Feng Yu sat in his office and looked at a report in his hand. The corners of his mouth curled up.
The cost had dropped again. In this way, it was time for the price of this phone to be lowered.
Originally, in the low-priced phone market, there was only one Wind and Rain phone. Other manufacturers did not have it. However, since the sales of Wind and Rain phone exploded and attracted the attention of the world, other manufacturers entered the low-priced phone market.
However, even if other manufacturers introduced cheaper phones, Wind and Rain phone still maintained its original price and did not lower its price.
Feng Yu had told Jiang Wanmeng that it was not that Wind and Rain phone could not lower its price, but a small price reduction would not have any power. A price reduction would make other manufacturers despair.
Boiling a frog in warm water would not bring down these big manufacturers. Instead, it would give them a chance to continue to expand their sales.
There would be a crazy price reduction that would make other manufacturers despair and make them lose hope of competing with the price. Only then would they be able to truly dominate this market.
And now, the opportunity had come.
Feng Yu found a document on the table and flipped through it. He signed it and called his secretary in to hand the document to Liu Chuanzhi.
When Liu Chuanzhi saw Feng Yu's secretary personally bringing the document over, he knew that Feng Yu had made a decision again. He flipped through the documents, and his face lit up with excitement.
Finally, it was time to make a move. This market was developed by us, so it will continue to belong to us in the end!
Liu Chuanzhi grabbed the phone on the table. "Old Jiang, the price reduction plan can be implemented!"
…
[The price of Wind and Rain Super Value Phone has suddenly dropped by a large margin.]
[The price has dropped by more than 25%. Can Wind and Rain Super Value Phone really have such high profits?]
[The price of Wind and Rain Super Value Phone has dropped by a large margin. Other mobile phone manufacturers are in disbelief.]
[Dumping? Wind & Rain Electronics is being sued by many countries.]
[Many mobile phone manufacturers in many countries have jointly complained to Hua Xia, requesting Hua Xia to severely punish the dumping of Wind and Rain phones and compensate them for their losses.]
…
Feng Yu browsed the news on the Internet. Today, the news of Wind and Rain phones occupied the headlines of almost all the news media. The business section occupied a large space.
Some reporters either went to Wind & Rain Electronics or Taihua Holdings to interview. There were even some foreign media who went to the business to interview. They wanted to see if Hua Xia was going to ignore the WTO treaty and implement local protection for Wind and Rain phones!
At this time, Zong Qingxian, Liu Chuanzhi, Masao Kameda, and others were sitting in of tea of Feng Yu 'office. They had expected that.
If others wanted to sue, they would let them sue. of of of of of of Of Of the Of. of Wind. "Feng of the phone of the Rain".
Perhaps many people did not intend to buy Wind and Rain phones before. But when they want to buy a mobile phone or change a mobile phone, the first brand that comes to mind is likely to be Wind and Rain.
Feng Yu was happy that he could get a high degree of publicity without spending money.
Now, this matter was handled by Jiang Wanmeng in front. The other executives did not accept interviews about this matter at all.
"General Manager Feng, the sales of our Super Value Phone have skyrocketed again, and many countries seem to be deliberately guiding consumers to buy it." Zong Qingxian said with a smile.
"They want to help us increase sales. Then, when they sue us for dumping, they can give us a bigger fine and give their companies higher compensation."
Kameda Masao had a cold smile on his face. Those countries are really scheming. This was not the first time he had seen such a situation.
"They will not expect our cost to be so low. They probably didn't expect that we didn't lower our prices before, not because we couldn't lower our costs, but because we deliberately gave them an illusion. "Liu Chuanzhi held the cigar in his mouth, and as he spoke, he puffed out a column of smoke.
"Let this matter ferment. During the court hearing, when they see our cost, they will not be able to say anything. Who asked us to have the cheapest electronic components? Who asked our assembly line to be so efficient? " Zong Qingxian gave a thumbs up to Feng Yu. "I didn't know that Wind & Rain Electronics had signed a long-term supply agreement with Tai Hua Crystalline Silicon."
When Crystalline Silicon's prices were not increasing, Feng Yu had asked Wind & Rain Electronics to sign a long-term supply agreement with Tai Hua Crystalline Silicon. This way, Wind & Rain Electronics and Tai Hua Crystalline Silicon's production cost will be the lowest.
Of course, this agreement does not mean the prices will not increase forever. It is a protection price that is commonly seen in the market for 3 years. That means if Wind & Rain Electronics pays a deposit in advance, the prices cannot increase by more than 5% and cannot exceed the average market price. Of course, if the average market price drops, then Tai Hua Crystalline Silicon's prices will be protected.
Wind & Rain Electronics had done some calculations. If their factory's production capacity increases, their labor and machinery costs will continue to decrease. But the cost of raw materials will increase, but the battery, casing, etc. will continue to decrease. That's why their cost will not increase and will continue to decrease.
The other manufacturers' prices are almost at the margin, and Wind & Rain Electronics will not dare to lower their prices. If not, they will suffer losses and will violate the dumping laws. If that happens, they will be sued by Wind & Rain Electronics and many countries' governments or trade organizations!
China's selling price is 299 RMB, and overseas, it is 39 USD. Other manufacturers will not be able to catch up.
With so many media outlets promoting their phones for free and guiding the consumers to buy their phones, the sales of this Wind and Rain Premium Phone made Zong Qingxian and the rest smile from ear to ear.
Although Wind and Rain Electronics had lowered their selling prices and profits, they had squeezed out their competitors and increased the market share of Wind and Rain Mobile Phones.
Also, because of the increase in sales, their profits are not much lower. But other mobile phone manufacturers are not doing the same. Their low-cost phones are not good, and their designs are not as good as Wind and Rain Mobile. They still have an advantage in terms of price, but now, their biggest advantage is gone.
The other mobile phone manufacturers' low-cost phones are not selling well. As for their high-end phones, they are not as good as Wind and Rain Mobile Phones. They are lagging behind in terms of technology and product design.
If they are lagging behind, they can still catch up. But if they are lagging behind by so much, they are in despair.
They are in despair in this low-cost phone market. It's not that their sales are gone, but their sales are too low. They can't even earn back the marketing fees. What's the point?
Without marketing, how can they compete? They do not have the support of the government, and they do not have the reputation of being the first low-cost phone.
Also, if their sales drop, they will have to cut production. If they cut production, the cost of each product will increase. This is a vicious cycle.
Could it be that the prices of mobile phones in the future will depend on Wind and Rain Mobile Phones?
Are they setting a standard for the selling prices of their phones?
… …
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