521: Chapter 521 Playing a Double Act! Then let's go use AMD!
So, while the heat from the NVIDIA press conference was still fermenting across the entire network, the procurement negotiations concerning Lenovo officially took place in the VIP meeting room at NVIDIA headquarters.
Besides Liu Jun, Chen Ming, the president of the C-business unit of the LX Group, also arrived together this time.
Originally, Liu Jun wanted to lead the team himself, but since Chen Ming insisted on coming, Liu Jun couldn't refuse.
Furthermore, if there was anything he couldn't make a decision on, he could push it to this person in charge to decide, which would also provide some cover (scapegoating).
So when Jensen Huang walked through the door, Chen Ming hurriedly smiled and cupped his hands in congratulations:
"Congratulations, Mr. Huang. This time, the graphics cards are going to be a huge hit globally again. This is really going to fiercely suppress AMD."
"Congratulations to you too. I haven't congratulated you on your computers selling well yet."
After a simple reply, Jensen Huang invited the two to sit at the table. After all, he knew very well that this visit to congratulate him was fake, and bargaining was the real purpose.
In their cooperation over the past two years, he had given Lenovo plenty of face.
After all, they were a big client, and the purchase volume each time was not small, so they were always able to get a 10% big client discount, and sometimes they could even negotiate up to 12%.
And relying on the support of NVIDIA's graphics cards, Lenovo had specifically launched the Legion gaming laptop, which also sold quite well.
It occupied the top spot in sales all year round.
With this price increase for the new products, Lenovo definitely wanted to keep the original discount, and even wanted to get more favorable terms, taking advantage of the industry price increase to further enhance the high-end attributes of the Legion product line.
"Mr. Huang, congratulations once again."
Chen Ming picked up his teacup and congratulated him again.
"I watched the entire press conference yesterday. The performance of this brand-new architecture is truly incredible; it completely stunned me."
"It has increased by a full double. It will take a long time for other manufacturers to catch up with you."
"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."
Jensen Huang smiled. Of course, he understood the meaning behind his words. Wasn't it just wanting to sweep up the stock and cut off supply for other friendly competitors...
And swallow the market all by himself?
That sounded almost reasonable...
"Mr. Chen, Mr. Liu, you are too kind."
"Lenovo is our important partner and product supplier; we will definitely prioritize your supply."
The polite formalities were done, and both sides knew each other's intentions.
So Chen Ming said directly: "Mr. Huang, we are old partners, so I will be straightforward."
"Now, besides your new cards going up in price, other accessories and components have also risen, so our pressure here is high."
Liu Jun, who was on the side, also became the best supporting act, cooperating non-stop from the side:
"Now screens have gone up by 20%, and batteries, power supplies, and other accessories have also risen by about 5%. The pressure on our products is really huge."
"In previous years, our cooperation was at 10%. We hope this policy can continue this year."
"In return, we can increase our orders by 20%."
After Liu Jun finished probing, Chen Ming next to him continued to nod: "After all, the shipment volume we contribute to NVIDIA every year accounts for 30% of the China Mobile-side graphics card shipments, and 20% of the desktop side."
"The larger the volume, the better the price. We hope..."
Before Chen Ming finished speaking, Jensen Huang put down the teacup in his hand, and his originally smiling expression instantly disappeared:
"Mr. Chen, it's not that I want to abandon our contract from previous years, but because this year's policy is different."
"For all major global clients, the unified maximum rebate is 3%, with no exceptions."
"However, considering Lenovo's orders, I can make the decision to give you a 3% discount."
"3%?"
The smile on Chen Ming's face instantly disappeared. If it wasn't Jensen Huang talking to him, he would definitely think these salespeople were playing him.
"Mr. Huang, you are joking a bit, right?"
"It was 10% in previous years, and this year you cut it directly to 3%."
"The price difference is too big. The new products have already gone up, and the rebate has been cut so much. Our profit is gone; it's equivalent to working for NVIDIA!"
Liu Jun also hurriedly chimed in: "Yes, Mr. Huang."
"The pricing of our Legion series is already very consumer-friendly, and the profit margin is very thin."
"Once the graphics card cost goes up, plus the prices of other supply chains also rising, we simply cannot operate."
"We can't just raise the terminal price; consumers might not buy it then."
Facing their threats, Jensen Huang sat there, unmoved:
"Gentlemen, that's not how you calculate the accounts."
"The performance of the GTX980M is almost double the current one, and the gaming performance is stronger."
"After your gaming laptops are equipped with the new cards, the terminal price can be increased by 500 to 800 yuan. Consumers will fully accept it, and the profit margin will only be larger than before, not smaller."
"You can't say it like that, Mr. Huang." Chen Ming started playing tai chi, "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. If we raise prices and others don't, won't we lose market share?"
"Besides..."
Liu Jun also became appropriately firm:
"In this market, NVIDIA is not the only one making graphics cards."
"Although AMD was a bit weak before, AMD has now received support from the United States government. With over 5 billion thrown in, they should be able to produce some results."
"Besides that, there is also Qualcomm, doing both desktop and China Mobile-side."
"Before long, there will be more choices in the market, and we don't necessarily have to be tied to one company, right?"
"Liu Jun, shut up. Some things cannot be said." Chen Ming said appropriately, "Go back and write a report yourself; your year-end bonus is deducted."
After scolding Liu Jun, Chen Ming continued to look at Jensen Huang, but he made a very angry expression on his face, though one could still see the clumsy performance.
Even a fool could see that they were singing a duet.
And the attitude was very obvious: if you don't give me a discount, I will go buy AMD and Qualcomm cards.
If it were before, facing their tricks, Jensen Huang might have pitied them and made some concessions.
After all, no matter what, Lenovo was one of the global big clients, and losing this client would be a significant loss.
But now Jensen Huang just smiled, completely not wanting to pick up this topic?
Do they really think it's last year? They want to open a dye house just because they were given some ink...
Threatening upstream manufacturers, what is this idiot doing.
After laughing at this big idiot in his heart, Old Huang was afraid that these two people's IQ would be contagious, so he hurriedly waved his hand:
"Mr. Chen, when can AMD's new cards be mass-produced? Can the performance reach our level?"
"We are all industry people, and we are all very clear."
"Qualcomm's desktop cards don't even have a shadow yet; it would be good if they could produce engineering samples within a year and a half. Consumers buying gaming laptops recognize GeForce and the CUDA ecosystem."
"Of course, your optimization is also very important, but do AMD and Qualcomm have it?"
At this moment, Liu Jun and Chen Ming seemed to realize that they had said the wrong thing just now.
"If you want to use AMD's graphics cards, you can go ahead and negotiate."
"I absolutely won't stop you."
"It's just that whether terminal consumers will pay for it and whether game manufacturers will continue to optimize, that is another matter."
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