Chapter 1723 IPHONE Big Price Cut

Everyone understood Feng Yu's plan, which was to let other companies go on the wrong path.

In this way, the product research and development of other companies will lag behind by a large margin again, and a lot of research and development expenses will be wasted. As a result, Fengfeng Electronics and others can lead by half a step, or even a position, so that other companies can only follow their footsteps.

In this way, the goal of leveling up the other directors' expectations can be achieved, and it will be easier.

No wonder Mr. Feng told them that wireless network technology must be the top priority in product design, and the original purpose is here.

After Feng Yu's explanation, the others had no objections. They can also see the huge benefits of doing so.

Although Feng Yu said that there is no need to do any work report, the others still picked up the important things and said some. Feng Yu also just listened, giving those people work affirmation, or giving a little advice.

For example, the software home of Lianxiang Yinshan is based on the software developed by Lianxiang Yinshan, combined with the software developed by many software companies, to establish such a network service base that provides software downloads.

Of course, some of these software are paid, while others are free. But most of them are based on the operating system developed by Lianxiang Yinshan, but there are also software based on other operating systems.

Software can create higher profits than hardware. Because the cost of software is lower, R&D costs may be comparable to hardware, but what about production costs?

To put it bluntly, software is a line of code, but hardware requires too much material, manpower, material resources, etc. Once the hardware fails, the cost will be wasted much more than the software.

For a software company, 500 core engineers are enough, such as the fruit company. But for a hardware company, the number of employees is extremely large. There are tens of thousands, or even more than 100,000 people in the factory alone.

This is why IBM's focus has shifted from hardware to software, and its profits have increased instead of falling. At that time, they were the leader in the hardware industry.

It is not innovative to download software for a fee, but Lianxiang Yinshan merged some small websites together, and sold the products of small software design and development companies on their platforms, thus making the platform's popularity suddenly Lift.

Many people say that mainstream software products can be found on this platform. Some relatively niche software can still be found on this platform.

Some people even say that if you want to find software with some functions, you can just come to this platform to search. It is more convenient than going to the store in Electronic City, and the price is similar.

There are also disadvantages, that is, after you download and install, once the system is reinstalled, the software may have to be purchased again. After all, the activation code for downloading and installing this software can only be used once. But in Electronic City, there are cracked CDs for sale, which can be installed repeatedly.

In the electronic city, after the continuous crackdown on pirated versions, this product is not easy to buy, but it is not absolutely impossible to buy. But not only in China, but also in the whole world, this kind of piracy exists, even in the United States and island countries, which are known for their excellent copyright protection.

Relying on the brand and reputation of Lianxiang Yinshan, this software download base is currently operating well, and has signed cooperation agreements with many software companies at home and abroad. The download fee, the software development company, has to be shared with the platform.

Feng Yu is very optimistic about this software park. Whether it is Microsoft or Fruit Company, don't they have such products. As for the software sales of the fruit company in the previous life, this kind of download base also contributed a lot, bringing a lot of profits to the fruit company every year.

Moreover, many products can selectively install functional software according to the user's own needs, thereby avoiding a large number of software in the product that users do not need at all occupying memory.

This model has certain advantages in the sales of mobile phones, computers and other products, and can also increase the sales of software.

And it also has a certain promotion effect on the brand of the enterprise, which serves multiple purposes.

Even when Yinshan wanted to do this, Feng Yu was the first to agree. Lack of money? It doesn't matter, shareholders take money out to inject capital.

At the beginning, when the first capital injection was spent and there was still a shortage of money, it was fine even if it was a loan, or the issuance of shares to raise funds. Anyway, this must be done bigger and stronger.

This is like AIWA's MP3 download website. MP3 players make money, but music downloads can also make a lot of money, and the combination of the two will achieve better results.

This time the temporary board of directors was over, and Feng Yu had another few days of leisure. There was another news from Ralph that the fruit company also set up a software download website, and the investment was not low.

All the software is either based on the fruit company's system or the application software developed by the fruit company based on other systems. The model is very similar to Lianxiang Yinshan's software park, and it can even be said to be exactly the same.

However, this website is not as popular as in the previous life, because Lianxiang Yinshan's software garden jewels are already there. But this business can also bring a lot of attention to the fruit company, and it will definitely bring a lot of profits in the future.

At the same time, this business also brought a trouble, that is, the construction of this website requires a huge investment. Internet companies burn money, which is well known.

The profit of the fruit company has dropped due to the bad economic situation this year. As a result, the performance of the new products IPHONE and ITOUCH launched cannot be said to be average, but rather poor.

This caused problems for the cash flow of the fruit company. Fortunately, they did not have many employees, but they urgently needed cash to ease their financial difficulties.

So the fruit company decided to deal with the inventory first. Among them, the two new products with the largest inventory are IPHONE and ITOUCH.

How to deal with it, there is only one way, price reduction and promotion.

This is an impossible method, and the price cuts of the two products have reached 40%, which can be regarded as breakeven sales. It can be seen how profitable their products were before.

As soon as this decision was announced, those consumers who bought the new product really quit. We bought it less than two months ago, and you cut the price by 40%?

The fruit company had to carry out crisis public relations. They promised the previous users that they would give a one-hundred-dollar software download discount, that is, spending on the fruit company's software download website could erase the one-hundred-dollar bill.

It seems to be giving consumers a discount, but it is actually a promotion for their software download website. This approach was unceremoniously exposed by Ralph.

Other companies also took the opportunity to step on their feet and began to denigrate the fruit company's approach, accusing them of fooling consumers.

The fruit company was caught in a storm of public opinion.

... (To be continued.)

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