313: The Real Profits of Sugon Smartphones

If the profit margin of a mobile phone brand is too low, it will definitely not be able to obtain a high valuation when listed, and it will be very difficult to go public at that time.

But if the profit from the mobile phone brand is too high, then Dawnlight System itself will ultimately suffer, because Shuguang Technology, after profiting from its listing, will definitely have to share its earnings with shareholders.

"I wonder how much profit the shuguang s2 smart phone should be set at? This is a troublesome question."

At this moment, Li Qianqiang, who was in charge of mobile phone sales, expressed his doubts and needed to wait for Lei Bu Si or Lin Chen to make the final profit decision.

Because the actual profit Shuguang Technology could earn from selling each phone after its listing could be controlled by Lin Chen.

Currently, Shuguang Technology can produce all mobile phone components except for the battery assembly, mobile phone screen assembly, memory, and flash memory, and can also assemble the entire mobile phone itself.

In addition, because the mobile phone screen was jointly developed with Jingdongfang, the procurement price is naturally extremely low.

Finally, let's take a low-end Dawn S2 Smart Phone with a selling price of 4999 yuan as an example.

The final total profit Shuguang Technology earns from selling a low-end Dawn S2 Smart Phone is not the one to two thousand yuan speculated by the outside world, but as high as 3500 yuan!

Of course, this refers to the total revenue after deducting shuguang tax and production costs!

The reason this total revenue can be so high is also because Shuguang Technology can produce most of its mobile phone components and assemble the entire mobile phone itself.

At this point, if marketing costs, R&D costs, and transportation and storage costs are added, the final profit will definitely plummet and fall below 3000 yuan.

In other words, for a mobile phone with a selling price of 4999 yuan, Shuguang Technology's mobile phone cost and shuguang tax account for about 1500 yuan.

Among these 1500 yuan in expenses, the largest and most painful is the shuguang tax cost; the self-production of mobile phone components, the procurement of some mobile phone components, and the assembly cost of the entire mobile phone are actually not too high.

After all, it is large-scale mass production; the larger the mobile phone output, the cheaper it becomes, and because most mobile phone components are self-produced and not purchased from others.

Therefore, under these circumstances, the shuguang tax cost naturally appears very prominent, accounting for the largest share of these 1500 yuan in expenses.

After all, taxes must be paid after mobile phone components are produced, a 17% value-added tax must be paid after the entire mobile phone is produced, stamp duty must be paid when the mobile phone is sold to consumers, and finally there is a 25% corporate income tax…

From components to the complete mobile phone and then to being sold to consumers, Shuguang Technology paid shuguang tax at every production stage…

Ultimately, this shuguang tax cost naturally appears incredibly prominent compared to the production cost of mobile phone components and the production cost of the entire mobile phone.

Moreover, it is worth mentioning that the higher the profit income of the mobile phone, the more fiercely the value-added tax is collected, and the same applies to the 25% corporate income tax: the more you earn, the more shuguang tax you have to pay.

Therefore, if Shuguang Technology sells a mobile phone without calculating R&D costs, marketing costs, transportation and storage costs, etc., it can earn about 3500 yuan in revenue.

But if R&D costs, marketing costs, and transportation and storage costs are added, the theoretical profit income is only about one to two thousand yuan, which is not too different from outside speculation.

However, the actual profit situation is much higher than the theoretical one to two thousand yuan.

Because most of the components and core technologies of Shuguang Mobile Phone are self-produced and researched, the profit from mobile phone components naturally belongs to Shuguang Technology.

In addition, because of Lin Chen's existence, Shuguang Technology's research and development of anything seems to have no bottlenecks, with rapid R&D speed and naturally reduced total R&D investment.

Furthermore, in the development of numerous core technologies, because Lin Chen came from a previous life and knew in advance what the core technologies to be developed looked like, there were no detours, and money was naturally spent where it mattered most.

Therefore, under these circumstances, Shuguang Technology's R&D costs are, to be honest, very, very low; the cost required to develop a core technology is less than one-fifth of that of other companies.

Finally, what remains are marketing costs and transportation and storage costs; the transportation and storage costs are fixed and not high, and Shuguang Technology is notoriously stingy when it comes to marketing costs.

Although it does conduct market marketing, compared to other mobile phone companies, its marketing expenditure is truly too small, so Shuguang Technology's marketing costs are also quite low.

Under these circumstances, Shuguang Technology's actual profit from selling a 4999 yuan Shuguang Mobile Phone is much higher than that of Apple Mobile Phone in the previous life.

Even if R&D costs, marketing costs, transportation, storage, and other costs are added, the actual total profit can barely reach around 3000 yuan.

Of course, if truly calculated, Apple Mobile Phone's profit in the previous life was not much worse than Shuguang Mobile Phone, because they could collect "Apple Tax."

The so-called "Apple Tax" means that as long as software and games using the Apple iOS System generate revenue, 30% of their profit must be forcibly deducted and given to Pingguo Company, which even includes profits obtained from advertising!

Under these circumstances, the profit from selling a single Apple Mobile Phone may not be as high as Shuguang Technology.

But when consumers use a Apple Mobile Phone for one or two years, the final profit Pingguo Company earns from consumers is not much less than Shuguang Technology.

Even if consumers use a Apple Mobile Phone for a longer period, for example, using one Apple Mobile Phone for three or four years.

Then the profit earned from selling one Apple Mobile Phone is far greater than the profit Shuguang Technology can earn from selling one mobile phone.

As for why Shuguang Technology does not learn from Pingguo Company and also implement a shuguang tax, it can only be said that it is easier said than done.

If one must find a reason, it is that Shuguang Technology is a Daxia enterprise and not a United States enterprise.

However, putting aside the digression, at this time, the company's senior executives heard Li Qianqiang's point about the profit distribution of the Dawn S2 Smart Phone.

They all turned their attention to Lei Bu Si and Lin Chen, wanting to see how the profit of this Dawn S2 Smart Phone should be distributed.

However, facing the gazes directed at them, Lei Bu Si pondered for a moment and then offered a suggestion:

"I suggest setting the profit of the low-end Dawn S2 Smart Phone at around 1300 yuan.

This is neither too high nor too low; after all, if the profit is too low, it will be difficult to obtain a high valuation when listed, and it will also fail to achieve the strategic objective of seeking a protective umbrella through listing."

In response, the other senior executives also fell into contemplation and then felt that this price was acceptable.

Because from this point on, a distinction was made between mobile phone component production, mobile phone assembly production, and the Shuguang Mobile Phone brand.

This also means that in the future, all R&D costs, sales costs, and transportation and storage costs for the entire mobile phone will be borne by the mobile phone brand, with the actual profit per unit possibly being less than around 1000 yuan.

The remaining large share of the 2200 yuan profit will be divided by Shuguang R&D Center and the soon-to-be-established Shuguang Electronics Company.

Shuguang R&D Center and Shuguang Electronics Company, which received the lion's share of the profits, naturally had no objections.