1 Revenue and profit estimation when market up to 1% share

The company also estimates the revenue of WDIRC series product when the market share is grown to 1%. We assume two types of WDIRC to be sold in markets; one is a low end WDIRC (L-WDIRC, basic or wifi version), and the other one is a high end WDIRC (H-WDIRC, advance or LTE version). Table 1 shows the result of a low end WDIRC. Here we assume an L-WDIRC (end price less than 200 USD) to sell in market A, B and C, and its cost analysis is shown in Table 2. In market A, the revenue the biggest market comes from China, when the market share arrives to 1%, that means 4,559,400 sets to be sold, and the revenue will approach to 27,356,400,000 USD, the profit is around 3,647,520,000 USD. If we estimate the market in Taiwan, the revenue and profit will be $ 508,138,680 and $ 67,751,824, respectively. What about the other countries are, the revenue and profit are also shown in Table 1. In spite of the economic development and GDP growth, the revenue and profit to each country depend on the population or household, for example to India, there have 248,408,494 households, so when we get 1% market share, the revenue and profit will be $14,904,509,640 and $1,987,267,952, respectively. 1% market share is the indicator to check the acceptance of customers in a local market, so when and how to achieve this market share that is a check point for us to know the market. According to the progress of 1% market share, the company can adjust its marketing strategy to speed the market share. Meanwhile to consider the competitiveness of product, we known the maximum manufacture cost is limited to $200 (6,000 NTD), and its 53.2% is the manufacture cost. So how to design and produce WDIRC is the key point to realize this condition before we listed in markets.

2. Revenue estimation on selling L-WDIRC products (NTD 6,000/set)

3. Revenue estimation on selling H-WDIRC products (NTD 10,000/set)

The company also designs an H-WDIRC to high level consumers, the features such as function, design and exterior are better than a L-WDIRC. The selling price will be set as 12,000 NTD ($400 USD), the revenue estimation of H-WDIRC is shown in Table 3. Among these, the market of China, from estimation there is maximum revenue and profit ($45,594,000,000 and $ 9,118,800,000) in markets, so if we sell an H-WDIRC, the profit is significant higher than an L-WDIRC. India and USA are the second and third market, respectively. In summary the revenue and profit in market A, B and C, that will be estimated as 108,164,779,500 and 21,632,955,900, that’s a huge profit if this estimation to be realized in markets. The cost analysis of H-WDIRC is shown in Table 4, 20% profit to be had by this cost design, and with the increasing of sale volumes, we think the revenue will increase more.