Chapter 1303 Expensive Luxury Communication Products

In his previous life, in 1985, Li Chaoren's Hutchison Telecom and Motorola launched a cellular mobile phone business in Hong Kong.

At that time, they built a total of 28 radio transmission towers to ensure smooth mobile phone signals.

Obviously, because the first generation of mobile phone signal transmitting and receiving towers are not that mature and their functions are not that powerful, even in some downtown areas, when more people use mobile phones, there will be signals. missing occurs.

Those who hold their mobile phones and shout "Hey, hey, hey" loudly in open spaces are really not pretending to be competitive at first, but because the signal is really not good.

So Yin Jun absorbed these experiences.

After he bought the radio transmitting and receiving signal technology from Ericsson, he immediately handed it over to the domestic radio department to start improving and enhancing the signal.

China has its strengths in radio, which is why China's future wireless network will far exceed that of other countries.

If not for so many years of accumulation, how could it be possible that the 4G network era would be so far ahead of foreign countries and directly realize the dream of overtaking in corners?

Do you think you can do so well with just one or two days of development?

After about a year of technical experimentation and application, by the time the transmission tower was officially delivered to the Kirin Group in November, the strength of the received and transmitted signals had increased by more than five times.

Even so, Yin Jun prepared 60 radio transmission towers, which were densely deployed in Hong Kong Island, Kowloon, and the New Territories, even in remote places such as Lantau Island and Lamma Island.

Under such signal strength, the call effect of Kirin mobile phone is naturally much stronger than the first version of the previous life.

This is not because Yin Jun is wasting, but because he regards Xiangjiang as a base for experiments, and the various data from experiments here can be used elsewhere in the future.

Therefore, there is no need to worry about the loss of money in such an experiment.

With the continuous advertising, the construction and installation of radio transmission towers, and the establishment and improvement of Xiangjiang Telephone's various service departments, more and more people are interested in Kirin mobile phones.

The advertisement has stated that sales reservations will be officially accepted on January 1st.

Then, after the Spring Festival in February, shipments will begin one after another.

This is not intended to whet your appetite, but the entire installation and debugging process takes time.

Including the various organization training at Xiangjiang Telephone, it is also a very complicated matter.

If Yin Jun hadn't been eager to get ahead of Motorola and get the name of the first commercial mobile phone, actually launching it in February would have been the best choice.

Even though the mobile phones could not be received until after the Spring Festival, a group of wealthy people in Xiangjiang, or the group of people who yearned for a new life in the advertisement, still responded positively.

In ten days, the number of pre-ordered mobile phones exceeded 8,000.

By January 1, this number had exceeded 15,000.

Don't think this number is too small.

The price of Motorola's first commercial mobile phone, the 8000X, was US$3,995, and calls were one US dollar per minute.

According to the current exchange rate, that is 28,000 Hong Kong dollars for a mobile phone and 7 Hong Kong dollars for one minute of call.

Naturally, Yin Jun could not be so evil-hearted. After all, Xiangjiang was a testing ground, and the production cost of mobile phones was not that high at all.

If various patent fees are not included, the cost of a Kirin mobile phone is about 800 Hong Kong dollars.

The reason why Motorola set such a high price was simply because it wanted to recover costs as soon as possible - at this time, they never thought that mobile phones could earn them so much money.

Of course, in addition to manufacturing costs and patent fees, there are also high operating costs, such as labor, transmission towers, etc., which must be taken into account in the selling price and service fees.

The fees charged by China's three major operators in later generations are so high, but in fact, more than half of them are users paying for infrastructure.

Otherwise, it would be impossible for signals to exist in remote third- and fourth-tier cities, rural areas, and around mountains and rivers.

Why is the signal coverage in the United States so much weaker than that in China?

Why does the signal suddenly weaken when we leave cities and densely populated areas?

Isn't it because their operators will not set up a large number of signal base stations in unnecessary places?

They won't do anything without profit.

The three major operators in our country have this task and must do it.

From this point of view, it is inevitable that our country will surpass other countries and become the first in the world in the era of universal Internet.

After taking all considerations into account, including summoning Xiangjiang Telephone's senior management, and after more than ten discussions, Le Yiling finally made the decision and set a suitable price.

A Kirin mobile phone sells for HK$8,888, and the basic monthly payment is HK$500. In addition, the call time is tentatively set at HK$1 per minute.

The price of the mobile phone is definitely profitable.

However, based on the current base of 15,000 users, as long as a call lasts for more than ten minutes, Heung Kong Telephone Company will lose money. The longer the call lasts, the greater the loss will be.

This decision was made by Le Yiling.

She has concurrently served as the chairman of the Xiangjiang Telephone Company and the Xiangjiang Electric Lighting Company.

In fact, all senior executives know that only Kirin Communications will benefit from this plan.

Because they are responsible for producing mobile phones, and the price of 8888, even after excluding patent fees and other expenses, is already more than 500% profit.

The Heung Kong Telephone Company has to bear the construction and maintenance costs of 60 radio transmission towers, as well as all operating expenses.

On the other hand, what did the Hong Kong Telephone Company gain?

It’s just a fee of HKD 500 per customer, but you will still lose money if the call time is long.

Therefore, Xiangjiang Telephone Company suffered a huge loss.

But they have no choice, because this is an order given by the chairman. If anyone is not willing to do it, then get out.

Don’t doubt it, Sister Le didn’t get the title of Queen of Le for nothing.

Her gentleness is only used for Yin Jun and his family, but she is very tough towards others.

And Le Yiling is not a random showdown.

At first glance, Heung Kong Telephone Company is very loss-making, but whoever implements new technologies and models will not experience a huge loss?

To put it simply, Coca-Cola’s sales in the first year were only 25 bottles!

Speaking of the Heung Kong Telephone Company itself, when they first launched home phones, didn’t they also experience losses for many years, and it took more than ten years for them to start making profits?

If mobile phones develop well and the more people use them, the more money they will make.

Calculated based on the current price, as long as more than 200,000 people use it, Xiangjiang Telephone Company can achieve breakeven.

If there are more than 300,000 people, then they will definitely make money.

With over 500,000 people, this is a very profitable business.

If the number of people using mobile phones exceeds 1 million, the Heung Kong Telephone Company will surely become one of the most profitable companies in Hong Kong.

The number of mobile phone users in Xiangjiang will definitely exceed 1 million, this is Yin Jun's speculation.

"If any of you feel that my Arjun's foresight is insufficient, you can stand up and object." Queen Le said at the time.

In fact, as soon as everyone heard that Yin Jun predicted that the number of mobile phone users in Xiangjiang would exceed 1 million, they already agreed to take this risk.

Because Yin Jun has never failed.

Even this time about the crisis of the real estate crash, Yin Jun has long said that it is just that people don't believe it.

Until Yin Jun fails, the people at Xiangjiang Telephone will naturally believe in Yin Jun.

There is nothing you can do if you don’t believe it.

Although Hong Kong Telephone Company is a listed company, the major shareholders have all the power.

Even if they make a fuss and it reaches the enlarged shareholders' meeting, do you think those shareholders and investors believe in Yin Jun, or do they believe in them?

Who doesn't know that following Yin Jun will have meat to eat?

Kowloon Bus borrowed billions in loans in the past few years, causing such huge losses, but investors just trusted Yin Jun and held on to their stocks.

what's the result?

Not many stocks were spared from this huge stock market crash, but Kowloon Bus's stock surprisingly did not fall much, only down about 20%.

Among all the stocks with the lowest decline, Kowloon Bus can be ranked in the top ten!

The reason is not simple. Yin Jun is the largest shareholder of Kowloon Bus. Another important reason is that the bus lines decided by Yin Jun have now begun to end their losses and have slowly entered a break-even period. .

Once all the residents move in and the housing estates and commercial facilities on the surrounding roads are completed, these buses will definitely become very busy routes, and making money will be a matter of course.

With the encouragement of Kowloon Bus, the senior executives of Xiangjiang Telephone naturally felt that they could give it a try.

Anyway, they have already experimented with the benefits of mobile phones.

Although the call effect is not as clear as a landline, the convenience, speed, and ability to find someone at any time can offset everything.

People in Xiangjiang pay great attention to timeliness when doing business.

A lot of business is about time.

If it allows them to save time and be one step ahead of others, someone will definitely be willing to buy a mobile phone to use it.

Mobile phones are very expensive nowadays, as are the basic monthly charges and call charges.

But as more people use it, these costs will come down.

By that time, many white-collar workers will be able to use it.

The next step is to expand it to the entire working group... there should be 500,000 users.

Thinking of such a bright future, Xiangjiang Telephone's senior executives could only grit their teeth and persevere, hoping to see a better tomorrow.

They just hope that Yin Jun will not make a mistake in his prediction, otherwise the entire Xiangjiang Telephone may go bankrupt.

With the current market value of Xiangjiang Telephone and its profitability, a loss of hundreds of millions of Hong Kong dollars a year cannot be sustained for a few years!