Rebirth of Fortune Soars

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When Jiang Yong contacted Xiangjiang to deal with his Xiangjiang passport incident, Loongson's first-generation 300MHz, 333MHz, and 366MHz chips were officially launched in overseas markets.

This is a brand new page in the history of Chinese chips.

It took only one year for Huaxia Chip to grow from scratch and move from domestic to international markets.

This year can be said to be the period of rapid development of China's chips.

Although this is still the last remaining heat of the Cyrix chip, it is Qin Feng who brings it into full play.

After entering the international market, whether it is European and American countries, Asian countries such as Japan and South Korea, or even some small countries, Huaxia Loongson has forced its way into the market by relying on its absolute price competitiveness and performance advantages.

The price is 420 yuan for the Loongson 1st generation 300MHz chip, 440yuan for the Loongson 1st generation 333MHz chip, and 460yuan for the Loongson 1st generation 366MHz chip. Such crazy prices make the market basically unable to resist.

You know, the Celeron 2 with the same price has corresponding chip processor speeds of Celeron 2233MHz, 266MHz, and 300MHz. The Loongson 1 generation itself has a slightly better performance than the Cyyan 2 at the same frequency.

Now the frequency is 100MHz faster, its performance is more than 50% higher, and the price is the same. Tell me, how can you do this?

Even if consumers have faith in the brand, they will not be in trouble with money.

Therefore, the Loongson 1 generation has carved a bloody road with its absolute price advantage.

Market share is rising steadily.

From the original market share of 0, the daily installed capacity increased to an astonishing 30% in just a few days. Almost half of the low-end market is occupied by China Loongson.

This rate of improvement is very scary.

Intel has been forced to hold a meeting to discuss this matter.

how to respond?

Price reduction? If we lower the price now, it will completely break the entire price system. In fact, the price of Celeron 2 has reached a minimum for Intel. If it drops further, it is not impossible to make money, but their profits will be too little.

Moreover, it will directly affect the price positioning of Pentium 2. After all, you can't have a gap of several times or even 10 times between the two.

In that case, how can Pentium 2 be sold? Your performance itself is only twice the difference at most, but the price is nearly 10 times. What does this make consumers think?

No matter how loyal consumers are, they will still consider whether they have been taken advantage of.

This will inevitably force Intel to lower the price of Pentium 2 to a reasonable range so that consumers are willing to spend.

"This guy is locked in a price war with us! Does he have the strength?" a director said angrily.

In terms of financial resources and technological reserves, Intel can beat Loongson by a mile.

Even AMD doesn't dare to start a price war with Intel. Before this, Cyrix was engaged in a price war, but as a result, it was annexed and acquired.

Now, Qin Feng actually dares to start a price war. He is simply desperate.

"This used to be the case. But recently, I saw some reports about Qin Feng from the Internet." Gordon Moore took out a report.

"This is a report from China. It reports that Qin Feng has reached an agreement with China's four major banks. They have established a third-party trading platform to provide credit guarantees for all online shopping." Gordon-Moore said.

"What does it matter?" asked many directors.

"Based on China's characteristics, this means that Qin Feng has the support of China's four major banks. His funds will definitely not be lost. If we have to fight a price war, I am afraid it will be very troublesome!" Gordon Moore said, "If we keep fighting , I’m afraid it’s a lose-lose situation. And he has the support of Hua Xia Bank behind him.

We can't beat the whole bank! "

Everyone frowned.

"But based on their technical capabilities, they will definitely lose money. They will lose money when they leave the factory. And then they have to transport it to major markets by air. The cost is not cheap. Taking into account tariffs and other things, they will not lose money on this chip. It’s small!” A director analyzed.

"According to the information I have received so far, Huaxia Loongson's loss in overseas markets is about US$10 for every piece sold!" President Grove said.

"He lost 10 dollars a piece, and he still sold it!" Everyone complained.

This is simply hurtful. Is there any mistake?

"He is using losses to make money in the market!" Grove said, "If you include R\u0026D and other related advertising costs, etc., assuming that he sells 10 million pieces a year, his annual net loss will exceed 1 billion. Dollar!"

Losing $1 billion a year is very scary for any company.

Especially, this is still 10 million pieces. According to the current trend, Qin Feng may sell more than 20 million pieces. This loss is even greater.

"Then should we lower the price and give him a heavy blow?" a director suggested.

"No, that will destroy our price system. Moreover, even if we lower the price, it won't have much impact on him. He will follow the price reduction and only lose a few dollars. He can still afford the loss!" Grove said, "Yes. With the support of the four major Chinese companies, he can afford to lose."

"What should we do?" Everyone complained.

Facing a company like Qin Feng is really tricky.

"I propose to improve the performance of Celeron 2 as soon as possible to cope with the frequency increase of Loongson. Secondly, unite with Huaxia Company to attack Qin Feng." Grove said, "The reason why Qin Feng dares to do this is that he is now building A perfect ecological chain.”

Perfect ecological chain? Everyone was surprised.

"Have you noticed that Qin Feng first brought American cable modem technology to China, allowing China's network to flourish. Secondly, he acquired Cyrix chip company, then created QQ social media software, and then created the third Third-party credit platform. Now, QQ Farm has proven that it can make money. Online games are very profitable. During this period, his series of actions led to a decline in global personal computer market prices. Last year, a computer sold for about US$1,500. Now you can buy one for only $1,200 or even $1,000." Grove said solemnly.

"This has led to an increase in the number of computer users, and has also led to an increase in the number of network users. And these network users can turn into actual network consumers. Qin Feng is using CPU price cuts to drive price cuts across the industry to reduce the personal computer market Threshold, allowing more people to enter the Internet. He loses money here, but he makes it back in other ways. Do you know how much money he can make from a QQ farm?" Grove's face showed admiration.

While they were still looking at the immediate interests, Qin Feng was already thinking about the future.