Our Rise Era

Chapter 248: Starlight Never Lets Down Travelers (Part )
April is Grain Rain.

It was drizzling in the early morning.

Inside the office.

Tired, excited, anxious, expectant...

All kinds of emotions gathered deep in Ding Ziqiang's heart.

He couldn't wait to demonstrate the operation of the [Wheat System].

[Xiaomi System] is like the first generation [Android System], including basic phone and text messaging functions, as well as browser functions optimized for touch screens...

The difference is that the built-in map of [Android system] is [Google Maps], while the built-in map of [Xiaomi system] is Sodu Maps. In terms of applications, it is equipped with [Xiaomi Mobile Mall]. Except for several of the most popular games, [Xiaomi Mobile Mall] does not have other content and its performance is very simple.

The expansion of the phone's external memory is not built-in like the [Wheat 3] series at this moment, but in order to reduce the burden on the system, it uses domestic memory cards to support expansion.

As for the mobile phone touch screen system...

"Why do I always feel a little insensitive?"

On the projector, Ding Ziqiang, who was demonstrating the touch screen system, was slightly stunned, and after a moment he looked at Zhang Yang.

There was no joy on Zhang Yang's face, but he stared at the projection screen silently.

The touch screen system of the new mobile phone [Xiaomi A] is purely domestically produced.

A domestic touch screen manufacturer called Lingchuan Intelligent Manufacturing was cited.

This touch screen manufacturer had cooperated with Zhang Yang and Xu Yunlong's mobile phones in the early days of the copycat phone era.

The technology at that time was handwriting screen, which used electromagnetic induction technology to realize writing and operation through the interaction between electromagnetic pen and electromagnetic panel. The electromagnetic pen emitted electromagnetic waves, and when it was close to the receiving coil, the coil sensed the electromagnetic waves and determined the position of the pen...

If you touch it with your hands, it can be used, but the responsiveness is not that smooth. Some parts need to be pressed several times to truly achieve the trajectory.

……

"This is the latest technology of [Lingchuan Intelligent Manufacturing]..." Ding Ziqiang looked at Zhang Yang's expression, and the excitement on his face gradually disappeared, and turned into a complicated expression: "Also, Mr. Zhang, this is a 399 phone, not 3999. The technology currently provided by domestic mobile phone partners is very limited..."

"Are these the only best domestic technologies? Or is it because the funds we provide are limited, so..." Zhang Yang sighed as he played with the [Wheat A] mobile phone.

The more I play, the more disappointed I feel.

It's a usable phone though.

However, the touch screen is slow to respond and some areas are not sensitive, so it takes several attempts to succeed.

Such mobile phones are very similar to the low-end copycat phones in 08. It can even be said that except for the [Wheat System], there is no room for improvement in the market at all.

"Mr. Zhang..." Ding Ziqiang looked at Zhang Yang, and after a long silence, he finally told the truth: "We have to guarantee a profit of 50 yuan... If it is lower than 50 yuan, our company's cost burden will increase... We only have the technology of 08 in the [R&D Department], or to be optimistic, the technology of around 09... But, we don't just provide technical solutions. We provide everything from systems to chips, processors, to the assembly of various components. In the middle, we have a confirmed cost..."

"..."

"Mr. Zhang, if the profit is less than 50 yuan, I can sell million units and we may be able to make back our investment, but it's only the materials..."

"In terms of R&D investment, we are completely at a loss-making stage...50 yuan profit is just enough to guarantee that we can make back our investment after reaching the passing line of million yuan... Only after more than million units can we achieve basic profitability..."

"But the basic profit is still at a loss. After all, we still need to build a large after-sales service station. We also need to do follow-up maintenance for these low-end mobile phones. Add this cost, 50 yuan is far from enough. We need at least 1500 million units to break even..."

"But, in the low-end market, competition is still fierce. [Novia] phones are still competing with low-end phones and phones for the elderly. Other [domestic brand phones] are popping up like mushrooms after rain... It's difficult for us to sell 1500 million units, let alone million units..."

"..."

Ding Ziqiang's words were like a dull hammer.

It echoed throughout the office.

Talking and talking...

He gradually lost confidence and couldn't help lowering his head. He sat on the chair and, regardless of Zhang Yang's attitude, took out a cigarette and started smoking.

"Mr. Zhang, in the era of copycat phones, there was no maintenance system. After selling the system, the [R&D Department] would no longer take care of it... The money they saved on after-sales service was used to fill the gap in R&D, and we..."

The early morning wind blew on Zhang Yang's face.

Zhang Yang leaned against the window, silently looking at the [Wheat A] mobile phone which had not yet been released.

After a long while, Zhang Yang asked, "How much more expensive will it be to use a capacitive screen?"

Ding Ziqiang didn't look up, but silently handed over a quotation.

Zhang Yang took the quotation and took a look: "Is this the reserve price?"

"It's the reserve price..."

[Lingchuan Intelligent Manufacturing] In fact, this year, we achieved a breakthrough in touch screens.

However, achieving technological breakthroughs does not mean price. If the purchase price is the same as that of some joint ventures, their R&D costs are not small. If the price is set at the same bottom price as other brands, the previous R&D will be completely in vain...

The market is sometimes so cruel.

You can break through technological blockades.

But after you break through the technological blockade, the first problem you face is the price...

Faced with the already mature price market and technology market, what can you compare with?
Therefore, it is not that many companies do not invest in large-scale R&D, but they are very clear that without strong capital to support them, R&D will have no future and will drag down the entire company.

But if you don’t research and develop, and just rely on your old capital, you can stay stable for a while, but sooner or later you will be eliminated by the market…

Attracting capital to invest is one way, but the price of attracting investment is often that the technology you have worked hard to develop is all taken away by the capital, and you can only earn a little hard work fee...

…The competition in the market is so cruel.

"Mr. Zhang, I understand your desire to win over customers, but reality is cruel... My suggestion is that we launch this [Wheat A] series into the market first. Customers will understand. After all, it is a low-end phone, so what do customers have to worry about? If it really doesn't work, we can add a stylus..."

Ding Ziqiang's words made Zhang Yang laugh for a moment: "Take something from the last century and sell it to customers of this century?"

"but……"

"Use the touch screen. You discuss it with Lingchuan Intelligent Manufacturing. No... I will go and discuss it with them in person. If it really doesn't work, I will buy out the company..."

"Mr. Zhang, this is irrational. I've calculated that if you acquire it, you'll have to invest at least another 5.5 million RMB in a [Wheat A]... Previously, you've been burning money to subsidize [Wheat 3]. Even if you have billion now, you can't afford to burn so much... Moreover, it's unknown how many units [Wheat A] will sell after it goes on sale. Investing so much in a low-end phone is really not worth it... Mr. Zhang, we're not the [R&D department]. We're all starting from scratch..."

After seeing Zhang Yang's expression, Ding Ziqiang wanted to persuade him again.

But Zhang Yang shook his head and said, "Don't rush to launch the [Xiaomi A] mobile phone. Wait a minute. The system is being polished. Although the price is low, it must be cost-effective..."

"..."

When Ding Ziqiang heard this, his lips moved slightly.

But after seeing Zhang Yang's serious expression, he finally nodded: "Okay, leave it to me..."

Just as Ding Ziqiang walked out of the door, he stopped and said, "Mr. Zhang, can you tell me how much you are willing to invest in this phone?"

“Remember when I invested in photovoltaics?”

"..."

After seeing Zhang Yang's expression, Ding Ziqiang was shocked!
Then he nodded complicatedly: "I understand!"

...........................

The evening of June 4.

The rain stopped.

【Lingchuan Intelligent Manufacturing】was established in 2007.

The boss's name is Zheng Tong, and he used to be a senior executive in the technical department of Blue Sky Technology Co., Ltd.

Well, [Blue Sky Technology Co., Ltd.] is a wholly foreign-owned enterprise, established in Hong Kong Island in 2003, and its main business areas include global consumer electronics, smart cars and other smart device windows and appearance protection, structural parts and electronic functional parts industries...

To put it more bluntly, the touch screens of current big-name mobile phones such as Samsung, LG, and Novia all originate from Blue Sky Technology Co., Ltd.

There are even rumors that the screens purchased for the iPhone 2013S processing factory in China in 5 were also from this company.

"What does the quote say..."

"The other party meant that the price is still very expensive and they want to lower it further..."

"This is our limit, we can't push it any further!"

"What did Mr. Zhang say?"

"Mr. Zhang hasn't responded yet. He seems to be dissatisfied with the handwriting screen technology, but the touch screen technology is too expensive."

"Where is he in Africa?"

"We have been cooperating there... The customer base is stable, but the African market requires a long time to expand. It is not realistic to expect to make a profit by relying solely on the African market..."

"..."

sunset.

Zheng Tong looked at the information silently.

I recalled the past events from a few years ago, and I just wanted to slap myself hard.

I left my job with great enthusiasm and then devoted myself to research and development.

After spending several years, reality finally gave him a big slap in the face, leaving him dizzy.

Technological support and subsequent development actually stem from monetization.

But when there is absolutely no room for cashing out in the market, or even when there is a loss, it is simply a disaster.

Fortunately, I worked with Zhang Yang in the past two years and made a little money in Africa to subsidize the situation...

Otherwise, [Lingchuan Intelligent Manufacturing] will go bankrupt.

"We haven't received any other business, so we have to tighten our belts in the coming days..." Zheng Tong sighed, "Well, I'll contact Mr. Zhang in person. If they want to use our latest touch screen technology, we'll lower the price. It's better to sell the product than to sell nothing..."

"Mr. Zheng, actually..."

"you say……"

"Actually, we have no money left. We need to find investors... Otherwise, we have to tighten our belts and at least lay off employees and cut costs..."

"Has the situation become so serious?"

"Our reserve fund is only enough to cover this month's salary..."

"..."

When Zheng Tong heard this, he suddenly felt overwhelmed.

(End of this chapter)