Extraordinary Genius

Chapter 1403: The way to compete

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The relationship between Intelligent and Chaowei is actually very interesting. Why has there been talk in previous lives that Chaowei is actually controlled by Intel

Not only because Chaowei's directors include former directors of Interel, and among Chaowei's shareholders, there are former shareholders of Interel, but also because the two parties have a cooperation agreement to exchange authorized technology patents.

The research directions of Intel and Chaowei have always been different. Although they both make processors, the research directions of processors are also different.

Just like this time, AMD is slightly better in dual-core processors, but in single-core processors, AMD still cannot compare with Intel.

But if both parties exchange technology patents, then they can both master new technologies, making them far ahead of other semiconductor companies in processor technology, so the two of them can share the processor market.

Intel's annual turnover last year was almost ten times that of Chaowei. Chaowei had a turnover of less than US$4 billion last year, but Intel had a turnover of nearly US$40 billion.

Although the PC market is growing rapidly, and the processor and workstation markets are also expanding rapidly, in the processor market, Intel's market share has been crushing Chaowei.

However, Intel did not dare to crush Chaowei to death, because that would involve a monopoly and force Intel to be split up. Even if Intel doesn't want to, other semiconductor companies will sue on the grounds of monopoly.

Therefore, Intel has always maintained a competitive and cooperative relationship with Chaowei.

Competition is naturally competition in the market. Intel always wants to suppress Chaowei, but it will not use its own influence to leave Chaowei without orders.

Cooperation is the exchange and licensing of patented technologies from both parties, ensuring that they both lead the way. Of course, there are limitations to patent technology exchange licensing. Obviously, neither party will license the core technology to the other party, which means that the most they license is sub-new technology.

In the previous life, Chaowei and Intel often fought lawsuits, accusing each other of patent infringement and monopoly in certain aspects.

For the most part, Chaowei won as a weak group. At most, it lost close to 1.5 billion U.S. dollars, which was much higher than Chaowei's profit in a year.

Almost every time the other party launches a new processor, they will sue. Either Chaowei is suing Yingtel, or Yingte is suing Chaowei.

Last time, AMD sued Intel for vicious competition in the sales of processors. This time, it was Intel's turn to accuse AMD of using pictures from the technology competition to promote propaganda out of context, which is an obvious means of unfair competition.

But Chaowei doesn't care at all. The two sides have been fighting for so many years, and there have been eighty if not one hundred lawsuits. They can just sue and seize the market first.

Anyway, a lawsuit cannot be settled in one go, especially among large companies. All kinds of evidence, all kinds of postponements, and there will be no verdict within a year and a half. The legal battle between Microsoft and the European Union has dragged on for six or seven years, which is proof of this.

If you see that the other party has some intention of winning, you can ask the lawyer to make an appointment with the other party for an out-of-court settlement or something. Then the settlement talks collapsed, and the lawsuit started again.

Of course, there are cases where out-of-court settlements are successful, depending on how the two parties exchange benefits.

Not only Chaowei and Intel, this relationship of competition and cooperation exists among a variety of peer companies.

For example, the earliest Sini and aiwa were like this. They authorized each other's patents and borrowed channels from each other, thereby crowding out other competitors and allowing them to share the Walkman market.

Only after aiwa was acquired by Feng Yu, this cooperation was suspended. After years of development, aiwa has completely surpassed Suini in terms of portable music player products. Perhaps this is something Suini would never have imagined.

Feng Yu had seen many such competition methods in his previous life. For example, among two domestic milk companies, employees of one company concocted fake news, saying that the other company's milk source had problems, thus making the other company's dairy products unsaleable and increasing their sales.

There are also two beer companies competing. In order to monopolize the market, one lets terminal salespeople buy the other's beer bottles. The beer bottle itself is a recyclable bottle, but when one party wanted to produce it, they found that there were not enough beer bottles, and the loss rate far exceeded a hundred times the normal loss, making them unable to produce.

Another beer company took the opportunity to mass-produce and occupy the market. Although it cost a lot to acquire the other party's beer bottles, the market took over and the company could make money back in less than a year.

There are also two types of home appliance promoters who promoted sales in one place, and then in order to compete for customers, the two sides fought, both sides suffered losses, and there was even a life-threatening lawsuit.

There is also the problem between two software companies. Because the software market has made technical means for each other, if you can use my software, you cannot use your software. The two softwares are incompatible with each other.

Window pop-ups keep popping up, prompting the other party's software to be a virus and need to be uninstalled and deleted. This brings great inconvenience to users. Some users choose to delete one of the software, and some users simply delete both software.

But in the end, one of the software won with more and more loyal users. The two sides also patched up each other and made compromises under the mediation of the superiors. One of these companies is Penguin.

Competition between enterprises is originally healthy competition, that is, normal business competition under certain rules. See whose products are better, whose prices are cheaper, whose services are better, and so on.

However, some companies advocate the so-called wolf culture. In corporate competition, either you will eat me, or I will eat you. In fact, this is something only small businesses can do. Who would dare to swallow up all their competitors if a truly large company does so

Just like where Coca-Cola is sold, there will be Baishi Cola, and where there is McDonald's, there will be KFC. Although they compete, they also promote each other and crowd out other competitors.

Feng Yu asked Chaowei's CEO, and the other party told him that there was no need to worry. It had become normal for them and Yingte to accuse each other, and he believed that it would not be long before they settled out of court.

As for how long it will take, it should depend on who develops newer technologies first.

But no matter what, next year, Chaowei's market share will increase to more than 20%. What was originally ten times more powerful than extraordinary will quickly shrink to about four times.

As long as Chaowei can develop another leading processor, this gap will quickly narrow. Five years later, Chaowei's market share has increased to more than 40%, and there is great hope.

At that time, Yingte could no longer underestimate Chaowei, or Chaowei truly had the ability to compete with Yingte.

At this time, Feng Yu gathered with Liu Chuanzhi and others to discuss the production of a new product.

… (To be continued.)