They didn't pay attention to these specific data before, but after looking at it, they discovered that IBM and Lianxiang were more than just competitive. Without a shady secret, no unit would be able to win the bid!
Even if you think about an RMB 8,800 laptop, an IBM laptop with the same performance parameters costs RMB 23,000. The price is not only twice that of the other one, but only a stupid person would buy it.
Of course, this is a comparison of the Chinese market. After all, China has local protection and the tariffs are too high, which forcefully increases its retail price in disguise.
But here in the United States, IBM sells a laptop for US$2,000, while a Lenovo laptop with the same performance only sells for US$1,499. The price is still a quarter lower, and this is because Lianxiang is an imported product. , the reason why shipping costs, tariffs, etc. are very high.
The two calculated in their minds that the cost of a Lianxiang laptop was definitely less than a thousand US dollars, while an IBM laptop cost more than US$1,200. In terms of cost control, there was such a big gap between IBM and Lianxiang.
Since Gerstner took office, IBM's cost control has improved a lot. For this reason, it even laid off a large number of employees. As a result, they, the pioneers, are not as good as the latecomers from China!
No wonder last year, Forbes rated Lianxiang Group as the fastest growing PC manufacturer and seller, leading the world in terms of cost control alone.
If it is just the reduction of labor costs, it seems that it cannot reach this level. There must be some other relatively low costs, such as their component costs.
China has built the world's largest crystalline silicon factory, and it is said that it plans to occupy half of the world's crystalline silicon production capacity in the future!
Although when this news broke, many people almost laughed with their noses crooked. Not to mention the crystalline silicon technology, China is in the middle and lower reaches of the world, and this investment alone is not a small amount. And if they want to occupy half of the world's production capacity, do they know how much it is
Not to mention other neighboring island countries and treasure islands, it will teach them a lesson.
But when many people learned that this crystalline silicon was Feng Yu’s main investment and that Philips and Kirilenko had shares, they suddenly felt that this matter was not impossible.
Feng sold his Microsoft shares. What would he invest so much money in? Coupled with Philip and Kirilenko, funding is definitely not a problem. Each of them has the ability to invest alone.
In terms of technology, Philips provided the most advanced Siemens improvement technology, and Kirilenko also provided some Russian confidentiality technologies. As for how he obtained it, Feng Yu did not ask.
In this way, the technical aspect is no longer a problem.
As for sales, if the island country and Baodao want to encircle and suppress Feng Yu's company, that is simply a fantasy. Just the local protection gate of China can keep them out. Other companies may not be able to withstand the upper-level politics, but if Feng Yu says that it has nothing to do with it, who would believe it
On the contrary, they should worry that in the future, with lower costs and higher efficiency, Fengyu Crystal Silicon Factory will definitely suppress them and make them unable to hold their heads up.
In the view of Gerstner and Peng Mingsheng, perhaps it is because the commissioning of the crystalline silicon factory has reduced the cost of Huaxia's electronic components in a disguised manner.
"Feng, your crystalline silicon factory in China has pretty good production capacity, right?" Gerstner asked.
"It's okay. It's not finished yet. This is only the first phase." The construction and commissioning of the crystalline silicon factory were carried out as scheduled according to Feng Yu's requirements.
If we ensure the speed now, we will definitely be able to occupy half of the world's production capacity. Then we can really achieve it and control the price. Now it is too big all at once. Firstly, it is not cost-effective to use funds. In addition, it cannot be sold, and there is not such a large consumption.
In a few years, the photovoltaic industry will rise, and then solar panels will be a good development direction. Feng Yu has already mentioned this to Taihua Battery and asked them to set up a solar panel R&D project department. He will definitely get a big piece of this cake!
"Feng, Liu, I've read your document. I'm curious, how did you reduce the cost? I mean, can it be reduced to this level?" Gerstner couldn't help but ask.
Liu Chuanzhi glanced at Feng Yu, and when he saw Feng Yu nodding, he said: "It's very simple. The main components are all produced by us, or in other words, they all have cooperation agreements with us."
"Producing the main components yourself? What do you mean?"
"Needless to say about the optical drive, your IBM also uses the optical drive technology of Fengyu Electronics, which implements the Fengyu-Philip standard. We use the Eagle Weida graphics card. We have an Eagle Weida factory in China, and we get the The price is the lowest in the industry. We produce the mouse and keyboard ourselves and the price is very low. The technology of LCD monitors and Fengyu Electronics is also industry-leading, and the price given to us is also the lowest price in the industry."
"The battery is Taihua Battery, the lowest price in the industry. The hard drive is from our cooperation with Fengyu Electronics, Aihua Electronics, etc., and of course we are also the lowest price. The sound card is cooperated with AIWA Company, the sound is very good, and the price is very cheap. The memory is Jinshidun has a factory in China, and we have the lowest price... "
Gerstner was shocked. How come everything about the computer was at the lowest price in the industry? Except for the motherboard, everything seemed to be inferior. And they have cooperation with Intel and Chaowei, and it is said that lower-priced high-performance notebooks will be launched in the next step.
"Feng, Liu, I'm very curious. You said that those hardware companies give you the lowest prices in the industry. Why?" Gerstner frowned. IBM didn't give you the same treatment.
"It's very simple, because we have the best sales and can best help them expand their market share." Liu Chuanzhi replied.
In fact, the real reason, of course Liu Chuanzhi knows, is that those companies are controlled by Feng Yu. With Feng Yu's help, they have built factories in China or entrusted China with OEMs. This can not only reduce costs, but also help Lianxiang. The Group enhances its international competitiveness.
The superiors also greatly appreciated Feng Yu's move and praised Feng Yu as a national entrepreneur who never forgets the country.
Feng Yu wants Lianxiang Group to surpass IBM in the future, whether in PCs, software, or services, and form a huge IT overlord. Accordingly, these computer component manufacturing companies controlled by Fengyu Holdings can also become the overlords of this project!
Liu Chuanzhi naturally knew about this plan. But he didn't expect that Feng Yu would move so quickly and invest in all computer-related companies.
Of course, this has made Lianxiang more internationally competitive. Originally Lianxiang was a world leader in computer design, and its prices were even more advantageous, and its brand was gradually established.
Of course, the biggest gap between Lianxiang and companies such as IBM is patented technology. Companies such as IBM can earn huge profits every year just by relying on patent licensing. This is something Lianxiang is currently working hard to develop.
Liu Chuanzhi's explanation obviously did not satisfy Gerstner, but when it came to the other company's business secrets, it was normal for others not to tell them.
It's just that the two parties need to discuss the terms of cooperation. Lian Xiang actually wants to capture the sales of PCs in their hands. How is this possible? !
We are IBM, we always make the decision!
(End of chapter)