Reborn since 1993

Chapter 835 Three Cunning Rabbit Cave
Whether you are willing to admit it or not, the GSM standard was developed by old Europe, and the most important patents are naturally in the hands of old European manufacturers such as Nokia, Ericsson, and Siemens.

It is difficult for latecomers to completely avoid the patent wall set up by Nokia and other manufacturers. Even Dongling Hi-Tech, which has been developing GSM technology since the launch of Xiaolingtong, cannot avoid the patents in the hands of Nokia, Ericsson and Siemens.

Like the Chrysanthemum Factory in the previous life, it was even more miserable. It bet on GSM technology early on and started to develop GSM base stations.

As a result, when the 2G mobile phone era arrived and the GSM market exploded, the Juhua Factory could not get any GSM base station orders in China, let alone overseas. It was suppressed by giants such as Ericsson, Nokia, and Siemens and almost went bankrupt.

Currently, GSM technology is not a problem for the Communications Technology Department where Luo Zheng works, but in terms of patents, they cannot avoid several manufacturers including Nokia. In the future, they will inevitably encounter troubles in terms of patents.

However, the 2G mobile phone era was basically the era of the GSM standard. Most parts of the world purchased and installed GSM base stations, including America, and there were also a large number of operators using the GSM network.

In fact, many Americans buy GSM mobile phones for the convenience of traveling abroad, because most parts of the world support GSM networks instead of Qualcomm's CDMA network.

This is also what stimulated America, as the world's hegemon, when the 3G era arrived. It used various means, even using its influence, to suppress GSM's 3G standard and desperately promote CDMA's 3G technology. As the world's largest empire, it actually had to pay patent fees to old Europe. How could this be?
Of course, more importantly, it is profitable to promote the 3G standard based on the CDMA standard.

In the field of communications, Qualcomm chips are the only dominant force. Relying on these chips, it has reaped the benefits of mobile phone brands all over the world and has made Apple the world's largest smartphone brand.

The share prices of Apple and Qualcomm alone have skyrocketed, bringing huge profits to Wall Street institutions, not to mention many other companies in America.

After hearing Luo Zheng's words, Li Dongling didn't mean to blame him, and even didn't feel strange.

After all, the GSM standard was launched by Nokia, Siemens, Ericsson and other companies with the support of the whole of old Europe. The standard is in their hands and the right of interpretation belongs to them. Wanting to surpass them, isn't this just a pipe dream?

"In the 2G era, the most important thing for Dongling Hi-Tech is to gain a firm foothold. We must pay the tuition fee we should pay!"

"But we can't keep paying the tuition fees. In the 3G era, Dongling Hi-Tech will become a major player, and in the 4G era, become one of the game standard setters!"

Li Dongling said to Luo Zheng that in the 2G era, Dongling Hi-Tech did not expect to surpass Nokia and Ericsson.

But in the 3G era, Dongling Hi-Tech is going all in. Other manufacturers all support GSM's 3G, but Dongling Hi-Tech is going all in on Qualcomm CDMA's 3G.

This all-in is not because of the belief that Qualcomm's technology is better, but a bet that America will stop at nothing to force the entire world to use Qualcomm's 3G technology. Dongling Hi-Tech only needs to bet all in and just follow Qualcomm to make money!

What will truly determine victory or defeat is probably the 4G era. 3G is just a transitional stage. The popularity of 4G networks and smartphones is the key to changing the living habits of countless people around the world.

"The mobile phone business department of Dongling Hi-Tech will work with the communications department, Dongxin Semiconductor, Dongfang Optoelectronics, and Kingsoft. The technical department will be responsible for coordinating the resources of all parties to help the mobile phone department develop Dongling Hi-Tech's first GSM 2G mobile phone with a domestic mobile phone operating system and all domestically produced parts!"

"This phone will not only be released in China, but also in Asia, old Europe, North America, Africa and other places!"

"When this model is released in the future, it will use the Shenzhou brand to target the high-end market, Coolpad will target the mid-range and trendy mobile phone market, and we will also launch a new brand "Transsion" to target the mass market, which will be sold in Africa, South America, the Middle East, Eastern Europe and other places!
Shenzhou, Coolpad and Transsion are three mobile phone brands that use the same set of parts industry chain of Dongling Hi-Tech, but the brands must operate independently from each other. At least Dongling Hi-Tech cannot admit that it has any relationship with Transsion! "

Re-entering the mobile phone market, Li Dongling decided to let Dongling Hi-Tech make some changes in the mobile phone industry.

Shenzhou is the largest brand in Dongling Hi-Tech's hands, and it is definitely positioned in the high-end mobile phone market. Some things are positioned wrong at the beginning, which allows the outside world to form a fixed impression. It is too difficult to change it later.

Just like Xiaomi’s previous mobile phone, it wanted to enter the mid-to-high-end mobile phone market, but it spent a lot of time and money but still failed to gain full acceptance from users.

When it came to entering the automotive industry, no matter how great the risks were, Lei Juncai resolutely positioned Xiaomi Auto in the mid-to-high-end car category.

From the very beginning, Dongling Hi-Tech had to position itself well in the mobile phone industry, allowing Shenzhou to occupy the high-end mobile phone market and the Coolpad brand to be positioned in the mid-range and trendy mobile phones, focusing on high cost performance.

Finally, Transsion, the king of mobile phones in Africa, was launched to seize the mobile phone user market in South America, Eastern Europe, the Middle East, Africa and other countries with poor economic levels.

The income level of users in these regions is certainly lower than that of America and old Europe, but in modern society, they also have the need for mobile phones. Transsion relies mainly on volume in these regions, so the price cannot be too high, just like in the past, Transsion's pricing in Africa, the price of the machine for ordinary users was only 500-600 yuan, less than 100 US dollars.

The key is that these phones have ten-card and ten-standby functions, ultra-large-capacity batteries, and special beauty functions for African users, which directly crush all other competitors. Even Samsung in Africa cannot beat Transsion.

In the future, Shenzhou, Coolpad, and Transsion will occupy different markets respectively. Whether it is high-end machines or mass-produced machines, Dongling Hi-Tech has cards to play and does not have to worry about being played against by others.

Even when necessary, they can do some cool things to improve the configuration of Coolpad and Transsion phones and disgust the rivals of Shenzhou phones!

Furthermore, if Shenzhou mobile phones are targeted in the future, Coolpad and Transsion will continue to sell the phones under different names. The cunning rabbit has three burrows and there is no need to worry about being caught in one fell swoop.

Just like the Chrysanthemum Factory and Honor in the previous life, they are nominally separated, but they always feel connected. As for whether they are separated or not, it is estimated that the users of the two companies themselves are not clear...

Similarly, Dongling Hi-Tech will be able to play out a drama in the future. It will neither reject, deny nor acknowledge its relationship with Transsion. After Shenzhou mobile phones are targeted, it will continue to ship them under the Coolpad and Transsion brands, allowing Dongling Hi-Tech's mobile phone component industry chain to continue operating!
When Zhu Zhaojiang heard Li Dongling's words, an idea suddenly came to his mind. It was obvious that Dongling Hi-Tech's mobile phone department was preparing to make a big splash in the overseas market.

Otherwise, there would not be a mobile phone brand launched specifically for South America, Africa and other regions!

Although the Xiaolingtong mobile phone is a hot seller, it is limited to the domestic and some special markets and it is difficult for it to become a global hit.

The new mobile phones are obviously aimed not only at the domestic market, but also at overseas markets, and even at markets in South America, Africa and other countries.

Li Dongling looked at Chen Tao, the general manager of the technical department. To coordinate and mobilize so many departments, resources and funds of Dongling Hi-Tech, Chen Tao would definitely be needed to coordinate.

Otherwise, Zhu Zhaojiang alone would not be able to control so many departments, and who knows how much trouble would be caused.

Chen Tao has now gradually moved from the front-line R&D field to the chief engineer who takes charge of the overall situation, coordinates resources from all parties, and controls the progress of R&D.

A chief engineer must not only understand technology, but also be able to use people, mobilize various resources, and steer R&D projects. This kind of engineer is almost completely different from a mere technician.

"I understand!" Chen Tao nodded.

He also knew that developing new mobile phones, an important project concerning the entire Dongling Hi-Tech, would definitely require the leadership of his technical department.

"In addition to the PHS and new mobile phone projects, Dongling Hi-Tech will also launch two new projects!"

What Li Dongling said just now was enough to shock everyone present. If there was any more news now, Zhang Ao, Zhu Zhaojiang and others seemed to be able to accept it. However, when they really heard it, they were still surprised.

"For the first project, Dongling Hi-Tech will work with Feiyan Technology to launch a new portable digital music player, which will completely sweep the Walkman into the garbage heap of history!"

In the domestic cassette player market, after Dongling Hi-Tech launched the repeater, Sony Walkman had already lost a large share of the market.

Now Li Dongling is ready to let the Sony Walkman go into the dustbin of history. Not to mention making it disappear, but when choosing a music player in the future, Sony Walkman will definitely no longer be the first choice!
What Li Dongling wanted Dongling Hi-Tech to develop together with Feiyan Technology was, of course, an MP3 player. But it was not one of those plastic MP3 players. Instead, it was a product of the same level as the iPod that helped Apple make more than billion US dollars in its previous life.

Never mind whether Jobs was trying to make money or not, but when it comes to being cool, he does have a way of making people willingly accept the product concepts he sets. It's hard to deny this.

Other brands of MP3 players only sell for a few dozen dollars, or at most a hundred dollars, which is already a great deal. But Apple's iPod is priced at $399 right from the start, and yet countless people are scrambling to buy it!

The MP3s launched by Dongling Hi-Tech and Feiyan must have some style, they must be packaged well, tell stories, and stand out!
Otherwise, how could they raise the price of the machine and attract so many people to buy it? How could they earn eight or nine billion U.S. dollars a year from this thing all over the world?

Moreover, the rise of iPod in the past did not only benefit Apple in terms of hardware. From the iTunes music store to the App Store, and finally to the famous Apple tax, Apple made a lot of money from the turnover!

(End of this chapter)