for a while and said: "This will have an impact on the existing production system, and it seems that no company has done this before." If you want to do direct sales, you must expand the number of employees a lot. Salaries in Silicon Valley are relatively high. It's not worth the cost! ”
Lin Qiangsheng nodded, looked at Li Jing and said with a smile: "It's better to let Li Jing plan the direct sales department, I think the biggest feature of this department is that it is fast and thoughtful, Silicon Valley is not suitable for the development of such a company, then choose somewhere else!" ”
Li Jing pointed to herself and asked in surprise, "Let me come?" But I've always been in charge of the product development department! ”
Lin Qiangsheng waved his hand and said: "You manage the product research and development department very well, in fact, the most important thing in direct selling is service first, and the technology is not too strong. ”
"It's best that the products of the direct sales department don't conflict with the two brands of Pentium Celeron!" Wang Huichang said embarrassedly.
The boss rejected his proposal to develop a low-end computer with an 8-bit processor, but he proposed such a sales plan, and I don't know if it will be successful. No computer manufacturer had ever done this before, and Mr. Wang didn't want a conflict between the direct sales department and the sales department of an existing factory.
Lin Qiangsheng looked at Wang Huichang, thought for a while, nodded and said, "I don't know if the current direct selling market has matured enough for computers to enter this field." But there's still a lot to be done with computer dropshipping! Providing a PC that satisfies consumers is attractive in itself! ”
Lin Qiangsheng looked at Li Jing and said: "Sister Li will work hard to go to San Francisco to establish this direct sales department, and this department can be independent to set up a new company specializing in direct selling brands!" ”
"Separate from Pentium Computer?" Li Jing looked at Wang Huichang and saw that her husband shrugged his shoulders and said that he had no opinion.
Lin Qiangsheng nodded and said, "Let's separate, if we are together, it will really affect the operation system here!" ”
"And what's the name of this dropshipping brand?" Li Jing nodded silently. She was a little excited and nervous, she didn't expect that she would be able to run a company one day, originally she was mainly responsible for the technical department in Pentium Computer Company, similar to the role of a nanny for R&D personnel, but now she is going to manage a company, Li Jing is a little excited.
"How's the Johnson & Johnson computer?" Lin Qiangsheng asked the two tentatively.
Li Jing and Wang Huichang laughed, and Li Jing smiled: "Think about one more, Johnson & Johnson will sue us!" ”
"What can they do if they are not in the same field?" Lin Qiangsheng said with a smile.
"Then call it DELL! Dell, that's it! Lin Qiangsheng slapped his palm.
"Dale?" Li Jing looked at Wang Huichang suspiciously, not knowing where the name came from, and Wang Huichang naturally didn't know either. (To be continued......)