Reborn since 1993

Chapter 1061: Raise an army for a thousand days and deploy it for a moment

Before Feiyan Technology went public, it provided option rewards. In addition to Feiyan Technology employees, Dongling Hi-Tech executives, including Ren Yuefeng, Hu Zixian, Zhang Ao and others, also received equity rewards from Feiyan Technology.

This was Mr. Li’s “compensation” to the executives of Dongling Hi-Tech. He did not distribute the equity of Dongling Hi-Tech’s headquarters, but the listing of companies such as Feiyan Technology still allowed executives such as Ren Yuefeng to earn huge fortunes and even achieve financial freedom!

At present, the market value of Feiyan Technology has skyrocketed, and the net worth of Yao Luoying, the founder and first general manager of Feiyan Technology, has reached US$800 million.

Ren Yuefeng, who holds 4% of Feiyan Technology's shares, is worth more than US$ million. Hu Zixian, Zhang Ao and others have also gained hundreds of millions of dollars from Feiyan Technology.

The more Feiyan MP3 players are sold, the more users of Himalaya Radio's Internet business will have, the higher the market value will be, and naturally, the higher the net worth of Dongling Hi-Tech's executives will be!

Fu Cheng sat down somewhat flattered, sorted out his thoughts, and began to report on the performance of the Feiyan MP3 player since it went on sale.

"The current sales volume of Feiyan MP3 has exceeded 42 units, and the revenue has exceeded US dollars!"

As soon as Fu Cheng finished speaking, there was another round of applause in the conference room. The performance of Feiyan MP3 was definitely outstanding.

"At present, the profit margin of Feiyan MP3 is about 35%. With large-scale mass production, the supply chain cost of Feiyan MP3 will decrease and the product qualification rate will increase. It is expected that the profit margin will increase to about 40% or even 50%!"

Dongling Hi-Tech controls all parts in the entire industry chain. As long as the production capacity is increased, the cost can be continuously reduced and the profit can be continuously increased.

"However," Fu Cheng also had concerns, "There are still many domestic electronics manufacturers, including Aigo Electronics, a subsidiary of Dongling Hi-Tech, who want to obtain the Feiyan MP3 patent license from Feiyan Technology!"

"Even if Feiyan Technology doesn't license the patent to them, it probably won't be able to stop them for long!"

The hot sales of Feiyan MP3 have made many manufacturers jealous. For now, they are still abiding by the rules and want to obtain the MP3 patent from Feiyan Technology before starting production.

But once they fail to obtain patents, these electronics manufacturers will probably stop following the rules and directly start the copycat model.

It's not just domestic manufacturers. I'm afraid that manufacturers in South Korea, Japan, America, old Europe and other places will also follow suit and copycat.

Money can move people's hearts, but people's hearts cannot withstand the test of US dollars. As long as there is US dollars to be earned, those manufacturers will take the risk even if they have to lose money in lawsuits. MP3 is not like USB flash drives, its profit is really high.

“Feiyan Technology holds flash storage patents, audio decoding chip patents, acceleration decoder patents, touch wheel patents, player menu design patents, etc.

Even if they don’t authorize it, there will probably be counterfeiters and imitators, and even a lawsuit won’t stop them from producing MP3 players!”

Li Dongling shook his head and said that he estimated that Feiyan Technology would have many lawsuits to fight in the future, but there was no need to worry about whether it could win these patent lawsuits.

There is no need to worry about winning the lawsuit, it just takes time, and you may not know how much compensation you can get after winning. Also, even if you win the lawsuit, it may not stop those manufacturers from entering the electronics industry.

"Another point is that there is news that Sony's Walkman, CD players, MD players, as well as tapes, discs, etc., will begin to significantly reduce their prices in the future to compete with Feiyan MP3 for the market."

"Moreover, according to the news from Feiyan Technology's American branch, Sony and Warner, the two major record groups, are teaming up with other record companies to initiate a class action lawsuit against the Napster website, which may lead to the closure of the Napster website.

If the Napster website were to shut down, the sales of Feiyan MP3 would probably... suffer a major blow!"

Although the Feiyan MP3 player seems to be booming, it is not all safe, but there are undercurrents.

In the future, Feiyan MP3 will have to compete with its peers internally and compete with Sony Walkman externally, and will also face the risk of Napster being jointly sued by record giants.

The entire MP3 job market is likely to face turbulent times in the future, and it is definitely not as easy as one might think to make money without doing anything.

But Feiyan MP3 is not the only one who has experienced this. There is no need to feel sorry for yourself. In every business, there is money to be made. It is a fierce competition and only the one who is left standing at the end can make money!
Why was Apple so powerful in its previous life? On the one hand, under the leadership of Steve Jobs, Apple always appeared as a first mover and industry innovator.

On the other hand, Apple is in a very complicated business, taking 80% or even more than 90% of the profits in the entire industry. All other competitors in the industry combined do not earn as much as Apple.

If you don't have the confidence to make the entire industry and other friendly competitors unable to defeat you, how can you maintain your position as the industry leader?

Looking at Fu Cheng, Li Dongling said, "There will be many competitors in the MP3 industry in the future. What Feiyan Technology needs to do is to maintain the brand of high-end MP3 and let users accept the concept that Feiyan MP3 is a high-end brand!"

In an industry, only high-end brands are at the top of the food chain and are the most profitable. The rest can only get a little bit of the profit at best.

"In the future, Feiyan MP3 will target the high-end MP3 market between two hundred and four hundred dollars. For the mid- and low-end MP3 market, Feiyan MP3 can license its patents and components to Huaqi Company!" Huaqi Company, the parent company of Aigo products, joined the Dongling Hi-Tech camp during the USB flash drive era, allowing the Aigo brand to enter the mid- and low-end MP3 market and be responsible for benchmarking against other competitor brands.

It can not only cope with the impact of other brands on Feiyan MP3's high-end market, but also earn more profits. After all, although the profit of MP99 market below 3 US dollars is very low, the market size is huge!
"From now on, Feiyan Technology will start the research and development of the second generation of MP3!"

Li Dongling's words surprised Fu Cheng. The first generation of Feiyan MP3 was still selling well, but Li Dongling asked Feiyan to start developing a new generation of MP3 players.

"Start research and development now?" Fu Cheng asked uncertainly.

"In the future, Feiyan Technology will launch a new generation of Feiyan MP3 flagship phones every year, and also develop some note or Pro versions with reduced or increased configurations to expand the Feiyan MP3 product line."

MP3 was a money-making tool until the advent of smartphones. In the past, Apple made to billion US dollars with the help of iPod, and at its peak it had annual sales of billion US dollars.

Feiyan Technology must maintain its momentum of releasing a flagship MP3 player every year to increase popularity and sales.

“The next generation, Feiyan MP3, will be completely upgraded to make Feiyan MP3 completely different from other brands of MP3 players, so that users will know what a high-end MP3 player is!”

“In addition to the upgraded appearance, components and functions, the sound quality of the second-generation Feiyan MP3 must at least reach the current sound quality level of Sony Walkman!

Another most important point is that the Feiyan second-generation MP3 has a faster song upload speed. In addition, the memory is changed to a micro-mechanical hard disk with a capacity of 1G, which can accommodate 3 songs, allowing Feiyan MP to truly break free from the shackles of song memory! "

"For the third generation of Feiyan MP3, the memory should reach more than 2G, so that one Feiyan MP3 can store songs. For the fourth generation, one Feiyan MP can store songs!"

Mr. Li decided to increase the intensity of his competitors. In the future, there will definitely be a large number of MP3 manufacturers, and they will all target the first-generation Feiyan MP3. Feiyan will crush them into pieces with its second-generation MP3.

Fu Cheng was dumbfounded by this. Xie Shining, the general manager of Shenzhou Storage, who was specially invited from the provincial capital of Hanxi today, couldn't help but twist his body in his seat.

Now that the news has gotten out that an MP3 player can hold a thousand songs, it's really shocking.

But Mr. Li, this is not too difficult to ask. Micro-hard disks with a capacity of less than two inches have already been technically realized in laboratories of IBM, Toshiba, Hitachi, etc. It's just that the cost is a bit high and mass production has not yet begun.

Feiyan MP3 started earlier than Apple. It is impossible that when the first generation of iPod was released, 5G large-capacity memory MP3 was already available, but Feiyan Technology has not been able to develop it in three years?

It takes a thousand days to raise an army but only a day to deploy it. Dongling Hi-Tech spends a lot of money every year on its three money-eating beasts, Dongxin Semiconductor, Oriental Optoelectronics and Shenzhou Storage.

Dongling Hi-Tech purchased equipment, patents, and built laboratories for Shenzhou Storage. Almost all of the memory orders within Dongling Hi-Tech belong to Shenzhou Storage.

The average salary of Shenzhou Storage Company's employees is also considerable within Dongling Hi-Tech.

After consuming so many resources from Dongling Hi-Tech, when the time comes for it to step up, it will definitely have to show off some tricks to tell Mr. Li and Dongling Hi-Tech headquarters that so much money was not wasted. It can't be a big deal, right?

Xie Shining now understood why Mr. Li had specifically called him from the provincial capital of Hanxi for this meeting.

Mr. Li did not ask Xie Shining to sign a military order or anything, but at this critical juncture, he knew that he had to express his position.

After all, all the memory orders for Feiyan MP3 came from Shenzhou Storage. If he didn’t step forward, who would?

If you stand up yourself, everyone will be respectable. If Xie Shining is not respectable himself, then someone will help him to be respectable.

"Shenzhou Storage will fully cooperate with Feiyan Technology to develop a new generation of MP3 flagship devices and complete the research and development of MP3 micro hard drives!"

Xie Shining said to Li Dongling, Ren Yuefeng and other Dongling Hi-Tech executives that this was basically a military order.

No one said what would happen if the research and development was not completed, but everyone present knew the consequences.

Normally, Mr. Li would delegate power to senior executives like Xie Shining, allowing them to become local lords. However, if they failed to complete the tasks assigned by Mr. Li, these executives would be the first to take the blame.

As for whether there are those who want to shirk responsibility, of course there are. But for those executives who don’t want to save face, Dongling Hi-Tech’s Finance, Legal, Budget Committee, and Disciplinary Committee will have to collectively step in to help them save face.

(End of this chapter)