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Chapter 693: A large number of stores are about to close down

Everyone in the conference room felt that Walha Rui was right.

The low-end DIY market has lost its competitiveness since the launch of the Ziguang all-in-one machine.

Even if their AMD CPU prices are reduced, other accessory manufacturers may not be able to reduce their prices. If they do not reduce their prices, they will not be able to compete in the low-end market. AMD still wants to do business in the low-end market.

We can only abandon the low-end DIY market and supply goods to complete machine suppliers.

Let the complete machine suppliers fight with them on bayonets.

If you want to make high profits, you can only focus on high-end products.

"Boss, what Walha said is right. Only by giving up the low-end DIY market can our low-end products survive. There are many middlemen involved in the DIY process. If we want middlemen to sell goods for us.

We have to give up profits to middlemen, so it is better to cooperate directly with the complete machine manufacturers and get more profits after eliminating the middlemen." Shanni Brandy said.

Shanny Brandi is the Director of Marketing Operations.

Medek Creed rubbed his temples again, but middlemen are a big problem. If you continue to cooperate with middlemen, you must give them profits, otherwise the products you produce will not be competitive.

Things that are not competitive will definitely not be sold.

"Boss, we can sell AtI's products, which can also increase AtI's profits. Maybe we can reach a higher level with this operation method," Walha Rui continued to persuade.

"Is there any problem with customizing the plan before get off work today?" Medek Claude looked at the two of them and asked.

This is no longer a solution, and as Walha said, they may not suffer a loss by doing this.

3A platforms can earn more profits by selling them together.

"No problem." Shani Brandi and Walha Rui said in unison.

"Since there is no problem, let's end the meeting here today." After speaking, Medek K got up and left.

...

When Medek Klai returned to the office, Shirley Brent's nail polish had already been painted.

When Shirley Brent saw the other party, she immediately said: "Boss, Jim came to see you just now. If you have time to see him, I will call him to inform him to come over."

"Inform him to come over," Medek Kelai said.

"Peng~" After a sound, the office door closed.

...

Fifteen minutes later.

Jim Keller opened the office door with a stack of documents.

"Jim, what do you want from me?" Medik Kelai asked.

"Boss, you asked us to develop the Nuwa CPU. We incorporated the FX architecture into it, and the performance of the CPU we developed is unexpectedly powerful." Jim Keller handed the file to the other party and said.

Medek Kelai took the document and looked through it carefully.

The Nuwa CPU developed by Jim Keller and his colleagues was simply a surprise to him.

I didn’t expect that they would be able to develop a CPU that could compete with Nuwa A2.

The only drawback is that the performance of the graphics card is a little bit worse, but they can put AMD graphics cards into it, and the resulting computer will be even more powerful than Kirin computers.

"Okay, okay, okay, Jim, you did a great job on this matter." Medik Kelai said happily.

But after being happy, Medek Kelai felt a little worried.

You must know that x86 is their foundation, and they cannot be allowed to transition to Nuwa CPU. If they make further achievements on Nuwa, then x86's market share will slowly be swallowed up by Nuwa.

In the end, the entire market will become Nuwa's world, and the board of directors will definitely not let them do this.

AMD's Nuwa CPU will definitely not appear in the desktop computer market.

"Boss, do you want to arrange tape-out at Qilin?" Jim Keller asked.

"Jim, Nuwa's direction is still to focus on the mobile market. Nuwa will not appear in the desktop market. x86 is our foundation. Your R&D department must increase the research and development of x86 architecture. I hope the next generation of x86 products can surpass

Nuwa." Medik Clai said after thinking about it.

"Okay, boss." Jim Keller nodded.

In his opinion, whether it is Nuwa or x86, as long as the product is good enough.

He should be allowed to appear on the market.

Although he didn't quite understand Medek Kelai's intentions, he still had to follow his orders.

The adult world is still too complicated.

...

Intel on the other end had also finished its meeting at this time.

The outcome of Paul Otellini's meeting was the same as that of Medek Clay.

If you want to compete with Ziguang and others, you have to give up the low-end DIY market, because the low-end DIY market has completely lost its competitiveness.

The middle OEMs take too much profit.

Let’s use a metaphor like this.

If Intel ships to Asus, Asus will first earn a portion of the profits and then go to their regional agent.

Only after the regional agent eats a part of the profit can we talk about local agents.

Local agents also take part of the profits.

Finally, these items will be delivered to various retailers, and the retailers will definitely earn another part of the profit.

It’s strange that the price can be reduced through layers of exploitation by middlemen.

But if they ship directly to the complete machine supplier, there are not so many links.

Their profits have been preserved, and the complete machine suppliers have also gained certain benefits.

Because after they no longer participate in the low-end market, the low-end market will be replaced by complete machine suppliers.

Of course this is not without consequences.

It's just that they don't need to bear the consequences.

The consequence of this is that several DIY stores will go bankrupt as a result.

Without the low-end DIY market, retailers will lose transaction volume. Without transaction volume, how can they feed so many people?

Do you want to say that there is still a high-end market that can be done?

The transaction price in the high-end market is less than one-tenth of the low-end market.

Even if the high-end market is very profitable, it cannot make up for this gap.

...

Paul Otellini returned to the office and dialed Kevin Rollins' number.

"Paul, what was the result of your meeting?"

"We will withdraw from the low-end DIY market. In the future, Intel's low-end products will only be provided to complete machine suppliers.

We will appropriately lower the prices of low-end products.

The only condition is that you must double the purchase volume of low-end products."

Kevin Rollins was silent for a long time after hearing the other party's words.

Intel's withdrawal from the low-end DIY market can indeed increase the sales of their low-end products.

But Paul Otellini's demands on him were too high.

Doubling doesn't sound like a lot.

But in fact, this amount is very terrifying.

Even if Intel withdraws from the low-end DIY market, it is not sure to achieve this volume.

"Paul, doubling it is impossible. No one will agree to it. Dell can bear up to 50% of the volume."

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