Everyone understood Feng Yu's plan. He wants to make the rest of the companies go down the wrong path.
This way, the other companies' R&D will lag behind, and they will waste a lot of R&D funds. This way, Wind & Rain Electronics will be one step ahead of the rest of the companies, and the rest of the companies will have to follow in their footsteps.
This way, the rest of the directors will be able to achieve what they want, and it will be easier for them to do so.
No wonder Manager Feng told them to prioritize wireless network technologies when designing their products. So, this was his motive.
After Feng Yu's explanation, the rest of the directors did not have any objections. They can see the benefits of doing this.
Although Feng Yu said there is no need for them to report on their work, the rest of the directors still mentioned some important things. Feng Yu only listened to them and gave them some advice or affirmation for their work.
For example, Lenovo Kingsoft's Home of Software is based on Lenovo Kingsoft's software and many other software companies' software. This is an online service base that provides software downloads.
Of course, some of the software is charged, and some are free. But most of the software is based on Lenovo Kingsoft's operating system. But there are also software based on other operating systems.
The profit that software can create is higher than hardware. This is because the cost of software is lower. The R&D cost might be the same as hardware, but what about the production cost?
To put it bluntly, software was just lines of code. Hardware, on the other hand, required a lot of materials, manpower, resources, and so on. If the hardware failed, the cost would be much higher than the software.
A software company only needs 500 core engineers. For example, the Fruit company is like this. But a hardware company has a large number of employees. Just the factory alone has tens of thousands of employees, or even more than 100,000.
This is why IBM's focus had shifted from hardware to software, and their profits increased. They are the leader in the hardware industry at that time.
Charging for software downloads is not an innovation. But Lenovo Kingsoft merged some small websites together and sell the products of the smaller software development companies on their platform. This increased the popularity of their platform.
Many people said that mainstream software products could be found on this platform. Some of the more niche software could still be found on this platform.
There were even people who said that if you wanted to find software with certain functions, you could just search on this platform. It was more convenient than going to the electronic shopping mall, and the price was about the same.
The downside was that after downloading and installing the software, once the system was reinstalled, the software might have to be purchased again. After all, the activation code for the software could only be used once. In the electronic city, there were cracked versions of the CD that could be installed repeatedly.
In the electronic city, after the continuous crackdown on piracy, this kind of product was not very easy to buy, but it was not absolutely impossible to buy. However, it was not only in Hua Xia. In the entire world, this kind of piracy existed, even in the United States and Japan, which were known for their excellent copyright protection.
This software download base relies on Lenovo Kingsoft's brand and reputation, and it is doing well. Lenovo Kingsoft had signed cooperation agreements with many software companies in China and overseas. The software development company had to share the download fees with the platform.
Feng Yu is optimistic about this software park. Both Microsoft and Apple have similar products. In Feng Yu's previous life, Apple's software sales depended on this download base, and it brought in high profits for the company every year.
Also, many products can choose to install the software based on the user's needs. This will prevent a lot of software that the user does not need to use up the user's memory.
This model has a certain advantage in the sales of mobile phones, computers, and other products. It can also increase the sales of software and promote the company's brand. It's killing two birds with one stone.
When Lenovo Kingsoft wanted to do this, Feng Yu was the first to agree. Lack of funds? It's fine. The shareholders will inject funds into the company.
After the initial investment, Lenovo Kingsoft still lacks funds. They can get loans or issue shares to raise funds. Anyway, Lenovo Kingsoft wants to make this company bigger and stronger.
This is like Aiwa's MP3 download website. MP3 players are making money, but music downloads are also making money. Combining the two, it will be more effective.
After this temporary board meeting, Feng Yu had some free time for a few days. Ralph told Feng Yu that Apple had also set up a software download website and had invested a lot in it.
All the software will be based on Apple's operating system or developed by Apple based on other operating systems. The model is very similar to Lenovo Kingsoft's software park.
But this website is not as popular as Feng Yu's previous life. This is because Lenovo Kingsoft's software park is already there. However, this business could also bring a lot of attention to the Fruit Company. It could even bring a lot of profits in the future.
At the same time, this service will bring in another problem. The cost of setting up this website is very high. Internet companies spend a lot of money, and this is common knowledge.
Apple's profits had dropped because of this year's economic situation. In the end, the iPhone and iPod Touch did not perform well, but they did very poorly.
This caused a cash flow problem for the Fruit Company. Fortunately, they did not have many employees, but they were in urgent need of cash to ease their financial predicament.
So, Apple decided to clear their inventories first. Among them, the iPhone and iPod Touch were the two new products that had the most stock.
How are they going to clear their inventories? They can only use one method. Reduce the prices.
There was no other way. Moreover, the price of the two products was reduced by 40%, which was considered a break-even sale. This shows how high the profits of their previous products are.
After this decision was announced, the consumers who had bought the new products were furious. They had only bought the new products for less than two months, and you want to reduce the prices by 40%?
Apple had no choice but to use PR. They promised their previous customers that they will give them a discount of 100 USD. That means they can get 100 USD off their credit if they spend on Apple's download website.
This might seem like a discount to the consumers, but it is actually a promotion for their download website. Ralph bluntly exposed Kieran's plan.
Other companies also took this opportunity to step on Apple and start to criticize them for fooling the consumers.
Apple is in a mess.
… …
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