Winner Takes It All, Resurrection 2009

The layout design for Tenda is progressing steadily.

The negotiations with Nokia were not as smooth as expected. At this time, the days of this old telecommunications empire were not as easy as outsiders imagined.

The sharp decline in the market share of the mobile phone business has made its management rack their brains to reverse the decline, but the European economy is itself in recession, and the external market has suffered a series of heavy blows.

Domestic mobile phone brands, led by Zhonghuacool (no longer connected, having been replaced by coarse grain) that emerged in the Rudong market, have been gradually encroaching on the feature phone market, especially the Qingyun Roewe series that came from behind.

The price was reduced to 798 yuan in one go. Since its launch, the global cumulative sales in the first three months were nearly 500 million units (limited by production capacity), and a total of about 7 million units were sold in 1600 months.

This is simply a dimensionality reduction attack on Nokia phones, because the same feature phone that can barely compete with Roewe is priced at more than 3000 yuan.

Within a thousand yuan, Qingyun was invincible, at least before the copycat technology of Huaqiangbei and the hand-made smart phone industry chain developed.

Nokia did consider following Qingyun Electronics' lead and launching its own flagship smartphone, but the market environment has quietly changed.

With the rise of Apple and Samsung supported by American capital and the decline of the EU's economic voice, Nokia has lost the qualifications to compete, and the most critical reason is its crappy self-developed system.

From the perspective of ordinary consumers and software service providers, the Symbian system at this time is simply an incredible thing. It’s not that the system functions are incredible, but that the new version is incompatible with the old version.

The inability to use new features smoothly through hardware optimization and system guidance means that every time the system is updated, users have to replace their devices if they want to enjoy new services.

Who can bear it?
This means that your software and service updates are not available to old users (the same is true for mobile phone systems launched by Microsoft before 2015. The new version is not compatible with old devices, and you need to change your phone to upgrade).

Ultimately, it is because many technical standards of smartphones are in the hands of new forces. Nokia does not want to give up its past glory, but also wants to find a new path and form its own system on its own.

As a result, the Symbian system was gradually marginalized by the mainstream market. There are many reasons for this, but the core one is very simple: because Symbian does not have enough audience, no one is willing to build supporting functions for it.

Nokia's greed at the beginning caused Symbian to have too many useless functions, making the system extremely unfriendly to ordinary consumers.

Also, because it missed the first wave of dividends in the mobile smart era and was hesitant and clung to the glory of the empire, it is no wonder that it had no choice but to sell its mobile phone business to Microsoft and was successfully led into the ditch by the latter.

Of course, it is not that Nokia, Microsoft, Sony and other companies are unwilling to adopt the new standard. Large companies have countless opportunities to trial and error, but the emerging forces do not allow it.

The latter is forced to develop new smartphone production and application standards from scratch by setting up layers of obstacles. If they want to compromise and beg for mercy, then fine. Just give them a token of your surrender.

Once you have given up your skills and invested in them, you will see the fate of companies like Sony, which were used, squeezed dry of every last drop of oil, and then abandoned.

Why?

Because the market is so small, how can a dominant enterprise from the old era like you invest in us and satisfy your needs?
Where do the resources to buy you come from?
Could it be that Apple's original intention in creating disruptive and epoch-making products is to pave the way for the old electronics empire?
Isn't this nonsense?
But Nokia can't do it, but Qingyun can.

Because mobile phone system and hardware manufacturing, software adaptation and optimization service providers are never independent entities. Behind them are millions of outstanding engineers, scientists, and industrial workers who are silently contributing.

After repeated running-in, contact, negotiation, and careful trial and error of cooperation, a complete industrial chain is gradually formed when it is considered profitable. If you are in any link in it, you cannot develop independently from other links.

Qingyun is confident in launching the Hongmeng operating system because it is sure that the powerful motherland behind it will clear all obstacles for it, thanks to the two stages of 03-07 and 10-13.

With the large-scale opening of Western technology, equipment, capital and market to the East, the mainland has gradually established a manufacturing system covering almost all industrial projects.

Even if Squid Capital continues to try to restrict it, the advantages accumulated by the entire industrial manufacturing production system, such as low costs in procurement, production, labor expenditure, and transportation, can still be achieved.

In addition, Tokyo University itself is an enormous consumer market. All of these make capital salivate. Even if Wall Street wants to put the brakes on, can it still control capital from other parts of the world to go to Tokyo University to make money?
What's more, it already has huge assets in the mainland. If there is a real falling out, no one can bear it. Therefore, Yutai Capital can only deal with the rise of the Qingyun Group through soft threats and slow planning.

But they dare not impose blatant sanctions. This is the foundation of a strong industrial country.

When Li Zehua has a strong national background and an industrial chain that is strong enough to support Nokia's transformation, he can even support it to build a set of new technological standards from scratch.

When the plan was suddenly placed in front of Nokia's management and the company promised to provide more than half of the funds needed for the transformation, the latter were completely stunned.

My first reaction was, damn, this guy has bad intentions, he’s probably after Nokia’s huge library of technology patents.

The main reason is that before this, there were no similar prerequisites for cooperation in the world, so it seems like pure nonsense no matter how you look at it.

So when Qingyun Europe initially approached Nokia, the latter didn't respond at all. But as the negotiations entered deeper waters, they gradually came to their senses...

Jorma Ollila, the chairman and CEO of the company that created the Nokia myth, personally went to Frankfurt to meet with Li Zehua, chairman of Qingyun Group.

The first question he asked when we met was, "The group has reached a comprehensive partnership with Microsoft. If you want to convince me~"

"No, no, no, the fact that you can come here speaks for itself."

Li Zehua interrupted him without mercy, "If you are not interested, you should discuss cooperation with Bill Gates in Seattle, and then Nokia will slowly die under Microsoft's gradually tightening control until it becomes a part of history."

He spoke bluntly because it holds absolute initiative. In the second quarter of last year, Nokia was still the undisputed absolute overlord in the mobile phone market. Now, it is still a mainstream player that cannot be ignored.

However, the market is full of news that Nokia's mobile phone business will be completely destroyed one day, and the capital market has abandoned the former overlord ahead of time.

The inability to integrate into the mainstream market (exactly the same as the petals after 2018, but the country behind Nokia cannot withstand the huge external pressure) has become a pain point that it cannot avoid.

If it weren't for QingCloud, Nokia should have chosen to compromise with Microsoft in February.

However, the sudden emergence of Qingyun and the generous conditions it offered gave Nokia's management, especially senior executives such as Jorma Ollila, a ray of new hope.

Compared with the humiliating terms that Microsoft offered Nokia, which were almost like a contract of sale, the conditions offered by Qingyun were much better, especially since the latter had an entire super consumer market behind it.

Ollila saw it clearly: Nokia had the technological background, Qingyun controlled the market channels, and had a considerable consumer base; most importantly, he had money and was willing to spend it.

As for the specific negotiation details, the two companies have already conducted multiple rounds of negotiations and consultations, and both sides have a clear understanding of each other's bargaining chips and background.

Ollila knew what the other party wanted and what his plan was, but he had no better choice. In order to keep the company alive, he could only choose to cooperate with the party that offered better conditions.

Facing a junior 40 years his age, he suppressed his awkwardness and discomfort and said: "Even if we lose our mobile phone and equipment production departments, Nokia is still the world's largest supplier of telecommunications equipment. We can live well."

"But your life's work will be destroyed in an instant. Are you willing to accept that?"

Li Zehua had never been so aggressive before, and he seemed to be bent on angering the other party, "bringing a simple telecommunications service provider to such a high level.

Then I watched it fall to the bottom of the valley and be trampled on repeatedly. From then on, when people mentioned it, they would always add an embellishment in front of it.

Oh, it’s Nokia, which was once the world’s best-selling mobile phone brand. It’s still alive?
This is perfect because with every improvement and success of a competitor, it will be mentioned as a negative example.

And you, the greatest decision-maker in Nokia's history, will become the biggest loser as its mobile phone business comes to an end. No matter how much success you have led it to, people will only remember that it ended in your hands, a person who once stood on the top of the mountains and saw the most magnificent scenery between heaven and earth through the clouds.

I'm afraid his second half of life won't be so wonderful. The huge psychological gap will forever erode his heart and make him unable to sleep or eat. What do you think?"

Faced with the accusation, Orilla remained silent. Although he had a buyer, was he really willing to accept his fate and leave in despair?
It is always the most pleasant to talk to smart people. He has revealed a lot of inside information. Li Zehua understood it, so he was confident. He did not need to give the other party too much respect.

Because this will only make the other party become more aggressive. In previous negotiations, Qingyun has fully experienced the arrogance of the other party's representatives.

Although its mobile phone business is on the verge of bankruptcy, it still acts superior and acts as if you are honored to talk to it, and it holds on to every point of interest and refuses to give up.

Qingyun is not doing charity. To put it bluntly, it is just spending money to build a solid foundation. After absorbing all of Nokia's telecommunications business patents, whether it can survive has nothing to do with Qingyun.

With one less mainstream player in the mobile phone market share, the remaining companies will have a bigger share. Qingyun will one day be in the position of Apple and Samsung, and in turn will have to deal with Nokia.

To put it bluntly, the two companies just have such an opportunity to cooperate in a special period of time. If the deal is successful, Qingyun can make adequate preparations in advance for the economic war that will inevitably break out in four or five years.

Even if the negotiations fail, Microsoft's layout must be disrupted, allowing Nokia to attract more firepower in the front to prevent Yutai Capital from freeing up its hands to deal with Qingyun too early.

Kill two birds with one stone. I have the advantage, how can I lose?
Ollila also understood Qingyun's plan at this time. He was just trying his best to find a new way out for the company. After all, the conditions offered by Microsoft almost completely destroyed the company's future.

“I heard that your company’s recently launched Hongmeng operating system has been treated unfairly in its overseas promotion?”

He tried to take back more initiative, even at the cost of paying for it, "If Mr. Li is interested, our two companies can try to have deeper cooperation in this regard.

For example, the Galileo Project can provide map navigation and many other services for Qingyun’s overseas electronic products.”

"No, the Galileo system has been around for seven or eight years, but it's still unknown when it will be fully mature. I would rather pay high patent fees for GPS than wait for an illusory promise."

Li Zehua broke out in a cold sweat. He had always stayed away from the European tradition of doing big projects, just like at the end of the last century, when Ou Meng proposed an ambitious high-speed rail plan.

As a result, even the most powerful Germany kept delaying, and until his rebirth, the so-called 30,000 kilometers was not achieved, and Galileo only existed in the PPT.

However, the Beidou system that Tokyo University developed with gritted teeth has become a rival to GPS.

"It's a pity that Mr. Li is still wary of us. However, if Qingyun doesn't take more concrete actions, financial support alone will not be enough to impress the company's management and shareholders."

Ollila regrets that if he could have tied Qingyun Group on board and made them fall into the same trap together, the huge sunk costs would have prompted the latter to make even larger compromises with Nokia.

He can even leverage the gradually mature industrial chain in the QingCloud system to develop and optimize various supporting software and provide hardware production services for Nokia.

This is what they value most. Qingyun itself does not have many highlights worth praising in the smartphone industry. At this moment, it is no different from a OEM assembly plant.

At best, it has some special advantages in reducing costs and integrating industry resources. What Nokia values ​​is the future development of its industrial chain and the sales channels and basic foundation it controls.

Li Zehua also knew this, so he got straight to the point: "The conditions I offered before remain unchanged. Based on the current changes in the environment, I can further open up the group's industrial chain resources.

If your company can help QingCloud gain a foothold in the European market, QingCloud Software and Electronics Group will completely lift all restrictions for Nokia.

By then, there will be thousands of hardware and software service providers, hundreds of thousands of the most hardworking engineers and IT practitioners in related industries working on optimization projects for the Symbian system.

Qingyun can also bear half of all the additional costs, and I can guarantee that as long as you are willing to deepen technical cooperation with Dongda and transfer the mobile phone business over.

Then I will take on all the pressure from America!"

"Really? How can you guarantee that?"

Olila has been annoyed by the pressure from all sides recently. Almost everyone is advising him to give up. There is no benefit in going against the American government, even the powerful Ou Meng.

It also urgently needs financial assistance from Wall Street. Finland, unable to resist internal and external pressures, will have to compromise sooner or later, and as one of the prices paid, Nokia will also sink.

"There are no guarantees. I have choices, but you don't."

Li Zehua acted very strong. Since the other party's head of the family had come, it proved that they were interested, otherwise the cooperation agreement with Microsoft should have been signed long ago.

This is the greatest advantage of foresight. Although he does not remember the exact time, Qingyun has its own business intelligence department to collect information.

Before Qingyun made contact, Nokia and Microsoft were about to reach an agreement on the mobile phone business, but he was the one who offered $200 billion in exchange for Nokia's patent license.

This interrupted the originally certain cooperation. Waiting and watching is the biggest statement.

Fortunately, he was not so arrogant as to think that Nokia could not survive without him, and he quickly added: "Of course, win-win cooperation is Qingyun's consistent purpose.

If you insist, we can come up with a compromise plan, such as each of us paying a sum of money, using the credit of Dongda and Finland as collateral, and remitting it to a third-party bank.

Then we will carry out the agreed supervision according to the projects we have negotiated. If there is an obvious breach of contract during the execution, the deposit of both parties will be unconditionally transferred to the other party. How about that? "

This is the most practical solution he can come up with. It involves such a large-scale cooperation and the whole world is watching. If he gives in and it is dug up by the media later, how will the Chinese people view him?

What would he do if things didn't go well, for example, America, Ou Meng put pressure on Nokia and Nokia took advantage and failed to fulfill the contract?
Ultimately, both parties must show sincerity. Only when the sunk costs and expected returns meet the needs of both parties can the cooperation proceed smoothly.

After asking about the amount of the deposit, Ollila was silent for a moment. "Two billion dollars is too much. The group cannot afford the working capital available for the mobile phone business."

"Qingyun can accept your technology patent authorization as collateral."

Li Zehua knew that he was not telling the truth, but who cared?

As a large and well-established multinational company that is among the top 20, it can come up with even billion, let alone adding a zero, but what it lacks is the confidence to reverse the industry's decline.

Qingyun has no shortage of funds or future. It focuses entirely on its patent library, which contains a lot of good things. It is a sure win if it can come up with dozens of basic patents.

Isn't Microsoft also aiming for its patent licensing for the next ten years?
Orilla did not refuse this time because he also planned to sell the patent for a good price. Since Qingyun offered the price, why not give it a try?

With the good start from the two big guys, the subsequent negotiations went much more smoothly. The negotiating teams from both sides began to engage in fierce confrontation on more detailed issues.

Under the instruction of Li Zehua, the Qingyun negotiation team did not worry about the specific authorization price. They would accept any offer even if it exceeded the market price, as long as it was not too outrageous.

What he wants is to make up for Qingyun's accumulated technological shortcomings before the United States and Europe make up their minds to intervene. If they miss out on Nokia, it will be more difficult to find alternatives in the future.

If possible, he even wanted to move the entire Nokia mobile phone department back to China, but unfortunately Ollila would never agree to it... (End of this chapter)