Chapter 347 Done

Author: quiet thoughts

Chapter 347 Done

"For mainframes and other business-oriented computers, Hongchuan Electric will design optical drives separately.

From materials to design structure, we strive to be the best in safety and reliability.”

The design principle of Hongchuan Fengminghong for commercial purposes is not necessarily the best performance, but stability and reliability.

"What about pricing?" Louis asked immediately.

After Weiwei considered it for two seconds, Hongchuan Feng gave his innermost thoughts.

"A 2x speed business optical drive costs US$600, and a 4x speed business optical drive costs US$1,300."

"Very reasonable pricing" Louis was extremely satisfied with the price.

That would not be the value of an optical drive, and he even thought it could be a little higher.

A thousand dollars can buy hundreds of times the capacity of a floppy disk. Isn't that worth the money?

Louis knew that there would be a market for commercial computers no matter how expensive they were.

After all, the United States is a big country, and there are countless wealthy companies. They are definitely willing to pay for it.

Seeing Louis' expression, Hongchuan Feng felt that the price he set seemed to have room for improvement.

In fact, it’s not surprising when you think about it. Those business notebooks or desktop computers of later generations are considered rubbish in the eyes of gamers.

But the prices are basically less than 10,000, so a lot of companies purchase them in bulk.

As the name suggests, the product's stability is first-rate and it provides considerate after-sales service like door-to-door service.

In that case, Hongchuan Electric can also do it.

If you change the materials and add a chip, the price will increase by two or three times. Is it reasonable?

Facts have proved that not only is it reasonable, but even Louis feels a little shortchanged for him.

Alas, it’s true that my heart is dark.

"Okay, now that the price has been set, they should also talk about its channel fees."

Isn’t that the reason why Louis hopes that Hongchuan Electric’s price will be higher?

The more expensive the optical drive is, the more commissions IBM can get.

"Mr. Hongchuan, he thinks that given IBM's influence, they don't deserve 20%."

The lion facing Louis opened his mouth wide, and Hongchuan Feng spread his legs directly.

"Mr. Lewis, am I kidding? Hongchuan Electric's profits are not that much."

"Mr. Hong, he knows that our profit is definitely more than just 20%, and IBM takes a little of its profit.

Please think about it carefully. With IBM taking the lead in promoting it, optical drives will definitely be popular among other computer manufacturers.

By then, the optical drive will definitely become another revolution in the computer industry, and what a great thing it is."

Lewis spoke impassionedly, but Hongchuan Feng remained expressionless.

"Mr. Lewis, IBM is indeed great with a 20% commission, but Hongchuan Electric is losing money."

"Come on! Mr. Hong, we all know that the profit of optical drives is much more than that."

"Wait a minute, Mr. Lewis, fixed price! 10% off personal computers, 15% off mainframes and other business computers.

That’s their bottom line. No matter how much Hongchuan Electric Co., Ltd. can’t maintain the high-cost manufacturing of optical drives, the huge investment in R&D expenses in the early stage will never be recouped.”

Hong Chuanfeng looked at the two IBM representatives with burning eyes and slowly explained his reasons.

"Presumably IBM will also invest huge R&D expenses when developing a new generation of computers.

If IBM uses it to make profits to make up for its previous investment, then you don't deserve it.

Now Hongchuan Electric’s optical drive is in the same position, so they deserve it.”

Seeing Hong Chuanfeng's serious expression, Louis shrugged helplessly, "Okay, then we deserve it."

Phew, Hongchuan Feng quietly breathed a sigh of relief. It’s not easy to make concessions when faced with a giant like IBM.

"Bu Nao Hongchuan Electrical Appliances has to agree to one condition." Lewis, who had just retreated suddenly, added another sentence.

"What conditions?" Hongchuan Feng cheered up again.

"If 10% or 15% is given to IBM, other computer manufacturers should ask for at least three percentage points lower.

They must ensure that IBM computers equipped with optical drives have sufficient market competitiveness."

The commissions of other computer manufacturers are three percentage points less than IBM's, which means that IBM's purchase price is three points cheaper than theirs.

That way, when the overall selling price of computers is at , IBM can do something interesting.

For example, if it can offer a slightly better discount, and coupled with IBM's reputation, it can still maintain its dominant position in the computer market.

Hong Chuanfeng thought for a while and nodded in agreement with Louis' request. He wanted to borrow IBM's appeal, and that promise could not be guaranteed.

"Happy cooperation" concluded a business deal. Louis relaxedly picked up the champagne and gave Hongchuan Feng a slight gesture.

"It's a pleasure to cooperate." Hongchuan Feng took the wine glass handed over by the person next to him, and also gave the wrong person a glass of wine in return.

The sweet taste echoed in the mouth, and everyone breathed a sigh of relief.

"Mr. Hongchuan, the agreement with IBM is completed. So what are your considerations about the third-party authorization of the optical drive?"

We just stopped IBM's own business, now we can talk about the licensing issue of optical drives.

If IBM wants to determine the optical drive standard so actively, does it want to reap the rewards at that time?

As one of the parties formulating the specification, let’s get a share from the licensing fee, which is also the patent fee.

Hongchuan Fengming and Hongchuan had the wrong idea. Hongchuan Electric and IBM seemed to have decided not to do anything about the matter.

"Mr. Lewis, the optical drive standard wants to be recognized by many manufacturers. Can you invite some other companies to participate?

For example, Microsoft is responsible for software support. Without their participation, it would be difficult for optical drives to make major breakthroughs in the field of personal computers."

Hong Chuanfeng doesn't care about others, but he thinks it doesn't matter whether Microsoft is there or not.

Maybe IBM can decide on the mainframe, but whether it's a personal computer depends on Microsoft.

As far as Hongchuan Kaede knows, the system used by IBM's personal computer 5150 is not Microsoft's MS-DOS.

I think Niubi, like IBM, also wants to use Microsoft's system, not to mention other computer manufacturers.

Louis and Robert discussed it for a while, and then agreed to Hongchuan Feng's suggestion.

"If that's the case, then they should contact the main supplier outside the industry as soon as possible, and then work together to determine the specifications of the Dongguang drive.

It's very possible that at that time, Mr. Hongchuan will need to fly to the United States."

For example, most of the computer manufacturers that the world is looking for are concentrated in the United States.

If you want to standardize optical drives around the world, Hongchuan Feng will have to fly to the United States again.

"No problem, he is always waiting for Mr. Louis' call.

When will IBM's computers be equipped with optical drives?"

Louis raised his eyebrows and said with a playful smile, "I hope Hongchuan Electric can be fast enough. He can ensure that IBM computers can be added to the optical drive at any time."

It's just a matter of adding an optical drive for storage purposes, and it doesn't affect the layout of the computer at all.

Add an interface to the motherboard, leave a space for the optical drive, install the system software, and then it's ready.

As for any redesign, there is no need for it. Even if you think about it, it can be easily made into an external removable optical drive.

And whether it is a proper black technology, you don’t have to worry about whether it is acceptable to consumers.

Before the official launch, IBM will also do enough advertising, so Hongchuan Feng does not need to worry about that marketing issue.

After receiving Lewis's assurance, Hongchuan Feng also nodded with satisfaction.

He was so eager to ask about IBM's market plans, so naturally he wanted to make money earlier.

The optical disc factory in Chiba is about to start production, so there is no need to worry about the optical drive production line.

Some of the processes of the CD player are common to it and can be used if the production line is modified.

If things go well before the New Year, Hongchuan Electric's optical drive can be officially put into production, and then Hongchuan Feng will have to spend her confinement counting money.

As for the standardization of optical drives, of course we also need to discuss it.

The specific implementation time of the project can be later, at least until Hongchuan Electric's optical drives have been sold for a year and a half.

It is impossible for an inventor to monopolize the market, but otherwise the dividends cannot be guaranteed.

Exclusively occupying the global optical drive market for one year, although it is still a year in its infancy, if Hongchuan Electric can digest it, it will make a lot of money.

After reaching an agreement to cooperate with IBM on the optical drive market, Hongchuan Feng also put an end to a worry during that period.

After all, it is another major product related to the future of Hongchuan Electric, so we must be cautious.
To be continued...