Reborn since 1993

Chapter 1030: The Abacus Beads All Fly onto His Face
Shen Xingyao's voice was not loud, but many people in the conference room heard it. There was silence for a moment. Mr. Li was silent for a while, and then his expression returned to normal. He just nodded at Shen Xingyao, indicating that he knew about it, and continued the meeting.

“This year, we must ensure that Dongling Hi-Tech’s previous products, such as Shenzhou digital cordless phones, Shenzhou USB flash drives, electronic dictionaries, repeaters, and mini radios, continue to sell well, and then we will start promoting new products!

Notify Dongxin Semiconductor, Dongfang Optoelectronics and other Dongling Hi-Tech industry chain companies to cooperate with Dongling Hi-Tech's new project! "

The Shenzhou digital cordless phone can be said to be an evergreen project of Dongling Hi-Tech, bringing in more than one billion US dollars in revenue to Dongling Hi-Tech every year.

The cordless phone market in old Europe and America belongs to Shenzhou. Dongling Hi-Tech can still reap the benefits of this for another ten years!

The same is true for projects such as Shenzhou U disk and electronic dictionary, which are all part of Dongling Hi-Tech's basic foundation. They can generate a steady stream of income for Dongling Hi-Tech every year.

Even when launching new products, Dongling Hi-Tech cannot give up these basic bases and launches new digital cordless phones every year.

With these basic product markets, Dongling Hi-Tech has a way out. People should always leave a way out for themselves, not to mention Dongling Hi-Tech, which is related to the jobs of countless people.

As powerful as the Overlord of Western Chu is, he can only play the desperate move once. Is there anyone who thinks he is more powerful than the Overlord?
After Li Dongling gave his instructions to the executives in the conference room, he ended the meeting.

Ren Yuefeng, Hu Zixian, Zhang Ao, Gao Peng and other senior executives of Dongling Hi-Tech followed him to Mr. Li’s office.

"What's going on? Has Nakamura Weifu informed us that we will transfer the orders for PHS phones to other OEM factories?"

As soon as he arrived at the office, Ren Yuefeng asked Shen Xingyao about the details.

"The Nippon Telephone and Telegraph Company just sent a message that Nakamura Weifu will come to the mainland in person and will come to Hanxi at that time.

The news was released by the Japanese Asahi Shimbun, reprinted by Hong Kong and other Southeast Asian media, and then spread to China!"

Hearing this, Li Dongling, Ren Yuefeng and others looked at each other and couldn't help but think of a word: making a show of force to scare the tiger, or applying extreme pressure.

Nippon Telephone and Telegraph Company did not tell Dongling Hi-Tech the news directly, but instead released it through the media first, which was obviously an attempt to exert pressure or even intimidate.

Tell the OEM of Xiaolingtong that it has to transfer the order from Dongling Hi-Tech. If Dongling Hi-Tech does not want to let go of Xiaolingtong's order, it will definitely have to bow to the other party, or even "seek peace". At that time, won't the conditions be decided by Nippon Telephone and Telegraph Company?
Dongling Hi-Tech does not care much about the OEM orders for Xiaolingtong mobile phones. Dongling Hi-Tech mainly needs the orders from Xiaolingtong to support its industrial chain suppliers.

If Dongling Hi-Tech suddenly loses the Xiaolingtong order, it will not be a serious blow. However, for many suppliers, they may lose a quarter or even a third of their orders, and life will become very difficult.

Li Dongling laughed playfully, drank a sip of tea, cleared his throat, and then asked Shen Xingyao about another matter, "From the Chinese New Year to now, what has happened in the domestic and overseas PHS markets?"

Standing next to Shen Xingyao, Du Qishan, another assistant of Li Dongling who was mainly responsible for collecting various industry news, had obviously done his homework and spoke out directly.

"In the last quarter of last year, including the Spring Festival and Christmas overseas, sales of Xiaolingtong and other PHS phones increased significantly.

Of course, it’s not just PHS, GSM brands like Nokia and Motorola have also seen a surge in sales!”

Du Qishan said, "But the sales volume of PHS phones has increased, but the price has continued to drop. After Nippon Telephone and Telegraph Company acquired PHS, it took the initiative to cut prices for promotion, which has led to a serious price war for PHS phones.

There are PHS mobile phone manufacturers in China, and they have lowered the price to 800 yuan, but the profit margin is probably less than 3%, or even lower! "

When Dongling Hi-Tech controlled the Xiaolingtong system, it relied on the PHS patent and the parts supply chain to suppress domestic competitors such as UTStarcom, Xaomi, Kejian, Panda, and Bird, preventing them from becoming too competitive.

They are even not allowed to go overseas, so as not to affect Dongling Hi-Tech's use of PHS to make profits overseas.

At that time, various PHS mobile phone manufacturers complained about Dongling Hi-Tech, saying that Dongling Hi-Tech was monopolizing the market and was too overbearing.

But to be honest, with Dongling Hi-Tech suppressing the PHS mobile phone industry, at least there is order. If anyone dares to disobey, Dongling Hi-Tech will really use patents, chips and other components as a stick to hit them.

However, after Nippon Telephone and Telegraph Company took over Xiaolingtong, it immediately started a price war, which was equivalent to giving up all the rules set by Dongling Hi-Tech in the PHS mobile phone industry.

When the boss doesn't follow the rules, how can you expect the younger brothers to follow the rules?

When Xiaolingtong was reduced in price, some manufacturers, such as UTStarcom, reduced their prices more than Xiaolingtong. After all, they could only receive money if the machines were sold. If they could not be sold, they would just be a pile of scrap metal piled up in the warehouse.

Just like pagers, many people still have a lot of pagers hoarded at home, and they will never have the chance to cash them out in this lifetime!
“In addition, GSM communication manufacturers such as Siemens and Nokia are also continuously promoting GSM base stations.

GSM mobile phone manufacturers such as Nokia are actually constantly lowering their prices. There are rumors that Nokia's latest 6110 phone is priced at US$399, equivalent to RMB 3190. Compared with Nokia's previous phones, it is already a significant price reduction! "Du Qishan finally said that in the face of the impact of Xiaolingtong, to be honest, Nokia and other manufacturers are also constantly adjusting their strategies.

Especially as more and more GSM base stations are laid around the world, GSM mobile phone charges are also constantly decreasing.

After Nokia increased its production capacity and integrated the industrial chain, it continued to reduce costs and lower the prices of its machines.

For PHS mobile phones, they are now facing internal and external troubles. Internally, the entire industry is in a mess, with a price war raging, while externally, the GSM camp led by Nokia is pressing forward step by step.

Although Nippon Telephone and Telegraph Company does not care much about the revenue brought by Xiaolingtong, what they care about is the telecom users brought by Xiaolingtong.

However, the continuous decline in profits of Xiaolingtong still made it difficult for Nippon Telephone and Telegraph Company to accept.

After much thought, I'm afraid they want to make a move on the OEM side, forcing Dongling Hi-Tech, the OEM for PHS, to lower its prices, so as to increase the profits of PHS phones in the hands of Nippon Telephone and Telegraph Company.

I vaguely understand what Nakamura Sue and Nippon Telephone and Telegraph Company want to do. Now it depends on how Dongling Hi-Tech will respond.

Ren Yuefeng frowned, "Boss Li, the Japanese Benz Telephone and Telegraph team seems to be up to no good this time. Should we... first calm them down and wait until the Feiyan MP3 and other new products are released before making a decision?"

Ren Yuefeng's meaning was very clear. He would make a concession now and wait until Feiyan MP3, Dongling Hi-Tech's second-generation Shenzhou computer and other products were released. If the sales volume met the target, they would be able to replace the orders for Xiaolingtong and allow Dongling Hi-Tech's parts industry chain to cancel the orders for Xiaolingtong.

This is the most reliable option with the lowest risk and the least impact on Dongling Hi-Tech. It also fits Ren Yuefeng's character, as he is a prudent person.

There was certainly nothing wrong with Ren Yuefeng's idea, but Li Dongling slowly shook his head.

"Dongling Hi-Tech cannot retreat from this step!"

Li Dongling said in a firm tone, "We have withdrawn this time, but next time, if someone forces Dongling Hi-Tech in the same way, will we withdraw then?

If Dongling Hi-Tech does not withdraw at that time, will those parts industry chain suppliers sell Dongling Hi-Tech for orders?"

"If Nippon Benz Telephone and Telegraph Company wants to transfer the PHS order, then let it do so. Can it transfer all the production capacity in less than three months, or even half a year?
Nippon Benzene Telephone and Telegraph Company can transfer the order, but it has to pay the $300 million penalty first!"

“As for those parts suppliers who are worried that the loss of PHS orders will affect their performance, if they want to follow Nippon Benzene Telephone and Telegraph Company, then let them go. Dongling Hi-Tech will never stop them.

But before leaving, they have to pay back the interest-free loan that Dongling Hi-Tech gave them, as well as the penalty for breach of contract!"

Dongling Hi-Tech’s requirements for the parts industry chain include technology on one hand, but more importantly, “loyalty” and the ability to advance and retreat together with Dongling Hi-Tech.

Last year, when Dongling Hi-Tech asked its component suppliers to reduce or even stop production, companies like Jinyang Electronics were unwilling to obey Dongling Hi-Tech's orders and left the Dongling Hi-Tech camp to join other manufacturers.

Now, it is just another test. If you are unwilling to stand together with Dongling Hi-Tech, just leave as soon as possible. Traitors are more dangerous than opponents!
Moreover, when selling the Xiaolingtong, Dongling Hi-Tech signed a contract with Nippon Telephone and Telegraph Company. Within two years, the OEM orders for Xiaolingtong must be in the hands of Dongling Hi-Tech. If there is a breach of contract, Nippon Telephone and Telegraph Company will have to pay a penalty of US$300 million.

At that time, we were on guard against the Japanese playing tricks. There has always been no shortage of fickle companies in Korea and India, so we definitely had to be on guard.

Now Nippon Telephone and Telegraph Company is putting pressure on Dongling Hi-Tech by doing this, probably because it doesn't want to pay the penalty for breach of contract and wants Dongling Hi-Tech to take the initiative to seek peace!
But how could Mr. Li, a kind man, let the Nippon Telephone and Telegraph Company get what they wanted? It was written in black and white, and not a single cent could be missing!
……

"According to the Japanese Asahi Shimbun and other media reports, Nippon Telephone and Telegraph Company may choose to find another OEM factory due to the cost of PHS!"

"Dongling Hi-Tech concept stocks suffered a heavy blow!"

"Once Nippon Benz Telephone and Telegraph transfers its PHS orders, some Dongling Hi-Tech concept stocks may lose one-third or even half of their orders!"

"A-shares, Dongling Hi-Tech concept stocks collectively declined. Chuanrong Electronics and other representative companies of Dongling Hi-Tech concept stocks, the current share price has fallen by more than 8%, close to the limit down!"

The news came out suddenly and was reported by major domestic media. It would be ridiculous to say that there was no one behind the scenes pushing it.

According to these media reports, after losing the Xiaolingtong order, Dongling Hi-Tech concept stocks, that is, Dongling Hi-Tech parts industry chain manufacturers, seemed to be unable to survive.

(End of this chapter)