Chapter 244: The Strategist Enters the Game with His Body

"President Hou is serious!"

"We are all fellow countrymen, we should take care of each other!"

Li Dongling said to Hou Weigui. Regardless of whether it is true or false, the card of fellow countrymen can always be played.

Regardless of how later generations are, ZTE during Hou Weigui's helmsmanship is absolutely the performance of a giant company in the domestic technology industry.

ZTE is expanding vigorously at this time, and it is the telecommunications company that sent technical personnel to open up wasteland in overseas fighting earliest.

With ZTE, it is quite favorable for Dongling High-Tech in the telecommunications industry, and it can allow Dongling High-Tech to intervene in the telecommunications market.

"President Li, I heard that many companies now intend to transform to make PHS mobile phones, and many counterfeit manufacturers are also trying to imitate Xiaolingtong!"

After Yang Bohua, Hou Weigui, and others left, Ren Yuefeng said to Li Dongling, his face also a bit heavy.

In the past few years, Dongling High-Tech has developed many amazing products that sell well in many regions, but if you want to talk about profit, then whether it is electronic pet machines, digital cordless phones, or mini radios, the profit is far less profitable than Xiaolingtong.

Xiaolingtong is simply too profitable. The popularity and users of PHS in the country have already surpassed GSM and CDMA, which is also a fact. This makes many domestic manufacturers really unable to sit still.

The technical difficulty of Xiaolingtong, if you say it is big, it is big, if you say it is easy, it is easy. The difference is only whether you want to counterfeit Xiaolingtong, and whether you dare to use Xiaolingtong's patents without Dongling High-Tech's permission.

Before, a group of domestic technology companies could still hold back, but seeing Xiaolingtong blossoming everywhere, not only selling well in the country, but also having a trend of exploding overseas, the country is finally unable to hold back.

The reason why Ren Yuefeng could receive the news is no other reason, because the parts company belonging to the Dongling High-Tech industrial chain received orders sent by other companies.

Some companies even stared at Dongling High-Tech's parts suppliers to purchase, obviously preparing to draw a tiger based on a cat and save a Xiaolingtong mobile phone.

And it is not one or two companies that are testing whether Dongling High-Tech's parts suppliers sell goods. How could Ren Yuefeng not receive a bit of news.

Li Dongling laughed when he heard it. "The PHS mobile phone market is too big, and the demand is too large. Telecom, Unicom are promoting PHS business in major domestic cities. If the PHS business covers the entire domestic market in the end, then the funds that Telecom, Unicom, etc., may invest for this will exceed tens of billions, or even hundreds of billions!"

Those telecommunications operators are creating a super mobile phone market. Relying on the Xiaolingtong brand alone, it is difficult to fill the entire domestic mobile phone market in a short time. This is a market of at least 100 million!

And if PHS is successfully expanded overseas, then overseas, it will be a market covering 100 million users. Just relying on Xiaolingtong's production capacity, can it immediately meet the market demand of 100 million, 200 million, or even more mobile phone users?!"

Still the same sentence, where there is demand, there will be a market. Facing the vigorous mobile phone user market, Xiaolingtong cannot swallow it all. Then there will be other brands to grab the market. These are all understandable things, just like prey. If a lion catches prey, there will definitely be hyenas coming to grab the scraps. This is the law of nature, unless you can chop all opponents to death, but this is impossible.

Even Japan Telephone and Telegraph Company cannot dominate the PHS market. Dongling High-Tech wants to dominate the PHS mobile phone market, which is naturally not easy.

Ren Yuefeng also understands this truth, but the profit of Xiaolingtong is too high, which makes him a bit reluctant to give up. Before launching Xiaolingtong, Dongling High-Tech's valuation reached 5 billion US dollars. Although it was already a sky-high price, it was far less huge than the change brought to Dongling High-Tech's valuation after Xiaolingtong went on sale.

Now there are media and institutions releasing news that Dongling High-Tech's valuation has broken through 8.4 billion US dollars. Now Xiaolingtong has been on sale for a short time, less than half a year, and Dongling High-Tech's valuation has directly increased by 3.4 billion US dollars, which is equivalent to rebuilding a Dongling High-Tech.

If Xiaolingtong's annual sales can reach 10 million, Dongling High-Tech's valuation is estimated to soar by a large margin, and even break through the 10 billion US dollar mark. What is this concept? Cisco, which has been listed on NASDAQ this year, has a market value of only 9 billion US dollars, and Dongling High-Tech's valuation will likely exceed Cisco!

Cisco's market value exceeded 555 billion US dollars in the internet frenzy a few years later. Regardless of whether Dongling High-Tech's valuation can reach that level in the future, as long as it surpasses Cisco once, it is enough to be recorded in the history of technology.

"If other brands launch PHS mobile phones, and even Xiaolingtong counterfeits appear on a large scale, then Xiaolingtong's sales will probably be greatly reduced!" Ren Yuefeng said.

Li Dongling pondered for a moment, then said, "Currently, the Little Smart mobile phone has already achieved full localization of all components. No matter which brand wants to compete with Little Smart, Little Smart possesses an absolute price advantage!"

What is the primary means of competition between two mobile phone brands? It's engaging in a price war. Just like when the later-generation Xiaomi car by Lei Shen was released, it attracted a group of car brands to encircle and suppress it; before the car was even released, it had already brought about a major price reduction across the entire automotive circle.

To be honest, if Lei Shen had announced that this "Porsche-like" Xiaomi car hadn't even entered production and was just a PowerPoint presentation, he would have been deified instantly. It could be called a strategist entering the game himself, truly giving young people their first car...

Dongling High-Tech had built a fully localized component supply chain for the Little Smart phone, which also meant that Dongling High-Tech firmly grasped the cost price of Little Smart, unlike the VCD industry, where they still had to look at the faces of foreign component companies.

"If necessary, Little Smart can lower prices, continue to increase production capacity, and boost sales volume. In the next few years, we will lower the price of the device to four thousand, three thousand, two thousand, or even down to fifteen hundred yuan in the future. Little Smart wants to let our countrymen own their first mobile phone. In the future, our countrymen will definitely all have their own mobile phones, and using a Little Smart is better than using a cheap foreign brand phone!"

Ren Yuefeng and Hu Zixian, who was on the side, couldn't help but gasp in shock. If Little Smart really lowered its price to two thousand or even one thousand yuan, they couldn't imagine what that scene would be like; it would absolutely be snatched up like crazy.

As for whether the cost of Little Smart could reach that level, in reality, the cost of Little Smart had already been compressed to within fifteen hundred yuan. As long as production capacity continued to increase, pressing the cost down to one thousand yuan was not a difficult task.

For a Little Smart with a cost of one thousand yuan, as long as the selling price was higher than one thousand yuan, there was money to be made. The competitiveness would be explosive. Ren Yuefeng really couldn't figure out which other mobile phone brand would dare to go head-to-head with Little Smart; just daring to look at it would count as them having courage!

"Launching the Little Smart phone is to allow Dongling High-Tech to enter the mobile phone industry, and additionally to provide funding for subsequent GSM and CDMA mobile phone projects, as well as 2G and 3G communications!

As long as we can earn funding from the Little Smart mobile phone project, it doesn't necessarily have to be through selling Little Smart to obtain it!" Li Dongling said to Ren Yuefeng.

Once these words were spoken, Ren Yuefeng couldn't help but be a bit stunned. He really couldn't figure out what Li Dongling was planning to play at. "Li Zong, what do you mean?!"

"Other domestic brand companies that want to launch PHS mobile phones can be authorized by Dongling High-Tech for Little Smart mobile phone patents, Chinese operation interfaces, Chinese SMS, etc., but..."

Li Dongling drew out his tone, "These brand companies that obtain Little Smart patent authorization must purchase radio frequency chips, mobile phone motherboards, mobile phone screens, etc., from Dongling High-Tech if they want to launch PHS mobile phones. For every PHS mobile phone these brands sell, they must pay 19% of the revenue to Dongling High-Tech!"

This was equivalent to other companies being able to launch white-label Little Smart phones, and Dongling High-Tech could also provide them with patents, technology, and key components, helping them develop white-label Little Smart phones, but they had to share a significant portion of their profits with Dongling High-Tech. These brands could make money, but they had to work for Dongling High-Tech!

(End of chapter)