Chapter 272: Alliance

If one is being targeted, then it's not excessive for the Little Smart to "show weakness to appear strong," right? As a "weakling," it's not excessive to fight a price war in order to survive, is it?!

"The domestic market is the fundamental base for Dongling High-Tech. Although the income of domestic users currently doesn't compare to markets like Japan, America, or Europe, Dongling High-Tech must occupy this base before it can battle those brands overseas!"

Li Dongling instructed the executives of Dongling High-Tech. Foreign trade is indeed very profitable right now; for the same product, Dongling High-Tech earns much more selling it overseas than domestically. It is an indisputable fact that overseas purchasing power is stronger than domestic, but Dongling High-Tech cannot ignore the domestic market just for the sake of foreign trade.

For Dongling High-Tech, the domestic market is a fundamental base and also a fallback. With this base, Dongling High-Tech can advance to attack and retreat to defend. Therefore, Dongling High-Tech must occupy a sufficient share of the domestic mobile phone market.

Major domestic mobile phone brands in later generations basically played it this way, including Lei Bus's Xiaomi and the big "Blue and Green" phone manufacturers. They secured their domestic base first, then charged into overseas markets. Take Lei Bus's Xiaomi, for example: its overseas revenue is now on par with its domestic revenue. While it is criticized domestically, it sells extremely well overseas, steadily ranking among the world's top five mobile phone shippers.

Ren Yuefeng, Zhang Ao, and the others nodded one after another. The biggest difference between Dongling High-Tech and other domestic companies is that Dongling High-Tech has already opened up overseas markets. Before the Little Smart went on sale, Dongling High-Tech's overseas earnings were even much higher than its domestic earnings. Plus, since it was earning foreign currency, the internal team at Dongling High-Tech placed great importance on foreign trade revenue, while the domestic market received relatively less attention.

Now, the emergence of the Little Smart has finally allowed Dongling High-Tech to walk on two legs, and domestic revenue has also begun to soar!

After the Little Smart, Ren Yuefeng, as the General Manager of Dongling High-Tech, reported on several other business areas.

"The digital cordless phone business is currently maintaining steady sales. It is estimated that Dongling High-Tech's digital cordless phone revenue will exceed 1.9 billion USD this year!"

"The Shenzhou, Coolpad, and Simon digital cordless phone models occupy 45% of the global digital cordless phone market, but Shenzhou alone has taken over 50% of the revenue in the digital cordless phone market!" Ren Yuefeng said.

Ren Yuefeng reported on Dongling High-Tech's main current businesses. These are the main products Dongling High-Tech has now. There was originally an electronic pet business, but that has already been completely cleared out.

Whoever masters the standard masters the entire industry. After all, standards can change. A single change can affect a huge wave of companies, or even cause countless companies to go bankrupt. At critical moments, standards can even be turned into weapons to attack competitors!

Just like when America targeted the Chrysanthemum Factory in a past life—not to mention Google holding Android hostage—it directly revoked Android's authorization for the Chrysanthemum Factory. Various so-called technical alliances also entered the fray one after another; the Bluetooth Alliance announced the removal of the Chrysanthemum Factory from its ranks, which shows exactly where these technical alliances stand.

For Dongxin Semiconductor, the point isn't how much the Sirius chip can earn for Dongxin Semiconductor, but proving that the country can also produce domestic chips. It proves that in the field of chips, our people are truly not inferior to the Japanese or Americans. The entire Dongxin Semiconductor team has gained confidence, and this is far more important than how much money is earned!

As for who becomes the leader of the USB Alliance, Li Dongling doesn't care. Giving it to Bill Gates is fine, as long as Dongling High-Tech can become the creator of the global computer interface standard.

"In addition, the Himalaya radio, car radios, and car audio systems are all under development!"

The Silver Mink mouse currently has a very low annual shipment volume, so it's hardly a big earner. Sales barely cover R&D costs. It will only be when it sells well both domestically and overseas that the Silver Mink, as a computer accessory, will start to make money. Current earnings can only be described as a small consolation.

It's just like how Apple, as a single company, once snatched away 90% of the profits of the entire smartphone industry. As the only high-end brand in the digital cordless phone industry, Shenzhou alone took about 50% of the industry's profits!

As for the Sirius phone chip, it sold out completely. Previously, phone chips relied on imports. The emergence of Sirius can be said to have created the history of domestic chips. When Sirius appeared, state media and major media outlets reported on it for several consecutive days.

Li Dongling doesn't want Dongling High-Tech to be targeted like that one day in the future. Rather than being beaten passively, it is better to take the initiative. If those American manufacturers can use standards to target competitors, why can't Dongling High-Tech?!

Once Dongling High-Tech establishes the USB interface standard, it can then smoothly enter various fields of computer peripheral equipment. Not to mention mice, keyboards, headphones, data cables, webcams, mobile hard drives, scanners, printers, digital cameras, CD burners, projectors, and various other computer peripheral products will all open their doors to Dongling High-Tech. Or rather, the USB standard promoted by Dongling High-Tech will cause a huge wave of companies producing these devices to be affected!

"In terms of computer peripheral equipment, the first-generation Silver Mink mouse has a market mainly in the country, with an annual sales volume of about 300,000 units!"

Now, there are only the digital cordless phone, Little Smart, mouse, and Dongxin Semiconductor's chip business, plus the internet business represented by Tianya Net. The internet industry is still in the exploration stage, and the practitioners themselves are still testing the waters, let alone Ren Yuefeng and the others.

"The U-disk and the second-generation Silver Mink mouse are crucial for Dongling High-Tech to promote the USB Alliance standard. There must be no mistakes!"

In the future, with the purchases of new users every year plus the replacements by old users, the digital cordless phone business can basically provide Dongling High-Tech with a fixed income of about 2 billion USD every year. This income can last for more than a dozen, or even twenty years!

After hearing Ren Yuefeng finish, Li Dongling nodded, then cast his gaze toward Chen Tao, the manager of Dongling High-Tech's technical department who is in charge of R&D. "What stage has the new product reached in R&D now?!"

"The U-disk is in the final testing stage. It will take a few more days, but it will definitely make it in time for the launch event!"

And the Sirius chip lived up to expectations. After mass production, it began supplying chips to major phone companies in the mainland region, which is the world's largest phone manufacturer.

In the past, when phone chips needed to be imported, the prices were exorbitantly expensive. Chip manufacturers like Toshiba would complain about insufficient capacity every few days and then raise prices for various reasons. Ever since Dongxin Semiconductor supplied Sirius to domestic landline phone manufacturers, Toshiba, NEC, Panasonic, Fujitsu, and other manufacturers no longer have sore backs or aching legs, their production capacity can keep up, and even the prices have dropped—the global landline phone chip price was forced down to cabbage prices!

Because chip manufacturers like Toshiba started a price war, the Sirius chip did not become a product with exorbitant profits. For Dongxin Semiconductor, it didn't earn too much, but the R&D costs have been recovered, and the rest is more or less profit.

Li Dongling said, "Once the USB is developed, first contact companies like Microsoft and Logitech. Dongling High-Tech needs to form an alliance with companies like Microsoft and Logitech to promote the USB Alliance, with Dongling High-Tech's U-disk as the core, to become the interface standard for the computer industry!"

"The second-generation Silver Mink optical mouse has currently completed all R&D, and the tests have all met the standards. It can be mass-produced at any time!"

"In addition, for Dongxin Semiconductor, the Sirius and the new models of outsourced phone chips derived from it currently have strong shipment volumes. They have become the phone chips with the largest shipment volume in the domestic phone industry. Besides supplying chips for Shenzhou and Little Smart, the outsourced version of the Sirius commercial chip is expected to reach a shipment volume of over 20 million units this year!"

The digital cordless phone has already become a gold mine for Dongling High-Tech. Its sales volume will not explode suddenly, but it will not disappear either. America, old Europe's Britain, France, Germany, Italy, and other countries have become the main consumers of digital cordless phones, and local household users have also accepted it.

Relying on Dongling High-Tech alone to form a USB Alliance is basically a pipe dream. But adding Microsoft makes it different. Microsoft has always wanted to be the boss of the computer industry and will never let go of this opportunity to command the masses.

Among Dongling High-Tech's host of products, the only ones truly making money now are the Shenzhou and Little Smart models.

After the Dongling High-Tech headquarters report, Yao Luoying and Li Dongling exchanged a glance, and she also spoke on behalf of Feiyan Technology. "Currently, for Feiyan's two radio models, the A10 is expected to have a sales volume between 8 million and 9 million this year. The Dolphin radio is expected to have a global sales volume exceeding 4 million units. The total annual revenue is expected to exceed 700 million USD!"

"The internet business is currently still in development. In the short term, I'm afraid continuous investment will be needed."

Chen Tao hurriedly spoke up. The product for which Dongling High-Tech is holding a launch event is precisely the U-disk. If it were just to sell U-disks and mice, there would naturally be no need to make such a big fuss. But Li Dongling is preparing to take the opportunity to promote the first standard in the global computer industry from the mainland, so it must be done with great momentum. Otherwise, how can it attract outside attention?

Now, the digital cordless phone industry has also seen a bunch of brands—American goods, Japanese goods, Korean goods, and European goods, etc. But these brands basically can only benchmark against Coolpad, which is a mid-range digital cordless phone brand, or Simon, which is a mass-market brand. It is very difficult to challenge Shenzhou, which has already reached the pinnacle of the high-end digital cordless phone market.

As the twilight era of radios, Feiyan Technology can still pull in 700 million USD in sales a year. In the radio industry, this is absolutely a miracle.

The Feiyan A10's main market is domestic, with a price of 70-80 yuan, which most people can afford. The Feiyan A10 benchmarks against the Kk9 and R909, two legendary radios from a past life. It's just unclear if the A10 can achieve the sales miracle of those two models. Back then, the combined sales of those two models exceeded 100 million. It's unknown what level the A10 can reach!

However, although the A10 mini radio sales are off the charts, the one that truly made money for Feiyan Technology was the Dolphin multi-functional emergency radio, with a sales volume of 4 million units. The Dolphin, priced at 150 USD, contributed over 70% of Feiyan's revenue.

(End of chapter) ===== CHAPTER 273 =====