Chapter 822 Each has a ghost(1/2)
At this time, even Arun Rao frowned, feeling that Mori Korokuro was really wishful thinking and said something that was simply impossible.
You know, although their profits are huge, they can have a profit of about 40%. In other words, a switch worth 360 US dollars per line has a profit of 144 US dollars, and the remaining 216 US dollars.
Dollars are the cost.
And if the price is reduced by 15%, it means that the selling price of US$360 per line will be reduced to US$306, a total price reduction of US$54.
But the key problem is that the selling price of $54 is reduced from profit.
On the surface, it seems that the selling price is only reduced by 15%, but in fact, the profit is reduced by 37.5%, which is more than one-third. If the selling price is reduced by 20%, it is equivalent to reducing the profit by half.
After all, costs won't change in the short term.
This is a bit too terrible, and their annual revenue in China is about 25 billion, and the profit is basically 10 billion Chinese dollars, and a 37.5% profit reduction is almost equivalent to a loss of 3.75 billion.
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Before Qingtian Communications did anything, they lowered themselves by 3.75 billion. How is this possible? It’s crazy!
In other words, is Qingtian Communications worth the 3.75 billion?
I'm afraid everyone thinks it's not worth it.
Doi Ryo stood aside, looking at Mouri Koroku with a sneer, not even bothering to refute. He really didn't expect that Moori Koroku would be so afraid of Qingtian Communication that he would even dare to say such an unbelievable method.
The 3.75 billion, even if divided among each of their companies, would still amount to four to five billion Chinese dollars. For such a huge loss of profits, even if a few of them agreed, the head office would not agree.
Seeing the sudden changes in everyone's faces and the indifference and even anger in their eyes, Mouri Korokuro felt desolate in his heart. It was really a fool's errand.
Since receiving the invitation letter from Qingtian Communications, he has been studying Qingtian Communications and Fang Chen.
The more he studied, the more scared he felt.
Well, yes, scared.
The rise of Qingtian Communications was really fast, and as far as he knew, Qingtian Communications actually held 51% ownership of the 04 machine.
Although he had never dealt with Qingtian Communications, he had met Wu Jiangxing frequently and had fought several times, so he knew how troublesome and difficult a person he was.
Qingtian Communications can grab the largest share from such a person, and its methods can be imagined.
After all, you must know that the 04 machine was researched bit by bit by Wu Jiangxing himself, and Qingtian Communications only invested three million in research funds in the early stage.
No, the money was not invested by Qingtian Communications, but by the Luozhou Telephone Factory, and the relationship with Qingtian Communications was even further apart.
However, what made him find it most incredible was Fang Chen. In his opinion, none of the tens of thousands of people in Qingtian Communications were as scary as Fang Chen.
If the intelligence officer investigating Fang Chen hadn't assured him 100% that the information was completely true, he would not have believed that such a huge property was owned by a sixteen or seventeen-year-old boy.
I don’t even believe that this 16 or 17-year-old boy built such an industry in just two years.
Fang Chen was described in the intelligence as being the richest man in both China and Russia. He was on good terms with the political leaders of both countries and was unfathomable.
Faced with such a person, and Fujitsu was the first to bear the brunt, how could he not feel uneasy and uneasy.
He even felt that when facing Fang Chen, no matter how cautious and cautious he tried, it would never be too much.
After all, you must know that a lion must fight a rabbit with all his strength, not to mention that they are not lions, and Fang Chen is not a rabbit.
Especially, after seeing Qingtian Communication with his own eyes today, he felt that his emphasis on Qingtian Communication and Fang Chen was absolutely right.
As a result, we encountered these timid people who didn't even have the guts to lose three to four billion.
Don't they know that once Qingtian Communications really takes off, the loss will not be the three to four billion, but the two hundred and fifty to six billion in revenue and tens of billions of profits in China will be gone?
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In particular, China's communications industry has been developing rapidly. This year alone, China's investment in the entire communications industry has reached 40 billion. According to this growth rate, it may reach 50 billion by next year.
If they are driven out of China by Fang Chen, these 50 billion, or even more in the future, will have nothing to do with them.
Of course, among the 40 to 50 billion investment in the communications industry, in addition to purchasing their equipment, the construction of air conditioners, land, and computer rooms are also critical. However, the majority of the funds for purchasing equipment account for almost 60%, and the rest are
Miscellaneous items account for 40%.
The more Mouri Korokuro thought about it, the colder his face became. He couldn't help but squirm his mouth slightly and wanted to speak.
"Moori Korokuro, no matter what you say, the price reduction of 15% to 20% is really too big. Even if we agree, the head office will not agree to it if we submit it."
Seeing that Maori Korokuro was about to speak, Alan Rao spoke immediately, fearing that Maori Korokuro would say something irritating again.
He felt that if he listened to Mouri Korokuro for a few more words, his whole heart might stop.
"And I feel that if such a plan is submitted, the most likely decision the head office will make is not to agree with our opinions, but to replace us 'wastes' with someone more capable.
Moreover, we have been together for such a long time and have a tacit understanding. I think Mauli, you don’t want to deal with those so-called newcomers anymore, right? They are even less likely to agree with your idea." Arun Rao said slowly.
Hearing this, Maori Korokuro's expression changed slightly.
After a few breaths, he seemed to be discouraged and murmured to himself: "Are we just going to sit back and watch the rise of Qingtian Communications?"
He admitted that Arun Rao was right. If such a plan was reported, there was a high possibility that the head office would change people without changing their thinking. His father was the vice president of the company, with a high position and might be able to supervise him.
You can live there, but others may not.
"Now we can only make the changes we can, and then watch the rise of Qingtian Communications, and then take action. In other words, we can only protect ourselves first before we can talk about doing things and earn more for the company.
Revenue and profit." Arun Rao said with a face full of pain and realization.
As soon as these words came out, almost everyone felt a deep sense of powerlessness in their hearts.
They didn't think that Korokuro Mori's speculation about Optian Communications was completely unreasonable and alarmist, and they also believed that they couldn't just sit back and watch the rise of Optian Communications, but the head office didn't think so.
I don’t understand their worries, or why they are so frightened and trembling in the face of a small Chinese company that has just been established, and they kill themselves before the war even starts.
If the head office replaces them, even if their views on Qingtian Communications are later proven to be correct, no one will apologize to them, let alone compensate them.
Even if things go wrong, they have completely left the company.
After all, even if you suffer a reputation, it is much better than being on the bench.
Therefore, they must protect themselves first before they can work for the company.
"Performance and profit are the key to our survival, just like air and water. If we lose these two, we will die. But only if we are alive can we create wealth for the company." Arun Rao patted his head.
Mouri Korokuro's shoulder said in a deep voice.
Mouri Korokuro nodded slightly in silence.
"Besides, we don't really just sit back and watch Qingtian Communications grow. As long as Qingtian Communications shows its strength and proves that it is worthy of our attention, then I guarantee that I will go all out to suppress Qingtian Communications.
, let alone the profit of three to four billion Chinese coins, it doesn’t matter even if you give up all the profits." Arun Rao said pretending to be relaxed.
"I agree with what you said, Allen, so what do you think we should do?" Mouri Korokuro said weakly.
He suddenly felt that the world was particularly cruel now, so cruel that he felt a little strange.
"We first persuaded our respective head offices to reduce the price by about 5%. Based on our understanding of the two communication equipment companies in China, namely Shencheng Bell and Yanjing Cable and Electric Power Plant, 5% of the mobile phone price is enough for us.
It’s a big advantage.”
So far, there are no real communication equipment companies in China, so there is no so-called local protectionism. The big stick of tariffs has hit each of them evenly on the head.
This means that they are basically standing on the same starting line, each carving up the Chinese market based on their own abilities.
Relying on the advantages of close distance and low cost, Fujitsu and Towa Electric occupy the top two spots in the Chinese communications market with an average price of US$280 per line, occupying 25% of the Chinese communications equipment market.
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The prices of the remaining six companies are basically concentrated in the range of US$330 to US$380, occupying almost 55% of the market.
As for China's Shencheng Bell and Yanjing Cable and Electric Power Plant, the prices are basically around US$250 per line, which is cheaper than Fujitsu and Towa Electric.
However, due to backward technology and craftsmanship, the products of these two companies are slightly more defective than the other eight. The workmanship is not sophisticated enough and the probability of failure is high. They win entirely by being cheap.
In addition, China's demand for communication equipment is too great. Not only can these two companies pick up some of their leftovers, but they also feel that there are too many orders to complete. Together, the two companies can account for almost 20%.
China communications market.
In any case, the three of them can barely maintain a peaceful relationship, each occupying a part of the world.
According to his idea, the quality of Qingtian Communications' products will never be better than that of Shencheng Bell and Yanjing Radio Factory, so even if Qingtian Communications bites the bullet and lowers the price of the products to US$230 per line,
If so, as long as they reduce the price by 5%, which is about twenty US dollars, they can ensure that Qingtian Communications cannot gain a foothold in the market, or that it can gain a foothold so smoothly.
After all, if they lower their prices, Shencheng Bell and Yanjing Radio General Factory will also lower their prices. This price reduction will drop to the price of 230 US dollars per line of Optian Communications, which will make Optian Communication lose the low price.
Possibility of competing with them.
As for whether Qingtian Communications will further lower the price, he thinks it is impossible, because except for the two Dongwa companies, Fujitsu and Dongwa Electric, the cost prices of other communication equipment companies, including the two Huaxia companies, are basically
It's about 200 to 220 US dollars. If Qingtian Communications lowers the price any more, I'm afraid it will lose money.
In addition, Qingtian Communications is a new company.
A new company means there is a more urgent need to recover costs.
Thinking of this, Alan Rao glanced at Mori Korokuro and Doi Ryo.
In fact, speaking of it, Fujitsu and Towa Electric were their biggest problems before.
The products made by these Japanese and Japanese companies are cheap and easy to use, so they have been vigorously encroaching on their domestic market!
While destroying their companies, these Japanese and Japanese companies plundered a large amount of wealth from their own countries, making a lot of money and becoming rich.
To be continued...