Siheyuan (courtyard house): My name is Shazhu!

Chapter 353 The first-generation mobile phone had huge profits!

From mid-May, Dongda TV, Dongda newspaper, and my younger brother's newspaper, Qian Duobao bought RTV last year, now called Asia Television.

In a cacophony of attacks on everyone in the port city, on June 1st, Dongda Group launched a portable mobile phone, 'Dongda Mobile'.

Everyone can take their phone out and receive calls anywhere in the port city. Making a call is no longer a problem, even in case of an emergency!

This allows us to communicate normally even when we are far apart, all for the sake of making your work and life more convenient!

The analog cellular phones sold by Dongda Group this time are not cheap, with five models and three price ranges from HK$49999, 59999, 119999, 149999, to 299999 to cater to different users.

The mature communication technology was completed, and the first-generation mobile communication technology, 1G, was perfected and spread throughout the port city.

It's far superior to Motorola's technology, at least three years ahead of them. A single call can last two hours!

Moreover, laying mobile signal networks is expensive, and it takes time to recover them. The analog cellular mobile communication system used by the University of Tokyo mainly adopts the technology of FDMA (Frequency Division Multiple Access).

The price is too high for many people to afford, but there are also quite a few wealthy people who want to buy it.

For them, these mobile phones are very convenient. They can contact anyone anywhere in the port city, and receive messages immediately if anything happens at the factory or at home!

A regular phone call costs tens of thousands of Hong Kong dollars, plus call charges, so a family can easily spend over 100,000 Hong Kong dollars. But 100,000 Hong Kong dollars won't make much of a difference to a factory.

Besides, as a big boss, it would be too embarrassing for me to be the only one without a cell phone at a gathering when everyone else is holding one.

I'm the big boss, my company makes tens of millions a year, so using a mobile phone worth 300,000 isn't excessive, is it?

The Hong Kong city's slow-burning trend is divided into two camps: ordinary people want to buy but can't afford it, while the rich, for whatever reason, are determined to buy a mobile phone on June 1st!

As for the claim that Dongda Group is lying, that's impossible. Any function they advertise on TV and in newspapers must exist!

This is the trust that the citizens of the port city have placed in Dongda Group over the past ten years, and it is also the reputation that Dongda Group has built!

Credit and reputation are extremely helpful in capturing market share!

On June 1st, Dongda Group sold mobile phones like crazy at 19 sales outlets in the port city.

He Yuzhu opened the shop at eight in the morning and worked overtime until eight in the evening at the request of customers. Of the 159,000 mobile phones he brought back, 54,700 remained.

Total sales amounted to HK$9.2 billion, with HK$2.5 billion received in cash and the remaining HK$6.7 billion to be paid in installments over five years.

They could earn another three billion Hong Kong dollars.

He Yuzhu didn't expect that the fastest selling items would be the 10,000 high-end phones priced at HK$299999 each. Some of the mid-range phones, which were around HK$150,000 each, were sold, and 12,000 of the 20,000 units were still left!

The sales ratio of low-end phones has exceeded that of mid-range phones; this ratio needs to be adjusted in the future!

During the day, company vehicles are dispatched to mobile phones to ensure that each sales point has stock available.

Customers who bought the phones tested them out, making calls to their home landlines and between mobile phones. The calls were clear enough that they could at least hear and understand what the other person was saying.

Overtime workers will each receive a bonus of HK$100!

This makes the employees who work overtime happy. Working two and a half hours of overtime and getting 1/5 of their monthly salary is great!

"Zhu Zi, this kind of mobile phone is nice, but it's a bit bulky. My silver phone is very pretty. Since the company set the price so high, are there many upfront costs?"

"There's no way to make it bigger than it is; some of the internal components can't be made smaller. That might be possible in the future. The phone comes in three colors: black, blue, and silver, to make it convenient for both men and women to use."

This time, we'll sell less than 160,000 units; if we sell 350,000, we'll recoup all costs, and from now on, we'll make half profit on each unit!

He Yuzhu had overstated the costs, and the net profit from selling everything this time would reach HK$120, meaning the money spent on laying the communication network had already been recouped.

The cost of mobile phones was pitifully low for He Yuzhu. Apart from labor costs, the raw materials were readily available, which could support the production of at least ten million mobile phones.

Key components were purchased from the system store. The technical expertise was also acquired from the system store!

"Is this the emerging industry you mentioned that will be very important for the future?"

"Mobile phones are very important. We have a small population here, low wages, high phone costs, and high sales prices."

If costs come down and sales prices come down, what does it mean if one-third of people can use mobile phones?

Hundreds of millions, even billions of people—that's a huge market! And using a mobile phone is more convenient and safer than a landline!

"That seems to make sense. You've made money again, Comrade He Yuzhu. I've noticed you have a really good eye. Is there anything going on at the company?"

"Thank you for the praise, Ms. Zhou. I went to Malaysia for two things: one was to check on the production of mobile phones and decide when to launch them for sale."

The second one is that the Mud Monkeys wanted to sell the island, and the Malays wanted to buy it, preparing to borrow money from the company bank.

Because the mud monkeys were asking for too much money and it wasn't a complete island, the deal fell through and they had to give up.

"The Mud Monkeys have so many islands. What kind of islands are they trying to sell?"

"Part of Kalimantan Island, asking price 10 billion US dollars!"

"Ha, are they crazy? They're even selling Kalimantan? Are they selling it because they're at war and short of money to continue fighting??"

"That's right. Eight years of civil war wiped out their entire coffers; they were dirt poor!"

"They're tough too. They fought a civil war for eight years. If they weren't poor, who would? And why would they want to leave?"

"In a few days, I'll go out and find that Niu Niu's mobile phone factory has a 25% stake in me, and I'll also find several mining areas in Australia to package a super large iron ore mine."

I've also found several mining areas in Africa: diamond mines, platinum mines, gold mines, iron ore mines, and bauxite mines. I can now proudly say that I'm rich because my family owns mines.

"Hahaha, what do you mean you own a mine? Be careful when you go out. Gold mines are pretty good, international gold prices are rising."

"Having minerals is always a good thing. In thirty years, everyone will understand the importance of mineral resources; without minerals, some industries won't be as successful!"

"I don't understand!"

He Yuzhu stayed home playing with his three children who weren't in school until Monday, five days later, before going to work at the company.

"Mr. He, all the mobile phones have been sold out. With 159,000 phones, our total sales amount is 13.3 billion."

They received 3.8 billion in cash, had 9.5 billion in loans over five years, and their sales revenue was equivalent to more than 2.35 billion US dollars.

The initial expenses have already been exceeded, and there are still 300 million Eagle Dollars left as net profit. The mobile phone industry is too profitable for our company.

With a small amount of labor costs and alloy manufacturing costs, other expenses are very low, only 8% of the selling price.

To earn more money, we need to significantly increase our production. This is what a port city is like, and other major cities are too.

"Take it slow, there's no rush. We've done enough in Hong Kong. Our next target is Japan, they're the richest place. No need to rush, they're not ready yet."

Contacting people there can help us prepare. If it's difficult to enter the market, we can build a factory directly in Japan and let our younger brothers capture their market share. They need computers too!

"clear!"

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