Reborn since 1993

Chapter 1319 A Decent Person

Looking at the headline on the China.com website, Huang Zhang didn't read the content below; he was completely stunned.

The new generation of Feiyan MP3 players is predicted by both the technology and finance industries to have phenomenal sales.

But no one said it would actually reach this level, bombarding 284,000 machines in a single day and raking in a staggering $77 million in sales, and this was only the first day!

As for Gartner's previous sales forecast for Feiyan MP3, it was mostly nonsense. This agency is known for its "magical imagination" and forward-looking predictions; in layman's terms, they like to exaggerate.

But even Gartner probably didn't expect Feiyan MP3 to perform so fiercely.

Huang Zhang stared at the headline on China.com, unable to recover for a long time. Strictly speaking, Meizu was also a company in the East China University of Science and Technology (ETST) camp, but it did not directly join them, but instead took a different path outside of the ETST camp.

But now, looking at the news on his computer, Huang Zhang couldn't help but doubt his life. Could Meizu really compete with such an opponent?

According to some news released by Feiyan Technology that Huang Zhang heard, Feiyan Technology's annual production capacity for second-generation MP3 players this year is estimated to be around 2 million units.

Looking at the current performance of Feiyan MP3, Huang Zhang doubts whether 3 million units are really enough.

It seems we're about to enter another period of stock shortages, but this is good news for our competitors.

If Feiyan MP3 players don't sell enough, users will have to choose other brands of MP3 players, which is originally a good thing for the competitors.

But for the proud and arrogant Huang Zhang, it was a bit too much to bear. He actually had to rely on the fact that Feiyan MP3 players were not selling well and were out of stock in order to sell them.

After sitting there for a while, Huang Zhang gritted his teeth and walked back to the technical department, ready to continue developing Meizu's MP3 player. He wasn't someone who would give up so easily.

This is also why Li Dashan was willing to give Huang Zhang a chance. Compared to other manufacturers who follow the trend, Huang Zhang and Meizu have always had a strong sense of purpose.

It is this spirit that makes Meizu a rather unique presence in the electronics industry. Before the advent of Apple phones, Meizu was a breath of fresh air.

Li Dashan also wanted to see if Meizu could become that disruptive force, and how much of a storm it could stir up in the electronics industry!

……

The sales figures for the Feiyan MP3 player on its first day of sale sent shockwaves not only through Meizu, but also throughout the domestic and even overseas electronics and record industries.

"Feiyan MP3 players are confirmed to be sold out in both New York and Los Angeles!"

"On eBay and other New York areas, the STN screen version of the Feiyan MP3 player has increased to $420, and the TFT LCD screen version has increased to $550!"

"Feiyan MP3 has become a trendy tech product in America, and many Hollywood stars and singers have been seen wearing Feiyan MP3s they snapped up while out and about!"

"Feiyan MP3 has become an iconic product in the American rap and hip-hop scene. Feiyan MP3 has become the most popular electronic product among African Americans and is regarded as a symbol of identity!"

On the Tianya Forum's Electronics & Digital section, posts about Feiyan MP3 players kept popping up. Some of these posts were made by forum users themselves, while others were reposts of news from media outlets such as China.com, Sina, and Sohu.

Even worse, some people, dissatisfied with the slow pace of Chinese media reporting, went directly to foreign websites and started reposting overseas media reports about Feiyan MP3.

Through these reports, people on Tianya Forum learned just how popular the newly launched Feiyan MP3 player was overseas.

Especially for African Americans, Mexican Americans, and other ethnic groups in America, Flying Goose MP3 players have become a form of hard currency.

In America, hip-hop and rappers have an amazing influence, especially among African Americans.

The outfits and accessories worn by these hip-hop artists can become trendsetters, just like many African Americans who like to wear big gold chains, designer clothes, jewelry, sports cars, etc. It's almost impossible for African Americans to avoid these things after they become famous.

The reason for this is that these people need to use these things to show that their status has been changed and that they are now members of high society!
Similarly, when hip-hop and rappers also started wearing Flying Goose MP3 players in front of the camera, this device quickly became a standard accessory for African Americans and others who wanted to prove themselves!
In America, African Americans and Mexican Americans are more enthusiastic about Flying Goose MP3 players than other ethnic groups.

Whether you're rich or poor, you have to carry a Feiyan MP3 player when you go out, otherwise how can you be considered a respectable person?
……

"This Sunday, anyone willing to work overtime will receive double pay!"

"Employees who have a perfect attendance record this month can purchase an MP3 player at a 4.5% discount by the end of the month!"

"Those who work overtime today can collect a carton of milk and a pound of fruit after get off work!"

In a production workshop within the Dongling High-Tech production base in Pingyang, a full mobilization is underway for the personnel on the Feiyan MP3 production line.

Anyone willing to work overtime will receive double pay, and meal allowances, transportation subsidies, and other benefits are basically all provided. This includes the option to purchase a Feiyan MP3 player at cost price (half the market price) at the end of the month if you maintain perfect attendance.

This is basically a perk for internal employees. If they get a Feiyan MP3 player, they can keep it for their own use, but if they want to make some extra money, they can resell it to an electronics retail store. Even if they don't resell it at a higher price, they can still make about half the profit!
It's worth noting that the Feiyan MP3 player starts at $399 in China, which is equivalent to 3200 RMB. Even for a production line worker at Dongling High-Tech, it would take more than a month's salary to save up to buy a Feiyan MP3 player.

However, if you buy it at the internal price, it only costs 1600 yuan, which is less than a month's salary.

The profit margin of a Feiyan 2nd generation MP3 player is currently around 45%. Selling it to production line staff at half price is basically a freebie, equivalent to getting an extra month's salary!

The reason for offering so many discounts and benefits is simply to increase the production capacity of Feiyan MP3 players!
For the Feiyan 2nd generation MP3 player, Feiyan Technology and Dongling High-Tech's production department have stocked up on one million units to prevent shortages. This stock is already four times that of the Feiyan 1st generation last year.

However, the popularity of Feiyan MP3 players exceeded Feiyan Technology's expectations. Especially after the first day's sales figures were released, Feiyan Technology immediately felt that this batch of inventory might not be enough.

Looking at the MP3 production line staff who were screaming excitedly, Fu Cheng, general manager of Feiyan Technology, Duan Youli, general manager of the production department of Dongling High-Tech, and Tao Zhiliang, production supervisor, were still somewhat uneasy.

These bonuses and benefits do indeed motivate MP3 production line workers and increase production capacity.

But as long as you're human, you're made of flesh and blood, and you'll feel tired. You can handle high-intensity overtime for a while, but if you work overtime every day, even a body of steel can't take it. Even a robot would break down if it was overloaded.

"Even if we maximize production capacity, Feiyan MP3's production capacity this year will only be around five million units. We probably can't increase it any further!"

After leaving the workshop, Duan Youli said to Fu Cheng with a headache.

Seeing Fu Cheng's furrowed brows, Duan Youli explained, "This isn't just a production capacity issue at headquarters; the production capacity of Dongling High-Tech's component supply chain suppliers is probably nearing its limit too!"

Duan Youli had something to say: the MP3 era is just around the corner. If other MP3 brands also place orders with Dongling High-Tech's component supply chain suppliers, then production capacity will probably be even tighter.

Dongling Hi-Tech has the right to manage its component suppliers, but it cannot be too monopolistic. It is true that these component suppliers need to give priority to supplying Dongling Hi-Tech, but it cannot prohibit component suppliers from cooperating with other manufacturers, which would be too domineering.

Unless it is absolutely necessary, Dongling Hi-Tech will not require its suppliers to choose between two options.

Fu Cheng recalled the flood of orders pouring in and the constant barrage of phone calls from distributors all over the world at Feiyan Technology's office, and he felt utterly overwhelmed.

Starting yesterday, distributors from all sides began to get restless and kept asking Feiyan Technology to increase its supply.

Those Flying Goose MP3 dealers aren't stupid; they all know that what they're selling is about to become a hot commodity.

Even dealers who haven't sold all their stock are hoarding it, trying every means to get more units. Once stockouts start to occur on a large scale, those hoarded MP3 players can be sold at a higher price. Dealers are very familiar with this tactic!

Fu Cheng shook his head helplessly. He knew that Duan Youli and the production department had already done their best.

In other words, Dongling Hi-Tech has what can be considered the leading component supply chain in mainland China, which enables it to continuously increase the production capacity of Feiyan MP3 players.

If it were any other contract manufacturer, let alone achieving a production capacity of 2.8 million units last year, it's questionable whether they could even reach that capacity this year!

……

"Napster website saw a 300% increase in daily users, a 720% increase in daily traffic, and a 1980% increase in downloads!"

"Napster became one of the top three most visited websites in Silicon Valley yesterday, second only to AOL and Yahoo, and the third most visited website in America!"

"With its unicorn-level existence, Napster has become one of the biggest beneficiaries of Feiyan MP3. Multiple Wall Street institutions have once again raised the valuation of the Napster website, with the highest valuation now exceeding $36 billion!"

When Fu Cheng arrived at the global headquarters of Dongling High-Tech, Li Dashanren was looking through some news reports.

These news reports, including those from mainland China and overseas media, contain both truth and falsehood, and many are public relations news. You need to carefully consider which news to believe and which to ignore.

Regardless of the truth or falsehood of these news reports, one thing is certain: Napster has become one of the biggest beneficiaries of the launch of the new generation of Flying Goose MP3 players. In just one day, its valuation increased by more than $600 million, which can be described as an easy win.

As soon as Fu Cheng entered Li Dongling's office, the phone on Li Dongling's desk rang.

"Manager Tang, it seems there's good news to report to headquarters?"

Upon hearing what Li Dongling said after answering the phone, Fu Cheng couldn't help but prick up his ears.

(End of this chapter)