The main reason why Yang Yuanqing was willing to make a loss was because of the game cartridge sales.
The cost of a game cartridge was 20 yuan, and it could be sold for 50 yuan. That was the real profit. Even if the game console was sold cheaply, Yang Yuanqing could still earn back the money from the cartridges.
But now that Little Hammer declared war on the game cartridges and lowered the price to 30 yuan, the profit he could make from the game cartridges was only 10 yuan.
Yang Yuanqing suddenly didn't know if he should follow suit.
If he followed suit, then The Little Tyrant would really enter a zero profit, or even a negative profit space.
If he didn't follow suit, then The Little Tyrant's price wouldn't go back.
As the saying goes, lowering the price is good for a while, but raising the price will cause the whole family to be cremated.
Customers would never accept the price that you had already lowered and then raised it back up. If they accepted it, then there was only one possibility: there were no competitors of the same level in the market. There was only one monopoly, so naturally, you could raise the price back up.
But the problem was, if there was no such competitor in the market, why would The Little Tyrant lower the price? Wasn't it completely unnecessary?
So Yang Yuanqing was in a dilemma. He realized that he couldn't raise the price, but he couldn't not raise it either. In the end, after sitting there for a night, Yang Yuanqing finally decided to play along.
So the next day, The Little Tyrant announced the same promotion as Little Hammer. The price of The Little Tyrant learning machine was lowered from 199 to 179, which was still 10 yuan cheaper than Little Hammer.
This time, the Little Tyrant really did not have any profits to speak of. Because of the 200,000 RMB earned from the two game cartridges, all of it was used to subsidize the Little Tyrant learning machine. Overall, there was really no profit this time.
But Little Hammer was more ruthless than Yang Yuanqing imagined. Little Hammer also announced the price decrease, lowering the price from 179 to 169.
“WCNM！” Yang Yuanqing, who never used vulgarities, couldn't help but curse in the office. He was completely caught in the crossfire. He couldn't move forward, nor could he retreat.
In the end, he could only clench his teeth and announce that The Little Tyrant's price was lowered to 168, which was one yuan lower than Little Hammer.
This was Yang Yuanqing's signal of helplessness. Stop fighting so fiercely, or else everyone would lose money.
Little Hammer seemed to have accepted this signal and didn't announce any new promotions. Both sides completely calmed down.
One was 168 + 60 yuan for two cassettes. The other was $169 + $60 for two cassettes. Both parties had reached a price equilibrium.
But Yang Yuanqing's heart was bitter. Now, every time he sold a Little Tyrant, it was equivalent to a loss of about five dollars. The more he sold, the more he would lose. This was simply cutting his flesh.
Of course, Yang Yuanqing still decided that he had to persevere. This was because Little Hammer on the other side was definitely cutting meat as well. Furthermore, their production costs were definitely higher than his. If he persevered, victory would definitely belong to him.
Yang Yuanqing would never know that almost 95% of the production parts of the small hammer were shipped from the Daqian production base.
At this time, Elder Ni's laboratory had been operating normally for three months. This old man had completely entered a state where he forgot to eat and sleep. Every day, he would lead a large group of pitiful researchers into the field of chips one after another.
Of course, there was still a big problem if he wanted to research the chip directly.
The chip technology was like the apex of a skill tree. It was the last skill. Players had to start from the root of the tree and master the basic skills one by one. Finally, they could completely light up the chip technology, the highest peak.
Therefore, when he was researching chip technology, Elder Ni also conquered a lot of miscellaneous technical difficulties … These technical difficulties were very difficult for Hua Xia who lacked scientific research equipment.
But after Boss Jia invested 300 million US dollars one after another to buy the most advanced equipment, these technical difficulties could be solved with a slight push.
After all, the people of Hua Xia were not stupider than anyone else in the world. At this time, the laboratory was concentrated with a group of the smartest people in Hua Xia. Now, these people had the most advanced weapons in their hands. If this couldn't be solved, then Boss Jia would really have to disband this research center.
Originally, only 70% of the Daqian's Little Brainiac was localized. The other 30% of the components had to be imported from abroad.
With the development of the research center step by step, these components that had to be imported were conquered one after another. Except for some components that required special equipment to be produced, other components that only needed to be changed in the material formula or production process were immediately domesticated.
As everyone knew, once something was localized by Hua Xia, the price would directly plummet.
For example, there was a special type of resistor that was imported from abroad for two yuan. There was no bargaining. But after localizing it, the real cost was only ten yuan. How could anyone resist this price?
These localized components were naturally supplied to Little Hammer, the illegitimate child. Yang Yuanqing thought that Little Hammer's production cost was higher than his, which was more than 180 yuan.
But in reality, Little Hammer's production cost had already been reduced to less than 100 yuan. Moreover, as the research center continued to brighten up the technology tree, various components were gradually localized. The final cost would probably be reduced to less than 60 yuan. If all the components were localized, according to Elder Ni's estimation, 30 yuan would be enough.
Therefore, even if the price of the small hammer was 169 RMB, the actual profit of the small hammer was still 70 RMB. Boss Jia didn't let the small hammer continue to drop because he was afraid that our Manager Yang would stop playing. If he stopped the loss in time, how boring would that be? How could it be more interesting than watching others slowly bleed?
At the same time, Boss Jia also started a new round of negotiations with Yuzhang City's government. Soon, both sides reached a cooperation agreement. The government would provide the land, and the Daqian would provide the money. A new provincial economic development zone would be built on the land in Xialuo Town in Yuzhang City. The name would be 'Yuzhang North Electronics Technology Development Zone'.
Because Elder Ni had made many breakthroughs in technology during the research and development process, Boss Jia decided to build Hua Xia's first electronics technology research and manufacturing center in Yuzhang City with the Daqian as the center. All these technological achievements would be localized.
Of course, the Daqian would definitely occupy a large piece of land in this development zone and build a new high-tech electronics production base, just like the Foxconn production base in Hua Xia in the future.
All these were carried out in secret. This was also why Boss Jia had been focusing all his attention on the operation. After all, the entire development zone was very important. It involved the economic changes of the entire Xijiang Province, so it definitely needed the approval and discussion from the central government. Therefore, Boss Jia could only push forward step by step and constantly run back and forth between the capital and Yuzhang City.
As for the price war with Lenovo, Boss Jia did not manage it personally. Instead, he threw the matter to Zhu Qiushui and let her take care of it.
In fact, women were far more suitable than men for this kind of haggling matter.
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