The Light of Domestic Products: The whole world begs me to sell

The news of the substantial price reduction of Phoenix chips spread quickly.

Unlike mobile phone chips and car chips, which are not directly oriented to ordinary consumers, graphics cards and CPU chips are the first to be severely affected in the market.

Deep City, Hailong Building.

As the largest computer distribution center in Yan Country, even though it was already ten o'clock in the evening, the stalls were still brightly lit.

From time to time, a few words of Mandarin and dialect floated out of the stalls, and after every few words, I could always hear moaning and sighing.

If you walk into the stall and have a look, almost all the bosses are talking on the phone anxiously.

That's right.

The reason why Hailong Building is still so lively at 30 o'clock in the evening is because during the day, the Phoenix Group officially announced that it will reduce the price of all chips by [-]%!

The most important thing for stall owners who are extremely sensitive to news at this time is to quickly deal with the graphics card and CPU in their hands, so as to minimize the losses caused by this price cut.

Because everyone knows that once the price of Phoenix chips starts to drop sharply, it will inevitably lead to simultaneous price cuts of products from companies such as Inet and Nvidia.

这两年凤凰集团在CPU领域推出了青龙系列，其中，青龙1-3系列就是对标Inet的I3、I5、I7系列。

It is no exaggeration to say that the Qinglong chip is even slightly ahead of the Inet series in terms of performance.

It’s just that because Phoenix’s CPU originally adopted the same strategy as Hongguo Computer, they were only used on their own laptops and all-in-one computers, so retail CPUs were not put on the market.

Another reason is that the compatibility between the Qinglong CPU and other hardware in the computer needs to be resolved.

Assembling a computer is not the same as an all-in-one machine. All the hardware of the all-in-one machine is the same. The factory only needs to handle the compatibility of one hardware configuration before it can be put into production normally.

But once the Qinglong CPU is put into the retail market, the motherboard, memory, and graphics card that the Qinglong CPU will be matched with will become varied.

At that time, you can't say that our CPU can't be matched with any motherboard or memory, right?

and so.

Whether it is for the protection of consumers or for the consideration of word-of-mouth, the original Qinglong CPU was not in a hurry to launch a retail version of the PCU.

It was not until half a year ago that the Phoenix computer department was finally put into the market after it was compatible with mainstream hardware on the market.

It must also be said that the Phoenix Qinglong 1-3 series of CPUs have performed well in the market for more than half a year, which has brought a lot of impact to the CPU market that originally belonged to AMD and Inet.

The graphics card market is the same.

The performance of the 28nm "Yaoguang 280D-2050" graphics card originally launched by Phoenix Computer Division can almost match the RTX-2050 graphics card.

After Phoenix has the production capacity of 5nm GPU chips, coupled with the blessing under the NB-Y architecture, it now has the level of a full series of GPUs in the field of graphics cards.

The Phoenix high-end graphics card is renamed as the Suzaku series, and the whole series is benchmarked against Nvidia's full line of products from 1050TI to 3080TI.

Among them, the performance of the Suzaku Super MAX version directly surpasses the performance of Nvidia's top card - Titan graphics card, TITAN RTX 24G.

With such a rich product line and better performance than Nvidia, the Suzaku graphics card soon brought a lot of impact in the market just like the Qinglong CPU after it was launched on the market.

It’s just that because the prices of Phoenix’s products are similar to those of Inet and Nvidia, coupled with the brand awareness cultivated by consumers over the past decade, Phoenix’s CPU and graphics cards are still in the stage of small-scale expansion.

but.

If the price of Phoenix graphics card and CPU is greatly reduced, then the price/performance ratio will increase immediately, but then Inet and Nvidia will have to cut prices to protect their market share!

Thinking of this, Liu Gang, the owner of the "Haofang Computer" stall, shook his head helplessly.

30%!
The price cut of the Phoenix chip will not only be affected by Inet and Nvidia, but all those affiliated to the Inet and Nvidia line will be greatly affected.

Who will not be affected by the bottom-level distributors, the general agent in the Yanguo region, and the companies that manufacture chips? !
A 30% price cut without any warning, this is too fucking ruthless!
Just as he was sighing, he suddenly caught sight of a stall a few doors away and suddenly the lights went out, followed by the sound of rattling rolling doors.

Liu Gang took a closer look, and it turned out to be Li Mo.

Seeing Li Mo, Liu Gang felt better.

Li Mo is the authorized distributor of Phoenix Computer.

When Phoenix Computer launched the retail version of Qinglong CPU and Suzaku graphics card half a year ago, it publicly authorized a group of special dealers nationwide, and Li Mo happened to be the most enthusiastic one among them.

At that time, I remembered that after Li Mo became a special dealer, he purchased nearly 1000 million goods, so it's all right now.

Thinking of this, Liu Gang felt much better instantly, and there was an inexplicable smile on his face.

He looked at the back of Li Mo who was about to leave, and shouted from a distance:
"Mr. Li, you left so early?! How is your shipment going?"

"This big price cut of your Phoenix chips has made everyone miserable. This price cut will cost everyone at least 20%!"

When Liu Gang yelled, the bosses of several nearby stalls were attracted to come over. Taking this opportunity, the bosses of several stalls also asked each other about the situation with gloomy faces.

"Old Zhou, how is your shipment going?!"

"Don't mention it, I don't want to take the discount below 15 points. I have to get 20 points cheaper. This is even lower than my price, hey!"

"Be content, your situation is better than mine. I offered 20 points to the online stores I cooperated with and they didn't hesitate to ask me to save 22 points, and I had to cover the logistics fee. This time I really want to What a shame!"

Several people sighed and vented a few words, and their eyes finally fell on Li Mo again.

"Mr. Li, your Phoenix chip price has been reduced by 30%, how do you deal with your goods?!"

"I'm afraid you will lose a lot this time, right?!"

Li Mo's age is 34 to [-] years old. Compared with many bosses who have been operating computer hardware for decades, he looks much younger.

At the beginning, he was able to stand out from many special dealers, not only because he had enough understanding of the computer hardware industry, but more importantly, he knew the Phoenix Group very well, and was willing to accept the management style and corporate culture of the Phoenix Group.

After the sudden price drop of the Phoenix chip this time, he also felt at a loss for the first time.

But soon the manager in charge of the dealer channel issued an emergency notice in the group, which quickly calmed everyone's emotions.

Not only that.

Immediately afterwards, the channel manager called him in person, explaining in detail that the accident happened suddenly, and he did not inform the dealers in advance, which caused unnecessary trouble, and apologized in person for this.

Li Mo was really flattered.

In the end, the promise of the channel manager made him completely relieved of worries and firmly supported all the actions of the group.

The reason why he left so late today was not because he was in a hurry to sell the goods, but because he was trying to appease the terminal dealers below.

Looking at the bosses at the stalls in front of him, Li Mo suddenly felt a sense of relief, and said with a smile:

"My goods have not been processed, I am not in a hurry."

"Just now our channel manager called me personally. The group will make up for the loss we caused in the group's price cut this time when we purchase chips next time."

"So, do you guys think I'm in a hurry?!"

"Billed by the group?!"

Several stall owners present couldn't help but exclaimed, with surprised expressions on their faces.

Holy crap, is it true?
I have never heard that the commodity price reduction group will compensate the dealers!

Phoenix Group's policy towards dealers is too good, right? !

After a while, the few people who had a schadenfreude in their hearts suddenly became anxious.

I don't know who started it, but everyone's emotions immediately rose.

"Fuck, other people's Phoenix Group is paying the bill, we should also ask Inet's Yan Guo general manager if he wants to bear some of our losses!"

"Yes, who the hell got the money from the wind? If the price is reduced, there must be some kind of policy. If it doesn't work, I will sell the Phoenix CPU!"

"..."

……

soon.

The news that Phoenix Group paid the price cut price spread throughout the dealer circle.

The chat records and red-headed documents in the Phoenix dealer's WeChat group were also exposed on the Internet. Not only the dealers of other brands looked at it with envy, but even netizens called Phoenix conscience.

In fact, the dealers at the stalls can also find ways to reduce losses through the retail end before the storm comes.

And graphics card manufacturers, such as ASUS, GALAX, Gigabyte and other graphics card processing manufacturers, have completely felt their scalps tingling.

As we all know, the mainstream graphics card manufacturers currently on the market actually purchase GPU chips from Nvidia or AMD, and manufacture various types of graphics cards after purchasing corresponding authorizations.

This is the common N card and A card on the market!
To put it bluntly, these graphics card manufacturers ASUS, GALAX, etc. are also OEMs of graphics cards, and what they earn is hard money for processing!

obviously.

Once the price of the Phoenix chip is reduced by 30%, the ex-factory price of the graphics card manufactured by many graphics card foundries will inevitably be reduced.

It also means that if you buy this batch of graphics cards produced by Nvidia GPU chips at a high price, the production cost price is very likely to be higher than the sales price!

What's going on here?
and so.

When a large number of dealers were dissatisfied and hoped that the factory could bear some losses caused by price cuts, the major manufacturers wanted to cry but had no tears.

They are victims too!

After thinking about it, the OEMs called the North American headquarters one after another. They must know whether the Nvidia headquarters should follow the Phoenix Group to cut prices next.

If the price is reduced, can the previous inventory be subsidized for some losses caused by the price reduction? !
……

Before the feedback from foundry manufacturers reached North America, the stock market dealt a heavy blow to Nvidia and other chip manufacturers at [-]:[-] p.m. that night, that is, at [-]:[-] a.m. in North America.

Nvidia quickly fell by 15% after the market opened, and its market value evaporated by US$900 billion in the morning.

AMD fell 13.8% quickly after the market opened, and its market value evaporated 151.8 billion US dollars in the morning.

Inet fell rapidly by 9.8% after the market opened, and its market value evaporated by 120 billion US dollars in the morning.

It's a stock market crash!
The Wall Street consortia voted with their feet. Facing the sudden price cut by the Phoenix Group, all the consortiums realized that this might be the start of a bloody price war by the Phoenix Group.

A price war that subverts the pattern of the chip industry!

With the storm coming, at noon that day, the CEOs of Inet, Nvidia, AMD and Aramco's many chip industry chains couldn't sit still.

Under the coordination of the Wall Street consortium, many bigwigs called on the senior officials of the Ministry of Commerce and major congressmen to seek help.

When more and more news was fed back to the CEOs of major chip groups through capital, the CEOs of various chip manufacturers realized that this matter was not as simple as they imagined!
At first, everyone thought that the Phoenix Group suddenly lowered the chip price, but after collecting the recent information of the Phoenix Group, everyone discovered that this was most likely a retaliatory action by the Phoenix Group!
Soon, an emergency meeting called by the major chip companies of Aramco was held in the Federal Security Bureau!

All the top CEOs of Aramco's major chip companies were present, as well as key members of the Federal Security Service, senior officials and congressmen from the Aramco Department of Commerce, and several university economics professors were also among them!

At the beginning of the meeting, the atmosphere was extremely tense. The first person to speak was Parson, a strategic analysis researcher from the Ministry of Commerce.

"The current situation is very clear. After two years of production capacity expansion, the Phoenix Group has fully caught up with the production capacity. They are fully capable of fighting a price war with us on mid-to-high-end chips and competing for the market!"

"This also explains why they didn't take the initiative to engage in price wars before, and even took the initiative to maintain chip prices. They have been secretly dormant waiting for their wings to be full!"

"They suddenly and drastically lowered the price of chips without warning this time. I think they are well prepared and come prepared. Everyone should be ready to deal with the price war."

As a strategic analyst of the Ministry of Commerce, Parson is relatively clear about the Phoenix Group.

However, as soon as he finished speaking, he was strongly opposed by Inet CEO Pat.

"No, no, no."

"According to the information we have collected, it is true that Phoenix Group's production capacity expansion is true, but we do not believe that this is the reason for Phoenix Group's sudden price cut to initiate a price war."

"We think that the reason why they launched a price war is because of the embargo order. It is our overseas embargo order that angered them. This is their revenge against us!"

As he spoke, Pat looked at Miller of the FSB and several congressmen.

"Your intelligence should also know that the Phoenix Group recently tried to provide LNG to Europe, and their request was to open their own markets to let their products enter."

"But so far, no country has agreed to their request. The information I know is that we have put a lot of pressure on Europe!"

"Phoenix Group must have been annoyed when they found out about it. They hoped to take revenge on us thoroughly, and hoped to drive our chip industry out of Yan Country. For this reason, they even did not hesitate to start a price war!"

As the Federal Security Service, Miller, who is in charge of the intelligence of the Phoenix Group, is naturally aware of these situations.

Prohibiting Phoenix Group's overseas sales is to prevent Phoenix Group from expanding overseas and gradually becoming an unmanageable global giant!

But at present, this strategy seems to be gradually failing.

The counterattack force possessed by the Phoenix Group actually caused huge differences within the United States!

Before Miller could speak, Nvidia President Huang on the side was also a little bit up. Looking at what he said before, Parson, a strategic analyst of the Ministry of Commerce, said:

"Mr. Parson, I know you have a good relationship with Hongguo Group."

"However, preventing the Phoenix Group from expanding overseas will not affect Hongguo Mobile's global business, nor should our chip industry bear the Phoenix Group's revenge!"

"This matter is related to the survival of all our Aramco chip companies in a small way, but in the long run, it is related to the status of our US technology field in the world!"

"You have to understand that the reason why our Ami is so great is not just because we have a Hongguo Group!"

"We think it is very necessary. We must have a good discussion with Phoenix Group, and we can even meet their requirements. Finally, we reached an agreement on the chip price!"

Mr. Huang pointed at Parson mercilessly, obviously already very anxious at this time.

Parson touched his nose, whether it was what Inet CEO Pat said or Nvidia President Huang said, he was very clear in his heart.

but.

Once the Phoenix Group's overseas sales ban is really lifted, the Hongguo mobile phone must be the first to be greatly affected.

Therefore, as a senior member of the Ministry of Commerce, as an official with a good relationship with Hongguo, he will not let go easily.

"negotiation?!"

"Impossible! And you are sure that after you release the Phoenix Group in overseas markets, they will really not engage in price wars?"

"Can your chips really compete with them in overseas markets?!"

No one expected that the chip interest group headed by Inet and Nvidia would directly compete with the mobile phone capital headed by Hongguo just after the meeting started!
Due to practical pressure, chip companies all hope to reach an agreement with the Phoenix Group. After the two parties negotiate, they will use the figured out pricing to cut leeks from all over the world.

After all, they are the only ones in the world who can produce chips, and a price war will only make it cheaper for those who really need chips!
And the capital headed by Hongguo doesn't want the Phoenix Group to enter the overseas market at all. They know in their hearts that once the Phoenix mobile phone enters the global market, it will definitely be a massacre!

At this moment, for the capital of both parties, it is a dead poor and immortal fellow Taoist!
Seeing that the debate between the two sides is getting more and more intense, Director Miller can't help but feel that the Phoenix Group is really good at finding opportunities!
One is to take advantage of the strong demand for LNG in European countries, so that Europe is subjectively very eager to reach a deal with Phoenix, which puts enough pressure on Aramco.

The second is to directly use the high price war in the chip industry to put enough pressure on it, so that there will be huge differences within itself.

Next, this matter is really difficult to break the situation!
But when the meeting was noisy, an even more shocking news came again.