Chapter 399: A counterattack with initial success(2/2)
Moreover, this time not only were the dealers extremely cautious, but with the lessons learned from the last time, the agents in the city and county were unwilling to purchase graphics cards and CPUs at this time.
Even after many netizens learned the news, they waited for the price reduction of Phoenix chips before deciding to purchase them.
The market entered a depression overnight.
After waiting anxiously, the announcement of Phoenix chip price reduction came out the next day, the entire market was once again hit hard.
The price of all chips is reduced by 25%.
25%!
This is simply too violent!
You know, about a year ago, Phoenix Group just took the initiative to cut the price by 30%!
In fact, the price of graphics card chips and CPUs has dropped by as much as 55% over the past year!
As soon as the news came out, dealers who had experienced two price cuts in just one year really couldn't sit still.
There was a lot of noise in the entire industry group. This time, every dealer stopped doing it and put pressure on the agent's graphics card manufacturers, requiring the manufacturer to bear part of the losses.
Under tremendous pressure, graphics card OEM manufacturers such as Yingchi, Asus, and Gigabyte could not stand it first.
These graphics card manufacturers are only OEM manufacturers. They purchase GPU chips and public version data from the famous graphics card chip company "Nvidia", and then they conduct subsequent production and sales of graphics cards.
At this moment, they are not only facing pressure from their respective dealers, but also facing the embarrassing situation where they have to lose 25% before the goods are produced!
You should know that the net profit of ordinary graphics card manufacturers is only about 15%. The 25% reduction in price of Phoenix Group means that every time they produce a graphics card, they will lose one!
Not to mention the dealers, they are also angry at this time!
Graphics card OEM manufacturers directly vented their anger on Nvidia. A large number of executives and CEOs flew to Nvidia's headquarters in North America immediately. They needed Nvidia to come up with practical solutions!
The price of graphics cards plummeted by 55% in more than a year. This is abnormal in any industry. Do you still have to live?!
And this situation is obviously something you ask for!
If you don’t do a good business, why do you have to provoke Phoenix Group? If you force it to force Phoenix Group, you will definitely fight back!
Can you Nvidia maintain the stability of market prices?
If not, can we reduce prices like other Phoenix Group and implement a guarantee?!
Graphics card OEM manufacturers such as Asus, Gigabyte, and Yingchi are united under huge economic benefits and gathered at Nvidia's headquarters. They need to get Nvidia's accurate reply!
And at this time.
Nvidia CEO Mr. Huang’s hair is all white!
The current situation is completely beyond his control.
Phoenix Group’s counterattack is too sharp!
Without any delay, full of courage!
The losses caused to them by such counterattack are visible to the naked eye and are really painful!
It hurt him in just one day!
The reputation of dealers, corporate profits, and stock prices were all severely impacted, and this was simply a perfect "three-kill" by Phoenix Group!
This is the moat that Nvidia relies on for years to survive!
call--!
After experiencing the price cut by Phoenix Group, Nvidia's market value has dropped to US$400 billion.
In the past few days, their stocks have been sold in large quantities by investors around the world, and plummeted by 32% in just two days, with a market value of more than 100 billion US dollars!
pain!
It hurts so much!
The most uncomfortable thing is!
Faced with the price cuts of Phoenix Group, they had no choice!
Phoenix Group itself is an IDM company.
Simply put, it is a one-stop service from design to production to sales. Their chip costs are definitely much lower than those of any non-IDM-mode company!
This is also the reason why Phoenix Group dares to provide guarantees for dealers!
And Nvidia has no way to do this.
They are just a chip design company, and chip manufacturing and other processes need to be handed over to companies like "Taiji Electric". Taiji Electric wants to make money, right?
After obtaining GPU chips, they need to retain at least 45% of their gross profit to maintain their current scientific research level.
What's next?
On this basis, the chip foundry manufacturers who purchase NVIDIA GPU chips need to have a gross profit of 30%, and the dealers need a gross profit of 20%...
With the increase in layers, the cost will undoubtedly be higher than Phoenix Group's IDM model!
but!
What can he do?
He asked this question before the senior management decided to take action against Phoenix Group!
Once it becomes in opposition to Phoenix Group, once the price Z is activated, it is definitely unbearable for all Amei chip companies to bear. In terms of cost, no one can beat Phoenix Group!
No one can survive the current complete industrial supply chain in Yan Country!
At this moment, the secretary beside Lao Huang reminded:
"Mr. Huang, the bosses of many graphics card OEM manufacturers have arrived in the conference room. Do you think you want to go there now?"
After saying this, the secretary paused for a moment, and wanted to speak but stopped.
After thinking about it, I continued to say:
"Mr. Huang, it is said that two companies are already discussing OEM matters with Yanguo's 'Jingjiawei' graphics card company. If we can't negotiate well, it may..."
"And it is said that more and more OEM companies are already in contact with 'Jing Jiawei'..."
Mr. Huang was stunned for a moment, and his face calmed down after a while.
"Jing Jiawei..."
"Unknown to me, Yan Country is not only the giant Phoenix Group, but also the 'Jing Jiawei' that was not taken seriously before, gradually grew up with their support."
...
The impact of Nvidia is only a microcosm of the impact of the entire chip industry.
The price reduction of Phoenix chips includes automotive chips, graphics cards, CPUs, mobile phone SOCs and other chips.
After the news of Phoenix's specific price cut came out, the entire Amei chip industry plummeted across the board, and the entire industry was shrouded in haze.
No one expected that in addition to opening up the "NB-Y" architecture, Phoenix Group also relaxed chip patent restrictions this time.
This is a good thing for some other countries and companies that want to develop chips, and for other top chip companies, this has become the biggest limit for them to obtain orders!
As Hu Lai expected, no company dares to "refer to" to provide core patent imitation, but if you do not provide patent technology imitation, many overseas chip companies can only find Phoenix Group to purchase chips!
Moreover, this contract is an exclusive contract that lasts for five years!
Do you follow?
Three days later, Amei quickly held an emergency strategic meeting.
...
PS: Yesterday, I updated 3 chapters in total, about 8K.
The last chapter was reviewed for some reason and released today, so I made up for it when I asked for leave the day before yesterday.
Chapter completed!