Chapter 521 Playing a Double Act! Then let's go use AMD!
Chapter 521 Playing a Double Act! Then let's go use AMD!
So, while the buzz surrounding Nvidia's product launch was still spreading across the internet, procurement negotiations with Lenovo officially began in Nvidia's VIP conference room at headquarters.
In addition to Liu Jun, Chen Ming, president of LX Group's C business, also accompanied them this time.
Liu Jun originally wanted to lead the team himself, but since Chen Ming came so eagerly, Liu Jun couldn't refuse.
Moreover, if there's anything he can't make a decision on, he can push it to this person in charge for the decision-making, and he can also have someone to take the blame (as a scapegoat).
So when Huang Renxun walked in, Chen Ming quickly smiled and clasped his hands in congratulations:
"Congratulations, Mr. Huang! This time, the graphics card is going to sell like hotcakes all over the world again. If this does, it will definitely crush AMD."
Congratulations! I haven't congratulated you on your computer sales yet.
After a brief reply, Huang Renxin invited the two to sit at the table, knowing full well that this visit to offer congratulations was a pretense, and that their real purpose was to negotiate a price.
In the previous two years of cooperation, he gave Lenovo a lot of face.
After all, they are a major customer, and the purchase price is quite high each time, so I can always get a 10% discount for major customers, and sometimes I can even negotiate it down to 12%.
With the support of Nvidia graphics cards, Lenovo also launched the Legion gaming laptop, which sold quite well.
It has consistently topped the sales charts.
This price increase for new products is likely an attempt to maintain the original discounts, or even to offer more benefits, taking advantage of the industry-wide price hike to further enhance the premium status of the Legion product line.
"Mr. Huang, congratulations again."
Chen Ming picked up his teacup and offered his congratulations again.
"I watched the entire press conference yesterday. This brand-new architecture is really impressive. The performance of the 980 TiPro completely stunned me."
That's a full doubling of the performance; other manufacturers will have to wait a very long time to catch up.
"With this batch of new cards, Lenovo will definitely be able to take the gaming laptop market to the next level in the second half of this year."
Huang Renxun smiled, of course understanding what he meant: he wanted to buy up all the goods and force other competitors to cut off supplies...
Do you want to monopolize the market?
That's quite a reasonable thing to say...
"Mr. Chen, Mr. Liu, you're too kind."
Lenovo is an important partner and product supplier for us, and we will definitely give it our top priority.
The polite words were well said, and both parties understood each other's thoughts.
So Chen Ming said directly, "President Huang, we've been partners for a long time, so I'll be frank."
"Now, besides the price increase for your new cards, the cost of other accessories and parts has also risen. We're under a lot of pressure!"
Liu Jun, standing to the side, also became the best straight man, constantly cooperating with the jokes:
"The price of screen components has increased by 20%, and the price of batteries, power supplies, and other accessories has also increased by about 5%. We are under a lot of pressure with our products."
"In previous years, our cooperation rate was 10%, and we hope that this policy can continue this year."
We can increase the order by 20% as a reward.
After Liu Jun finished probing, Chen Ming next to him continued to nod: "After all, we contribute 30% of the mobile graphics card shipments to Inda every year, and 20% to the desktop shipments."
Bulk discounts available, hopefully...
Before Chen Ming could finish speaking, Huang Renxun put down his teacup, his previously smiling expression vanishing instantly.
"Mr. Chen, it's not that I want to give up our contracts from previous years, it's just that the policies are different this year."
All major global clients receive a uniform rebate of up to 3%, without exception.
However, considering Lenovo's orders, I can decide to offer you a 3% discount.
"3%?"
Chen Ming's smile vanished instantly. If Huang Renxun hadn't been talking to him, he would have thought the salespeople were playing him for a fool.
"Mr. Huang, are you joking?"
In previous years it was 10%, but this year it has been cut to 3%.
The price difference is too much. The new product itself has already gone up in price, and then the rebate is cut so much. Our profits are practically gone. It's like we're working for Nvidia!
Liu Jun quickly chimed in, "Yes, Mr. Huang."
Our Legion series is already priced very affordably, with very thin profit margins.
With the cost of graphics cards rising, coupled with price increases in other supply chains, we simply couldn't continue production.
We can't let prices rise at the retail level, or consumers might not buy it.
Despite their threats, Hwang In-hoon remained seated and unmoved.
"Gentlemen, that's not how the accounts are settled."
The GTX 980M offers almost double the performance of current cards, resulting in significantly improved gaming capabilities.
"After your gaming laptops are equipped with the new graphics card, the terminal price will increase by 500-800 yuan, which consumers can fully accept. The profit margin will only be larger than before, not smaller."
"You can't say that, Mr. Huang," Chen Ming said, dodging the question. "The market competition is fierce!"
"That's right, Mr. Huang!" Liu Jun also said some things that the boss couldn't say, "Dell and HP are watching closely. If we raise prices and others don't, won't we lose market share?"
Besides…
Liu Jun also adopted a slightly firmer stance:
"There are more than just Nvidia making graphics cards in this market."
Although AMD was a bit weak before, it has now received support from the US government, with over 50 billion dollars invested. It should be able to produce some results.
In addition, there's Qualcomm, which develops both desktop and mobile versions.
Before long, there will be many more choices on the market, and we don't necessarily have to stick with one company, right?
"Liu Jun, shut up. There are some things you can't say," Chen Ming said appropriately. "Go back and write a report yourself, and your year-end bonus will be deducted."
After reprimanding Liu Jun, Chen Ming turned his attention to Huang Renxun, but his face showed a very angry expression, though his poor acting was still evident.
Even a fool could see that they were putting on a show.
Moreover, their attitude was very clear: if you don't give me a discount, I'll just buy AMD and Qualcomm cards.
In the past, Huang Renxun might have taken pity on them and made some concessions in the face of their tricks.
After all, Lenovo is one of the world's major customers, and losing this customer would be a significant loss.
But now Hwang In-hoon just smiled and didn't want to take the bait at all.
Do you really think this is from last year? You think you can open a whole new world just because you were given a little ink...
Threatening upstream manufacturers, what is Sha Dachun doing?
After inwardly laughing at this complete idiot, Old Huang, fearing that the two's stupidity might be contagious, quickly waved his hand:
"Mr. Chen, when will AMD's new cards enter mass production? Will their performance reach our level?"
We're all in this industry, we know this very well.
"Qualcomm's desktop cards are nowhere to be seen. It would be good if they could produce an engineering sample within a year and a half. Consumers buy gaming laptops because they value GeForce and the CUDA ecosystem."
Of course, your optimizations are important, but do AMD and Qualcomm offer them?
At this moment, Liu Jun and Chen Ming seemed to realize that they might have said something wrong.
"If you want to use AMD graphics cards, you can definitely talk to them."
I absolutely won't stop you.
Whether end consumers will buy into it, and whether game developers will continue to optimize it, is another matter entirely.
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