Reborn since 1993

Chapter 274 Xiao He just showed his sharp horns

Price wars have different meanings and effects at different times. The price war started by Donglin Hi-tech using PHS is beneficial to the domestic mobile phone industry. Of course, in the end, who will win in the domestic mobile phone industry depends on each other. Rely on your ability!
For example, in the current domestic automobile industry, the premium is much higher than that of foreign countries. Foreign civilian scooters are all luxury cars in China.

Cars like the German Santana are just ordinary models in Germany, but they are extremely expensive in China. It also gave birth to a classic rumor that has been circulating in the car circle for 30 to 40 years. When Santana entered the country, Volkswagen recommended a price of 80,000 for Santana. However, the domestic company that represents Santana priced it at 200,000 yuan. The conclusion is that foreign car manufacturers have a conscience...

It is difficult to verify whether this rumor is true or false, but according to the documents that can be found, the first batch of 600 Santanas at that time were purely handmade, that is, there was no mechanical production line, and the parts were all imported from Germany. Then I saved it one by one by hand, and it sold for 29,000. Later, the price increased to 37,000. Why did the price increase? Because the parts were all imported, plus manual hand rubbing. It was the first production and reworked. The rate is so high that you basically lose money on each one you sell.

As for the price increase from 37,000 to 200,000, all Santana parts at that time were imported from Germany. The exchange rate of the German mark doubled at that time, and the price of imported parts directly tripled.

This is due to overseas reasons, but in China, we are in a special period. At that time, prices broke through. Not to mention big items like cars, even the prices of grain, rice, oil and salt increased several times. It was under this internal and external background that the price of Santana It has doubled several times in a row, and the price has increased to 200,000. As for what it has to do with the pricing suggestions of Santana executives, only the devil knows.

And in the past few years, the per capita income was less than 400 yuan. To buy a Santana worth 200,000 yuan, you would have to save up for 42 years of salary without eating or drinking. If you sell something worth 30 yuan for 3,000 yuan, this is called cutting leeks, because most people If you bite the bullet and can afford it, you may be cut off, but if the price is set so that most people can't afford it, then what's the point of the price.

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

A certain electric car produced by Volkswagen in China sells for 22 yuan in China, but sells for 50 yuan in Germany. Seeing the business opportunity, German dealers imported this car from the mainland and sold it to Germany. This made Volkswagen furious. In order to keep it, In the German market, a drama of hamburger car burning was directly staged. The boomerang of years ago was inserted into the Volkswagen of years later, causing a crowd of melon-eating people to shout that the brand car should be responsible for their own. Compatriots are better...

And the reason why there is such a boomerang is that in the previous life, the competition between domestic new energy vehicles was too fierce, and the price war started. No matter what brand it is, whether it is a dragon or a tiger, it has to be dealt with when it comes to the country. Global new energy vehicles Half of the automobile market is domestic.

In the current domestic mobile phone market, PHS has some pricing power in the mainland mobile phone industry. A few years ago, domestic mobile phone prices were all in the hands of foreign mobile phone manufacturers.

Motorola, Nokia, Ericsson and other brands dare to sell old models from a few years ago in China and price them at more than 10,000 RMB, which is equivalent to more than 1,000 US dollars. They basically treat the domestic mobile phone market as a way to provide They cleared the area of ​​inventory.

Moreover, these foreign brands don't care about the experience of domestic mobile phone users at all. They don't even bother to develop Chinese operation interfaces because they have no rivals and domestic users can only choose them.

But now, the emergence of PHS has given domestic mobile phone users a new choice. At least these foreign brands no longer dare to cut leeks casually in China. They have to come up with the latest models to compete with PHS on price!
At the moment, Xiaohe is just showing off his skills. PHS is just an eye-opener for manufacturers such as Nokia and Motorola. When Tanglin High-tech develops mobile phones with GSM and CMDA technical standards, then the big drama will begin.

At that time, Shenzhou will seize the high-end mobile phone market, Coolpad will enter the mid-range mobile phone industry, and Simon and other brands will compete with each other to let Nokia experience the experience of Siemens and Dongling Hi-Tech Zhongmen.

But those are things for the future. Now Tanglin Hi-Tech needs PHS, and it must first occupy the basic base of the mobile phone industry in China. Only with the basic base, Tanglin Hi-Tech can go overseas to compete with Nokia!

……

Seeing that more and more brands are beginning to join Tanglin Hi-Tech, major manufacturers are also unable to hold back. The first one to hold back is ZTE.

ZTE was originally the largest equipment manufacturer for PHS base stations and had a very close relationship with Tanglin Hi-Tech. It was almost natural for it to join the ranks of PHS manufacturers.

The entry of ZTE is also a huge shock to dozens of domestic communication equipment manufacturers, large and small. Including Chrysanthemum Factory, they are all discussing whether to produce PHS.

"Telecom companies, in conjunction with Hanxi and other provincial governments, estimate that a total of US$4 billion will be invested in laying PHS base stations in the next few years. In the future, the investment may exceed 100 billion yuan. Should we also enter the PHS mobile phone industry?"

In the conference room of Pengcheng Chrysanthemum Factory, a group of people were discussing whether the Chrysanthemum Factory should choose GSM communication equipment or CDMA communication equipment next. I don’t know who mentioned it, and everyone started to discuss it in a hurry. Should the Chrysanthemum Factory also produce PHS mobile phones?

In the conference room, including Mr. Ren, the founder of Chrysanthemum Factory, there were 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 technicians, and most of the senior executives All have technical backgrounds.

And behind all the technical experts in the current Chrysanthemum Factory, there is a little transparent technician who has just joined the Chrysanthemum Factory for two years. In later generations, this person shouted the famous saying "far ahead" at the press conference. At this moment, Among the technical staff, but not in the conference room, I had the opportunity to express my opinions.

"Chrysanthemum Factory is not making mobile phones!" While a group of Chrysanthemum Factory executives were arguing, Mr. Ren said decisively, "The PHS is a weirdo. It may sell well now, but it cannot enter the 3G era. There will be no future." The future is bright, we want Chrysanthemum Factory to enter the 3G era!”

Ren always doesn't want to touch PHS. He also knows that if he joins PHS now, he may make money with his eyes closed, but once Chrysanthemum Factory enters, I'm afraid he won't be so concerned about developing 3G communication equipment. After all, Once you are used to making quick money, it is difficult to calm down and engage in research and development.

For example, Dongling High-Tech, also under the suppression of Li Dongling, spent a lot of money earned by PHS, so the technical department had to develop mobile phones with GSM and CDMA technology.

Otherwise, just like UTStarcom in the previous life, it was completely lost by relying on PHS. It did not consider R&D at all and just made money. As a result, it was abandoned in the 3G era.

To be honest, Boss Ren's choice was not wrong, but he might not have expected that 3G technology would be so difficult to develop, and that the Nasdaq would collapse, which would directly plunge the communications equipment industry into a cold winter, causing even the chrysanthemum factories to be shut down. Brought into the ditch, he was dragged down by the huge R&D expenses and started to lose money, so much so that he even started to want to sell himself...

Hearing these words from Boss Ren, although there are still executives from the Chrysanthemum Factory who want to speak out and enter PHS, after all PHS is so profitable. Look at the media reports that Dongling Hi-Tech has doubled its performance this year with PHS. How many times has it been? Who doesn’t want to have such high performance, and who can’t get bonuses, dividends, and equity awards?
But as the founder of the Chrysanthemum Factory, he has gone through great storms and led the Chrysanthemum Factory to where it is today. Boss Ren has absolute authority and influence in the Chrysanthemum Factory. Even if someone is unhappy with the things he decides in public, they can only do so in private. report, but did not dare to refute it in public.

"I think Juhua Factory should develop 3G communication equipment with CDMA technology. ZTE seems to be doing the same. CDMA is very mature in 2G technology. It is much easier to enter 3G technology from CDMA!"

In addition, if you choose CDMA, Chrysanthemum Factory can quickly open up the market later. "Zheng Baoyong said, he wants to bet on CDMA technology.

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

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

If you can't even get into GSM, what's the use of developing 3G? How many users can it have? "

Zheng Baoyong and Li Yinan each held their own opinions for a while. The two argued very fiercely, neither giving in to the other. Each had a group of supporters. The quarrel was so dark that Boss Ren had a headache.

Zheng Baoyong was originally recognized as the second-ranked figure in the Chrysanthemum Factory, while Li Yinan was called the prince and the future head of the Chrysanthemum Factory. Both of them were R&D geniuses, but geniuses are paranoid and proud and would never want to When yielding to the other party, disputes are inevitable.

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

At the last moment, Boss Ren made a final decision and made the final decision to let Chrysanthemum Factory develop GSM communication equipment.

Hearing this, Zheng Baoyong glanced at Mr. Ren and then glanced at Li Yinan, with a look of disappointment inevitably appearing on his face.

……

Different people choose different paths and will have different destinies. This is true for people and so is the company.

Regardless of what happened at the Chrysanthemum Factory, Dongling Hi-Tech was very busy these days. Companies from all over the world came to the headquarters of Dongling Hi-Tech to get the PHS patent authorization.

"Currently, twelve manufacturers including UTStarcom, Amoi, ZTE, BBK, Bird, Panda, Kejian, and Southern Hi-tech have obtained PHS patent authorization. If we hadn't set the authorization threshold, I'm afraid we wouldn't want to There will be more companies getting patents!”

At the headquarters of Dongling Hi-Tech, Ren Yuefeng said to Li Dongling with a little sigh, "It's like a lamb that was raised with great difficulty and was taken away by someone else. Isn't it heartbreaking?"

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

(End of this chapter)