“But if we do that, we won’t be able to use up our stockpiled chips. And as for profits…” Gao Qiang hesitated, looking troubled.
"Let's put the chip issue aside for now. How much profit are we making now?" Su Wu quickly pressed for an answer.
“Our cost is 400, the supply price is 700, and we have a profit of 300,” Gao Qiang said.
Su Wu was stunned again upon hearing this.
That's almost 100% profit, isn't that enough?
However, he didn't know that this profit margin was actually not high in the mobile phone industry.
Take the same Nokia model as an example. The cost is only a little over 300, but the price is over 1,000, and the profit is terrifying.
After Gao Qiang's explanation, Su Wu finally understood.
He crossed his fingers and looked at everyone seriously.
"Gentlemen, what we need now is the market. We're already doing quite well with these profits. I suggest we go all out on production."
"But Mr. Su, we all agree that our phones are so good that we should raise the price. We would definitely have a market even if we sold them for 1,000 yuan."
Gao Qiang immediately voiced his objection.
Upon hearing this, Su Wu shook his head, "There's no need for that. A profit of 30 million from 100,000 units is already quite substantial. We need to take over the low-end market."
Hearing him say that, everyone looked helpless.
They are well aware of the extent of Yang Electronics Technology's investment, which makes them proud.
But the meager profits they are making now make them feel ashamed.
With an investment of billions, the annual profit is only a few hundred million, which is far too little.
In fact, Su Wu was also calculating the costs and benefits in his mind.
Given the current situation, he can only tighten his belt to pay off his debts.
But now that he's entered the mobile phone industry, he doesn't want to do anything short of self-destructive.
Moreover, competing with foreign mobile phone brands is also his goal, and he doesn't want to miss out on this opportunity.
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