Chapter 351: Panasonic's Threat(1/2)
When the new order arrived, I don’t know if it was luck or whether the game consoles completely conquered the entire market.
The order of 200,000 yuan in North America finally gave a formal reply and paid the payment.
The success of the European market has deeply stimulated these businessmen. After all, such a good business is easy to make money, and as an investor, you don’t want to miss it.
Seeing the signing of new orders one by one.
Panasonic Group finally couldn't sit still and hoped to meet Lin Ping to talk about production capacity expansion.
Although Panasonic Group does not dominate the management business in the Hong Kong City joint venture, it will be beneficial to carry out arcade hall business in Neon Country after capacity expansion.
Panasonic hopes that Lin Ping will open up authorization and allow them to produce directly in Neon Country.
For Panasonic, they not only want to earn some OEM costs. More importantly, such a large capacity demand can drive the business of other departments of the company.
The current chips, electronic components, circuit boards and even the final TV screen on the game console can keep the company's production capacity at over-full operation.
It seems that it is just a small amount of money for accessories and assembly costs.
But if you look at it for a long time, this is not only extremely beneficial to Panasonic, but also a crucial layout for the entire Neon Country industry.
After all, for the semiconductor industry, the core competitiveness of the industry is the change of technology.
Only when new technologies are applied again and again will new products be born and amazed consumers in the market, allowing them to open their wallets for consumption.
If all product technology updates rely entirely on the technical investment of the head office, the money will not only drag down the company's revenue, but also cause losses to the direction of technical research.
After all, the capital ceiling for technology investment approved by the head office is subject to a limit.
However, if the components production factories obtain sufficient revenue through large amounts of shipments, then in addition to the technology investment approved by the head office, they also have sufficient funds to carry out unpopular technology research and development.
And more importantly, a small electronic component is likely to drive the chemical industry to take off.
If the output is very small, technological upgrades will not be achieved in Neon Country at all.
It is necessary to have super-large production capacity to stimulate the entire industry to actively carry out research and development.
If a year's production capacity can only earn millions or even tens of millions, then a business of this scale will obviously not be able to withstand large-scale technology investment.
Because after deducting costs and taxes, the boss only gets a little bit of money.
After all, any investment is cash taken out of net profit.
The tax department of any country cannot allow you to invest with your gross profit margin, it must be the net profit after deducting the tax.
In the era of the Internet explosion, there was a company specializing in computer assembly.
The company purchases all computer parts from all over the world and then produces the chassis itself for assembly.
In order to obtain the market, it can only reduce profits. If the price is too high, the market will obviously not be popular.
However, once the profit is too low, the company's investment in R&D will be limited.
In addition, the company itself is not interested in research, but is only interested in building OEM factories. The ultimate result is that the core R&D strength is very weak.
From a former national brand, it has completely become a small manufacturer that is barely considered an OEM factory.
If you do not have real R&D power in your hands and rely on buying everything, the benefits in your hands will be extremely unstable.
Take chips as an example. If a chip company launches a new chip, the chips launched this time are extremely expensive, or the price they sell to this company is extremely expensive.
Then the computers produced by this company in the future cannot be cheap. If the chips sold by the chip company to other computer manufacturers are a little cheaper.
The profit margin that comes out cheap is enough to kill this computer assembly factory.
Perhaps a model of computer chip will not cause serious injuries.
However, once multiple models of chips are used, such shameful small operations are carried out at the same time.
Then this company will definitely see a sharp decline in sales in the market.
After all, when consumers purchase computers, it is impossible to spend money to buy expensive products with the same computer configuration.
Even for the sake of faith, it would not be a brand. Everyone would rather pay more money to buy the Eye of the Birth. Although the electronic components purchased overseas have been assembled by themselves, at least this company is very real in terms of material costs. Even if the price is more expensive, everyone can see it.
Other manufacturers want to be as priced as the Eye of the Prodigal, but when dismantling their materials, they will find serious cuts of corners.
Lin Ping naturally does not want to help others develop his own industry.
The purpose of the game console industry that I worked hard to create is not to make money, but to quickly obtain huge profits in the semiconductor industry of our country and then invest money in research and development.
Only with sufficient funds and scientific talents can they not be lost.
Only with sufficient funds can all aspects establish their own technical reserves.
In the era when the chip industry is just emerging, we must keep up with the world.
We must build our own patented Great Wall, which will make all countries entering this industry daunting.
What prevents others from entering this industry is not capital and production capacity.
The real strength that prevents others from entering this industry is the Great Wall of Patents.
Even if others have the ability to produce lithography machines, they cannot produce their own chips when they cannot bypass the patented Great Wall.
If you take the risk of producing chips that infringe on other people's patents, you will only be sued in various markets around the world and then banned from selling.
Being able to do it doesn't mean you can do it.
"I think my current production capacity is completely sufficient to supply the market. If the production capacity is too fast, it will only cause the price of gaming consoles to collapse." Lin Ping found an excellent reason to refuse.
After all, when the product is produced in large quantities, the agents and other merchants will naturally not buy it at the original price.
Agents and all middlemen will try their best to inquire about your inventory.
When they know that your inventory is seriously backlogged and they know that all your money is spent on producing products, these people will guess that you must be extremely eager to get back the money.
Once the other party knows such a trump card, the price reduction will be unstoppable.
People who lived in the Internet Bang era know what hunger marketing means.
Only when everyone goes to buy this product will this product rise.
Even one product makes profits that only two products can have.
Lin Ping didn't plan to do hunger marketing, but his production capacity could not keep up, which just fits the situation of hunger marketing.
Panasonic Group is naturally dissatisfied with Lin Ping's statement.
They believe that everyone is a partner, and Panasonic Group has given Lin Ping enough cooperation.
Whether it was Lin Ping's commercial loan or the subsequent purchase of Motorola's 10 billion US dollars chips, and even setting up its own assembly factory in Hong Kong City, Panasonic gave enough respect.
Although during this period, Panasonic Group has gained corresponding benefits every time.
But as humans, they are all greedy.
Even every time you get benefits, Panasonic is a satisfied signature.
But when the benefits are added up again and again, Panasonic feels that he is far from getting enough.
Because if the benefits they gained were compared with Ming Ping, they would find that Lin Ping picked up watermelons, but he only obtained sesame seeds.
This psychological imbalance, coupled with the desire to support the semiconductor industry of Neon Country, Panasonic Group naturally hopes that Lin Ping can clear his own mercy.
"We naturally respect Mr. Lin's concern. We don't want the price of gaming consoles to drop significantly. After all, Mr. Lin has the ability to exceed our loan after he makes a profit.
By the way, there is one thing we might want to clarify with Mr. Lin.
Since we, Panasonic Group, is the middleman for the 10 billion US dollars chip order purchased from Motorola, legally speaking, we need to bear the responsibility for this order.
However, because all these orders were resold to EA Games, Motorola was considering the restrictions on the international embargo treaty.
I hope our Panasonic Group can supervise this batch of chips and will not appear where it shouldn't appear.
In desperation, the head office decided to send two specialists to the OEM factory in Gangcheng to supervise the factory. Every transaction and the quantity of products in the future must be carefully calculated to ensure that there will be no default." Panasonic Group gave a small warning when Lin Ping failed to cooperate.
This warning can only be tasted after careful consideration.
This time Panasonic Group just sent two resident representatives to supervise that these chips will not be shipped to other regions.
But will Panasonic Group suddenly suspend supply and suspend the delivery of this batch of chips to Lin Ping?
Because Lin Ping will pay only after each batch of chips is shipped.
Even if the goods are not shipped, Lin Ping will not suffer any losses.
But if it really delays so, the losses Lin Ping will suffer will be real.
If you cannot supply goods to customers, you will not be able to make enough profits.
Especially now that there are no competitive products of the same type on the market, it will be extremely important in the next year.
Because no one can guarantee whether the competitor will launch the same type of products in a year.
Once competitors have invested in the same type of products and the price difference is huge.
Then Lin Ping would have to adjust his selling price. After all, the middlemen would not use their own money to recharge Lin Ping's beliefs.
Even if Linping Games’ games are fun, the price will gradually be eroded by other cheap game consoles.
In any case, Panasonic Group cannot delay its production and delivery rhythm.
"Our company attaches great importance to the spirit of contract, and this batch of chips will never appear where they shouldn't appear. You can rest assured about the cooperation between Panasonic Group and us, just like when you lend us a loan, I believe we have the ability to repay it.
To be continued...