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Chapter 1400 – Is this possible?
“Since AMD will benefit regardless if we partic.i.p.ate or now, we might as well ignore them and speed up our development. We must develop a new dual-core processor that can win them.”
Benjamin frowned. “Ignore them? This will affect our Intel’s brand value.”
“I think we can use a different approach. If AMD wants to compete with us, it should not compete with one type of product. We will compete with them with different types of products. It doesn’t matter if we lose in one compet.i.tion as long as most of our products win. This will lower the negative impact on us.” A Director suggested.
Benjamin brightens up. That’s right. They should not be competing with one product. Intel has more product varieties than AMD, and many of them are better. Using multiple products to compete with them will let more people know about us.
“Manager Feng, AMD, and Intel’s compet.i.tion will be held in Beijing and had gain lots of attention. Did you see the forums? Many netizens are saying these two CPU giants are coming to China to show off.” Liu Chuanzhi said.
“I saw the news. These netizens are just worried for the nation. But this can be easily settled. I will ask Zhong Qingxian to get the various internet companies to reveal Wind and Rain Holding is AMD’s shareholder. I believe the netizens will know who to support.”
Liu Chuanzhi nodded. “They will support AMD after they know about this, and AMD sales in China will increase exponentially.”
“AMD’s CPU is not inferior to Intel, and it is cheaper. Most ordinary PC users will pick AMD, and their latest processor is much better than Intel’s. They will slowly take over part of Intel’s market share and control the market in the future.”
In Feng Yu’s previous life, AMD did not fulfill this goal, but it might be possible in this life. AMD had been working on a new motherboard called Bulldozer since last year. This is their most important project, and they will overtake Intel if they succeed.
“But Intel had picked several types of processors to compete with AMD. Other than AMD’s dual-core processor, none of their other products can win.” Liu Chuanzhi reminded.
“So what? They can compare the prices. Intel’s chips might be better, but we are cheaper. Didn’t I am mentioned that AMD will focus on the low-end market and let Intel control the high-end market? This is to let consumers have the mindset that PC hardware technology is developing very fast, and they should buy components base on pricing.”
A DIY top-tier desktop PC with the highest specs can cost up to 20,000 RMB. The LCD costs a few thousand, and a good graphics card is not cheap.
Most people do not need such high-end specs, and a DIY PC around 5,000 to 6,000 RMB can last for years.
Those high-end PCs are for wealthy people, large corporations, or government agencies.
In Feng Yu’s previous life, he heard many government agencies had bought PCs that are more expensive than the market rate. It seems that those unwanted products are all bought by the Government or state-owned enterprises.
No one knows if there is any corruption involved.
Liu Chuanzhi thought about what Feng Yu said. Should Lenovo also use this method to showcase and promote their products?
Lenovo PC had been working with IBM’s PC department for a while. They are selling each other’s PCs in their markets.
But IBM is not satisfied with the results because Lenovo’s sales are much better. They realized that the PC business is not profitable and plans to sell their PC division away.
At the same time, Lenovo wants to expand, and they started negotiating with IBM. Sell us your PC division, and we will pay you a sum of money and Lenovo Group’s shares. This will be a win-win situation for both, and we will become the World’s Number 1 PC manufacturer.
At first, IBM was swayed by this offer, and Liu Chuanzhi is very excited.
IBM had been one of the leaders in the PC industry. If Lenovo can acquire their PC division and some technologies, it will be a huge upgrade. Most importantly, they can get IBM’s PC sales channels, improving their sales in North America and Europe.
But IBM’s att.i.tude changed suddenly for unknown reasons.
Liu Chuanzhi thinks he should hold a similar compet.i.tion in the US to raise Lenovo’s brand awareness or his offer to IBM.
“Manager Feng, do you think it’s a good idea for Lenovo to acquire IBM’s PC division?” Liu Chuanzhi asked.
“That would depend on how you see it. There are pros and cons for acquiring and not acquiring them. But my suggestion is not to acquire them until we beat them.” Feng Yu replied with a smile.
“Beat IBM? Is this possible? They have lots of large orders from the US Government and corporations. Although our PC’s specs are better, our aftersales services cannot keep up, and it affected our sales.”
Everyone’s PC might break down, but IBM has the advantage in the US. They have lots of repair centers but not Lenovo. Lenovo had tried to get IBM to handle their aftersales services but was rejected.
“IBM has orders from their Government is because of security reasons, and we might not get those orders. Corporations’ orders are different. Other than IBM, are there no more companies that are willing to handle our aftersales services? We will overtake them within three years with our high-performance PC. At that time, they will beg to sell us their PC division!”
IBM will beg us to buy their PC division?! Is… this possible?