Rebirth 08: Can a mobile game company also build a tech empire?

Chapter 120 Contract Machine

Upon hearing that the manager of Hangzhou Mobile had arrived uninvited.

Lu Chen was stunned for a moment.

Then it dawned on me.

The leader had just left.

The person who moved arrived right after.

The timing was just too perfect.

Lu Chen didn't believe it was a coincidence.

This is clearly a goodwill signal from the leadership.

Let Journey Technology focus on its development.

He will help connect people with resources he can coordinate.

"Please come to the conference room, Manager Zhou. I'll be right there."

Lu Chen got up, straightened the wrinkles in his clothes, and then went over.

Manager Zhou is a middle-aged man in his early forties.

Round face, slightly chubby, dressed in a sharp suit.

When she smiles, her eyes squint into slits.

He exudes a shrewdness and shrewdness.

As soon as Lu Chen entered, he immediately stood up.

"Mr. Lu, I've heard so much about you!"

Manager Zhou quickly stepped forward and handed over his business card with both hands.

"The Journey 1 phone has caused quite a stir within our company. Colleagues from several departments are asking about it, and it's impossible to get one!"

Lu Chen smiled and accepted the business card.

The label reads "Zhou Zhengqing, General Manager of China Mobile Hangzhou Branch".

"Manager Zhou, you're too kind. Please have a seat."

Lu Chen gestured for him to sit down.

If Wu Zhixuan were to see this scene at this moment...

He would be shocked beyond belief.

After all, the issue of payment channels for the Journey Z1 was a problem for Journey Technology.

They want to partner with mobile operators to become a service provider (SP).

Wu Zhixuan found this Manager Zhou.

When Manager Zhou first met him, he didn't have this smiling expression.

That attitude was completely different from how it is now.

Back to the main topic, Lu Chen and Manager Zhou took their seats.

After serving the tea, Susie left and gently closed the door behind her.

After exchanging a few pleasantries, Manager Zhou got down to business.

The smile on his face widened even further.

"Mr. Lu, let me be frank. We at China Mobile are very optimistic about the Journey 1 phone. Whether it's the design, the workmanship, or the ZUI system, it has exceeded our expectations for domestic mobile phones."

He paused, his tone becoming serious.

"We would like to cooperate with your company to include Journey 1 in China Mobile's customized phone system, which simply means making it a contract phone."

Contract phone?

Lu Chen picked up his teacup and took a sip.

A thoughtful look flashed in his eyes.

Mobile contract phone.

This refers to the situation when a user subscribes to a specific phone plan.

By continuously using the package for a certain period of time.

This leads to a sales model where you can get a mobile phone at a discounted price, or even for free.

This model can be traced back to 2002.

At that time, mobile phones were expensive.

It is unaffordable for ordinary consumers.

China Mobile was the first to launch a service that offered free mobile phones with prepaid phone credit.

This effectively lowers the barrier to entry for purchasing the device.

This also enhances user engagement.

At that time, contract phones were mainly feature phones from international brands such as Nokia and Motorola.

With the issuance of 3G licenses in China in 2009.

The smartphone wave has begun.

China Mobile has partnered with Huawei, ZTE, Coolpad, Lenovo, and others.

To build the ZTE, Huawei, Coolpad, and Lenovo alliance.

A large number of customized Android contract phones were launched.

They also offer high phone bill subsidies to enable users to purchase phones for free.

It experienced a boom period between 2010 and 2013.

At that time, carrier channels accounted for more than 90% of the sales of domestic smartphones.

Contract phones have become the mainstream in the era of smartphones.

Back then, you could walk into any mobile phone store.

The machines on the counter are all custom-made.

It has the operator's logo on it.

It comes pre-installed with the carrier's applications.

The price seems affordable.

In reality, it's done through phone bill packages.

They shifted the cost to the users.

The claim of high price and low configuration.

It is also a mark left by that era.

Lu Chen snapped out of his reverie.

Considering the benefits of partnering with mobile.

If it's another mobile phone manufacturer.

I heard the words "contract phone".

They probably already showed their joy on their faces.

In 2009, they partnered with carriers to launch contract phones.

This is something that almost all domestic mobile phone brands dream of.

What does the carrier channel mean?

This means a nationwide network of sales outlets.

This means a massive user base.

This means a stable sales channel.

It also signifies brand endorsement.

But Lu Chen knew.

This path has both advantages and disadvantages.

If there is an over-reliance on carrier channels.

It will be mixed in with the high-priced, low-spec mobile phones of the future China Union.

This has led to users losing trust in the game.

At the same time, products are also constrained by the rules and regulations of operators.

But that's for the future.

The current Journey Technology.

We are not in a position to be picky.

Now, how can we do this without harming the interests of Journey Technology?

Maximize profits.

This is the time to test Lu Chen's wisdom.

Lu Chen picked up his teacup, took a small sip, and did not respond immediately.

Zhou Zhengqing saw that he did not refuse.

Immediately press your advantage.

We will now begin to explain the cooperation model in detail.

"Our plan is very flexible. As long as users commit to a two-year contract and choose a certain phone plan, they can get a phone at a very favorable price, or even get one for free. This can greatly reduce the purchase threshold for users."

He opened the notebook he always carried with him.

He pointed to the data above and said.

"With the current price of 1999 yuan for Conquer Online 1, if users choose our 128 yuan per month plan and prepay a certain amount of phone credit, the phone can be given away for free. This is a huge attraction for users."

"Manager Zhou, contract phones are indeed a good opportunity for our company, Zhengtu."

Lu Chen put down his teacup, his tone sincere, "However, I have a small idea."

"Please go ahead, Mr. Lu."

"We hope that China Mobile can be the sole distributor."

Lu Chen looked directly into Manager Zhou's eyes.

"The first batch of 100,000 units will be sold entirely through mobile channels."

Manager Zhou's smile faltered slightly.

100,000 units, exclusive sales.

This means that China Mobile will have to bear the inventory risk itself.

Transfer the money to ZhengTu Technology in advance.

This is unlike previous contract phone partnerships.

It's almost unimaginable.

Usually, it's the mobile phone manufacturers who stock up on the products at the stores.

Settle the payment after it's sold.

But Manager Zhou did not refuse immediately.

Instead, he fell into a brief moment of reflection.

He must have done his homework before he came.

The popularity of Conquer Online 1 is undeniable.

Both online and offline channels are out of stock.

Even with scalpers adding five or six hundred yuan to the price, it's still incredibly difficult to get one.

This level of popularity is phenomenal among domestic mobile phones.

If we can secure a contract for this product.

For China Mobile, it's a sure-fire way to make money.

Moreover, there's also the issue of the leadership—

Manager Zhou's smile returned.

It's just that there's a bit more seriousness in it.

"Mr. Lu, 100,000 units is indeed a large quantity. However, since it is a cooperation, we at China Mobile also hope to see your company's sincerity."

"Of course we are sincere."

Lu Chen said slowly and deliberately.

"The 1999 yuan price tag for Journey 1 only leaves a 5% profit margin. Manager Zhou should be aware of this. We can offer a further discount on the contract phone price for China Mobile, but the premise is that these phones must actually reach users through China Mobile's channels and not be stuck in the warehouse."

He paused, then continued.

"Furthermore, the ZUI system can customize some exclusive applications and services for mobile devices to enhance the user experience. We can include this in the cooperation agreement."