Feng Yu, Liu Chuanzhi, and the rest had discussed for a long time. All of them felt it will be difficult to make the Fruit Company suffer losses in one go. But if they slowly take over the Fruit Company's business, and their sales will drop gradually, the Fruit Company will go bankrupt in three to five years.
For example, Apple's main products are the iPod, iPod Touch, IMAC, iPhone, iPad, etc. Among them, the iPod is on the decline. Now, smartphones and mobile phones with enhanced sound effects are available, and fewer people are buying MP3 players. Even if someone wants to buy an MP3 player, they will buy Aiwa's MP3 players as it is the best.
Also, iPod is an upgraded version of the iPod, and it's not strange for the iPod to be phased out. Maybe it will be phased out in two to three years.
Laptops are one of the Fruit Company's top products. Their hardware and software are well integrated, and their firewalls are good. Many office workers like their laptops.
But the price-performance ratio is low, and this is a big weakness. After Lenovo Group lowered the prices of their laptops, the Fruit Company's low price-performance ratio is magnified. Also, the competition for business laptops is getting fiercer, and the Fruit Company's sales are not doing well.
After Sony acquired IBM's PC business, they start to enter the North American market. With Dell, Huipu, Lenovo, Samsung, etc., the Fruit Company is struggling to survive.
Other brands were developing in multiple directions, from cheap netbooks to games, business books, ultra-thin books, and other expensive ones. Basically, they were doing all of them.
But the Fruit Company only focuses on light and thin business laptops. Their games and entertainment laptops are not good, and some of them have enhanced their gaming and entertainment laptops, causing their prices to become higher.
This causes the Fruit Company's IMAC to have some limitations, and their sales are not doing well.
Although the Fruit Company is doing well in the smartphone market, after Wind and Rain mobile phones entered the North American market, the Fruit Company's mobile phone business is not doing well.
Their iPhone 3G is not selling as well as expected, and they were forced to lower their prices again to clear their inventory.
But the gross profits of this mobile phone are still high, and the R&D costs are not low. Even if the gross profits are high, the sales will not increase.
As for the iPad, Lenovo's sales are not as good as Lenovo's L-Pad. Even the combined sales of all the tablets in the world can't be compared to the L-Pad. Lenovo Group is the absolute leader in the tablet industry.
Feng Yu's company can suppress the Fruit Company, but it's not so easy to destroy the Fruit Company. Most importantly, the Fruit Company has a good reputation in North America, and they have lots of loyal fans. Although they are not doing well in Europe, they are still making money.
But the Fruit Company in Asia is not doing well, and they might as well not enter the Asian market. They are focusing on maintaining their market share in Europe and the US.
Now that the global economy is declining, they are worried that the sales of consumer electronics will decline in the next two years. If the decline is serious, the impact on the Fruit Company will be huge.
Those who did not use the Fruit Company's electronic products would not use their software. The Fruit Company's profits are from combining their products and software. If they only focus on one product, they will not be as successful as they are now.
Feng Yu cannot use the low pricing strategy anymore as it will affect his brand, and he will be sued for dumping.
Feng Yu is now trying to get his men to classify their products. Now, all the Fruit Company's products are in the second tier. But this is not enough. Feng Yu must classify their products into the third tier or even the fourth tier. This way, the Fruit Company will be on the decline.
Feng Yu believes that this day will come soon. Microsoft will not let the Fruit Company grow. With Lenovo Kingsoft, Microsoft does not need the Fruit Company to prove that they are not a monopoly.
With the combined attacks from these two software companies, the rest of the software companies will not stand on ceremony with the Fruit Company. Also, other electronics companies will target the Fruit Company's products. Feng Yu does not believe that the Fruit Company will be able to survive.
In Feng Yu's previous life, the Fruit Company's most profitable products were developed by Feng Yu first. MP3 players, smartphones, and tablets were all developed by Feng Yu's company. The Fruit Company is a follower in this era.
If a follower can overtake them, then Feng Yu will have to reconsider if his top management is qualified.
The development of electronic products is very fast, and there are many new technologies every year. Many products that were in short supply in the past are slowly being phased out. This includes Feng Yu's products.
Now, the VCD and DVD players are not selling well. There are still some HD DVDs and portable DVDs. But Wind and Rain Appliances is still making a lot of money with the patent authorization.
After all, the PC is developing fast, and most of the optical drive patents are owned by Wind and Rain Appliances. The development of products is very fast, and Feng Yu asked his staff to monitor the market and adjust their production to prevent overstocking.
At this time, set-top boxes were selling better and better. Now, many families had begun to watch digital TVs. The speed of promotion was very fast, and it was recognized by the people.
Since Thomson went into decline, no one can compete with Taihua Holdings in TV boxes. The few brands of TV boxes under Thomson are selling well, and their products are also popular overseas.
Currently, more than half of the world's TV box production is from Hua Xia. Hua Xia is the biggest manufacturer and has the lowest cost. Also, their technologies are the best, and they have the brand advantage. Microsoft is also producing TV boxes, but they are not selling well in the US.
Bill Gates had failed in the video game console, set-top box, and tablet PC. It seems that Microsoft had never succeeded in the consumer electronics industry.
But Bill Gates does not care. Microsoft is wealthy, and even if this product is losing money, many investors are willing to bet on Microsoft's success. This way, Microsoft's share prices will rise.
Although Microsoft had introduced many failed products in the past few years, their share prices had been rising. It was until the financial crisis that Microsoft's share prices fell again.
But Feng Yu is sure that when Windows 7 is listed and Microsoft's share prices start to rise, Bill Gates will invest some of his shares into his foundation, like what he did in Feng Yu's previous life.
He might even donate a portion of his shares to his foundation. This way, he does not have to pay taxes and still has a good reputation. This is a common tactic used by the US tycoons.
If Bill Gates is still unhappy with Feng Yu's title as the World's Richest Man in the past, after the financial crisis, he no longer wants to compete with Feng Yu.
Feng Yu is one step closer to dominating the IT industry.
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