Chapter 34: Huge Profits and Mentality

(This chapter seems a bit watery, and my writing is a bit messy.)

Denialists say that the artificial intelligence voice assistant [Xiaolan] of [Dasheng Mobile] may be unique in the gaming field, but it has not broken through the development of current technology.

And it still uses a backward 28-nanometer chip processor.

Although [Monkey King Mobile] is well optimized in this regard, it allows 28-nanometer chips to run large games like [Honor of Kings].

However, its lowest price of 13,888 yuan is still too high.

The price is probably about four or five thousand.

In short, in one sentence, it’s not worth it!

The affirmatives were almost speechless.

Some of the affirmatives who were not firm enough also lost confidence in the face of such detailed [evidence], and recognized the arguments of some negatives, believing that [Monkey Mobile]’s price of 13,888 yuan is too high.

They criticized [Chaoqun Group] for wanting to make money and going crazy.

With low-level configuration, but want to make the highest-end money!

[Chaoqun Group] is more ruthless than Apple.

We must know that the material cost of Apple’s latest [Apple 12] is US$373, which is about 2,500 yuan when converted into RMB.

The bulk of the material cost is the screen. The OLED screen of [Apple 12] (including screen driver chip, etc.) is US$70, the A14 processor is US$40, the memory and flash memory are US$32 in total, and Sony CMOS is about US$8.

However, this only includes the cost price of the hardware, and does not include the cost of hardware transportation, assembly, and research and development.

If the costs of R&D and assembly are added, its cost price is no more than 4,000 yuan.

Calculated based on 4,000 yuan, the price of [Apple 12 64gb] is 6,299 yuan, and the average profit per unit is 2,200 yuan.

Apple’s annual sales of mobile phones are around 200 million units.

This means that Apple’s gross profit from mobile phones alone has reached 440 billion yuan.

Of course, this is gross profit.

In the past 2020, Apple's net profit reached 100 million U.S. dollars, which is 366 billion yuan when converted into RMB, which is tens of billions more than the net profit of [Chaoqun Group].

Of course, this is 2020 data.

[Snow Banana] in 2020 has just entered the production expansion stage, and the outbreak will be in 2021.

The general environment in 2021 is as bad as ever.

Global demand for [Snow Banana], a product that can effectively enhance immunity, is strong.

This is more effective than a vaccine!

And this will bring exaggerated performance growth to [Chaoqun Group].

Only xx testing companies have such exaggerated performance growth in 2020.

For example, [Daan Gene] is a leading company in the testing industry.

It was almost going bankrupt in 2019, with a net profit of only 100 million yuan a year.

Seeing that his business was about to die, the environmental factors sweeping the world made him turn around. Just by placing orders for testing reagents, he earned 100 million yuan in the first quarter of 2020. Net profit, in one year in 2020, their net profit was as high as more than 2.2 billion yuan, which is four times more than what he earned in the previous five years combined.

There is also [Shengxiang Biotechnology], which is the company with the highest growth rate in the field of testing.

Its net profit in 2020 has soared to 2.52 billion-2.77 billion yuan. Compared with previous years, the growth rate of net profit has been 70 times, and its founder's net worth has also risen to 150 billion yuan. Directly entered the Forbes rich list.

The related performance growth of [Xuejiao] will only be more exaggerated than the growth of this type of testing industry.

Because this is an exclusive product.

Highly monopolized products.

It is difficult for the outside world to attack [Chaoqun Group] through anti-monopoly and force it to reduce prices!

This is the attitude of [Super Group].

If you want to force me to lower the price, then I won’t sell to you.

If you have the ability, don’t do it!

The outside world also hates it with itch but can do nothing about it.

[Chaoqun Group] has always been criticized by the outside world for its tough style, but it often has nothing to do about it.

Sitting on one of the world's best unified markets makes it invincible.

No matter how blocked the outside world is, it cannot be allowed to die.

To the outside world, many of [Chaoqun Group's] products are just that--they smell really good!

It's not like other industries.

Like [Google], it has a monopoly position on the European continent, but it is not irreplaceable.

The EU often issues sky-high fines to [Google].

For example, on June 27, 2017, the European Commission announced that the Internet giant [Google] had violated EU competition regulations and therefore fined Google 2.42 billion euros (approximately US$2.7 billion).

In July 2018, the European Union issued a sky-high fine to [Google], fining it 4.3 billion yuan, which is approximately more than 30 billion yuan.

In the past ten years, [Google] has been fined more than 8 billion euros and more than 60 billion yuan.

But the EU dares to fine [Google], but it dares not fine [Chaoqun Group].

Of course, this may also be related to the fact that Chaoqun Group’s business has not gone overseas on a large scale.

Retail brands such as [Shennong Orchard] and [Xiao Xianrou], and FMCG brands such as [Jiawei Brand Seasoning], are mainly developed domestically and have almost no overseas expansion.

Products or services that are expanding overseas on a large scale, namely [Smart Fitting Room], [Snow Banana] and their related products.

If [Chaoqun Group] invests heavily overseas to develop businesses such as [Shen Nong Orchard] and [Little Fresh Meats], it will be handing over the handle to others.

If the governments of other countries see you unhappy and find excuses to fine you, it will be difficult for you to "stay alone".

Otherwise, if you disobey, fail to pay, and the property you invested in is confiscated, the sunk cost will be too high.

For example, in the future that Wu Siyuan sees in 2022, some of his fellow smartphone manufacturers will be in a dilemma due to being punished by the Tianzhu government.

That's too far.

anyway.

The gross profit of [Apple mobile phone] is high, but the gross profit of [Monkey King mobile phone] is even higher.

The material cost of [Apple 12] reaches US$373, while the material cost of [Dasheng Mobile] will not exceed US$150, which is about 1,000 yuan when converted into RMB.

Including other R&D, logistics, assembly and other costs, the total will not exceed 2,500 yuan.

If it can be sold at a price of 13,888 yuan, its gross profit will reach tens of thousands of yuan.

Five times that of an Apple phone.

The premise is that [Great Sage Mobile Phone] must be sold in a certain amount.

Otherwise the cost will rise.

How much can [Monkey Mobile] sell? How many people are willing to buy it? How has the market responded?

This is an issue that Yao Dong and a series of executives from [Dasheng Mobile Phone Company] are concerned about.

If only tens of thousands or hundreds of thousands of units are sold, it goes without saying that it will definitely be a loss.

The company has [Chaoqun Group] behind it, so it may not go bankrupt.

But it must be a major blow to the company.

Wu Siyuan didn't seem to care very much. His mind was now on the [Elephant Weather] app.

Only Yao Dong and other related business executives have been nervous.

With this mentality, at nine o'clock in the morning on June 24th, [Monkey Mobile] will be on sale across the entire network!

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