Extraordinary Genius

Liu Legendary has also been very busy lately, mainly because Lenovo computers withstood the product challenges of the island countries, South Korea and Europe and America, or there was also help from the state, but at this time, Bao Island's computer brand began to enter the Huaxia market on a large scale.

At this time, Huaxia's relations with Baoshima have eased, opening up the market to Baoshima. The original intention was to achieve economic integration and assimilate Baoshima.

However, it has been forgotten that Baoshima is also strong in places where Huaxia is strong, but because Baoshima has some import advantages, it is more competitive in many products than Huaxia products.

Computers, especially laptops, were among the hardest hit.

These are represented by three brands, Huashuo, Hongji and Ming Acer, and Hongji and Ming Acer are also founders, or indicate that Acer was a subsidiary of Hongji and later separated.

Asho is the world's leading motherboard supplier, accounting for more than a quarter of the world's motherboards, and notebook sales have been rising and gaining momentum since the start of computer manufacturing.

Acer and Acer are slightly worse, but also perform well, at least not worse than manufacturers in island countries and South Korea, and notebooks are ranked among the top sellers in the world.

As for domestic, there is also another relatively large computer brand called Shenzhou, which is also mainly a laptop manufacturer. The bias is very low, and the price of the computer configured is lower than we thought.

Even though the world is one of the best with huge production and sales and constantly lowering costs, I didn't expect the cost of this state to be even lower.

A study by Liu Xianzhi revealed that he finally understood why the cost of Shenzhou could be so low.

First of all, Shenzhou is not entirely assembled. Collapse and assemble, the most downstream, which is the bottom end of the food chain, with the lowest profitability and easy branding.

Like Intel, Super Wei is upstream, R&D, design and production is a grip, but their own brands of computers sell very well.

There are also midstream manufacturers, such as Dongzhi, Si Xing, etc., who manufacture major accessories, then partially research and development, partially purchasing assemblies.

There are also top hardware manufacturers like Yingweida that give up the opportunity to make their own PCs, focus on their superior products, and are arguably the main accessories for computers.

In this, Ashuo belongs to upstream manufacturers. They are one of the leaders of the world's motherboard manufacturers, and their costs can be about the same as in the past. This is not surprising for Liu Zhi.

But Shenzhou, technology should be a lot worse. Even if you want to make medium-sized, autonomous R&D parts of the main accessories, and then rely on the advantages to produce computers, you need them to have advantageous products.

Shenzhou has no advantages in any of the major accessories of computers, and there are no products available. As for the patents waiting for some, but those patents are not worth the whispering, and they are not comparable.

So how does Shenzhou control costs? One is that workers in their factories earn lower wages, which reduces production costs.

Another thing they don't have is franchises, and franchises have low fees during the expansion period, allowing their franchises to expand rapidly.

And the boss of Shenzhou painted a big cake for all the employees, using the Lenovo Group as a template to paint cakes for the employees, telling them that the hard times will soon pass, that everyone will have their original shares in the future, that everyone will be at least a millionaire after the company is listed, so now their employees are very low salaries, welfare benefits and so on, and much less comparable to Lenovo Group.

As for listing, Liu said that Shenzhou was unlikely to succeed in IPO in a short period of time, because their books did not meet the listing requirements. Yet another domestic review of IT companies is now more stringent, and few investors believe that Shenzhou will be able to stand firm, and may soon be acquired by other manufacturers.

Last but not least, Liu Legendary found it interesting. Shenzhou relies on geographical advantages and is close to the port, so they often import some tail goods.

What is the end product is that some factories produce products, but for some reason the order is cancelled, resulting in a product backlog. Alternatively, some factories produce products that fall short of their expected sales, resulting in a product backlog. There are also reserved “wear and tear”, which are reasonable theoretical losses, but are not as large in practice.

There are many reasons for the tailings, but it is undeniable that factories are anxious to dispose of them. On the one hand, stockpiles can be cleaned up to prevent the seizure of warehouses and waste of these materials. On the other hand, winding up is also an income that, although very low, is unexpected.

And now, Shenzhou not only buys tailstock accessories to assemble into its own notebooks, but also imports tailstock electronic components, and then produces them to assemble computers, what Shenzhou calls autonomous R&D, and they barely squeeze into the second tier.

And in the tail goods, the product quality cannot be effectively controlled, so Shenzhou computers often break down and even have a high rate of refurbishment, but the cost is really 40 percent lower than their peers!

Forty percent is a concept. Now, the profit of notebooks is a dozen percent, the profit of desktops is not more than eight percent, and the profit is gradually declining, because more and more manufacturers are starting to lower the selling price, and the cost of advertising, production, sales, etc., is increasing rapidly.

Shenzhou's most common notebook is also 20 percent less expensive than even thought, which is why it has such a competitive price. What people are pushing now is a selling point, cheap!

You sell $10,000 laptops, I sell only $8,000, or even $7,000. The performance parameters are the same. What do consumers choose?

Even if my after-sales service is bad, how much would it cost to fix a computer? Besides, although the quality is slightly worse, the repair rate is high, and not too high, this is just relative to other brand notebooks, and not even higher than some appliances.

They have also caught the psychology of many users who like cheap products and so on. After all, this is still a notebook, not a desktop, and it looks more high-end.

Thus, domestic notebooks entered the dominant model, even thinking about neglecting other brands because they mainly targeted European, American, island and South Korean factory merchandise brands, allowing them to quickly start expanding and robbing Lenovo Group of its share.

And in the desktop market, more and more assemblers, especially those in Computer City, are saving their customers cheaper machines than even wanting a point of sale.

They also sell some tail goods by hand. Anyway, the customer can't see it. If something goes wrong, they just need a warranty.

The laptop and desktop markets were challenged at the same time, making Lenovo Group quite passive. They are actively expanding towards Europe and the United States, but they can't have it yet. Instead, the battalion has been breached.

Exactly, when Feng Yu proposed the tablet, he was reminded why not produce a laptop with a slightly simpler function? The cheaper prices, coupled with the reckoned brand and some publicity, are bound to sell well.

Just how to market, he and Feng Yu disagreed again.

……

5 more finished, ask for authentic subscription, ask for recommendations, ask for monthly tickets, ask for rewards