"By the way, I saw that the Daqian mobile phone had three new functions. They are the caller ID, the phone book, and the time display function. Can our mobile phone implement these three functions?" Olila asked again.
"The time display function is not a big problem. Our latest mobile phone already has the time display function. As for the caller ID, it is actually mainly dependent on the communication operator. As long as the communication operator can provide the corresponding convenience, our mobile phone can also implement the caller ID function immediately!"
"As for the phone book function …" The technical director hesitated and then said, "We can also implement it technically. We just need to add some components for storage. The manufacturing cost of the mobile phone will increase a lot!"
"No matter how much the cost will increase, the phone book function must be installed in our new mobile phone immediately!" Olila said without hesitation, "The mobile phone is a big item and expensive. Only with as many functions and a beautiful appearance as possible can it attract customers to buy it!"
"Customers who can afford the mobile phone won't mind spending dozens of dollars to add a phone book function. Therefore, the three new functions of the Daqian mobile phone this time must be in our next mobile phone. I must see all of them. There can't be any omission!"
"Yes!" Everyone in the conference room nodded. This was true. The president was very wise.
"Then, there is one last problem left!" Olila stroked his beard and sighed, "The Daqian announced that the base price of their Daqian mobile phone is 1199 USD. However, the global base price of our latest mobile phone is 880 USD, and it is as high as 2100 USD."
"The Daqian mobile phone is nearly half of ours. In terms of price, we have no advantage. What should we do? Should we follow the Daqian mobile phone and lower the price? "Olila asked the question that worried him the most, which was the price of the mobile phone.
Previously, no matter if it was Nokia or Motorola, the price of their mobile phones was never lower than 2100 USD. The market accepted this price. After all, mobile phones were extremely high-end and were exclusive to successful people. They were similar to luxury goods. A price above 2000 USD would not arouse any customer's suspicion. The only difference was that some people could not afford it.
But now, the price of the Daqian mobile phone had reached 1,200 USD, almost halving the price of the mobile phone. This put Nokia in a difficult position. Should they follow this price?
"President, I don't think it's a matter of whether we should follow them or not. It's a matter of whether we can follow them at all!" Nokia's production director stood up and said with a bitter smile, "The actual cost of producing a Nokia 880 phone is 1,300 USD. Even if we don't make a single cent, the price can only be reduced to 1,300 USD. It's impossible to reduce it to 1,199 USD. We can't keep up with this price!"
"That's strange. As far as I know, the Daqian Group started with children's toys like cards and instant noodles. How could such a company reduce the cost of a phone to $1,199? "Shouldn't the cost of producing a mobile phone be higher than us, which have been in the mobile phone industry for decades? How could they lower the price to such an extent? Do they lose a few hundred USD every time they sell a mobile phone? " Olila asked all the executives in the conference room. Faced with this question, the executives all closed their mouths because they did not know the answer to this question. It was a little scary that the Daqian Group could sell their mobile phones at such a price.
"President, it's absolutely impossible for us to keep up with them in terms of price. So, I think the price of our mobile phones should remain the same. We shouldn't fight a price war with them at all!"
"We should make full use of the Nokia brand. Nokia has been in the mobile phone industry for more than ten years. We have a good reputation and brand effect. These are all recognized by our customers."
"So, we should use this to create an image of a high-end product, and label the Daqian mobile phone, which costs $1,200, as a cheap product, so as to widen the gap between the two. Only in this way can we erase the impact of the price!" The marketing director said, "And as the president said just now, those who can afford mobile phones are celebrities and elites from all walks of life. $1,000 is just a drop in the bucket for them. They will definitely buy a high-end brand and a more famous mobile phone. They will not touch a cheap product like the Daqian mobile phone, so as not to lower their status!"
"That's reasonable!" Olila nodded vigorously. Although he felt that there seemed to be something wrong with the marketing director's words, the price really could not be lowered. After all, the price was now lower than Nokia's cost price. This price war was simply impossible. Therefore, Olila could only accept this suggestion to widen the gap between high-end and low-end. He began to create a high-end image of Nokia.
"In fact, you don't have to be so worried. At least in Europe, the Daqian mobile phone is no match for us!" Seeing that the atmosphere was a little dull, the president suddenly laughed and said, "We have been doing GSM for so many years. At least now the latest communication base stations in Europe are all GSM format communication base stations. Without a CDMA format communication base station, the Daqian mobile phone is just a piece of scrap iron in Europe!"
"They are only developing in countries like Hua Xia that have not yet established a second-generation mobile communication system. Now we have a very good negotiation with the relevant departments in Hua Xia. The relevant departments in Hua Xia have decided to purchase our Nokia GSM base station. At that time, their Daqian mobile phone can't even keep their own chassis. There is no place for their Daqian mobile phone in the world! Hahahaha! " Olila laughed, and everyone else laughed. The atmosphere in the entire conference room instantly became cheerful.
In this way, the two traditional mobile phone companies, Motorola and Nokia, had reacted to the emergence of the Daqian mobile phone. The next step was to see the grievances of the three mobile phone companies that would last about 10 years.
— — —
But now Boss Jia was not interested in Nokia and Motorola's response. He was now sitting in the office of Hua Xia Mobile Communication Bureau, doing the final work.
Sitting with Boss Jia was Leng Zhengfei, the chairman of Huawei.
The two of them were doing the final work of persuading Hua Xia Mobile Communication Bureau, which was to persuade Hua Xia Mobile Communication Bureau to use the CDMA communication base station produced by Huawei as the national communication base station.
This was a very important work, even related to the survival of the Daqian mobile phone.
Because in order to bypass the patent fortress built by Nokia and Motorola for more than 10 years, the Daqian mobile phone could only use the brand-new communication standard, CDMA, to build its own patent fortress.
However, CDMA appeared ten years later than GSM, so now the mainstream communication base stations in the world were all GSM base stations. The second generation communication base stations produced by all the major communication base station manufacturers in the world were all GSM base stations.
At this time, there were no China Unicom and China Mobile. The mobile communication business of the entire Hua Xia was handled by Hua Xia Mobile Communication Bureau, so the fate of the Daqian mobile phone was in the hands of Hua Xia Mobile Communication Bureau. If Hua Xia Mobile Communication Bureau decided to use GSM base stations when laying the second-generation communication network, then the Daqian mobile phone would directly die on the street. After all, when the mobile phone was released, people found that they couldn't even make phone calls, so what was the point of buying it?
On the contrary, if Hua Xia Mobile Communication Bureau decided to use CDMA base stations, then Nokia and Motorola would die in Hua Xia, and the mobile phone would also become a piece of scrap iron.
But the problem was that the attitude of Hua Xia Mobile Communication Bureau had been very unstable. The Daqian had already negotiated with Hua Xia Mobile Communication Bureau last year. At that time, the attitude of Hua Xia Mobile Communication Bureau was still very supportive. Even in Dongguang Province, hundreds of CDMA base stations of Huawei Group had been purchased and installed.
But the problem was that in February this year, Hua Xia Mobile Communication Bureau changed its director, and then its attitude became ambiguous. It was said that the director was born in Europe and was very trusting of European products. He focused on globalization and wanted to integrate with the world. He was more inclined to Nokia and the GSM communication system, so the whole situation was in a deadlock. Even now, the Daqian press conference was over, Hua Xia Mobile Communication Bureau still hadn't made a decision. Boss Jia couldn't bear it anymore. He dragged Leng Zhengfei directly to Hua Xia Mobile Communication Bureau to force them to give an answer.
In the end, Boss Jia got a reply of two words, "Bidding".
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