When Kangmaode lowered the price of c64 to $399, computer manufacturers in the computer market confirmed that they were experiencing a fierce price war.

Computer manufacturers sadly expect that the era of computer profits is over!

This trend of computer product sales began in the mid-to-late 1970s. Since Apple led the personal computer market, the first round of price drops in five years has been hit. Many computer manufacturers were forced to drag into the competitive vortex of several large computer manufacturers before they had time to make full preparations.

The c64 was launched in January and was still $595, but its price dropped sharply to $499 in February. Unexpectedly, as the price of Pentium Dell and two computer companies was suppressed, Kangmaode's products had to be reduced by $100!

However, Kangmaode's continuous price cuts have had a very bad impact on consumers' minds and has caused a very serious blow to the brand image. At first, they reduced the price by nearly one fifth one month after the new product was released. After that price adjustment, many buyers who had already spent $595 to buy c64 computers had complained.

What's more, consumers who buy low-end computers are basically students with no income. These people will use the products after buying them. ∴Young people will not be able to choose new products. After Kang Maode suddenly lowered the price, the buyers regretted losing money in vain. What made them even more concerned was that Kang Maode didn't say anything about it in advance, and the price cut in less than a month seriously hurt the feelings of consumers.

Now the company suddenly cut the price of C64 computer by 100 US dollars to $399. Although Kangmaode still expects miracles in the market, their successive behaviors that damage consumers' feelings are difficult to gain support. Consumers no longer believe in this company. They are afraid that after buying C64 computers, the company announced a price reduction. It is not worth buying C64 computers at all!

"Continuous price cuts may be the biggest mistake Kang Maode made. They regard consumers as fools and let them deceive them!"

The wall fell and everyone pushed it. The market was full of people who said bad things about Kang Maode. There was no need for Lin Johnson to deliberately slander it. Many manufacturers hated Kang Maode and his owner Jack Choumo to death. When Kang Maode was in a crisis, they didn't mind kicking it off the cliff.

"The sales are far beyond expectations!"

Lin Johnson looked at the financial statements and said that Dell Computer had just been launched for more than a month, and the orders for incoming calls had exceeded 20,000!

This is just the beginning that consumers still have a wait-and-see mentality about direct sales. After the products continue to reach the buyers and establish a good reputation, Lin Johnson believes that orders will increase significantly!

"The market price of c64 has been lower than $399, which is cheaper than our Celeron computer! Will there be any recurrence?" Li Jing asked Lin Johnson with some difficulty.

Lin Johnson smiled and shook his head and said, "No, Kang Maode's two price cuts have greatly damaged the image of their company. Consumers no longer trust this company, so fools will buy their products! We need to summarize experience. Whether it is their own or their opponents, Kang Maode is bad. If the price is not reduced to the bottom line all at once, it always holds the appetite of consumers. Kang Maode can still do whatever he wants when there is no strong competitor in the market, but once a strong opponent appears in the market, they will hesitate to drag and drag, and the ending will be like Kang Maode!"

"Ha" Li Jing smiled. This time the opponent did make mistakes. She didn't expect Jack Chuimo to make such a mistake in the short term, as if he was fooling the market, and Kang Maode's irresponsible behavior towards the market soon caused a backlash.

"Sister Jing, tell Lao Wang to add another effort and take advantage of the current difficulties of Kangmaode Company to completely defeat it! Kangmaode's subsidiary touched S Company's 6502 chips, which is their biggest reliance. With this low-priced chip, they have the basis to launch low-priced computers! We must let our Cyron chip replace the 6502 market and completely kill our opponents with one stick!" Lin Johnson said solemnly to Li Jing.

Li Jing nodded and said, "He has reached an agreement with game manufacturer Atari. Atari has ordered 3,500 chips for their arcade products, and many computer manufacturers are also ordering chips from us."

"Arcade?" Lin Johnson-John was not very familiar with arcade products in the 1980s. He only knew that the American home gaming console industry would encounter a collapse crisis.

"Yes, Atari wants to test the market. I believe they will recognize Ceyron chips later. Our products have too many chips with 6502 in performance! It is said that the screen performance is good. I haven't seen the prototype yet. Do you want Huichang to send one?" Li Jing looked at Lin Johnson and said.

With the new processor, the original program must be ported before it can be used. There are also several prototypes in the headquarters in Silicon Valley.

"3,500 yuan? It's a big improvement. Let him take it in the field of Li and microcontrollers and industrial control, and cannot be spared!"

Li Jing nodded and wrote it down. Lin Johnson continued: "Cyron Computer Pentium Computer is not bad in terms of software compatibility with ibmpc, but the hardware needs to be strengthened!" Lin Johnson said.

"Will this cause ibm to sue? They have called us and warned us to check whether our products have touched ibm's intellectual property!" Li Jing said unnaturally. After all, no one wants to arouse the anger of the Blue Giant, and it is also very troublesome to sue this company!

Lin Johnson snapped his fingers and said, "Whoever is compatible with ibmpc can win the market. Whoever is not compatible with will be eliminated by the market! Since the launch of ibmpc, they have almost swept the market in the business field. Their standard is computer standards! Forget it, let Compaq's Rhodes and others do it. I believe they will handle the relationship with ibm well."

Li Jing frowned. Lin Johnson said this and made her puzzled. Why can Compare well?

She and Wang Huichang naturally knew that Lin Johnson had a Compaq, which was in Texas, another electronic technology center in the United States. They knew that the company was founded at the same time as Pentium Computer, but from various performances, Lin Johnson's control over this company was not as tight as Pentium Computer. He gave Rhodes and others a lot of freedom to completely let them run the company and rarely make suggestions.

Lin Johnson is more like an investor at Compaq, which also puzzled Li Jing and Wang Huichang. This is not like the traditional Chinese businessman's style. Why can Compaq make Lin Johnson do this? Could it be that Rhodes and others are better than their couple? Perhaps the three of them are real Americans and they are Chinese?!

Just like Li Jing knows, Lin Johnson rarely asks about Compaq, but only puts forward some suggestions and requirements in the early stages of its establishment. Rod and the other two were originally engineers of Texas Instruments. In history, each of them paid $1,000 for founding Compaq, a series of decisions after each of them paid $1,000 for founding Compaq, showed their correctness. Therefore, Lin Johnson decided from the beginning to interfere less in the decision-making of Compaq and tried to be the role of only an investor.

Because Compaq is the most correct way to imitate ibm, and is better than others. Lin Johnson is worried that his intervention will change the company's development path, which is not worth the loss!

As for the failure of Compaq in the late 1990s, it had nothing to do with the three founders. He gave Rod 6% of each of them, asking them to operate Compaq as their own company. After Compaq's success in his previous life, the founders did not have so many shares. They also knew that after Lin Johnson invested heavily in building his own laboratory factory, they should not ask for more. Moreover, it was good that many founders could save the company in the end. Many founders usually ended up being swept out by investors.

Lin Johnson rarely interferes in Compaq's decisions, which gives the three of them a lot of room for play. Rhodes and others adopt the spirit of cooperation with ibm in their business. Since ibm's PC computers have used a large number of ready-made components on the market in an unprecedented way, many companies have seen opportunities.

Rhodes reached an OEM agreement with ibm, and Compaq designed a micro-portable computer to be handed over to ibm for OEM. Therefore, this portable computer became the first personal computer to be recognized by ibm to be compatible with it. Through this method, ibm's friendship was obtained, so Compaq was not just a counterfeit ibm. They used many tricks. At the same time, Compaq produced this portable computer itself and sold it to the market.

Rhodes cleverly made people recognize the Compaq brand because their products were promoted as the most successful compatible machine of ibm, and cleverly used the Blue Giant to advertise himself.

Even when low-priced computers hit the market, consumers also highly recognize Compaq's portable products. Their computer is exquisitely designed and has stronger graphics capabilities. It is much smaller than ibmpc and many ibm-compatible computers. It is indeed a rare and good product!

Compaq has priced its first product at $3,590. This computer has also sold quite well in the gaps in the high-end model market since ibm launched ibmpc. Its sales have exceeded 15,000 units since its release at the end of last year and March! (To be continued...)

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Chapter completed!