Reborn since 1993

Chapter 724 Thirty Years in Hedong, Thirty Years in Hexi

After visiting the collection room at Dongling Hi-Tech's headquarters, Ed Fries and the others gradually calmed down when they arrived at the conference room.

In fact, Dongling Hi-Tech's performance in recent years has been really impressive, and none of its products have failed. Now that Microsoft has teamed up with Dongling Hi-Tech to cooperate on hardware projects, it is natural that they can't help but have some fantasies.

Sitting opposite each other, Ed Fleiss adjusted his thoughts and spoke first, "To be honest, President Bill Gates and the Microsoft board of directors are very satisfied with the stargazing digital video recorder developed jointly with Dongling Hi-Tech!"

"Microsoft hopes that this product can meet expectations. This is the beginning of the cooperation between Microsoft and Dongling Hi-Tech!"

Ed Fries said meaningfully that Microsoft had signed a series of cooperation agreements with Dongling Hi-Tech.

There are two main areas of collaboration. First, Microsoft licenses its operating system to the MIPS architecture chip developed by Dongxin Semiconductor.

The second is that Dongling Hi-Tech is cooperating with Microsoft on a hardware project!
These two are complementary and indispensable. In other words, if the hardware project that Dongling Hi-Tech cooperates with Microsoft is not ideal, it is hard to say whether Microsoft will continue to cooperate with Dongling Hi-Tech on software projects.

Hearing these words that were a bit intimidating, Ren Yuefeng, Zhang Ao and others all looked a little uneasy.

You have to know that the two sides are in a cooperative relationship, and Dongling Hi-Tech is not a subsidiary of Microsoft, but Microsoft's attitude is indeed a bit arrogant.

Ed Fleiss was aware of the attitude of the people at Dongling Hi-Tech, but he didn't care. Both sides got what they wanted.

But, in the end, Dongling Hi-Tech needs Microsoft more. The Shenzhou computer project that Dongling Hi-Tech is developing cannot be separated from the Microsoft system.

Although Microsoft's hardware projects may be hindered without Dongling Hi-Tech, it will not be a serious blow to the giant Microsoft. This naturally allows Microsoft to take the initiative in the cooperation with Dongling Hi-Tech.

Knowing this clearly, Ed Fries is not worried that Dongling Hi-Tech will turn against him.

"Of course!"

Li Dongling looked calm. Microsoft's attitude was actually the same attitude that a foreign company would have when cooperating normally with a domestic company.

Even though the cooperation between the two sides is mutually beneficial and there is no question of who is gaining the upper hand, those foreign companies still have an inexplicable sense of arrogance and superiority.

To use a line from a TV series to describe the mentality of foreign companies like Microsoft, when facing domestic companies, it is like this: "Minglou, kneel down, I beg you for something..."

Just as Ed Fleiss expected, it was impossible for Dongling Hi-Tech to break off cooperation with Microsoft just because of Microsoft's arrogance.

However, as the saying goes, things change over time. It is true that Dongling Hi-Tech needs help from Microsoft now, but who can say that one day Microsoft will not ask Dongling Hi-Tech for help?
“The Microsoft board of directors should have reviewed the prototype of the Stargazing digital video recorder.

As long as the publicity is done properly, there should be a market for stargazing digital video recorders in areas with large middle-class families such as America, Canada, and old Europe!"

Li Dongling said that, to put it bluntly, the stargazing digital video recorder is prepared for middle-class families.

Ordinary families cannot use it, and the upper class looks down on television as a form of entertainment. It is most suitable for middle-class families who have some money but not too much, who still need television as entertainment but always don't have enough time.

"Microsoft headquarters believes that the Stargazing Digital Video Recorder should be more popular in order to achieve higher sales!"

Ed Fries coughed and said, to put it bluntly, Microsoft was dissatisfied that Dongling Hi-Tech's price for the stargazing digital video recorder was too high and was worried that it would affect sales.

Li Dongling looked at Ren Yuefeng, Hu Zixian and others. They did not expect that Microsoft would make such a request.

Li Dongling turned his head and glanced in the direction of Chen Tao, the general manager of the technical department, who immediately said, "The Stargazing Digital Video Recorder is priced at $320. To be honest, we are only just keeping the cost line!"

"IBM's 8G memory costs about $125!"

"The chips, motherboards, circuit boards, shells, and assembly of the StarGuan are all produced by Dongling Hi-Tech, which reduces the cost to around US$280. ​​If it were produced by any other manufacturer, it would be impossible to achieve such a cost.

The production cost is $280 and the retail price is $320. If mass production fails, Dongling Hi-Tech may lose money!" Chen Tao complained bitterly.

At Dongling Hi-Tech, the actual cost of producing and assembling a stargazing digital video recorder is around US$225. After large-scale mass production, the cost can be further reduced.

But this is the internal cost price. When the quotation was provided to Microsoft, it became US$280. ​​This cannot be called cheating Microsoft, it can only be regarded as loss cost. The machine was pulled from Hansi to the other side of the Pacific Ocean, so shouldn't there be loss cost?
What? They say Dongling Hi-Tech is cheating Microsoft. But can they cheat more than those scumbags in northern Myanmar? They even paid taxes on air depreciation.

No matter how deceptive they are, they can't outsmart those American Commissioner Smiths. They charged $90,000 for just a bag of screws.

Compared with them, Dongling Hi-Tech can only be considered kind-hearted.

Even though Ed Fries was not very clear about Dongling Hi-Tech's tactics, he had some expectations in his mind.

However, what Microsoft cares about is not how much money a Stargazing Digital Video Recorder can make, but sales volume, which is what Microsoft cares about most.

Microsoft holds 40% of the shares of the Stargazing DVR. Once the machine sells well, Microsoft will have a lot to do. "Li, Microsoft can accept that the Stargazing DVR will not make a profit for the time being, or even make a loss. The most important thing is to increase the sales of the Stargazing DVR!"

Ed Fries simply pierced that window paper.

"This is impossible!"

"Microsoft can lower the price of Stargazing or even sell it at a loss in order to increase sales, but Dongling Hi-Tech cannot accept that!"

Ren Yuefeng also said directly that it is impossible for Dongling Hi-Tech to lose money just to gain publicity for Microsoft.

"Increased sales will also be beneficial to Dongling Hi-Tech. Once we gain the market, Stargazing will be able to gain more profits in the future!"

Ed Fleiss used Microsoft's usual tactics, spending money like crazy in the early stages to grab market share and then slowly making back the money in the later stages.

In the past, Microsoft's Xbox console, as well as tablet computers, laptops and other projects, were all played in this way. Some of them were successful, while others failed miserably.

But for Microsoft, those are not a problem. As long as they can sell the machines, they make money. They are rich and generous. They spend money. Either they use money to kill their opponents, or no money is used at all.

But Microsoft dares to play this kind of game because its health pack is thick enough. Dongling Hi-Tech does not have such a thick health bar. It will use a set of Seven Wounds Fist against the enemy as soon as it comes up. No matter whether the enemy is dead or not, it will be seriously disabled.

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"I'm really sorry, Dongling Hi-Tech cannot agree to Microsoft's proposal!"

Li Dongling also told Ed Fleiss that Microsoft wanted to increase its stock price by relying on the sales of Stargazing digital video recorders, and it did not care much whether the machines made a profit or not.

But Dongling Hi-Tech is not a listed company. It makes money from selling machines and will not make huge losses just for the sake of sales.

Upon hearing this, Ed Fries's face showed disappointment. He came here on behalf of Microsoft in order to lower the price of the Stargazing Digital Video Recorder, but Dongling Hi-Tech obviously rejected Microsoft's proposal.

"However, Mr. Ed Fries, the promise I made to you when I was in America is still valid!

Perhaps it won’t be too late to make a decision after the sales of the Stargazing Digital Video Recorder are released! ”

Li Dongling reminded Ed Fliess.

When Ed Fries heard this, he suddenly remembered what Li Dongling said to him when they met in America last year.

Last year, Li Dongling mentioned to him that to show the sincerity of the cooperation between the two companies, after the Stargazing digital video recorder was released, if the sales volume reached the expectation and Microsoft wanted this project, then Dongling Hi-Tech could transfer this project to Microsoft.

Of course, Dongling Hi-Tech will definitely charge a part, but it is just a "negligible" transfer fee.

Just like those "popular shop subleases" on the street, if Microsoft wants to take over a popular shop that makes a lot of money every day, it will have to pay a transfer fee.

When Ed Fries heard this, he understood what Li Dongling meant. Once the sales volume came out, Microsoft could just buy the stock price of the digital video recorder project if it wanted it.

By then, no matter what price Microsoft sells its digital video recorders at, even if it sells them at a bargain price, it will have nothing to do with Dongling Hi-Tech.

Hearing this, Ed Fries had no choice but to suppress the thought in his mind. Everything would have to wait until the Stargazing Digital Video Recorder was actually launched and put on sale.

Nodding, Ed Fleiss said, "I hope the digital video recorder project can be put into mass production as soon as possible!"

"We have already prepared the production line, but as one of the major shareholders of the Stargazing digital video recorder and also the agent in America, we hope that Microsoft can take on the task of promoting the Stargazing digital video recorder in America!"

Ren Yuefeng also took the opportunity to say that Microsoft is the second largest shareholder of Guanxing Digital Video Recorder, but it cannot just eat and do nothing.

Compared with Asia and old Europe, Tanglin Hi-Tech's influence in America is much weaker, both in terms of sales channels and publicity channels.

Since Dongling Hi-Tech was founded, the two markets it has worked hardest to develop are Southeast Asia and old Europe.

This is completely different from other companies' overseas trips that prefer America.

This time, the stargazing digital video recorder will be first launched in America, so it will definitely have to rely on Microsoft, the local leader.

Dongling Hi-Tech does not have enough influence in America, but Microsoft does. With it promoting Stargazing, why would it be afraid that Stargazing would be targeted in America and unable to distribute its products?

Do you really think that the world's largest company by market value is so easy to control? !

(End of this chapter)