Chapter 779: Breaking Moore’s Law

what to do?

Now we can’t compete with technology, and we can’t compete with price.

This is very embarrassing!

You can't say that you won't make a penny off the ex-factory price.

So, what else are you going to do?

Are you working so hard every year in vain?

This is not how you start a company! Especially high-tech companies. Every year, you need to invest a lot of money in scientific research. Now that the product is not profitable, how can you have the funds for scientific research?

At that time, you will have no funds to invest in scientific research, and eventually the technology will become worse and worse, which will eventually lead to a growing gap between the two parties. From now on, there will be no future.

This was eventually eliminated by the market.

"If we don't lower the price, we must always maintain a little profit!" Qin Feng thought for a long time, "We have to sell it without making money."

360 yuan, what do the many vendors do?

"They can only earn so much by selling Celeron 2. We don't want them to earn less than Celeron 2!" Qin Feng said, "I believe Intel will also be very unhappy. This price is too low. Now it’s up to us who can hold on! Especially now our Loongson is inherently better than Biyan 2. Don’t worry about consumer choice.”

Today, Intel is going to use an absolute price war to drive Loongson out of the market. Then, Qin Feng gritted his teeth and held on.

Let’s see who can outlast whom in the end.

"Also, scientific research funds must not be reduced. On the contrary, more talents must be recruited." Qin Feng said.

"What about money?" Lei Jun asked worriedly.

"I will take care of the money, and you will take care of the company's operations and R&D!" Qin Feng said, "We divide the work and cooperate, and I will find the money. You go find more talents and enhance the company's core competitiveness! Also, multi-core Segna Communicate."

At this moment, here is the Dream Company.

"Mr. Liu, it seems that Loongson can't hold on this time. News just came over there that they are still supplying goods at a price of 360 yuan. Obviously, this is their bottom line. The price cannot be lower. Now both parties The price is the same. As long as Intel improves the performance of the Celeron 2 chip processor, Loongson will be finished!" Yang Yuanqing said.

"This is the strength of a major international company. Just a little bit is enough to defeat a company like Loongson. Our dream company must not be a frog in the well. We must go out and become a major international company. Only in this way can we have the right to speak!" Yanagawa Satoshi looked determined.

"I don't know how long Loongson can last!" Yang Yuanqing lamented, "At present, the longer it persists, the more losses it will suffer. If the CPU factory is going to lose money, it will be a loss of billions or tens of billions."

Qin Feng's personal financial resources are indeed very strong. But if losses continue like this, Yang Yuanqing is not optimistic. No matter how much money his Wuzi Lianxing Building makes, it can't fill the CPU hole.

This is a huge hole, a hole that can subvert everyone.

Intel Corporation Headquarters.

"It seems that 360 yuan here at Loongson is the bottom line!" Grove thought.

"Grove, are you going to lower the price?" Many directors were frightened.

The current price is already very low, so low that directors like them feel pain.

Celeron 1, sold for 800. Now the Celeron 2, which has better performance, sells for 430 yuan, which is almost half of the price.

This is indeed in line with Moore's Law. Double the performance and half the price.

This is indeed Moore's Law. However, this is also a bit too Moore.

"Well, I mean every 18 months, this is only 10 months!" Gordon Moore added helplessly.

In 10 months, the performance doubled and the price dropped by half.

This is not breaking Moore's Law!

Of course, strictly speaking, Intel's technology reserves have already broken half of Moore's Law. The reason why I say half is because there are breakthroughs and surpasses in performance, but the price will not drop.

Because businessmen pursue profit. You can’t just develop technology and make breakthroughs for the sake of breakthroughs.

Don't make money.

If it doesn’t make money, then who will do the research and development?

Therefore, Gordon Moore proposed an 18-month period. Because this is almost the rhythm of a company's upgrading under market competition.

But I didn't expect that this time it would be directly exploded by Qin Feng, allowing Moore's Law to come in advance.

"Price reduction?" Grove glanced at the many directors.

"My instinct tells me that Godson must be beaten to death, otherwise it will become a trouble in the future. I plan to directly reduce the price of Celeron 2 to less than 400 yuan, which is the range of 300 yuan." Grove said lightly, "But you must disagree!"

"What! A range of 300 yuan! Then there is no profit!" Many directors exclaimed.

"No, we will still make money. Just a little bit. As long as we expand production, there will be no problem!" Grove said calmly.

With Intel's industrial manufacturing technology and standards, it is impossible to lose money.

After all, Grove once said to the media that if the whole world only used Intel chips, then Intel's chips could reduce the price to $1.

This is not a boast, it can really be done. As long as the market volume is large enough, in the era of industrial automation, this cost can continue to decline. Get to rock bottom.

With a $1 CPU, it's definitely possible.

Of course, if it really gets to that point, Intel may not cut prices. Now that we have a monopoly, we naturally have to make money with peace of mind.

"Look, I'm just telling you, you all reacted so much. Then just keep the price." Grove said calmly.

He was very wary of Godson. He had a feeling that if Loongson could not be defeated, it would one day become a strong rival of Intel. However, this is just a feeling.

This feeling may not be sensitive. On the contrary, he has always been very confident in Intel's strength.

Even if we don’t rely on price war, we can beat Loongson to death. Intel's technological superiority alone could make Loongson collapse.

"If prices cannot continue to drop, then the performance of our chip processors must be improved! We must maintain the suppression of Loongson." Grove said.

"But now that we have manufactured so many Celeron 2233 and 266 chips, what should we do if we increase the number to more than 300? That is more than 20 million pieces." A director shook his head.

More than 20 million pieces will be scrapped directly. What a loss that is. Even if it can be taken back and remade, it is still money. In particular, many of them have traveled around the world. The cost of taking it back would be too high.

Grove frowned.

"You are so greedy, be careful of raising tigers!" Grove warned.

But many directors did not agree. The price has been reduced like crazy. Even the current price is enough to overwhelm Loongson. There is absolutely no need for them to withdraw Celeron 2 globally and rebuild it from scratch. After all, Godson is only sold in China.

It’s not available abroad yet. They can wait for a while and let the market digest it.

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