Reborn since 1993

Chapter 391: Creating Bubbles
Li Dongling asked Ren Yuefeng to sit in the first seat in the conference room, and he sat aside. With Li Dongling's current influence in Dongling Hi-Tech, he did not need to rely on sitting in the first seat or frequently appearing in front of the media to maintain his image and status.

On the contrary, Ren Yuefeng, as the general manager, needs Li Dongling to support him so that he can suppress the arrogant and powerful soldiers of Dongling Hi-Tech.

“Thank you for your hard work this year!”

After sitting down, Li Dongling looked at everyone in the conference room and said with a smile, "On behalf of the Dongling Hi-Tech board of directors, I would like to thank everyone for everything you have done. Dongling Hi-Tech will never forget it!"

Applause broke out in the conference room. Where there are people, there are rivers and lakes, and Dongling Hi-Tech is no exception. Although Dongling Hi-Tech seems to be "harmonious", there is actually fierce competition within the company, with new people like Zhu Zhaojiang constantly emerging.

Those who are now in charge of the various departments of Dongling Hi-Tech, whether they are the founders and veterans or the professional managers, need the support of Li Dongling if they want to maintain their status or even go a step further and join the Dongling board of directors or even become a partner in the future.

In order to obtain and maintain this support, Li Dongling needs to "see" the contributions made by Hu Zixian, Zhang Ao, Gao Peng, Chen Tao, Duan Youli and others.

Subsequently, under the chairmanship of Ren Yuefeng, Dongling Hi-Tech started the most important and final meeting of the year above the manager level.

"This year, the sales of Shenzhou digital cordless phones have met expectations. Although the sales of Shenzhou series have been affected by the launch of digital cordless phones by Siemens, Toshiba, General Electric, and American Telephone and Telegraph, but..."

As the head of the marketing department, Zhang Ao took the lead in reporting, "The two brands affected are mainly Coolpad and Simon in the mid-to-low-end market. In the high-end digital cordless phone market, Shenzhou's share has actually expanded. Currently, Shenzhou's share of the high-end digital cordless market is 78%. The second-ranked Siemens has less than 9% in the high-end market!"

Everyone in the conference room smiled when they heard Zhang Ao's words. Shenzhou digital cordless phones are the back-up plan and base for Dongling Hi-Tech. As long as this base is there, Dongling Hi-Tech will always have a back-up plan.

“This year, it is estimated that the revenue of the entire Shenzhou series of phones will be around 17 billion US dollars!
Next year, Shenzhou digital cordless phones will still face challenges, and prices may come under pressure due to fierce competition.

However, the digital cordless phone markets in Europe, America, Hong Kong, and China are all growing continuously, and we expect revenue to maintain the status quo or even increase next year!"

Li Dongling nodded. He could accept the revenue from Shenzhou digital cordless phone.

The digital cordless phone market is not an industry that can continue to explode, but it is stable. Old Europe and America are the main markets. Even in the next century, in a dozen years, this market will still be there, and it can bring in tens or even hundreds of billions of US dollars for Tanglin Hi-Tech every year, which can be sustained for many years.

"At present, the total sales of Xiaolingtong in China and abroad have exceeded 11.2 million units. It is expected that the domestic sales will continue to pick up during the Spring Festival, and the total sales this year will exceed 12 million units.

If production capacity can be increased, sales are expected to be able to... However, this year's sales of Xiaolingtong have already ranked among the top four mobile phone shippers in the world, second only to Nokia, Motorola, and Ericsson!"

After Zhang Ao, Zhu Zhaojiang, who was in charge of the mobile phone business, stood up and spoke. He glanced at Duan Youli but did not continue.

However, the shipment volume of Xiaolingtong this year has exceeded 10 million, which is already quite scary. This year, there are only four companies in the world whose mobile phone shipment volume has reached the threshold of 10 million club.

Nokia and Motorola's mobile phone shipments this year are both around 25 million units, and Ericsson's shipments are around 15 million units.

After that, it was Xiaolingtong. Of course, this is only looking at sales volume, not revenue. Nokia, Ericsson, and Motorola all sold mobile phones based on GSM and CDMA technologies, with a starting price of more than 5,000 yuan, and tens of thousands were not uncommon.

When Xiaolingtong was first sold, the price was 4999 yuan, and then the price kept dropping. Now, as a group of domestic PHS mobile phone manufacturers are engaged in a price war, the price of Xiaolingtong has fallen below 3500 yuan and is approaching yuan, even though Dongling Hi-Tech claims that its Xiaolingtong is a "high-end" machine.

It is estimated that after the Chinese New Year, the price of Xiaolingtong in China will drop below 3,000 yuan. However, the price overseas can still be maintained because the machines of Nokia, Motorola, Ericsson, Sony, Panasonic, Sharp, Samsung and others are much more expensive than Xiaolingtong, which in turn highlights the "price-performance ratio" of Xiaolingtong. Whether the signal and call quality are good is another matter, but Xiaolingtong phones are cheap, the call charges are cheap, and you can really make calls overseas!
However, such pricing also makes Xiaolingtong appear to have high sales volume, but its revenue is far less than that of Nokia, Motorola and Ericsson.

"There are now more than a dozen PHS manufacturers in China, and the price war has already begun. It is expected that profits will continue to decline in the future.

Mr. Li, I think that in the future, Xiaolingtong should speed up its pace. Before the GSM and CDMA base stations are promoted to Japan, Siam, Malaysia, Bangladesh, Pakistan, Brazil and Colombia in old Europe and America, Xiaolingtong should be sold there as soon as possible! "

Zhu Zhaojiang said to Li Dongling and everyone in the conference room, and his meaning was very clear: in the future, Xiaolingtong will focus on overseas markets and shift its focus overseas.

Ren Yuefeng frowned. The domestic PHS market was far from saturated. Even though the price war was a bit fierce, the profit was still quite high. He didn't want PHS to move its main battleground overseas so soon. But when he looked at Li Dongling, he saw that Li Dongling actually looked at Zhu Zhaojiang with some appreciation, which made Ren Yuefeng stop what he was about to say.

"The domestic PHS market should continue to be developed, but the overseas market should indeed be promoted more vigorously!"

Li Dongling said that a number of PHS companies have emerged in the domestic market, including UTStarcom, Amoi, BBK, Panda, and Bird, which are also the result of Li Dongling's instigation.

These companies were able to produce the Xiaolingtong system so quickly because they had obtained patent authorization from Dongling Hi-Tech. Even the parts were purchased from Dongling Hi-Tech's parts suppliers. Of course, they also paid high patent fees to Dongling Hi-Tech.

However, Dongling Hi-Tech had to authorize because its production capacity of PHS could not keep up with the demand. It was already struggling to supply the domestic and Japanese markets, and now it had entered markets such as Malaysia, Siam, and Brazil. Suddenly, its production capacity became tight.

Money is a powerful thing. Even if Dongling Hi-Tech does not authorize, it is estimated that there will be a group of copycat manufacturers who will take the risk to start producing Xiaolingtong. After all, the profit of Xiaolingtong, which has just been launched on the market, is too high, exceeding 50% at one point, and the market is there. Dongling Hi-Tech does not have enough production capacity, so copycat brands will definitely occupy the market.

Rather than allowing counterfeit PHS to proliferate, Dongling Hi-Tech would be better off licensing its patents to other manufacturers to produce them. It can also earn back some of the patent and technology fees, and prevent counterfeit manufacturers from occupying the market, destroying the entire industry, and even affecting the reputation of the entire domestic mobile phone brand.

Another most important point is that when Dongling Hi-Tech authorized its patents, it signed contracts with domestic manufacturers. The PHSs they produced can only be sold domestically and cannot be exported, which ensures the overseas profits of PHSs.

It may not be realistic to completely prevent someone from selling domestic PHS phones overseas as parallel imports, but as long as they are not sold in large quantities to disrupt the market, that’s enough!

As for what to do if the price war for Xiaolingtong in China is too fierce, what else can be done? The most that can be done is to give domestic users a discount, which can be regarded as cultivating the mobile phone market. Anyway, Li Dongling is planning to make money overseas by using Xiaolingtong.

After two or three years, when most of the money has been harvested, we will sell the Xiaolingtong brand to wealthy people!

Therefore, in recent years, the sales volume of Xiaolingtong has to be packaged extremely high. The Li family in Hong Kong sold the British Orange Telecom for 1680 billion Hong Kong dollars. Li Dongling also did not sell more Xiaolingtong. As long as he could sell it for tens of billions of Hong Kong dollars, it would be enough!

As for mobile phones with Xiaolingtong and PHS technology, whether there will be a bubble in the future and whether the bubble will burst in the era of mobile Internet access is not something Li Dongling needs to worry about. After all, those who are willing will take the bait, and there is no such thing as forced buying or selling.

When Zhu Zhaojiang heard that Li Dongling supported his proposal, a smile appeared on his face. He had just said those words after doing investigation and analysis.

In the domestic PHS mobile phones, the price war will become more and more intense, and the profits will continue to fall. However, although the overseas market needs to be opened up, there are no competitors at the same price, so there is no need to engage in price wars, and the profits will be higher!
"What's the current situation in the production department?"

Li Dongling looked towards Duan Youli. The Marketing Department had some complaints about the Production Department. They were very dissatisfied with the Production Department's failure to increase the production capacity of PHS. Li Dongling also knew this.

Having heard the rumors, some people have submitted reports to Li Dongling, some of which were even harsh, demanding that Duan Youli be kicked out and replaced with a capable person to manage the production department, etc., but they were all suppressed by Li Dongling.

Li Dongling was clear about Duan Youli's abilities. After he came to Dongling Hi-Tech, he introduced and formulated a production management system and a safety system, which greatly improved the yield rate of Dongling Hi-Tech's production department and made it out of the category of a makeshift team.

Compared with large overseas manufacturers, the quality and yield rate of similar products produced by Dongling Hi-Tech are comparable, and safety accidents have also been greatly reduced.

Duan Youli knew about this and he couldn't avoid it. There were rumors in the marketing department that if it weren't for the insufficient production capacity, the sales volume of Xiaolingtong this year might have exceeded 18 million, or even hit 20 million units. Although it was bragging, it was also known that production capacity did affect sales.

However, sales volume is linked to the bonuses of the marketing department staff. It would be strange if they could give a good face to Duan Youli, the head of the production department.

Duan Youli did not choose to escape, "This year's sales of Xiaolingtong were indeed affected by the production capacity of the production department. I am willing to take responsibility!"

"Wow"

When people heard that Duan Youli really took the responsibility, there was a burst of voices in the conference room. You have to know that taking responsibility comes with a price!

(End of this chapter)