Chapter 279: Little lotus just shows its sharp corner

Price wars have different meanings and functions at different times. The price war initiated by Dongling High-Tech using the Little Smart is beneficial to the domestic mobile phone industry. Of course, who will win the domestic mobile phone industry in the end depends on their own abilities!

Like the current domestic automobile industry, the premium is much higher than abroad. Foreign civilian commuter cars are luxury car levels in the country.

German Santana cars are ordinary models in Germany, but they sell for a very high price in the country. A classic rumor that has circulated in the car circle for 30 or 40 years was born. When Santana entered the country, Santana company Volkswagen suggested a price of 80,000 yuan, but the domestic company acting as Santana's agent priced it at 200,000. The conclusion is that foreign car manufacturers have a conscience...

Whether this rumor is true or false is already difficult to verify, but according to the documents that can be found, the first batch of 600 Santanas were purely hand-rubbed, that is, there was no mechanical production line, all components were imported from Germany, and then manually assembled one by one. The selling price was 29,000, and later it rose to 37,000. Why did it rise? Because all components were imported, plus manual hand-rubbing, and it was the first production, the rework rate was frighteningly high. Basically, selling one loses one.

As for rising from 37,000 to 200,000, at that time, all Santana components were imported from Germany, and the exchange rate of the German Mark doubled at that time, and the imported components directly rose by two times.

This is an overseas reason, and in the country, it was in a special period. At that time, prices were breaking through. Not to mention big items like cars, even the prices of grain, rice, oil, and salt rose several times. Santana rose several times in this internal and external background, rising to 200,000. As for what it has to do with the pricing suggestion of Santana executives, only ghosts know.

Moreover, the per capita income was less than 400 yuan a few years ago. Buying a 200,000 Santana would take 42 years of salary without eating or drinking. Selling 30 yuan things for 3,000 is called harvesting leeks, because most people can afford it if they grit their teeth, and might be harvested. But if the pricing is set so that most people can't afford it, then what is the significance of this pricing.

But after Zheng Baoyong finished speaking, Li Yinan, as his junior brother, directly retorted, "I propose GSM technology!"

"Chrysanthemum Factory is not making mobile phones!"

While a group of Chrysanthemum Factory executives were arguing, Ren Zong made a final decision, "Little Smart is a freak. It may have good sales now, but it cannot enter the 3G era. There is no future in the future. We must let Chrysanthemum Factory enter the 3G era!"

And behind a group of technical big shots in Chrysanthemum Factory, there is also a small transparent, a technical staff who has only joined Chrysanthemum Factory for two years. This one, in later generations, shouted that famous "far ahead" at the press conference, is also among a group of technical personnel at this moment, but has not yet had the opportunity to express his views in the conference room.

And the reason why this kind of boomerang can exist is that in the past life, domestic new energy vehicles fought too fiercely, and the price war was flying. No matter what brand, whether it is a dragon or a tiger, it must be coiled in the country. Half of the global new energy vehicles are in the country.

For the Little Smart, Ren Zong is a bit reluctant to touch it. He also knows that entering the Little Smart now may be making money with eyes closed, but once Chrysanthemum Factory enters, I am afraid that it will not be so attentive to R&D 3G communication equipment. After all, accustomed to making quick money, it is difficult to calm down and engage in R&D.

A certain electric vehicle produced by Volkswagen in the country sells for 220,000 domestically, but sells for 500,000 in Germany. German dealers saw business opportunities, so they imported this car from the mainland to Germany, which made Volkswagen furious. In order to keep the market in Germany, they directly staged a scene of Hamburg nitrate cars. The boomerang of 40 years ago was inserted into Volkswagen 40 years later, causing a group of melon-eating masses to shout brand cars, please be kind to your compatriots...

"Although the GSM network only started commercial use in Germany four years ago, now, except for America, Canada, and Korea, most countries in Europe use GSM technology. More countries will use GSM communication equipment in the future!

And these foreign brands don't care about the user experience of domestic mobile phone users at all, and they are too lazy to even develop a Chinese operation interface, because there is no opponent at all, and domestic users can only choose them.

And now, the entry of ZTE is also a huge shock to dozens of large and small communication equipment manufacturers in the country, including Chrysanthemum Factory, all discussing whether to produce Little Smart.

If even GSM cannot be entered, what is the use of developing 3G, how many users can there be?"

In the conference room, including Chrysanthemum Factory founder Ren Zong, there are also core members such as Li Yinan, Zheng Baoyong, Liu Qiwu, Yang Hanchao, Li Jian, Mao Shengjiang, etc. Chrysanthemum Factory is also a company dominated by technical personnel, and most executives have technical backgrounds.

"The telecommunications company, together with Hanxi and other provincial governments, is expected to invest a total of 4 billion USD to lay PHS base stations in these few years, and future investment may exceed 100 billion RMB. Do we want to enter the Little Smart mobile phone industry?"

"GSM equipment, Chrysanthemum Factory develops GSM communication equipment!"

"In addition, choosing CDMA, Chrysanthemum Factory can quickly open up the market." Zheng Baoyong said. He wants to bet on CDMA technology.

Like Dongling High-Tech, it was also under Li Dongling's suppression, and it smashed a lot of funds earned by the Little Smart, so the technical department had to develop mobile phones with GSM and CDMA technology.

Placed in the current domestic mobile phone market, the Little Smart also has the qualification of pricing power in the domestic mobile phone industry. A few years ago, domestic mobile phone prices were all in the hands of foreign mobile phone manufacturers.

But these are things for the future. Now Dongling High-Tech needs the Little Smart to occupy the basic disk of the mobile phone industry in the country first. Only with a basic disk can Dongling High-Tech go overseas to battle Nokia in the future!

But now, the emergence of the Little Smart has given domestic mobile phone users a new choice. At least these foreign brands dare not harvest leeks in the country at will, and they have to take out the latest models to fight a price war with the Little Smart!

It is only showing its sharp corner now. The Little Smart is just opening the eyes of manufacturers like Nokia and Motorola. It won't be until Dongling High-Tech develops mobile phones with GSM and CMDA technical standards that the big play will begin.

Zheng Baoyong is the recognized second-ranked person in Chrysanthemum Factory, and Li Yinan is called the Crown Prince, the future leader of Chrysanthemum Factory. Both are R&D geniuses, but geniuses are paranoid and proud, and absolutely unwilling to be inferior to each other, inevitably having disputes.

Zheng Baoyong and Li Yinan had their own opinions for a while, and the two argued very fiercely, neither giving way to the other. Each had a group of supporters, and for a time, the quarrel was dark and dark, and Ren Zong was a bit headache.

Seeing more and more brands starting to defect to Dongling High-Tech, major factories are also a bit unable to hold back. The first one to be unable to hold back is ZTE.

In the conference room of Pengcheng Chrysanthemum Factory, a group of people were discussing whether Chrysanthemum Factory should choose GSM communication equipment or CDMA communication equipment. I don't know who mentioned it, and for a time, everyone started discussing whether Chrysanthemum Factory should also produce Little Smart mobile phones.

Otherwise, like UT Starcom in the past life, it was completely lost because of the Little Smart, and didn't consider R&D at all, directly lying down and earning, and as a result, it was directly abandoned in the 3G era.

Brands like Motorola, Nokia, Ericsson, etc., put old models from a few years ago to sell in the country, and dared to price them at over 10,000 yuan RMB, equivalent to over 1,000 USD, basically treating the domestic mobile phone market as a region for them to clear inventory.

Hearing this, Zheng Baoyong looked at Ren Zong and glanced at Li Yinan, and a look of disappointment inevitably appeared on his face.

"Currently, 12 manufacturers including UT Starcom, Xia Xin, ZTE, BBK, Bird, Panda, Kejian, Southern High-Tech, etc., have obtained Little Smart patent authorization. If we hadn't set an authorization threshold, it is estimated that there would be more companies wanting to get patents!"

ZTE was originally the largest equipment manufacturer of PHS base stations and had a very close relationship with Dongling High-Tech. Entering the ranks of Little Smart manufacturers is almost a matter of course.

To be honest, Ren Zong's choice was not wrong, but he might not have expected that 3G technology would be so difficult to develop, and he would encounter the NASDAQ crash, directly bringing the communication equipment industry into a cold winter, dragging Chrysanthemum Factory into the ditch by huge R&D expenses, so that it began to lose money, so much so that it started to want to sell itself...

This is the rumor of Santana, but 20 years later, during the new energy vehicle war, Volkswagen staged a classic scene.

Hearing Ren Zong make this remark, although there were other executives in Chrysanthemum Factory who wanted to speak, wanting to enter the Little Smart, after all, the Little Smart is too profitable. Look at the media reports that Dongling High-Tech's performance has doubled this year because of the Little Smart. Who doesn't want to have such high performance, who can't get bonuses, dividends, and equity rewards?

But as the founder of Chrysanthemum Factory and having experienced big storms, leading Chrysanthemum Factory to today, Ren Zong has absolute authority and influence in Chrysanthemum Factory. Things he decided in public, even if some people are unhappy, can only be reported privately, but dare not refute in public.

At the last moment, Ren Zong made a final decision, made up his mind, and wanted Chrysanthemum Factory to develop GSM communication equipment.

By that time, Shenzhou will occupy the high-end mobile phone market, Coolpad will enter the mid-range mobile phone industry, Simon and other brands will charge for volume, letting Nokia also experience the feeling of the Siemens and Dongling High-Tech middle-door sniper.

"I think Chrysanthemum Factory should develop 3G communication equipment with CDMA technology. ZTE seems to be developing it too. CDMA is very mature in 2G technology. From CDMA to 3G technology, the difficulty is much smaller!"

Different people choose different paths and will have different fates. People are like this, and companies are like this.

Regardless of how Chrysanthemum Factory is, Dongling High-Tech has been very lively these few days. Companies from all over the world have run to Dongling High-Tech headquarters, wanting to get Little Smart patent authorization.

Dongling High-Tech headquarters, Ren Yuefeng said with some emotion to Li Dongling, it is like a lamb raised with great difficulty being taken away by someone else, how can it not be painful.

"The sales volume of the Little Smart will not be affected!" Li Dongling, who was waiting for the phone from Japan, said to Ren Yuefeng.

(End of chapter) ===== CHAPTER 280 =====