Chapter 783: Who Did You Provoke?
The second production line, protected by abundant funds, has successfully started assembly and debugging.
Of course, official production is still a few weeks away.
During this time, everything was quiet.
After the initial frenzy of price cuts in the market, the market gradually calmed down as neither Intel nor Loongson had subsequent price cuts or other promotional activities.
In China, due to the endorsement of the official media, most ordinary computer users choose Loongson for their computers. After all, the performance is better and the price is the same.
Then the natural choice is Godson.
Some high-end users still choose Pentium 2. After all, the performance of Pentium 2 is indeed better than that of Godson. There is no denying this.
For the time being, everyone is keeping their peace.
Of course, anyone with a discerning eye knows that Intel is preparing to spend money to kill Loongson.
After all, when you are not making any money, it depends on how long you consume. There is only one Chinese market here in Loongson. But Intel also has a global market. In this comparison, Loongson cannot afford it.
While the market is worried about Loongson, one company is speechless.
We provoked whomever, why did the market become like this! ——This company is AMD.
AMD has been playing second fiddle for a long time, slowly developing its CPUs. As a result, Godson came from the sky, and then joined forces with Intel to disrupt the entire CPU market.
Originally, AMD was planning to watch the show from the sidelines and watch the fight between tigers and tigers. As a result, before they saw Intel or Godson house collapse, one-third of their own land was destroyed.
This time, my heart was really bleeding.
Originally, they were still selling K6-2 and thought they could still sell it for more than half a year. This way you can still make money safely. After all, the performance is similar to that of Pentium, but the price is slightly cheaper. Then the K5 series is similar to the Celeron, and the price is a bit cheaper.
They just rely on being so cheap to occupy market share. Who would have expected that the market would suddenly change.
Pentium became Pentium 2, Celeron became Celeron 2. The Pentium 2 beat the K6-2, and they admitted it. After all, the high-end processor market has always been dominated by Intel. They never had the luxury of plundering. They were all satisfied to be able to share a small cup of rice.
But in the low-end market, they refuse to give up any ground. The results are now good. When Celeron 2 comes out, its performance is almost the same as their K6-2 processor, far behind their K5 processor.
Not only that, the price is avalanche. Originally, the Celeron sold for about 800, and the K5 sold for 600 or 700. It was cheaper anyway.
As a result, Celeron 2 now sells for 430 yuan! Is this something people do?
AMD President Jerry Sanders looked at the market price list in his hand with a depressed expression.
Celeron 2233,430 yuan, Celeron 2266450 yuan. The first generation of Huaxia Loongson costs 300, 430 yuan.
These three prices deeply hurt his heart.
It’s so inhumane!
"President, now in the Chinese market, our sales have dropped to single digits!" the secretary came over to report.
Single digit sales! This is no different from being eliminated by the market.
"What about global markets?" Sanders groaned.
"Uh..., the high-end market share is 8%, and the low-end market share is 1.3%!" the secretary said in a low voice.
Jerry Sanders' face twitched.
Originally in the high-end market, AMD's market share was about 18%. The low-end market is around 35%. As a result, a large chunk of the high-end market has now been taken away, and of course he recognizes this. Pentium 2 is just too powerful. However, he couldn't stand it when the low-end market was reduced to rubbish.
"Cy Young 2!" Jerry Sanders gritted his teeth.
"Where's our next generation processor?" Jerry Sanders asked.
The next generation processors are K7 and K6-3, both using 0.18 micron process. K7 is aimed at the high-end market, while K6-3 is aimed at the low-end market.
"It is planned to be launched in 1999!" the secretary reported.
Under normal circumstances, Intel would not launch Pentium 2 so early, and would launch Pentium 2 at the end of next year. After that, AMD will keep up. After all, AMD has been a chaser in recent years.
Who would have expected that after Intel was stimulated by Qin Feng, it would come up with laboratory products a year in advance. This leaves AMD speechless.
"Accelerate research and launch it as soon as possible!" Jerry Sanders snorted.
Jerry Sanders then held a board meeting to discuss the matter.
"If we launch K7 and K6-3 ahead of schedule, we will suffer huge losses!" Many directors are also worried.
This requires increased investment in research and development and the recovery of most CPUs on the market. Their losses would be great.
"If we don't follow up quickly, we will be eliminated from the market. K7 and K6-3 must be launched as soon as possible!" Jerry Sanders said.
It will be too late, and then there will be no place for them in the market.
K7 is a product comparable to Pentium 2. Of course, the performance will still be slightly inferior. But at least it can compete. It won't be beaten like K6-2. As for the K6-3, its performance surpasses the Celeron 2. Of course, the current price of Celeron 2 is a bit painful.
"As for money, don't worry, I will talk to investors!" Jerry Sanders said.
Nothing is more important to a company than funding.
Originally, AMD was not short of funds. After all, they can occupy more than 30% of the market share in the market as a whole. But after being disrupted by Qin Feng, they almost collapsed.
Therefore, the only option is to find the sponsor.
One person who has been supporting AMD is a consortium called ATIC in Abu Dhabi. These oil tycoon consortiums are never short of money. For them, investing a little money in AMD is just a matter of course.
Although, AMD's market share is currently losing to Intel every year. Intel has almost 80% of the market share, while AMD only has 20%. But for Abu Dhabi’s oil tycoons, it doesn’t matter if they lose a little money.
Therefore, this is also the reason why Jerry Sanders, or AMD, still has confidence in such a severe market.
"Money? No problem. How much!" the ATIC consortium in Abu Dhabi asked generously, "What is your annual income now?"
Jerry Sanders was slightly proud.
"Last year our annual revenue exceeded..." Jerry Sanders was about to proudly introduce AMD's market share and annual revenue last year.
When AMD was first established, there were only eight employees and no office space. They started their business in their own house. Now, it is a large company with more than 5,000 employees and sales of more than 2 billion US dollars.
But before he could speak, the tycoon from the Abu Dhabi ATIC consortium waved his hand.
"Don't tell me useless things. In one sentence, how much do you want?" The tycoon from the Abu Dhabi ATIC consortium asked casually.
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