1996 was the year of the mobile phone industry, because mobile phones were selling like crazy!
This was the general comment of all the business people in 1996 on the various industries in the world as 1996 was coming to an end.
Indeed, 1996 was the year of the rise of the mobile phone industry. Before 1996, the annual sales of the mobile phone industry were only about five million units, and the total industry output was only about 10 billion USD.
Although this number seemed very large, it was nothing compared to the other major industries in the world. Only when the scale of the industry exceeded 50 billion USD could it barely be considered a mainstream industry in the world.
Of course, many people had already realized that the mobile phone industry would definitely become a popular industry in the future, but they did not expect the mobile phone industry to rise so quickly.
In the two months from August to September, the three mobile phone manufacturers together sold nearly four million mobile phones, and this number was still expanding. It was estimated that by the end of 1996, the number of mobile phones shipped in 1996 would exceed 10 million units.
In history, this breakthrough was brought by Nokia and Motorola, but in this life, there was one more Daqian, and it was faintly rushing to the top of the three major mobile phone manufacturers.
After all, the entire Daqian had only joined the mobile phone industry for two years, and this speed amazed everyone.
Naturally, the larger media would not miss this important trend. The famous Fortune magazine published an article called, "10 billion in two months, the inevitable rise of mobile phones."
This article was very well written. The article first listed the sales figures of the three major mobile phone manufacturers in the world in August and September. Among them, the Daqian 2 mobile phone sold two million units worldwide, which was a miracle. Finally, the editor of the magazine predicted that the annual sales of Daqian 2 mobile phones in 1996 was likely to exceed five million units. At the same time, the Daqian Group, which had just entered the top 500 last year, was likely to rush into the top 400 because of the amazing sales figures of mobile phones.
Then the article began to analyze the factors that contributed to the Daqian Group's success.
From this point on, the article became somewhat unobjective. They did not mention the advantages of the Daqian 2 in terms of quality and functionality. Instead, they first said that the world's economic situation in 1996 was great. Almost all kinds of economic miracles were happening all over the world. The money in the pockets of the people in various countries had also become plentiful. This was the main factor that allowed the mobile phone industry to rise in this year.
Then, the communication between people in the world became even more urgent, because people gradually discovered that timely communication could bring about great benefits.
For example, in the previous stock market, if you weren't at the scene of the stock market, once there were any changes in the stock market, it might be a few days later when the traders contacted you.
However, mobile phones were different. With just a phone call, the traders could immediately contact their customers and make decisions immediately, reaping huge economic benefits.
Therefore, the article concluded that the rise of the mobile phone industry was inevitable because more frequent communication between people was necessary. In fact, everyone needed a mobile phone, but the price of a mobile phone was too expensive, so it was difficult to popularize.
But the Daqian Group reduced the price of a mobile phone from more than 2,000 USD to 1,200 USD. This almost halved the price of a mobile phone, and the sales of mobile phones increased greatly.
Anyway, the article only had one meaning. The Daqian Group's mobile phones were selling well because they were selling them cheaply. There was no other reason.
Regarding this, no one knew if other people would agree, but everyone in Motorola agreed. They did not think that their mobile phones were not selling well because their mobile phones were not as good as others. After all, how could a 3,000 USD mobile phone be worse than a 1,200 USD mobile phone?
The problem was that the Daqian Group was selling their mobile phones too cheaply. If Motorola's mobile phones could be sold at 1,200 USD, no, only 1,500 USD, the victory would belong to Motorola!
"We want to reduce the price!" Kristof gritted his teeth and announced in the meeting. Faced with this decision, the company's executives looked at each other, and one of them asked. "Mr. President, how much do you intend to reduce the price?"
"2,799 USD," Kristof replied.
"Reducing the price by 200 USD in one go? Isn't this price too high?" The executives heard this and immediately started discussing.
"Mr. President, the production cost of a Motorola STARTAC phone is 2,500 USD. If you reduce it to 2,799 USD, and deduct the profits from the distributors, we will only make less than 100 USD per mobile phone. This price is too low!" Someone immediately stood up and objected.
"I will ask the production department to reduce the cost!" Kristof said. "The production cost of 2,500 USD is due to the need to develop a large number of molds and new production lines. As the sales of STARTAC exceeded 1 million units, the corresponding cost has been reduced by a lot. Now, the cost of a STARTAC phone is only about 2,300 USD. Our profits have not changed much.
As long as we can sell more STARTAC phones, the cost will continue to decrease. In the end, the cost can be reduced to about 2,000 USD per mobile phone!
"But Sir, I am afraid that you still don't know about this. The trade union has started to make a fuss again. They claim that their STARTAC phones have achieved unprecedented results, and this is their contribution. So, they want a pay raise. They are demanding a pay raise of one USD per hour!" The head of the production department stood up and said.
"What! These b * stards! They already have the best hourly wage in the entire United States. Even the automobile industry does not have as high a salary as them. They actually want a pay raise! "Kristof was furious.
"I know, but these d * mn workers don't understand. I heard that they are preparing to join forces to go on strike. The entire production department and all the factories might join forces this time. If the strike gets bigger, we don't know how long our production will be suspended, let alone the cost!" The head of the production department said with a bitter smile.
The hidden meaning behind his words was that satisfying the workers' demands for a pay raise was the only way. Therefore, the production cost might increase instead of decreasing.
"…" Kristof, who had been extremely tough just a moment ago, suddenly became listless.
Then, another executive stood up and said, "Mr. President, you have to consider the value of our brand and the feelings of the customers who have already bought STARTAC phones. If they know that they have just bought the phone for less than two months, and you are suddenly lowering the price by 200 USD, I think you will offend everyone! " This executive's words were the key. Kristof muttered to himself helplessly, "F * ck, I can't even lower the price!"
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