"Boss, the Fruit Company is also trying to produce mobile phones? Do they think they can produce mobile phones just because they know how to produce PCs?" Xu Lihua had a look of disdain on his face. But he did not notice Liu Chuanzhi's face changed.
Jiang Wanmeng tried to smooth things over. "It's not a problem for them to produce mobile phones. They can make use of their brands to diversify their businesses. This is one of the directions for a big company. However, they lacked a foundation, allies, and sufficient technical support. This was no good. They are not like our Lenovo Group. We have the right timing, location, and people. "
Xu Lihua knew he had misspoken and smiled at Liu Chuanzhi embarrassedly. Liu Chuanzhi is still the CEO of Taihua Holdings, and he is his superior.
Lenovo Group also has its own mobile phones. Their smartphones are not selling well, but they are still making profits.
"It's fine. Ralph had found out in the US that the Fruit Company's iPhone is not selling as well as they expected. Although they had enhanced their internal storage, they still lack functions. They are not as good as Wind and rain smartphones. "Liu Chuanzhi said.
In the US smartphone market, the two biggest competitors are Motorola and Black Rose. The other mobile phone brands are not a threat.
But now, the Fruit Company had gotten some technical support from IBM, and they might be able to get a large share of the market.
Since IBM switched to focus on software, Fruit is the only major PC company in China. Although Lenovo Group owns Lenovo Kingsoft's shares, it is an independent company and is different from Lenovo Kingsoft.
It is the same for this mobile phone. The hardware and software are developed by the Fruit Company, and their software must be optimized for the hardware. This is an advantage.
Of course, this is also a disadvantage. Their R&D costs will be too high, and if the sales are not good, it will be hard for them to recoup their costs.
Feng Yu waited for everyone to finish talking and said calmly. "All of you are thinking too highly of the Fruit Company. They had partnered with Motorola to produce mobile phones in the past, and they failed. Do you think they will succeed if they get rid of Motorola?"
"You all should know about their phone's specifications and design concepts. Do you really think they will be popular among the consumers? A simple combination of an iPod and a mobile phone, with a little bit of PDA functions, and it's considered a smartphone? "
"They're taking the same path as Black Rose, developing their own systems and applications, and then trying to earn back the money by charging for downloads and installations. But don't forget, Black Rose is no match for us now."
"They're copying the path of a loser. Do you really think they can succeed? Their phone's price-performance ratio isn't high at all, and it doesn't capture the selling point of consumers at all. "
"Perhaps their only advantage is that their brand is not bad, and they have a group of loyal fans. But everyone has seen the development of Sony's electronic products. So what if they have loyal fans? If their products are not good, their fans will leave them eventually! "
In Feng Yu's previous life, the iPhone only started to sell well after the iPhone 4. After that, the iPhone 4S made a lot of money. But the Fruit Company did not make any profits from the previous phones.
4's design only has one button, and the rest of the screen is a touch screen. This design was very innovative at that time, but now, Wind and Rain Smart Phone only has three buttons, and the design of one of the buttons was completed a long time ago.
In Feng Yu's previous life, smartphones did not develop so fast, and the Fruit Company's concept at that time is very advanced. But now, the Fruit Company can only pick up the leftovers.
Also, the current Fruit Company is not as powerful as in Feng Yu's previous life. In Feng Yu's previous life, Fruit's iPod had also made high profits. Although the price-performance ratio isn't high, the iPod's exterior design is beautiful, and their website is doing well. Apple's iPod became one of the best sellers in the MP3 industry.
But in this life, Aiwa's MP3 is the best, and the iPod is only so-so. Aiwa has its own music platform, and Amazon, Baidu Music, QQ Music, etc. are supporting it. Also, the pricing is reasonable and has become the industry standard.
Just Aiwa and Hua Xia's MP3 sales account for more than half of the world's MP3 sales. Feng Yu has the final say in this industry!
The Fruit Company's PCs, especially their PCs, are not selling as well as in Feng Yu's previous life. Feng Yu had introduced many of his designs to the market in advance to improve the technology feel of Lenovo's PCs. This is why the Fruit Company does not have as many fans as they did in Feng Yu's previous life.
Also, Sony's PC business in North America is catching up after acquiring IBM's PC business. With the help of Dai Er, Hui Pu, and other manufacturers, the Fruit Company's profits are not as high as in Feng Yu's previous life.
In the past, the Fruit Company's PC operating system had focused on speed, and Microsoft's VISTA was slow. But in this life, Lenovo Kingsoft's X OS is cheaper and more convenient, and the Fruit Company's reputation is not as good as before.
Even so, the Fruit Company's market value had increased significantly over the years. Now, it is worth 50 billion USD. But Feng Yu felt the share prices are too high.
This is because the global economy is doing well in the past two years, and the share prices of listed companies, especially technology companies, are rising fast. Looking at the Fruit Company's profits last year, their net profit is only 1.5 billion USD.
It is just like Microsoft. Their annual profits are tens of billions, and their market value can reach 600 billion USD. But if you look at the ratio, Microsoft's profits to market value is much higher than the Fruit Company. Later, Microsoft's market value is proven to be too high.
The market value of a listed company only shows the investors' trust in the company and does not necessarily show the company's profitability. If not, there will not be so many companies that are worth more than 100 billion USD in history and still suffer heavy losses.
As long as you can fool the investors, the company's market value will not fall. This way, the shareholders' interests will be protected.
"Don't be anxious. We will not be in a rush to introduce the next generation of smartphones. I had mentioned that our next product should be a 3G phone. We will name it Wind and Rain S3G, and it will still be using the third generation technologies. As for now, we don't need to upgrade any of our hardware at all. We just need to keep updating our software. "
"Our current hardware can meet the users' needs. Instead, as the cost of our electronic components drops, we should be preparing to adjust our product's retail prices. Also, perhaps our Super Value Machine will usher in another best-selling period. "
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