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Chapter 1531 Winner takes all loser(1/2)

At this moment, Wang Zhi was looking at Fang Chen intently. In his eyes, Fang Chen could already be as high as a mountain.

But if Wang Zhi is just cheering because of Fang Chen’s brilliant achievements and outstanding progress in China’s computer industry and science and technology, and because Qingtian Computer will provide powerful assistance to China’s science and technology and economic development, his eyes are filled with excitement.

An uplifting light.

The reason why Liu Chuanzhi and others looked at Fang Chen differently at this time was entirely because of the Genesis 128 graphics card.

Fang Chen is actually the boss of Nvidia, and now that Fang Chen is willing to cooperate with them in the supply of computer accessories, does it mean that they have the possibility of obtaining a large number of Genesis 128 graphics cards.

With the rise of computer games in recent years, various excellent computer games, such as "Red Alert", "Star Wars", "Warcraft", "Age of Empires", "Final Fantasy 7" and so on, have inspired

Computer users have an infinite love for computer games.

It also makes people have a strong pursuit, even obsession, and fanaticism for graphics cards, this emerging computer accessory.

But the problem is that graphics cards are an emerging computer accessory. There are not many graphics chip companies in the world that can produce them, and there are even fewer graphics cards that can play games. Among them, the most powerful ones are the ones that make gamers crazy the most, which is

NVIDIA's Genesis 128 graphics card.

But unfortunately, this graphics card is really hard to find. Even if they increase the price to buy it from scalpers, they can't buy many units. Moreover, there are often inexplicable shortages. Even if they have money, they can't buy it.

Now it can basically be said that even though a computer with a Genesis 128 graphics card is half as expensive as a computer without a graphics card, it can be sold as much as it is available. It is both affordable and marketable, making it a solid bestseller.

.

In other words, as long as they have graphics cards, they can definitely sell them and get higher profits.

Now, Fang Chen obviously has a large number of Genesis 128 graphics cards available for supply. Otherwise, how could he say that Genesis 128 graphics cards can become the standard equipment of Qingtian Computer.

What's more, it means that it is possible for them to get the Genesis 128 graphics card from Fang Chen. This makes it possible for them not to be jealous of Fang Chen.

Liu Chuanzhi even had some doubts. The reason why Europe and the United States are constantly out of stock and hard to find a card is entirely because Fang Chen has hoarded a large number of Genesis 128 graphics cards for Qingtian Computer. Otherwise, how could the production capacity of graphics cards be like this?

The shortage has not improved for several months.

Liu Chuanzhi's guess was indeed correct. In the past few months, Huang Renxun had indeed been working hard to find ways to expand the production capacity of graphics cards, but he really couldn't handle Fang Chen's demand for goods in one cabin.

If Qingtian Chip requires a larger quantity, Europe and the United States will be out of stock.

In fact, in Fang Chen's opinion, the shortage of Genesis 128 graphics cards is all because Qingtian Chip is not yet able to produce Genesis 128 graphics cards.

There is no way, the latest chip process of Qingtian Chip is 0.8 micron, and the Genesis 128 graphics card uses the latest 0.35 micron process.

If Qingtian Chip wants to produce Genesis 128 graphics cards, it still needs two more generations of technology advancement.

However, Fang Chen believes that through the efforts of Qingtian Chip, and even so many semiconductor and chip researchers in China, this day will come soon.

By then, the international community will know what a cheap graphics card is.

Although due to the advancement of technology at that time, the Genesis 128 graphics card was most likely only considered a mid-range graphics card at that time, but it was still enough to satisfy users.

Zhang Rujing predicts that if Optimus Chip can really produce Genesis 128 graphics cards, the retail price of Genesis 128 will never exceed one thousand yuan, and it will also make considerable profits for Optimus Chip.

It’s even more profitable than NVIDIA’s current graphics card, which costs three to four thousand yuan.

After all, you must know that for most users, they cannot afford these graphics cards, which cost four to five thousand.

Such a high price has already determined that the Genesis 128 will only belong to a small number of enthusiasts.

The situation is different for thousand-yuan graphics cards. The user base will expand twenty to thirty times, or even more.

This can be seen from the sales of CPU processors.

The highest-end Pentium CPU processor is the one with a main frequency of 233MHZ. The price of the CPU processor alone is as high as 4,800 yuan.

If a complete computer equipped with such a CPU processor is not equipped with a graphics card, an average store will not be able to sell one in three days.

As for the cheapest CPU processor, priced at 1,199 yuan and clocked at 75MHZ, at least a dozen units can be sold a day.

If you count, even 1199 is too expensive. The number of users who buy computers with 586 CPU processors is more than thirty or forty times higher than those who buy high-end CPU processors.

After all, there are more ordinary people in this world. An average family can buy a computer host for six to seven thousand yuan. How can they be willing to spend more than half the price of a computer host to buy just a CPU processor.

And since using such a good CPU processor, does it also mean that the motherboard, memory, hard disk, etc. need to be upgraded.

Even though the prices of these accessories are not as expensive as CPU processors, they are more expensive than low-clocked computer hosts, so doubling the price may not be a problem.

This is why those high-end car brands, such as Rolls-Royce, Aston Martin, Lamborghini, etc., have changed owners, or even changed hands several times, due to losses, while Volkswagen and Toyota only produce mid- to low-end cars, but they can

It is developing very well and is even ranked among the top two automobile companies. This is why it stands high on the Fortune 500 list.

After all, there are still many ordinary people in this world. Even if the profit per car is not high, when added together, it is very scary. If there are too many ants, they can kill an elephant.

"If this computer is sold at Qingtian Home, I plan to sell it for 5,999. Although the price is not too high, it will definitely not crowd out everyone."

Facing Wang Zhi's question, Fang Chen answered calmly.

Hearing this, Liu Chuanzhi and others couldn't help but the hairs on their hair stood up, and beads of sweat instantly appeared on their foreheads.

For such a computer with such excellent configuration, Fang Chen only sells it for 5999. Isn’t this meant to squeeze them to death? How can it be considered a squeeze?

To put it bluntly, Fang Chen is basically buying a graphics card as a gift for the console. After all, the price of this graphics card alone is already as high as 4,600 yuan.

And this is the price they paid for it from European and American scalpers. If it were based on their selling price, a graphics card would cost at least 6,000 yuan.

This also means that if someone takes out the graphics card from the Optimus computer and sells it, not only can they take the Optimus computer for free, but they can also make a dollar in return.

This is simply the most ridiculous thing in the world!

Crazy!

The next moment, Liu Chuanzhi suddenly turned pale, and he suddenly thought of a serious problem.

If Fang Chen really sells Qingtian Computer for 5999, then the 586 computer they produce will probably be completely ignored from now on. Even the sales of computers using Pentium low-end CPU processors will be greatly affected.

threats.

These low-end models are their main market and their largest-selling computer models.

Even in his opinion, Fang Chen was simply forcing them to purchase Qingtian computer accessories!

"Mr. Fang, actually I think there is really no need to do this. If you do this, Dynamic Computer will really suffer huge losses. In my opinion, take out this graphics card and make a graphics-free version of Dynamic Computer. What's the price?

, it can be sold for 3999, or even 3499, and the graphics card version can be sold for 7999, which is about the same." Wang Zhi said sincerely.

He was not thinking about how big an impact Fang Chen would have on them by selling such a well-configured computer for a bargain price, but he was more thinking about Fang Chen.

After all, the more expensive the computer is, the greater Fang Chen’s profit will be, and the faster he can recover the investment cost.

"I'm afraid this won't work. If the Kintian computer without a graphics card is sold for 3,999, I won't even be able to recoup the production cost. And if the 7,999 version with a graphics card is sold, I'm afraid it won't be that attractive to users and the sales volume won't be high.

go."

Fang Chen said with a helpless smile.

He has also said before that on average, he sells one Qingtian computer. If R&D expenses are included, he loses almost 3,000 yuan on selling one computer.

But this is already considered good. At least the price of 5,999 minus the cost of the graphics card, which is more than 1,000 yuan, and the remaining 4,500 yuan can afford the production costs of the Optimus chip excluding R&D expenses.

, and thus there is a possibility of recovering the capital.

In other words, production costs are hard costs. After all, the price of raw materials, depreciation of equipment, wages of employees, factory construction, etc. cannot be reduced in a short period of time.

If the price of Qingtian Computer is lower than the production cost, it will really be a loss for each unit sold.

But soft costs such as R&D costs are different.

Fang Chen originally calculated and shared the research and development costs based on the fact that Qingtian Computer could sell 500,000 units.

And if he sells one million units of Optian computers, does that mean that he only loses an average of 1,500 yuan per unit of Optian computers?

Three million units is equivalent to 500 yuan, and six million units is equivalent to 250 yuan.

But in fact, instead of 6 million units, it only needs to sell about 3 million units, and Qingtian Chip can turn a profit on Qingtian Computer.

After all, the price of 5,999, minus the price of the Genesis 128 graphics card and the production costs of other accessories, is a profit of about five to six hundred yuan.

In other words, as long as three million units of Dynamic Computer can be sold, not only can all the research and development costs be recovered, but from now on, selling a Dynamic Computer and Dynamic Chip can earn five to six hundred yuan.

In this way, what Fang Chen, Zhang Rujing and others have dreamed of is that Qingtian Chip will enter a positive cycle. If it makes profits, it can support itself.

But to achieve this goal, first of all, the price of Qingtian Computer must be higher than the production cost, and the sales volume must also be high.

If you remove the graphics card from the Qingtian computer and sell it for 3999, the sales volume will be there, but it will be lower than the production cost. If you sell one unit, you will really lose money. Even if you sell 10 million units, you will still lose as much as you should lose.

As for the graphics card version, if it sells for 7,999, there will certainly be profits, but the number of potential purchasers is too small to allocate too much R&D expenses.

Therefore, the price of 5999 can be considered a helpless move by Fang Chen.

Even to put it bluntly, Fang Chen used graphics cards to subsidize the Optimus Computer, buying graphics cards as gifts for the host, and using the graphics cards to bring the price of the Optimus Computer to a cost-effective level.

After hearing what Fang Chen said, Wang Zhi suddenly fell silent.

He ignored one issue. If it were an Intel processor or other computer accessories manufacturer, such a computer might still make money if sold for 3,999, but the Optimus chip might not be very popular.

After all, you must know that in the semiconductor industry, especially the chip industry, due to the existence of Moore's Law, every generation will either double the performance at the same price, or reduce the price by half with the same performance.

There is now one generation difference between the Optimus CPU processor and Intel. If you include the Pentium 2 generation CPU processor to be released next month, there is actually a gap of two generations.

That means that, in terms of production costs alone, if the Qingtian CPU processor is equivalent to the 586 CPU processor and produced by Intel, the cost will be only one-quarter of Qingtian.

Even though Qingtian Chip is located in China and its various costs, especially the salary income of scientific researchers, are much lower than Intel's, the cost is still expected to be more than twice that of Intel's.

Although other memory modules, hard drives and other accessories will not be that much cheaper, they will definitely be cheaper than those produced by Qingtian.
To be continued...
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