Daguo Science and Technology started from the copycat system

Chapter 312: The Real Profit of Sugon Smartphone

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

However, if the interests of the mobile phone brand are too high, it will be the Sugon system itself that will suffer in the end, because Sugon Technology will definitely share the profits with the shareholders after its listing.

"I don't know how much profit should be set for the Sugon S2 smartphone? This is a troublesome question."

At this time, Li Qianqiang, who was in charge of mobile phone sales, expressed his doubts and needed to wait for Rebus or Lin Chen to make a final profit ruling.

Because after listing, Sugon Technology can actually control how much profit it can make by selling a mobile phone.

The current Sugon Technology can produce mobile phone spare parts except battery assembly and mobile phone screen assembly, memory and flash memory, and can also assemble mobile phones by itself.

In addition, because the mobile phone screen was developed in cooperation with Jingdongdong, the purchase price is naturally extremely low.

Finally, take a low-end Sugon S2 smartphone priced at 4,999 yuan as an example.

The final total profit of Sugon Technology from selling a low-end Sugon S2 smartphone is not as high as 1,000 or hundreds of yuan as the outside world guessed, but as high as 3,500 yuan!

Of course this refers to the total income after deducting taxes and production costs!

And the total income can be so high because of the relationship between Sugon Technology's ability to produce most of the mobile phone spare parts and its own production of complete mobile phones.

At this time, if marketing costs, research and development costs, and transportation and storage costs are added, the final profit will definitely drop to less than 3,000 yuan.

That is to say, for a mobile phone priced at 4,999 yuan, Sugon Technology’s mobile phone costs and taxes accounted for about 1,500 yuan.

Among them, the biggest and most painful part of the 1,500 yuan expenditure is the tax cost. The cost of self-production of mobile phone parts, purchase of some mobile phone parts, and assembly of mobile phones is actually not too high.

After all, it is mass-produced on a large scale, and the larger the production of mobile phones, the cheaper it will be, and because most of the mobile phone spare parts are still produced by themselves instead of purchasing other people's mobile phone spare parts.

Therefore, in this case, the tax cost is naturally very abrupt, occupying the bulk of the 1,500 yuan expenditure.

After all, after the production of mobile phone spare parts, you have to pay taxes, and after the production of mobile phones, you have to pay 17% value-added tax. When selling mobile phones to consumers, you also have to pay stamp duty, and finally there is a 25% corporate income tax...

Sugon Technology has paid taxes in every production link of a mobile phone, from spare parts to complete mobile phones to sales to consumers...

In the end, the tax cost compared with the production cost of mobile phone spare parts and the production cost of the whole mobile phone is naturally very abrupt.

And it is worth mentioning that the higher the profit income of mobile phones, the harder the value-added tax will be collected, and the same is true for the 25% corporate income tax. The more you earn, the more tax you have to pay.

Therefore, if Sugon Technology sells a mobile phone without counting R\u0026D costs, marketing costs, transportation and storage costs, etc., it can probably earn more than 3,500 yuan.

However, if R\u0026D costs, marketing costs, and transportation and storage costs are added, theoretically, the profit income is only a few hundred yuan, which is not too different from outside speculation.

But the real profit is much more than the theoretical one thousand and hundreds of dollars.

Because most of the spare parts and core technologies of Sugon mobile phones are produced and developed by themselves, the profits of mobile phone spare parts naturally belong to Sugon Technology.

In addition, because of the existence of Lin Chen, Sugon Technology's research and development seems to have no bottlenecks. While the research and development speed is fast, the total investment in research and development is naturally reduced.

In addition, in the research and development of many core technologies, because Lin Chen knew in advance what the core technologies he wanted to develop looked like from his previous life, the money was naturally used on the cutting edge without detours.

So in this case, the R\u0026D cost of Sugon Technology is really very low. The cost of developing a core technology is less than one-fifth of that of other companies.

The last thing left is marketing costs and transportation and storage costs. Needless to say, the transportation and storage costs are fixed and not high, but Sugon Technology is notoriously stingy in terms of marketing costs.

Although it is not that there is no marketing, but compared with other mobile phone companies, the marketing cost is really too little, so the marketing cost of Sugon Technology is also quite low.

In this case, the actual profit that Sugon Technology can earn from selling a 4,999 yuan Sugon mobile phone is much higher than that of the Pingguo mobile phone in the previous life.

Even if R\u0026D costs, marketing costs, transportation and warehousing costs are added, the real total profit can barely reach about 3,000 yuan.

Of course, the profit of Pingguo mobile phone in the previous life is not much worse than that of Suguang mobile phone, because they can collect "Pingguo tax".

The so-called "Pingguo Tax" means that as long as you use the software and games of Pingguo iOS system, as long as they generate revenue, they will be forced to take 30% of the profits to Pingguo Company, including the profits from advertising!

In this case, Pingguo Mobile may not be as profitable as Sugon Technology in selling a mobile phone.

But after consumers use Pingguo mobile phones for one or two years, the profits that Pingguo Company earns from consumers are not much less than that of Sugon Technology.

Even if consumers use Pingguo mobile phones for a longer period of time, for example, a Pingguo mobile phone will be used for three or four years.

The profit that can be earned from selling a Pingguo mobile phone is far greater than the profit that Sugon Technology can earn from selling a mobile phone.

As for why Sugon Technology didn't learn from Pingguo Company and also set up a Suguang tax, it can only be said that it is easier to think and harder to do.

If you want to find a reason, it is that Suguang Technology is a Daxia company, not a Meidiguo company.

But gossip aside, the senior executives of the company at this time heard Li Qianqiang pointed out the problem of profit distribution of the Sugon S2 smartphone.

They all set their sights on Rebus and Lin Chen, wanting to see how the profits from the Sugon S2 smartphone should be distributed.

However, in the face of people's gazes, Rebs pondered for a while and gave a suggestion:

"I suggest setting the profit for the low-end Sugon S2 smartphone at around 1,300 yuan.

This is neither too high nor too low. After all, if the profit is too low, it is not easy to get the high valuation at the time of listing, and it will not achieve the strategic purpose of seeking an umbrella for listing. "

Regarding this, other high-level executives were also lost in thought, and then felt that the price was acceptable.

Since then, a distinction has been made between the production of mobile phone spare parts and the production of complete mobile phones and the brand of Sugon mobile phones.

This also means that in the future, the cost of R\u0026D, sales, and transportation and warehousing of mobile phones will all be borne by mobile phone brands, and the actual profit may be less than 1,000 yuan per unit.

The remaining profit of 2,200 yuan will be shared between the Sugon R\u0026D Center and the soon-to-be-established Sugon subsidiary.

Of course, Sugon R\u0026D Center and Suguang Company, which finally took the bulk of the profits, have nothing to say.

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