Chapter 272 Sugon Technology’s Profit Situation

Style: Science Author: Dr. YingmanWords: 2224Update Time: 24/01/18 04:01:46
However, when the outside media reported in a shocking manner that the rice mobile phone company had achieved an astonishing sales volume of 1.13 million units on the first day.

In the headquarters of Sugon Technology, Lin Chen is also counting the profits of rice phones.

First of all, as a low-end mobile phone, rice mobile phones cannot earn as much profit as mid-range mobile phones or even high-end mobile phones.

Therefore, the profit of a single mobile phone of Sugon Technology is really not high to be honest. Compared with the profit of mid-range mobile phones and high-end mobile phones, it seems a bit small.

Although the price of rice low-end mobile phones is very high compared to other domestic low-end mobile phones, the configuration of rice phones is also very powerful and cost-effective.

Therefore, although the price is high compared to other low-end mobile phones, the actual profit earned is not high. After all, the brand feature of this rice phone is its focus on cost-effectiveness.

As for the profit of a single rice phone, what is the profit?

First of all, because the main feature of the rice mobile phone brand is cost-effectiveness and relies on large-scale sales, Sugon Technology does not want to make too much money with a single mobile phone.

In this case, although there is a difference in the price of rice's high-end and low-end mobile phones, the difference is mainly due to the difference in price caused by the increase in hardware costs, so the profit difference between high-end and low-end mobile phones is not too big.

If we look at the sales volume of 1.13 million units, plus small advertising costs, each rice phone can earn about 170 yuan in profit on average.

This profit is extremely high among domestic mobile phone brands, but it is not high for Sugon Technology.

After all, compared with the average profit of a single mobile phone of Sugon A2 of 380 yuan and the average profit of a single mobile phone of Sugon F2 of 410 yuan.

On average, two rice phones need to be sold to equal the profit from one Sugon mid-range phone.

Of course, in the eyes of others, Sugon Technology's regrets are just moaning for no reason, and it is a naked show off!

After all, many domestic mobile phone brands can only make a few dozen yuan in profit from selling a low-end mobile phone.

At this time, Sugon Technology can earn 170 yuan from selling a low-end mobile phone, which is still too little. Isn’t this a show off? !

Moreover, Sugon Technology has its own mobile phone chip, its own three-axis acceleration gyroscope sensor, a WIPI wireless communication chip that replaces Bluetooth, and it can produce complete mobile phones...

The fact that the rice phone company earns less does not mean that the parent company Shuguang Technology earns less. After all, those mobile phone parts and rice phone complete machines cannot be used to help rice phone production without making a penny of profit, right?

Brothers have to settle accounts openly!

In this way, the rice mobile phone company may not earn much, but by relying on the left hand and the right hand, Shuguang Holding Company at the top of the entire pyramid definitely earns quite a lot!

So if someone claims that Sugon Technology can earn 40% of the selling price by selling a mobile phone, many people really believe it!

But unfortunately, it has always been a mystery how much profit Sugon Technology can make from selling one mobile phone, which owns many mobile phone spare parts and self-produced mobile phones. Outsiders do not know how much profit Sugon Technology can make from one mobile phone.

After all, Sugon Technology is not a listed company and has no obligation to disclose financial statements. Therefore, people do not know and have no way of knowing how much profit Sugon Technology can make from selling a mobile phone.

However, people know that Sugon Technology will once again enter a state of full production and full sales!

After all, it created a terrifying sales volume of 1.13 million units on the first day. How difficult is it to maintain a sales volume of 25 million units in the next year?

Taking a detailed look at the many low-end mobile phones in the world, there is really no low-end mobile phone that can compete with rice phones. In this case, the future of rice low-end mobile phones is completely stable!

"Although low-end mobile phones are stable, there are too many projects that need to be developed now!"

At this time, Lin Chen's eyebrows were furrowed and he felt quite a headache.

Sugon Technology is involved in many businesses such as mobile phone screens, mobile phone chips, mobile phone lenses, mobile phone sensors, mobile phone complete machines, and chip production.

Under these many businesses, Sugon Technology required more and more R&D expenditures, which eventually led to the phenomenon of being unable to make ends meet.

Not to mention that Sugon Technology is still burdened with a loan burden of 41.8 billion, so although Sugon Technology has made huge profits from mobile phones, it is actually unable to make ends meet...

"Boss, I suggest you wait half a year, wait until we have large-scale mass production of mid-to-high-end mobile phones and have substantial income, before we develop semiconductor production equipment."

When Lin Chen had a headache, Rebus, the general manager of Sugon Technology, gave his advice.

The reason why Rebus said this at this time was because when he heard that Lin Chen was planning to spend a large amount of money to develop semiconductor production equipment, Rebus came over specifically to advise Lin Chen to take a moment.

After all, facing the current situation where each business requires funds for research and development and needs to pay off loans, Rebus naturally does not recommend entering the semiconductor production equipment industry immediately and adding another R&D expenditure burden.

In Rebus’s opinion, the company should wait for half a year and wait until Sugon Technology solves the problem of self-production of mid- to high-end mobile phone parts and can make money by mass-producing mid-to-high-end mobile phones before entering the semiconductor equipment industry.

After all, according to the current backwardness of semiconductor equipment in Daxia, you can tell with your eyes closed that you will definitely not be able to make any money in the next two years. There will only be R&D expenditures without any return.

Under this circumstance, Sugon Technology is really not qualified to enter the semiconductor production equipment industry at this time, and it is not qualified to spend money!

"But time waits for us."

Faced with Rebus's suggestion, Lin Chen sighed deeply, then rubbed his eyebrows with a headache, feeling quite helpless.

Lin Chen certainly knows that Sugon Technology is currently short of money, and also knows that each business requires a lot of money for research and development.

But the outside world will not give Sugon Technology a chance to develop slowly, although the fact is that it can be developed after half a year as Rebus said.

However, if Sugon Technology develops semiconductor production equipment later than half a year, the launch of 90-nanometer process technology will be half a year later, and the launch of Sugon Technology's 90-nanometer mobile phone chips will also be half a year later.

Now the Phoenix S2 mobile phone processor can beat the OMAP1750 mobile phone processor. This is actually a fluke and the result of Texas Instruments not attaching great importance to Sugon Technology.

Lin Chen believes that with the leadership of the Western 90-nanometer process technology, the 90-nanometer process technology can produce twice the number of transistors than the 130-nanometer process technology.

In the future, new mobile phone processors released by Texas Instruments and even Motorola will definitely beat the current Phoenix S2 mobile phone processor!

So although half a year seems to be nothing, half a year means that the performance of other people's mobile phones is ahead of Sugon's mobile phone by half a year!

What's even more terrifying is that the current Western 90-nanometer process technology is already capable of mass production, and the more advanced 65-nanometer process technology is also being intensively developed.

(End of chapter)