Daguo Science and Technology started from the copycat system

Chapter 379 Sugon Technology’s decision

Hearing this, several other senior executives who had not experienced the grievances of their previous lives and did not know about the "Zhongxing Incident" and the "Huawei Incident" shook their heads slightly.

Among them, Sales Director Li Qianqiang spoke directly:

"They probably won't take action personally. Although Sugon Computer's market share is indeed a bit high, we only have a dominant position in the short term.

And even if we want to have a monopoly and abuse our market dominance to implement monopoly behavior, it won’t work.

Companies such as Intel and A.M.D. in the field of CPU processors, and companies such as Invida and ATI in the field of graphics cards are still very strong and still have the power to counterattack and make a comeback.

Now we just have the first-mover advantage. In the long run, they still have the possibility of defeating us. After all, they can produce 65-nanometer chips, but we can only produce 90-nanometer chips.

So I think 70% of Sugon computer sales shouldn't be a big deal. Isn't it a good thing that Weisoft operating system and Intel's processor market share has reached more than 80% for a long time? "

Hearing this, Lin Chen shook his head slightly, and then said helplessly:

"Weisuan is a company from Mediland, and we are a company from Daxia. From this point of view, we cannot enjoy the treatment of Weiruan and Intel."

Lin Chen, who came from his previous life, naturally knew what he would do there and what extent he would achieve there, so Sugon Technology was indeed in a bit of danger at the moment.

In this regard, Ni Guangnan, the head of Sugon R\u0026D Center, also suggested:

"In this case, let's sell our low-end computer motherboards to external parties, and directly break our low-end computers into parts so that we will no longer stand out.

After all, our low-end computers are too cost-effective and account for 60% of sales. After our low-end computers are broken into parts.

I don’t believe they can carry out any other anti-monopoly and anti-dumping investigations! "

Hearing this, everyone else at the scene fell into deep thought.

Although Sugon Technology currently sells Sugon CPUs, Sugon graphics cards, Sugon memory modules, and Sugon monitors, the most critical computer motherboards and chipsets are not sold to the outside world.

The purpose is undoubtedly to maintain market exclusivity for a period of time in order to obtain more profits. After all, the profit from selling computer accessories is not as good as selling complete computers.

But I didn't expect that the sales of Sugon desktop computers and notebooks were so strong and eye-catching that it might cause some forces to take direct action. In this case, reducing the exclusivity period would be the best option.

However, facing Ni Guangnan’s suggestion, Li Qianqiang, the sales director in charge of Sugon Technology’s mobile phone and computer sales, frowned and said:

"But if we sell low-end computer motherboards to others, our low-end computers will have no features at all, and our profits will be significantly reduced."

In response, Ni Guangnan shook his head slightly:

“Profits won’t decrease much, because aren’t we still in control of the profits?

We just need to increase the price of Sugon Computer motherboards. I think low-end computers with the same configuration can make a profit of 100 yuan.

The profit of 100 yuan is equivalent to the manual cost of assembling it by themselves. I believe that if they can save 100 yuan, they will purchase computer parts and assemble it by themselves.

As for our loss of just 100 yuan in profit, it doesn't matter. After all, our total profit is still very high.

Therefore, even when it is well received by users, it can continue to hide in the shadows and avoid facing anti-monopoly and anti-dumping investigations. "

"That's okay."

Hearing Ni Guangnan's words, the eyes of several other senior executives at the scene lit up.

They discovered that what they said was indeed true. The profit amount could be completely controlled by Sugon Technology, because they could control the profits by simply raising the price of the motherboard.

Therefore, as Ni Guangnan said, by regulating the price of the motherboard, it is easy to achieve a discount of only 100 yuan for the same configuration.

In this case, it would be great to earn 100 yuan less but avoid anti-dumping and anti-monopoly investigations.

After all, if the United States really launches anti-dumping and anti-monopoly investigations, Sugon Technology will definitely need to hire a large number of lawyers and corresponding manpower and material resources to respond.

It is also possible to spend hundreds of millions and billions of dollars in anti-dumping and anti-monopoly lawsuits in the final year.

At this time, making 100 yuan less profit can avoid wasting more than one billion US dollars a year. This is not too profitable, and it has also received praise invisibly, making consumers more satisfied with Sugon Technology.

After all, many consumers may not like the balanced and mediocre hardware configuration of Sugon Technology. They may prefer a "high U, low display" or "low U, high display" configuration.

At this time, Sugon Technology officially started selling low-end computer motherboards, eliminating the last concern of consumers, which naturally won their praise and satisfaction.

What's even better is that Sugon Technology has controlled the profit through motherboard prices to only 100 yuan.

Other large computer manufacturers, such as Lianxiang, Dell, and HP, may not directly purchase Sugon Technology's low-end Sugon motherboards, Sugon CPUs, Sugon graphics cards, Sugon memory, and Sugon monitors to assemble into computers.

Because the profit is too low, and if they copy it directly, although their complete computers can make some small profits, the company's reputation and brand image will be severely hit.

After all, the computers of world-renowned computer manufacturers such as Dell, HP, and Lianxiang are just like assembled machines on the street. In this case, how can their image and reputation not suffer a huge blow?

In the end, not counting advertising fees and assembly costs, the profit of the whole machine is only 100 yuan. Even if the hard drive, power supply, monitor, memory, etc. are replaced with worse computer accessories, the profit will not exceed two to three hundred yuan.

In this case, there is a high probability that they will ignore the Sugon motherboard and instead develop their own motherboard with other accessories to form a unique selling point and avoid a huge blow to their brand image and reputation.

This behavior naturally prevented their strength from rapidly expanding. In the end, Sugon Technology was still the top computer manufacturer and took most of the profits.

Of course, they don't like it, but that doesn't mean that other people don't like it. It is estimated that the middle and lower class computer manufacturers, including the computer stores in various streets, will care about the profit of only 100 yuan or two to three hundred yuan.

They estimate that they will use the core Sugon CPU, Sugon graphics card, and Sugon motherboard to assemble their complete computer.

Of course, they may add Sugon memory and Sugon display to create a Sugon computer without the Sugon brand but with the characteristics of a Sugon low-end computer.

But in this case, the profit will be low. Not counting labor costs, the profit will be only 100 yuan, and they may not do it.

So it is estimated that they will only use the core Sugon CPU, Sugon graphics card, and Sugon low-end motherboard.

Other power supplies, memory, monitors, hard drives, etc. are assembled into complete computers using worse computer accessories to make money. (End of chapter)

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