Feng Yu and Feng Yu had not paid attention to these figures in the past. But now, they realized IBM and Lenovo are more than competitive. If there are no shady deals, no company will win the tender!
Lenovo's laptop costs 8,800 RMB, and IBM's laptop costs 23,000 RMB. The price is more than double of Lenovo's laptop. Only idiots will buy it.
Of course, this is the comparison between Hua Xia's market. After all, Hua Xia's market is protected by the local government, and the tariffs are too high.
But in the US, IBM's laptop is selling for 2,000 USD, and Lenovo's laptop is selling for 1,499 USD. There is still a difference of 25%. This is also because Lenovo is an imported product, and the freight and tariffs are high.
Feng Yu and Feng Yu calculated in their hearts. Lenovo's laptop cost less than 1,000 USD, and IBM's laptop cost more than 1,200 USD. How come there is such a huge difference between IBM and Lenovo in terms of cost control?
Since Gerstner was appointed, IBM had improved their cost control a lot and even laid off a large number of their employees. In the end, Lenovo and Lenovo are still not as good as Hua Xia's latecomer!
No wonder < Forbes > named Lenovo Group as the fastest growing PC manufacturer last year. Just the cost control alone is one of the best in the world.
If it is only the labor cost, it should not be this high. There must be other factors that are cheaper. For example, their components.
Hua Xia had built the world's biggest Crystalline silicon factory, and they plan to own half of the world's Crystalline silicon production in the future!
When this news was released, many people laughed. Hua Xia's Crystalline silicon technology is below average, and this investment is not a small amount. Also, do they know how much Crystalline silicon production it is to own half of the world's production?
Japan and Taiwan will teach them a lesson, not to mention other countries.
But when many people know that Feng Yu is investing in this Crystalline silicon factory, and Philips and Kirilenko have shares in it, they felt this is not impossible.
Feng Yu had sold his Microsoft shares, and he has so much money to invest. With Philips and Kirilenko, funds will not be a problem. Any one of them has the ability to invest.
In terms of technology, Philips provided the most advanced Siemens technology, and Kirilenko also provided some of Russia's confidential technology. As for how Kirilenko got it, Feng Yu did not ask.
In this way, the technical aspect would not be a problem.
As for sales, it was impossible for Japan and Taiwan to encircle Feng Yu's company. Hua Xia alone was enough to keep them out. Other companies may not be able to resist the upper echelons of politics, but Feng Yu, if you say that he did not have relations with the upper echelons, who would believe it!
Instead, they should be the ones worried. With lower costs and higher efficiency in the future, Wind and Rain Crystalline Silicon Factory would definitely suppress them.
In Gerstner and Peng Mingsheng's opinion, the production of the Crystalline Silicon Factory had reduced the cost of Hua Xia's electronic components.
"Feng, your Crystalline Silicon Factory in Hua Xia is doing well, right?" Gerstner asked.
"It's fine. It is still under construction, and this is only the first phase." The Crystalline Silicon Factory's construction and production speed were carried out according to Feng Yu's requirements.
If the Crystalline Silicon Factory's production speed is maintained, it will take up half of the world's production capacity, and Feng Yu can control the prices. If the Crystalline Silicon Factory's production is too high, it will not be worth it. Also, no one will buy the Crystalline Silicon Factory.
In a few years, the Photovoltaic industry will be booming, and solar panels will be a good direction to develop. Feng Yu had already told Tai Hua Batteries to set up a solar panel research and development department. They will surely get a big share of this cake!
"Feng, Liu, I had read your documents, and I am curious. How did you all lower the cost? I mean, how can you all lower the cost to this extent? "Gerstner asked.
Liu Chuanzhi looked at Feng Yu and saw Feng Yu nodding. "It's simple. The main components are all produced by us, or we have cooperation agreements with them."
"Produce the main components? What do you mean? "
"There's no need to talk about the optical drive. IBM is also using Wind & Rain Electronics's optical drive technology, and it is using Wind and Rain – Philips standards. We are using Nvidia's graphics cards, and our Hua Xia has an Nvidia factory. We are getting the lowest prices in the industry. We are also producing the mouse and keyboard, and the prices are very low. Wind & Rain Electronics's LCD display technology is the most advanced in the industry, and they are giving us the lowest prices in the industry. "
"The batteries are from Tai Hua Batteries, and it is the cheapest in the industry. The hard disk drives are from our cooperation with Wind & Rain Electronics, Aiwa Electronics, etc. The sound card is from Aiwa, and the sound is very good. The prices are also very low. The internal memory is from Kingston, and they have a factory in Hua Xia. We are offering the cheapest prices … "
Gerstner was shocked. How come everything in Lenovo's PC is the cheapest in the industry? Other than the motherboard, everything else is cheap. Lenovo is also working with Intel and AMD. He heard that they will introduce even cheaper high-performance notebooks in the future.
"Feng, Liu, I am curious. You mentioned that those hardware companies are offering you the cheapest prices in the industry. Why?" Gerstner frowned. Even IBM does not have such preferential treatment.
"Simple. Because our sales are the best, and we can help them increase their market share." Liu Chuanzhi replied.
Liu Chuanzhi knew the real reason. Feng Yu is the majority shareholder of those companies. With Feng Yu's help, those companies set up factories in Hua Xia or get Hua Xia to manufacture their products. This will not only lower Lenovo's cost, but it will also help them increase their competitiveness in the international market.
The higher-ups also praised Feng Yu for what he did. Feng Yu is an entrepreneur who does not forget about his country.
Feng Yu wants Lenovo Group to overtake IBM in the future. He wants Lenovo Group to be the leader in the IT industry in terms of PC, software, and services. At the same time, those PC manufacturers controlled by Wind and Rain will also be the leader in this industry!
Liu Chuanzhi knows about this plan. But he did not expect Feng Yu to act so fast and invest in all PC related companies.
Of course, Lenovo will become more competitive in the international market. Lenovo's PC designs are already the most advanced in the world, and their prices are more competitive.
Of course, the biggest difference between Lenovo and IBM is their patents. IBM and the rest of the companies can make high profits from their patents. This is also what Lenovo is trying to develop.
Liu Chuanzhi's explanation did not satisfy Gerstner. But this is related to the other company's trade secrets, and it's normal for Liu Chuanzhi to keep quiet.
But both parties still need to discuss the terms of this cooperation. How can Lenovo control the PC sales? How can this be possible?!
We are IBM, and we are the ones making the decisions!
… …
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