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Chapter 3477

~10 min read 1,802 words

This was equivalent to these phone manufacturers selling phones to earn money for Hanhai Technology. Where could one find such a good thing? It was conceivable that Hanhai Technology would never be short of money in the future.

And this money would allow them to continue to increase R&D investment and continue to research new technologies. This was a virtuous cycle, which would allow Hanhai Technology to always stand at the forefront of technology and lead the world in technology.

This realized Su Xinghui's concept of "overtaking on a bend."

Just as Hou Wenchang and the others were drinking the celebration wine, phone manufacturers all over the world were in an uproar. They were all like mourners, especially the big bosses in the phone field; they were about to explode.

Hanhai Technology's press conference today was undoubtedly the death knell for them.

These big bosses occupied more than half of the global mobile phone market, selling hundreds of millions of phones every year, earning money happily. They also thought their phones were the most technologically advanced and were counting on earning money for a few more years. But once the Hanhai phone came out, all their beautiful dreams were shattered at once.

For example, a certain foreign phone manufacturer released their latest flagship model at the end of 2004, and it had only been three months since then. Their flagship model was priced at 6,666 yuan per unit in mainland China, but the price overseas was only 599 US dollars per unit. In these three months, this flagship model sold very well in mainland China, having already sold over 100,000 units.

But once the Hanhai phone came out, their phone was immediately compared to trash. They could imagine that their phone probably wouldn't be able to sell anymore.

The problem was that they had estimated the market for this phone very well and had spent a lot of effort on promotion, so they had already stocked up over a million units, and the promotion expenses had also cost over 100 million yuan. But now, all of this faced the risk of going down the drain.

Their phone was trash compared to the Hanhai phone, yet the selling price was much higher than the Hanhai phone. Even a fool knew whose phone to buy. The Hanhai phone would be on the market in three months. Who would spend a lot of money to buy their trash phone at this time?

They had also spent huge costs to produce these million-plus phones. If they became unsalable, they would suffer huge losses. Thinking of this, how could they not go crazy? Their executives were all pale-faced, yet they had no way to deal with it.

Because Hanhai Technology's new product launch was simply too sudden. There hadn't been a hint of news beforehand, just like a thunderclap on a clear day, stunning everyone. And this was simply throwing an atomic bomb directly, while the opponents could only resist with rifles.

This was too much of a cheat, all phone manufacturers were lamenting. How were they supposed to play now?

It seemed that the mobile phone industry was about to change. Hanhai Technology, a phone manufacturer that had entered the industry halfway, was about to become the leader in the industry, and other manufacturers could only look at their backs.

On the day Hanhai Technology's new product launch was held, Hanhai Technology's stock price soared, while the stock prices of many phone manufacturers plummeted. Such a stark contrast indicated the trend of the mobile phone industry in the future.

And it was also from this day on that the flagship models of almost all phone manufacturers began to be unsalable. It wasn't just the flagship models over 3,000 yuan; even the mid-range models around 2,000 yuan began to be unsalable. This was also easy to understand: if someone could afford a 2,000-yuan phone, they might as well add another 2,000 yuan to buy a Hanhai Generation-1.

The only models whose sales were not affected were those low-end models costing a few hundred yuan.

However, these phone manufacturers didn't rely on these low-end models costing a few hundred yuan to make money at all. More than 90% of their profits came from those high-end models, but the high-end models couldn't be sold. What should they do?

Like a plague, all phone manufacturers unanimously lowered prices or promoted their high-end models, but this was of no use. No matter how much they lowered the price, how low could they go? For example, for that model costing over 8,000, even if the price was lowered by 50%, it was still more expensive than the Hanhai Generation-1. It was self-evident how consumers would choose.

The mobile phone industry was in a state of mourning. Now they were almost in a stagnant state, just waiting for the Hanhai Generation-1 phone to be launched in three months to harvest them.

The phone manufacturers were bleak, but those software companies were very active. They all saw the bright future of the Hanhai Generation-1 phone. They were all developing applications that could run on the Xiaoyao operating system based on the source files of the Xiaoyao operating system made public by Hanhai Technology.

Not long after, the number of applications based on the Hanhai Generation-1 phone's Xiaoyao operating system increased significantly. Many companies signed cooperation agreements with Hanhai Technology, hoping to enter the Hanhai Generation-1 application store and become Hanhai Technology's official applications, preferably being pre-installed when the Hanhai Generation-1 phone was launched.

Just this pre-installation fee alone made Hanhai Technology's hands soft from counting money.

For the Chinese government, this was of course also a huge piece of good news. This meant that China was already leading the world in the field of smartphones.

In addition, the Chinese government had another idea, which was to hope to use the strength of the Hanhai Generation-1 to promote the WAPI wireless local area network security technical standard led by the Chinese government in the world.

WAPI was a wireless local area network security technical standard led by the Chinese government. At that time, the wireless local area network security technical standard prevailing in the world was Wi-Fi, which was a standard researched by foreign scientists.

Compared to Wi-Fi, WAPI had better security and greater advantages in wireless networks. However, due to different ideologies and the rampant "China Threat Theory," developed countries represented by the United States all disagreed with WAPI becoming an international standard.

This was of course the thinking of protectionism. However, China's strength was still very weak at that time, and it was also very weak in many technologies compared to foreign countries. Facing foreign boycotts, it had no countermeasures, so several proposals to international standard organizations ended in failure.

The Chinese government hoped to allow the Hanhai Generation-1 to adopt the WAPI standard to access wireless networks, or at least use both WAPI and Wi-Fi standards simultaneously, thereby allowing the international community to recognize the WAPI standard.

In the past, this was undoubtedly a fantasy. Chinese products, especially high-tech products, had never been so strong, strong enough to make foreigners make concessions. But now it was different. The Hanhai Generation-1 phone had a pioneering position in the smartphone field, and they had many patents that other phone manufacturers could not bypass no matter what.

Once the Hanhai Generation-1 phone came out, it meant that the mobile phone industry had undergone earth-shaking changes. Traditional button phones no longer had a market and were destined to be eliminated. If other phone manufacturers wanted to survive, they had to follow Hanhai Technology and take the path of smartphones.

And if they wanted to produce smartphones, they had to use Hanhai Technology's patents. In this way, Hanhai Technology held the initiative in negotiations, and even held the power of life and death over these phone manufacturers. Which phone manufacturers could continue to survive depended on Hanhai Technology's mood.

At this time, those phone manufacturers naturally had to stand on the same side as Hanhai Technology. Their combined strength could not be ignored even by the governments of those developed countries.

Therefore, one week after the Hanhai Generation-1 phone's press conference, a group of people including Wu Zhicheng, Deputy Director of the National Standardization Management Committee, and Li Xianfeng, Director of the Industrial Standard Department II, came to Baozhou City to inspect Hanhai Technology.

Su Xinghui and Cheng Zhiguo participated in the entire accompaniment work for Wu Zhicheng and Li Xianfeng's group. Su Xinghui already knew the purpose of Wu Zhicheng and the others' visit. This was because Gu Shanmin had personally called him, hoping he could do a good job on Hou Wenchang and get him to agree to cooperate with the Chinese government.

For Su Xinghui, although he didn't understand these technical things, he knew one principle: third-rate companies sell products, second-rate companies sell technology, and first-rate companies sell standards. Although this sentence was somewhat one-sided, it also showed that standards were very important.

If the WAPI standard led by the Chinese government could not become an international standard, the loss would be very huge. Not to mention anything else, in the future, any mobile phone made in China that used the Wi-Fi internet access standard would have to pay a fee to the inventor of Wi-Fi.

And in terms of actual usage effect, the security of the Wi-Fi standard was not as good as the WAPI standard. Therefore, Su Xinghui felt that it was necessary for him to persuade Hou Wenchang to agree to cooperate with the Chinese government.

Of course, there were benefits to Hou Wenchang agreeing to cooperate with the Chinese government. The Chinese government would naturally vigorously support his Hanhai Technology, which was of great significance to the development of Hanhai Technology.

The National Standardization Management Committee was a deputy ministerial-level unit, and Wu Zhicheng was a deputy director, which was a department-level cadre. He was a person in his fifties and a scholar-type cadre, very approachable.

The Industrial Standard Department II was mainly in charge of the standardization of emerging industrial industries, which of course included standards for IT, electronics, and communications. Therefore, the WAPI standard was also led by the Industrial Standard Department II. Director Li Xianfeng was also a middle-aged man in his fifties. He was a senior engineer and a cadre who came from a technical background.

They inspected Hanhai Technology for a day and were full of praise for Hanhai Technology's achievements. They praised Hanhai Technology as a great technology company and Hou Wenchang as a great entrepreneur.

For their praise, Hou Wenchang was still humble. He had been in China for more than ten years and had been influenced by Chinese culture since he was a child, so he still understood the principle of humility.

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End of Chapter

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