Chapter 278: Conscience relies entirely on the lining of opponents

The exorbitant profits of the Little Smart are seen by the outside world. Even if those manufacturers don't know the specific cost of producing a Little Smart for Dongling High-Tech, they can guess a rough idea!

Currently, Dongling High-Tech's opening of Little Smart patent authorization is a huge impact on the entire domestic mobile phone industry!

After all, before, the Little Smart had the risk of being banned from sale at any time. Who let the Little Smart be nominally a fixed landline phone now, not a mobile phone, and it hasn't obtained a mobile phone license? This is the hard injury of the Little Smart.

Don't look at the Little Smart in full swing now, but major operators like Unicom, Mobile, and future Netcom, Tietong, etc., are definitely unwilling to let the Little Smart get a mobile phone license.

If only Dongling High-Tech produces the Little Smart, then a ban might make it difficult for the Little Smart to continue in the country. But if there are a dozen or even dozens of brands of Little Smart manufacturers, then a huge interest community will be formed around the Little Smart!

In addition, the shipment volume of the Little Smart will also soar, and the user scale will also soar. By then, even if you want to target the Little Smart like this time, it will not be such an easy thing. Ask who dares to let tens of millions, hundreds of millions of people not use the Little Smart to make calls?!

After UT Starcom got the Little Smart patent authorization, all parties began to inquire about the news, wanting to know what conditions UT Starcom used to let Dongling High-Tech open up the procurement rights of this gold mine.

And soon, someone dug out the price UT Starcom paid to get the Little Smart patent. Dongling High-Tech didn't want to hide it either.

UT Starcom paid a deposit of 5 million USD to Dongling High-Tech. This deposit is to ensure that UT Starcom will not leak the Little Smart technology, and also abide by the agreement reached with Dongling High-Tech, including not launching UT Starcom brand Little Smarts in cities like Yanjing, Shanghai, Yangcheng, Xiyuan, etc.

This deposit, after Starcom stops the Little Smart business in the future, Dongling High-Tech will return it to Starcom.

Spending money to invite superstars to endorse, spending 82 million to win the weather forecast advertisement after the CCTV news broadcast, and preparing to win the CCTV bid king advertisement, and spending huge sums of advertising fees to advertise everywhere, Aido also broke the VCD price to under 2,000 yuan for the first time. Regardless of whether it makes money or not, it made Aido VCD sales soar.

And when the price of Nokia 8850 is 500 yuan different from the Little Smart, those who choose Nokia are obviously more. On that day, Nokia announced that sales exceeded 10,000 units, setting the highest single-day sales record since Nokia entered the mainland market.

Just pay some patent fees, Dongling High-Tech also provides components, and also sends people for technical guidance. As long as there is a factory building, recruit some people, you can directly assemble the Little Smart and stick a brand on it to sell. This condition is not good enough, the big cake is fed to the mouth, okay!

Anyway, after Xia Xin saw Dongling High-Tech's conditions, it didn't even think about it and rushed directly. Without any bargaining, it accepted all of Dongling High-Tech's conditions, and then paid a high price to invite Dongling High-Tech's engineers to guide the setup of the production line, and then purchased components, and began to assemble Little Smart mobile phones!

In Xia Xin's eyes, no matter how low the profit of the Little Smart is, there is about 10% profit. Finally, in the hands, there is also a profit of 100 or 200 yuan, which is much stronger than selling VCDs!

As soon as the news came out, it directly shocked the entire domestic mobile phone industry. Anyone can see that Nokia is ruthless and wants to break the wrist with the Little Smart. This sales price is already the lowest price in the world for this model, except for Nokia's old nest in Finland!

However, for the slaughter in the domestic mobile phone industry, Li Dongling is not worried. Compare signal quality, compare call quality, the Little Smart is afraid, but fighting a price war, who has the Little Smart been afraid of?!

However, now, Aido is infinitely beautiful in the VCD industry, but the advertising war and price war it led have made the entire industry painful, and Xia Xin can't hold on.

Aido founder Hu Zhibiao also surpassed Wan Yan's Boss Jiang and BBK's Boss Duan, becoming the most infinitely beautiful figure in the VCD industry. Duan Zhibiao has leaped to become the representative figure of domestic VCD. When visiting Philips Group in the Netherlands, he received national-level treatment in the Netherlands. Visiting the largest decoding chip supplier for domestic VCD, American C-Cube Microsystems, overnight made C-Cube Microsystems' stock rise from 6 USD to 68 USD. Duan Zhibiao reached the peak of his life.

Xia Xin now produces a VCD, and the bulk has been taken away by C-Cube Microsystems, which supplies decoding chips, and Philips, which supplies VCD chips. Why did Philips and C-Cube Microsystems give Hu Zhibiao such high treatment? Who doesn't worship the God of Wealth?!

Aido, a company, made the prices of decoding chips, VCD chips, and motherboards soar several times. Philips and C-Cube Microsystems made a fortune by collecting patent fees and components from domestic VCD manufacturers. What's wrong with giving the representative figure of the domestic VCD industry some treatment?!

The reason why it didn't sell as well as the Little Smart is mainly because the GSM base station coverage is too small. There are only a few cities like Yanjing and Shanghai. There is no signal in other places. If you buy it back, you can only use it as a fire stick. Otherwise, the sales volume of Nokia 8850 today would be quite off the charts.

Like the VCD brand Aido, which was established only two years ago, the sales volume actually exceeded Wan Yan, the founder of VCD. It is expected that the annual sales will exceed 1.6 billion, but the profit is lower than last year!

No other reason, Aido founder invited Jackie Chan to endorse, wait, it seems something is wrong...

Of course, if the story only goes here, the experience of Aido company can almost benchmark against Dongling High-Tech, but how long can Aido last after inviting the brand killer to endorse Aido, it is not clear...

Some media directly reported that next, the domestic mobile phone industry will open the Shura field mode. Whoever can live to the end is the biggest winner.

Seeing this agreement, the companies couldn't help but gasp. Anyone can see that signing this agreement is working for Dongling High-Tech. The more machines sold, the more revenue handed over to Dongling High-Tech.

After UT Starcom and Xia Xin, brands like Kejian, Xiong Mao, Eastcom, BBK, Bird, Southern High-Tech, etc., all announced one after another that they reached an agreement with Dongling High-Tech, especially VCD manufacturers are particularly active. A large number of manufacturers have begun to produce Little Smart mobile phones one after another!

However, these brands have all signed the same agreement with UT Starcom, that is, they can only sell goods to second-tier cities, county-level markets, towns, rural areas, etc., and cannot grab the market with Dongling High-Tech in Yanjing, Shanghai, Yangcheng, etc.

But with a large wave of mobile phone brands entering, the entire domestic mobile phone industry has begun to show signs of a big melee. A large wave of Little Smarts of various brands will completely reshuffle the entire domestic mobile phone industry.

Not only to pay patent fees, to give component procurement costs, but also to spend money on advertising. Xia Xin produces a domestic VCD, and the profit is less than a few dozen yuan left. Then pay taxes, factory rent, pay staff salaries, and how much money can be left?

Of course, this is not the limit. If you really talk about the limit of harvesting leeks, it must be the DVD industry under the control of Japan, which played the art of harvesting leeks to the limit.

In the past, in the DVD era, the country became the world's largest DVD producer. For every DVD exported to America and Europe, the sales price was 135 USD, but in the hands of domestic DVD manufacturers, how much profit was left? Two yuan, that's right, it's two yuan RMB profit for buying a DVD!

A 135 USD DVD machine, Japan relied on 2,000 patents and key components to suck away the profits of the entire DVD industry chain. Japan couldn't control domestic copycats and piracy, but if you want to export, you have to pay Japan. Japan relied on suing domestic DVD manufacturers to take away 2.3 billion RMB in compensation. As for how much patent fees and components earned, it is difficult to estimate. Anyway, it is much more ruthless than Dongling High-Tech!

Xia Xin is now forced to be unable to bear it. People who say that Dongling High-Tech's Little Smart patent authorization is harsh are those who haven't been poisoned by Japanese companies. In Xia Xin's eyes, Dongling High-Tech's conditions are simply not too conscientious.

But the influence of Dongling High-Tech's Little Smart patent authorization has begun to appear. Brands like Nokia, Ericsson, Motorola, Panasonic, Alcatel, etc., have all begun to lower prices one after another.

This trick of Dongling High-Tech is basically driving tigers to swallow wolves, letting this group of brands open up wasteland for the Little Smart. Of course, these brands can also earn money. As for how much they can earn, it depends on their ability.

Now the VCD industry has fallen into a strange circle. The sales volume is getting higher and higher, but the profit is falling straight down.

In addition, for every Little Smart sold by Starcom, it must pay a 19% patent fee to Dongling High-Tech. Key mobile phone components such as chips, motherboards, screens, batteries, etc., must also be purchased from Dongling High-Tech's component supply chain.

In order not to be completely kicked out of the domestic market and lose this domestic market with the largest number of users in the world, Nokia took the lead in lowering prices, announcing that the 8850 model would be directly reduced by 1,000 yuan, and sold for 5,000 yuan. It is only 500 yuan more expensive than the Little Smart, and you can buy a GSM mobile phone of the world's mobile phone giant Nokia brand!

But within these companies, while still arguing whether to accept these conditions of Dongling High-Tech, VCD manufacturer Xia Xin in Minnan suddenly announced that it obtained Little Smart patent authorization from Dongling High-Tech and will launch Xia Xin brand Little Smart mobile phones in the near future!

For other companies, facing Dongling High-Tech's conditions, they might still be hesitant, but for VCD manufacturers in dire straits, they are almost fighting hand-to-hand. It's good to have money to earn, what else do you want a bicycle for!

After Nokia took the lead in demonstrating, a large wave of foreign brands such as Motorola, Alcatel, Ericsson, Panasonic, etc., followed suit and lowered prices. For a time, the price war in the domestic mobile phone industry was flying.

Now the VCD industry is really a melee of heroes. Wan Yan, BBK, Aido, Jinzheng, Shinco, and a bunch of VCD brands all purchase key VCD components from Japanese and American manufacturers, then assemble them, then advertise everywhere, and find sales channel merchants to sell them all over the mainland.

"The domestic mobile phone industry will enter the era of the most intense competition in history!"

This made Xiong Mao, Bird, BBK, Changhong, Haier, ZTE, and other companies that were originally interested in producing Little Smarts hesitant for a while. Dongling High-Tech's conditions are indeed a bit harsh in their eyes.

But the Little Smart has just lowered its price. If it lowers its price again, it is estimated that the group of Nokia manufacturers will be pissed off. Still have to slow down, boil the frog in warm water, wait for Nokia and others to lower prices, give up the high-end mobile phone market, and Shenzhou will directly grab the high-end mobile phone market!

Dongling High-Tech and Nokia will have a limit exchange. Anyway, Dongling High-Tech can't lose money. In addition, the price war is also cheap for domestic mobile phone users. Dongling High-Tech just treats it as sending welfare to domestic mobile phone users, and it is the kind that foreign mobile phone brands pay for...

(End of chapter) ===== CHAPTER 279 =====