Chapter 1986: Calculating the Three Animals



Originally, in 1994, Ideal Company invested 70 million yuan in land speculation in Huizhou. Unexpectedly, the land price fell by 70%, and Ideal lost everything.

At the same time, in that year, Xianggang Lenovo stockpiled 660,000 Pentium chips and 486 chips in preparation for making a fortune, but it didn't expect that Intel and AMD were competing fiercely in the chip market.

The Pentium, which had just been launched on the market, was drastically reduced in price. In addition, the price of memory sticks dropped from 12 million yuan to 2 million yuan. Xianggang Lenovo suffered a huge loss of 250 million yuan in two years and lost all its money.

It can be said that this year is an unfavorable year for ideals.

In his previous life, it was at this time that Mi Guangnan completely broke with Liu Zhi.

But in this life, because of the butterfly effect caused by Wan Feng's appearance, Mi Guangnan left Ideal two years earlier.

Now Mi Guangnan is the leader in scientific research at Shanghai Huaguang Electronics. All his unrealized ambitions have been realized here.

During his more than one year at Huaguang Electronics, Mi Guangnan organized the Software Center, Minicomputer Department, and R&D Department to jointly develop the LXBS financial platform software.

The market response is good.

Although Mi Guangnan had long since left Ideal, the trajectory of Ideal had not changed much, and Huizhou still suffered heavy losses from land speculation and chip hoarding.

Even though Wanfeng had problems with Pentium last year, Intel issued a full recall of the chip shortly after it was released.

If AMD had not released Athlon at this time, Ideal might have been able to avoid this disaster.

It just so happened that during the Spring Festival, AMD released Athlon.

Intel was furious at the time, as it couldn't stand watching AMD's Athlon become so popular. So, shortly after the Pentium recall, Intel hastily relaunched the original Pentium with a slightly modified Pentium 2.

From this point of view, the spirit of contract advocated by foreigners is actually bullshit!

Liu Zhi was quite superstitious about American products. He believed that Intel had solved the chip problem, so he immediately purchased a large number of Pentium chips.

Who would have thought that just a few days after this Pentium chip came out, it would compete with the Athlon and start to drop in price drastically, causing him to lose so much money that he couldn't even find his way back home.

In other words, whether Wan Feng appears or not, he is bound to lose.

These two losses seriously damaged Liu Zhiyuan's strength, Xianggang Ideal went bankrupt, and Huaguo Ideal was also in a state of decline.

Coupled with the sudden rise of Huaguang Computer in the computer market, Ideal has no room for maneuver.

Of course, these things will not happen until August or September. It is only April now, and Ideal is still speculating on land in Huizhou.

Since the prices of chips and memory sticks will drop significantly this summer, Wanfeng has appropriately reduced the production of Huaguang No. 1 chips and memory, making sure it is enough for its own company's use, and the less loss the better.

He was considering whether to wait until the price of memory dropped to 2 million yuan and then buy some for himself.

If the price of 64M memory drops to 2 million yuan, not only will the cash cost be lost, but also the material cost will be a lot of money lost.

At that time, Sansheng would have to lose at least four to five yuan to make a piece of paper.

The cost of a piece of the newest and most advanced strip on the market is about 60 yuan, and two rice yuan is only 17 yuan according to the current exchange rate.

At that time, Sansheng would lose about 43 yuan for selling a piece of meat.

If I place an order for tens of millions of memory sticks at once, will it kill my three animals?

Even if it can't be killed, it will be skinned alive. Don't the three animals like to play with the counter-cyclical law?

The price of memory will experience a regular decline every certain period. The reason for this is the cycle formed by technological advancement and market demand.

Whenever prices in the memory market begin to fall, manufacturers normally reduce production to avoid risks.

Just like Wan Feng decided to cut his company's production just now.

However, Sansheng took full advantage of the strong cyclical characteristics of the memory industry and relied on government transfusions. When prices fell and production was in excess while other companies cut investment, it expanded production frantically against the trend. Through large-scale production, it further lowered product prices, forcing competitors to exit the market or even go bankrupt.

Since the 1980s, Sansheng has carried out three such counter-cyclical operations, forcing most memory manufacturers to death, and finally became the leader in this field.

Wan Feng has no intention of playing the counter-cyclical law with Sansheng for the time being.

The first two times Sansheng played this trick were in the late 1980s and the year before last. The third time it played it was in 2008, which is still a long time ago.

Although he can't play the counter-cyclical law with Sansheng for the time being, if the memory stick price really drops to two yuan this year, he is ready to skin Sansheng alive.

Even if you have Han Country to back you up, you will still sweat if you are asked to pay hundreds of millions of Mi Yuan.

Anyway, he won't lose money even if he buys the two-yuan memory sticks. Even if he can't digest the quantity when installing them in the computer, he can still break even.

This time, Sansheng can make up for it, but when the Asian crisis of 1998 hit, Sansheng would probably have gone bankrupt.

I'll go buy the dip when the time comes...

It shouldn’t be possible to copy it. How could Sister Huaer’s capitalists keep this piece of fat meat for themselves?

Even if he can't copy it, he has to stir up trouble and make Sister Hua'er and those capitalists bleed more money.

However, if Sansheng can be made to pay heavy losses this year, it may not have the funds for research and development and be eliminated. This is also possible.

I’m afraid those bastards at Sansheng won’t dare to take big orders then.

Regardless of whether it dares to accept it or not, Wan Feng will take advantage of it.

It can't pay hundreds of millions of dollars, so it's fine to pay tens of millions of dollars.

Just when Wan Feng was plotting against the three animals, what made him laugh and cry was that Wang Wencheng's 64M memory was successfully developed.

Wan Feng was scratching his head. It was really a bit inappropriate to develop this thing now.

"Not producing for the time being? Why not produce?" Wang Wencheng couldn't understand Wan Feng's decision.

"Memory stick prices will plummet in July and August of this year, falling below the cost of raw materials. Do you think we can produce them?"

"Boss Wan! Are you sure?"

"My premonitions are always pretty accurate. Considering the cyclical price drops of memory sticks over the years, I think it will happen this year. After this price drop, there will be a long period of upward movement. Let's get through this wave of price cuts first. Also, according to reliable sources, Sansheng's 256M memory will be successful in the second half of the year."

Wang Wencheng smiled bitterly: "We always seem to be out of time."

"This should be our last chance to chase Sansheng. Next time, with a GM of storage, we'll be able to catch up. Come on!"

Wang Wencheng pumped his fist and said, "I'll definitely do my best."

"In two months, when this year's college students come back, we'll recruit more people for your department. If there are a lot of Master's and PhD students, we'll prioritize you."

With the addition of these new forces, relying on the wisdom of the Chinese people and the financial resources of Wanfeng, we are confident of catching up with Sansheng Wanfeng.

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