Chapter 295

Name:Silicon Valley Author:Baisha
Spielberg to persuade David Geffen, Henry is thinking about how to layout the Chinese market.

In the recent wave of listing frenzy, the development speed of China's Internet is advancing by leaps and bounds. In fact, it's not only China, but also other countries.

NASDAQ has never been so crazy.

The rise of the Internet has really stimulated all people and all countries!

China's Internet development has accelerated, but the income of Chinese people is not so fast. Most Chinese can't afford computers, so Henry plans to launch cheap computers! His idea is to buy Apple as a high-end computer in the future, and then re create a brand as a low-end computer. Open up the Chinese market with low-end computers and lay out Internet cafes. In China, it takes a long time for home PC to be popular. Therefore, controlling the Internet bar is equivalent to controlling the entrance of China's Internet!

At present, Hongnian technology, which is rooted in China, is most suitable for low-end computers!

Another reason why Henry is busy with the layout of China this time is that on March 26, 1994, the mobile communication bureau of the Ministry of Posts and Telecommunications of China was established. Before that, Qualcomm has been lobbying the Chinese government to adopt CDMA network. This time, the establishment of the mobile communication bureau of the Ministry of Posts and Telecommunications of China is also the result of the efforts of Qualcomm! Because the mobile communication bureau of the Ministry of Posts and Telecommunications decided to use the CDMA network.

This decision is of great significance. If other mobile phone manufacturers want to sell their mobile phones in China, they must use Qualcomm's CDMA technology. The patent fee is huge! If you use the GSM network, Williams Electronics will have to produce GSM mobile phones. Isn't it just giving money to others?

Usually, after a telecom company selects a network standard, it will only upgrade on this basis. It won't say that I am using CDMA now, and then change to GSM immediately. What a construction cost! The mobile communication bureau of the Ministry of Posts and telecommunications is the predecessor of China Mobile. Think about how many people will be mobile users in the future, how many mobile phones there will be, and how much patent fee each mobile phone will have to pay to Qualcomm? Is there any saliva left

At present, the mobile phone developed by Williams electronics company has been completed and sold all over the world. How can it be less than China! And Williams pager has also been developed, which are in urgent need of sale in China!

China's land price, Henry is deep experience, will only "rub rub rub rub" to rise, many people work all their lives are not necessarily able to buy a suite! Tenima is terrible!

Therefore, take advantage of the current cheap, first enclosure again, the first step is to establish Williams retail!

It's not a big problem to build a retail store in the enclosure. Williams electronics company will send more teams in the past!

The key now is how to make low-end, cheap computers? Hard disk, display screen, memory and other components are good to say, the key is the processor!

The processor designed by arm company is not suitable for personal computers. Henry has to find a new company to produce microprocessors!

Henry's first thought was Cyrix Cyrix, which was founded in 1988 as a company specializing in cheap processors. Moreover, it's quite powerful. It's the third largest microprocessor manufacturer in the world after Intel and AMD! However, the market value of Cyrix is not high. Although Cyrix is known as the third company, it is far from the former two. Moreover, because it is cheap, it has less profit.

In 1997, it was purchased by national semiconductor company at a price of 550 million, and then by Weisheng electronics. It's a bumpy life!

But at the moment, Cyrix is exactly what Henry needs!

Henry then launched a takeover request to Cyrix in the name of Williams electronics, and Cyrix was also very willing to accept the negotiation offer. If Cyrix can rely on the mountain of Williams electronics, the company will certainly develop faster!

In just one week, the two sides reached an agreement after three rounds of negotiations. Williams electronics raised $500 million in Cyrix, with a 75% stake.

In fact, Cyrix company is in a very bad situation. Since Intel launched "Pentium" processor in 1993, Cyrix company will inevitably suffer a severe impact. The more it comes back, the lower its market value will be! Cyrix company is eager to find a way out of trouble. It's a good choice to join Williams electronics!

After winning Cyrix company, Henry asked Cyrix company to design a cheap processor chip specifically for the Chinese market, and then let Hongnian technology company produce computers. Williams electronic company can dump its products in China, such as hard disk, memory, monitor, etc. The more production, the lower the cost. Even if it can't make any money in the Chinese market, it can seize more market share in the international market because of its low cost and strong competitiveness. On the one hand, it can expand itself, on the other hand, it can suppress its competitors.

Japan's economy is not good now, and electronic products are also on the decline, but South Korea has a sudden rise, and the rising speed is too fast, which makes Henry feel palpitating. Therefore, it is extremely necessary to crack down on them! And product price reduction is the most effective means!

Later, Hongnian technology set up the computer department, but its main task is to engage in the research of computer motherboard and the whole machine, and the rest of the components are provided by Williams electronics.

Work is in full swing, Williams retail store will be settled in a big city every three days, the development speed is very fast.

A month later, Cyrix designed a cheap processor named "486zg" for the Chinese market on the basis of other 486 chips, and its manufacturing cost is less than 1000 yuan.

After that, Cyrix assisted Hongnian technology to develop the motherboard based on "486zg" processor. Although the United States has imposed a strict blockade on China's semiconductors and chips, this kind of technical support belongs to the normal category. Chinese customers use Intel chips. Intel company has to send someone to help them develop the whole machine. At the worst, they have to send a technical document. Otherwise, how can others develop your products!

With the help of Cyrix company, Hongnian technology spent more than three months to develop its own motherboard. Soon afterwards, Hongnian technology produced a prototype - Hongnian computer. The manufacturing cost of Hongnian computer is only 3000 RMB!

After a period of testing, Hongnian computer has no big problem. It can be sold in mass production!

During this period, Williams retail stores have been opened in major cities in China, with a total of more than 300 retail stores, of which 45 have completed the decoration and can be opened! But the only products that can sell now are Williams pager, Hongnian computer and iPod music player!

As for Williams mobile phone, the time is not yet, at least until the mobile communication bureau of the Ministry of Posts and telecommunications has built the CDMA network!

At present, China's computer companies are famous for Lenovo, new wave and so on, but their computer prices are too expensive, basically tens of thousands of yuan.

The cost of Hongnian computer is 3000 yuan, and the retail price is only 3500 yuan. Earning 500 yuan is not much. Lenovo's computer cost is estimated to be about 4000, but it's so expensive to sell. You can imagine how much it has made!

Let's roar, Henry is going to break the situation!