Reborn in the red age

After Huaxin's first communication chip was officially developed, Motorola, which had captured most of the domestic mobile phone market share, immediately became restless.

A mobile phone was sold for 20,000 yuan. Motorola had a big business in the domestic market and made a lot of money.

The YD9100 developed by the Fourth Research Institute of the Ministry of Posts and Telecommunications some time ago made Motorola very disgusted.

The price of 12,000 yuan per unit forced Motorola to lower the price of its products.

Now Huaxin has developed domestic communication chips. If the two parties cooperate, won’t the price of YD9100 drop again?

After obtaining various data of "Huaxin No. 1" through various means, Dax Lynn, the head of Motorola's China branch, curled his lips in disdain and gave a rubbish evaluation.

In order to express his disdain for Huaxin, he threw the stack of information directly into the trash can in front of the staff from the Ministry of Machinery and Electronics Industry who came to deliver the information.

Huaxin was naturally not aware of what was happening at Motorola.

At this time, Huaxin was worrying about who to sell the communication chips to after they were produced.

"Although the Fourth Research Institute of the Ministry of Posts and Telecommunications feels that our chips are not as good as Motorola's, they are willing to purchase them because of the low price and no foreign exchange required. However, their quantity is too small, and we will definitely lose money if we produce in small quantities," Xu Yuanming reported the problem of the communication chip to Li Qingfeng with a frown and a headache.

Speaking of this matter, Qingfeng Li also had a headache.

There is no need to think about Motorola. They can produce advanced communication chips by themselves and will definitely not purchase backward communication chips from Huaxin.

There is only one domestically produced Fourth Research Institute, but the quantity they produce is too small, and there are also limitations on the communication protocol imposed by Motorola, so they cannot go into large-scale production and can sell less than 10,000 units a year.

What's more, digital mobile phones will be available in a few years. It is impossible to recover the cost by relying on the sales volume of the Fourth Research Institute.

Li Qingfeng rubbed his brows and said, "In the future, don't let Academician Wang lead the research and development. They don't understand the market and have no idea what products the market needs."

"Okay, I'll talk to Academician Wang about this when I get downstairs." Xu Yuanming nodded immediately and agreed. He then talked about the chip: "Teacher Li, how do we solve the communication chip problem? We spent three million US dollars on research and development. We can't just let it go to waste, right?"

"Talk to the Fourth Research Institute and Motorola. Our company is willing to invest to help the Fourth Research Institute obtain Motorola's authorization, but the production of their mobile phones must follow our leadership."

"what?"

"What? Go do it right away. Solve it as soon as possible. I want the Fourth Research Institute to produce it as soon as possible."

"Ok"

Since 1991, under the threat of the United States, Lemon Company has been forced to withdraw from the country along with international foreign capital.

However, after the 92 Southern Tour Speech, a large amount of foreign capital no longer paid attention to the United States' demands and swept in again on a large scale.

Lemon Company took advantage of the opportunity of large-scale foreign investment and naturally followed the trend back to China, buying back Huaxin's shares from the government.

Today, Lemon Company is still the largest shareholder of Huaxin, which reflects its wealth and power.

First, it said it would spend money to buy the license and let Motorola name a price.

However, Motorola refused, saying that it had plenty of money and would never license the mobile phone communication protocol.

With no other options, Xu Yuanming went to Li Qingfeng to report the situation. Li Qingfeng curled his lips, asked Xu Yuanming to lean over, and whispered a few words to him.

"Ah, is this okay?" After listening to Li Qingfeng's explanation, Xu Yuanming widened his eyes with an incredulous look.

Li Qingfeng waved his hand and said confidently: "It's okay, let's do it this way"

"OK then"

The next day, Xu Yuanming found Dax, the general manager of Motorola in China, and bluntly demanded that Dax not use the communication agreement as an excuse to block the production of Jiyang Intelligent Communication Equipment Company's products.

Dax looked at the aggressive Xu Yuanming and was a little confused for a moment. He didn't understand where this guy got the confidence to come to him and ask for the right to produce mobile phones for his competitors.

Dax slowly cut off the end of his cigar, looked at Xu Yuanming as if he was a fool, and said disdainfully: "Boss Xu, I suggest you go back to where you came from. Our company will never agree to such an unreasonable request of yours."

"Hmph, the communication protocol is in your hands, but the World Wide Web protocol is in our head office. If you block Jiyang Intelligent Communication Equipment Company now, don't blame us for blocking your Motorola in the future." Xu Yuanming was not at all intimidated and threatened without any hesitation.

"World Wide Web? Haha, Mr. Xu, I think you misunderstood. Our company does not produce computers."

"I'm not talking about computers, but mobile devices. Technology is always developing, isn't it? I believe you have been following the cutting-edge technology in the world. You should also be aware of IBM's internal research and development to move the Internet to mobile devices."

At this point, Xu Yuanming paused, looking as if he had convinced Dax: "Do you think it will be possible to access the World Wide Web on mobile devices in the next five or ten years? Will accessing the World Wide Web be a basic feature of mobile devices by then?"

After saying this, Xu Yuanming stared at Dax from the corner of his eye, anxiously waiting for Dax's answer.

In fact, Xu Yuanming didn't know whether the World Wide Web protocol could be embedded in Motorola, or whether the World Wide Web could be accessed on mobile phones in the future. It was all said by Li Qingfeng.

Since the big boss said so, the people below should just do as he says. Why consider so many things?

After all, even if mobile phones can access the Internet in the future, that will be many years later. Who can predict the future?

I am here today just to threaten others. It would be best if the threat is successful. If not, in order to ensure that Huaxin's R&D expenses do not go to waste, the worst that can happen is to support small businesses and bypass the patent to create counterfeit products.

Dax's expression was not very friendly, and he looked at Xu Yuanming coldly: "Mr. Xu, are you threatening me?"

"No, I'm just stating a basic fact. You're blocking us today, so why can't we block you in the future?" Xu Yuanming shrugged and said with a smile.

"As far as I know, Jiyang Intelligent Communication Equipment Company has nothing to do with your Huaxin, and it has nothing to do with Lemon Company at all."

"We need to sell the communication chips we produce. If you block the mobile phone manufacturers, it is equivalent to blocking us."

"This is ridiculous, it's simply bandit logic." Realizing that his threat had worked, Xu Yuanming secretly gave himself a thumbs up in his heart, quickly stood up, and said in a very aggressive tone: "If we don't agree, there's no need to say anything. Things may change over time, so let's just wait and see." After that, he turned around and left without any reluctance.

Xu Yuanming strode towards the door. He was almost there when he heard no one from behind trying to persuade him to stay. He felt a little panicked for a moment.

When Xu Yuanming walked out of the room and was about to disappear from Dax's sight, Dax's voice finally came from behind.

"Mr. Xu, I can't make the decision on this matter. I need the consent of our board of directors."

Hearing Dax's words of surrender, Xu Yuanming felt relieved. He turned around and said in a very tough tone: "I will give you three days. If there is no result after three days, our company will regard the analog communication chip as a failed project and switch to the development of digital communication chips."

"Three days? Impossible. We need at least a week to hold a meeting and discuss."

"Just three days, not even one day more"

After leaving these firm words, Xu Yuanming did not give Dax a chance to speak again and turned and left.

Standing downstairs of Motorola, Xu Yuanming felt very refreshed.

Motorola, an international giant, has made it big. One day, it can become a commercial threat to others.

Damn it, stand up.

Three days passed in a flash, and Dax took the initiative to find Xu Yuanming and said that the board of directors agreed to Kajiyang Intelligent Communication Equipment Company's request to produce mobile phones, but exports were not allowed and sales were only allowed domestically.

Xu Yuanming agreed to this matter immediately and assured that the mobile phone would not be exported but would only be sold within China.

After sending Dax away, Xu Yuanming went to find Li Qingfeng and said, "Oh, Mr. Li, you are amazing. After I threatened them, Motorola finally gave in and agreed not to cause trouble with the communication protocol anymore. They agreed to let the Fourth Research Institute produce mobile phones."

Li Qingfeng was not surprised at all that Motorola bowed his head. After saying "oh", he continued playing the game on the computer.

Looking at Li Qingfeng who was passionately typing on the keyboard, Xu Yuanming hesitated for a moment. He couldn't help but be curious and asked, "Teacher Li, can I ask what the reason is?"

"That's normal. The big brother mobile phone is already in its last glory. Currently, all companies are researching digital mobile phones and have made major breakthroughs. In the next three years, more advanced digital mobile phones may appear at any time. They will not offend us for a product that will not last for a few years."

Li Qingfeng didn't even raise his head, his eyes fixed on the game character on the screen, and answered Xu Yuanming's doubts nonchalantly.

It’s no wonder that the company’s latest game is quite fun. Li Qingfeng said that he must give the game design department a thumbs up.

Xu Yuanming was shocked: "So what you mean is that our communication chips will become obsolete in a few years? It has only been in China for a few years and is currently very popular."

"Of course, the speed of technological updates is so fast these days. A new technology will become outdated in a few years. If we don't increase investment in research and development, we will easily be overtaken by others. Otherwise, why would I invest so much in research and development? Do you think I have too much money and nowhere to spend it?" Li Qingfeng put down the mouse, raised his head, and said with a smile.

Xu Yuanming nodded, and suddenly a sense of urgency arose in his heart, and he felt that the burden on him had become heavier.

After a game, Li Qingfeng stretched himself, pulled Xu Yuanming to sit down, and planned to talk about the production of the mobile phone.

"I think this way. The lifespan of mobile phones is only a few years away. At best, they can survive for another five years. Even if we drive Motorola out of the market, based on the current shipment volume, we at Huaxin will not have much profit."

"What do you mean?"

Li Qingfeng pursed his lips and said as a matter of course: "Of course it is to increase the shipment volume."

"Ah? There are only so many people who can afford mobile phones, how can we increase the number?" Xu Yuanming asked in confusion.

"Didn't we take the lead in producing mobile phones? I have studied the cost of mobile phones. The total material cost is 6,700 yuan. Among them, the batteries, antennas, chargers, circuit boards, display screens, shell structural parts, and 50% of the electronic components can be domestically produced. Domestic components only account for 30% of the cost."

"What needs to be imported are high-end components such as chips, RF modules, filters, power amplifiers, and cooling systems, among which chips account for the majority, accounting for three-tenths of the cost."

As he spoke, Qingfeng Li looked at Xu Yuanming and asked, "Is what I said okay?"

"That's true. Our domestically produced parts account for 80 percent of the entire machine's parts, but their cost only accounts for 3-tenths of the entire machine." Xu Yuanming nodded, indicating that what Li Qingfeng said was correct.

"My idea is, except for the RF module, all imported equipment should be replaced with domestically produced ones. If domestic production is not possible, then we will purchase Hong Kong-made ones. This way, the production cost can be reduced on a large scale."

After hearing Li Qingfeng's idea, Xu Yuanming was shocked and quickly stopped him: "No, Mr. Li, the parts made in China and Hong Kong are of poor quality and have a short lifespan. They will not work after one or two years."

"I know, but domestic products are cheaper, so isn't it normal that the quality is poor?" Li Qingfeng spread his hands and said as if it was a matter of course.

“Isn’t that cheating consumers?”

Li Qingfeng waved his hand and showed a mysterious smile: "No, no, no, the cost is 4,200 and selling it for 12,000 is cheating consumers. The cost is 4,200 and selling it for 5,800 is the pride of the nation and the king of cost performance."

"A mobile phone for 5,800? Teacher Li, are you kidding?" Xu Yuanming was stunned and looked at Li Qingfeng in disbelief.

This price was simply unbelievable for Xu Yuanming.

You should know that the cheapest BP machine now costs twelve thousand yuan, and the Hanxian ones are even more expensive, costing two to three thousand yuan each.

Li Qingfeng said solemnly, "I'm not kidding. Tell Jiyang Intelligent Communications that if they want to produce mobile phones, they must follow my requirements. If they don't, we will find someone else."

"Yes, I'll notify you right away." Seeing Li Qingfeng's serious expression, Xu Yuanming didn't dare to say anything else and quickly nodded in agreement.

"By the way, after notifying the manufacturer, please help me make an appointment with the leader above. I want to talk to him about reducing the network access fee and number selection fee."

"Ok"

Watching Xu Yuanming disappear at the office door, Li Qingfeng fiddled with the Motorola mobile phone in his hand with a sneer on his face.

You have made enough money in China after so many years. Let me see how I will drive you out of the domestic market this time. (End of this chapter)