Technological Empire Starts From Shanzhai System

  Chapter 102 How should the Han and Tang Dynasties go? (third change)

   This naturally made the research cost of the new mobile phone extremely low, so low that it could be said to be the same as Lin Xuan developing a new mobile phone himself.

  According to the news that later Lin Xuan heard by chance, during the peak period of the most glorious copycat phones in later generations, the price of the lowest-end MTK chip platform of Lianfuke even dropped to an ultra-low 20 yuan!

   That’s right, you can buy a mobile phone chip for the price of two cups of 8 yuan milk tea!

  So this is why a few years later, there are many 99 or 149 and other hundred-yuan mobile phones in the market!

   Therefore, because the R&D cost of Boshima mobile phone is close to zero, and they adopt the plan of mass production of 30 million units a year with small profits but quick turnover.

  Maybe their profit from a single mobile phone is very low, but when the number reaches 30 million, the comprehensive harvest will be several times more than it is now, right? !

  Thinking of this, Lin Xuan squinted his eyes. I have to say that the method of Bodao mobile phone this time is really amazing. It can be said that it killed all mobile phone manufacturers in one step!

  At this time, Bodao mobile phone has begun to transform into mass production of this mobile phone, and is going to use the huge and terrifying quantity to crush other people first.

  Other mobile phone manufacturers and even those counterfeit manufacturers, even if they know the secret of the MTK chip platform of Lianfa, they will react after a while, but they will face the overwhelming wave of mobile phones.

  It was only after realizing that it would be very difficult for latecomers to go further!

  Because people have passed 30 million-level mass production orders, lowering the purchase price of chips and other accessories to a terrifying level to allow themselves to profit through mass production and sales of mobile phones.

  And because your production quantity and sales volume are not as good as others, when you purchase accessories, those accessory manufacturers will definitely not be willing to give you a lower price.

  In this case, because the purchase price of accessories is not as good as others, for latecomers, the profit of making mobile phones for migrant workers is very low, only a few percent, and this business is not easy or impossible.

  Originally, the price of 299 can be called a fracture price, and the profit is not too high. There are only a few tens of dollars in profit, which is equivalent to a profit of 10% to 10% to 20%.

   Now that the price has dropped to 249, even if there is no research and development cost, you can still use a cheaper MTK chip, but there is a limit to how cheap MTK is!

   But no matter how cheap the chip is, it can’t be 50 yuan cheaper, so this business can’t be done, but it’s easy to do!

  The fact is indeed so funny, it is difficult for others to do it, but for manufacturers of mobile phones with 30 million-level production, it is because of mass production.

  In the end, their profit may not be a few percent, but more than ten percent or even 20%.

  So for others, they can do things that they can't do, and they are happy to do it!

   "It's really a good trick. Is this Xu Bo's handwriting? Don't underestimate this guy, Xu Bo is really not to be underestimated."

  Lin Xuan sighed with emotion.

   I have to say that ever since Xu Bo came to power, Bodao’s mobile phone has undergone earth-shaking changes, and finally created such a terrifying situation!

   I have to say that if the head of Bodao mobile phone is Xu Bo instead of Xu Hua, then the waveguide mobile phones of later generations may not decline, but will survive and live very well.

   But it doesn't!

  The Boshima mobile phone in the previous life finally disappeared, so it is conceivable that there must be some kind of story in it.

  But these stories have nothing to do with Lin Xuan, and Lin Xuan doesn't care what happened to the Bodao mobile phone in his previous life.

  He is more concerned about the current affairs, such as how to curb the crazy trend of Bodao's mobile phone!

  Seeing that Lin Xuan seemed to have come to his senses at this time, Lin Xuan's teacher Ni Guangnan also slowly suggested:

   "Xiaolin, I think we should also lower the price to 249. I have to say that in the entire mobile phone market, only we can compete with Boshima Mobile."

  The purchase cost of Lin Xuan’s first-generation Hanfeng chip is 20 yuan. Because it was designed by Lin Xuan, the actual R&D investment cost of this chip is almost equal to 0, so only the chip purchase cost needs to be calculated.

   Of course, it is not right to say that it is equal to zero, because it did cost more than 7 million yuan, that is, more than one million US dollars, just for tape-out.

  So, it is wrong to say that the cost of scientific research input is zero, but for Hantang Company's own use, this scientific research cost naturally does not need to be calculated.

  Anyway, the money has already been given to others, and now it is difficult to calculate the scientific research cost after knowing it, so Lin Xuan is too lazy to calculate it, and it can be calculated directly at the cost price of the purchase.

   "The price cannot be lowered."

   After a little thought, Lin Xuan rejected Ni Guangnan's suggestion to lower the price.

  If the second-generation mobile phone for migrant workers, that is, the Han and Tang glory generation mobile phone, sells for 299 yuan, the comprehensive cost of mass production will drop, and Lin Xuan can probably earn 80 yuan per phone.

  The reason why he can sell so much is because Lin Xuan can produce chips by himself, and the cost of each chip is only 20 yuan.

   Moreover, Lin Xuan also directly signed an annual order of 14 million mobile phones with other mobile phone parts manufacturers.

  So the prices of many accessories have dropped by another level compared to the previous order of 5 million.

  In the end, Lin Xuan's profit reached a considerable 80 yuan, which is equivalent to 27% of the net profit for each unit!

  According to the theory of capital, when the profit reaches 10%, they will be eager to move; when the profit reaches 50%, they will take risks;

  When the profit reaches 100%, they dare to trample on all the laws of the world; when the profit reaches 300%, they dare to risk hanging.

  So Lin Xuan's 27% net profit at this time is enough to make many people willing to take the risk of taking risks.

   At this time, if the price of the mobile phone is reduced to 249 yuan, then Lin Xuan's profit will only be more than 30 yuan, which is not as good as the Hantang 2 labor version mobile phone!

   Of course, Lin Xuan can actually increase his profit, that is, replace the one-inch screen of the Honor generation mobile phone with the 0.5-inch small screen of the Han and Tang 2 labor version.

  In this way, Lin Xuan could save a sum of money and get a profit of 50 yuan, but Lin Xuan thought about it and decided not to do that.

  Because to be honest, in Lin Xuan’s opinion, the 0.5-inch screen is really too small.

  This screen can display phone calls and text messages, but it is not very easy to use for chatting with Penguin.

  Because there is too little content to display, unless Lin Xuan reduces the size of the text, but if the text is reduced, people may not be able to see the content of the screen clearly.

  So in this case, increasing the screen is the best choice, and changing from a 0.5-inch screen to a one-inch screen, the cost of the Honor phone has increased by more than 20 yuan. For the extra 20 yuan cost, Lin Xuan still thinks it is worth it!

  Because the screen has become one inch, after the mainstream screen size of more than 500 yuan, the chat will not appear so narrow, which is a good thing for the elderly and middle-aged people.

  According to what Lin Xuan learned in his previous life, the eyes of those middle-aged and elderly people are usually not very good, and the text size used on their mobile phone screens is often too large to be scary.

  So for the Honor generation of mobile phones, Lin Xuan is also in line with the future era, allowing users to adjust the text size of the mobile phone, and has specially developed a dedicated elderly and "blind point reading" mode.

  In summary, Lin Xuan does not want to lower the price to 249 yuan. After all, he has been going ultra-low-end, and it is always cheaper than others. This has no future.

  It is not a good thing for Lin Xuan's mobile phone factory to earn hard-earned money by selling a large number of mobile phones, nor is it a good thing for Huaxia.

  Because the profit is too shallow, it doesn't matter to ordinary companies, but it is fatal to companies in the high-tech industry.

  Without money, what can enterprises use to further develop and expand? What to use to develop new technologies in the name of burning money?

  So it is not advisable to use the "small profits but quick turnover" model of Bodao mobile phones. Although in the short term, many people will own mobile phones, it seems to be a good thing in terms of results.

  But in the long run, because many people have bought the cheapest mobile phones, major domestic mobile phone companies are generally short of money and insufficient funds, leaving them without sufficient funds for scientific research and development.

  So it is not advisable for Lin Xuan to continue to cut prices and make the fight in the low-end mobile phone market more cruel!

"this…"

   On the other side, Ni Guangnan and Secretary Chen, when they heard Lin Xuan say that the price cannot be lowered, they all looked at Lin Xuan in surprise.

   Now that the price of Bodao mobile phone has been reduced to a terrifyingly low 249 yuan, if the Hantang glory generation does not lower the price to 249 yuan, how can Lin Xuan’s mobile phone be sold?

  In the field of low-end mobile phones, people are very sensitive to price or cost performance.

   One is 299 yuan and the other is 249 yuan. The price difference between these two mobile phones reaches one-sixth, reaching as much as 50 yuan.

  Lin Xuan sure those consumers will not vote with their feet for the second-generation mobile phone of Bodao laborers?

   "The price cannot be lowered."

  Looking at the two pairs of puzzled eyes, Lin Xuan told his decision again, and a flash of determination flashed in his eyes at this time.

  Although the price difference between the two is more than 50 yuan, it has reached one-sixth of the price of a mobile phone.

   But the price gap of 50 yuan has not yet reached the level that makes people unwilling to buy Hantang glory generation mobile phones.

  He has sufficient confidence in the Glory Generation, even if the Han and Tang Glory Generation is 50 yuan more expensive than the laborers in Bo Island.

  But Lin Xuan believes that consumers will finally choose the Han and Tang glory generation with their feet!

  Looking at Lin Xuan's expression at this time, Ni Guangnan said a little puzzled:

   "It doesn't matter if Lin Xuan's mobile phone cost more than 600 yuan in the past, but now they are all ultra-low-priced mobile phones below 300 yuan. The price difference of 50 yuan is a bit big."

   "Teacher, I know what you said, but I still believe in our Hantang Glory mobile phone!

  I think the difference of 50 yuan is not enough to cause a huge setback in our sales or even prevent us from reaching full production.

  I believe that the Han and Tang glory generation will tear through the overwhelming monopoly net of Bodao mobile phones! "

  At this time, Lin Xuan seems to have inexplicable confidence. It seems that the 30 million "small profits but quick turnover" mobile phones of Bodao Mobile cannot intimidate Lin Xuan.

   "In this case, let me try to trust you."

  Seeing Lin Xuan's confident appearance, Ni Guangnan can only acquiesce in Hantang Technology's new generation of mobile phones for migrant workers, and will continue to maintain the original price of 299 yuan.

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  (end of this chapter)