Chapter 1378 Moving Forward with Huge Losses

The mobile phone and its services jointly launched by Kirin Communications Company and Xiangjiang Telephone began formal operations in mid-March.

The first batch of users who got the mobile phone finally had a place to use it.

So in the streets and alleys of Xiangjiang, you can see people holding brick-like mobile phones and talking loudly everywhere.

The first batch of users who purchased mobile phones to join the communication network eventually exceeded 20,000 people.

Only one-third of them are rich people, bosses and executives of multinational companies.

Of the remaining two-thirds, gangsters and members of the community account for more than half.

Then there are others from other industries, as well as government procurement, and Yoder, as the governor, naturally also has them.

Xiangjiang Telephone has installed 60 call signal base stations throughout Xiangjiang, more than double the number in the previous generation.

Such extravagance and waste will result in better call quality. Although noise still exists in noisy places and the signal is not good in more complex buildings, in general, its effect is still great.

One of the biggest functions of mobile phones is that you can basically find people anytime and anywhere.

This function alone is enough to make those who regard time as life feel worth the money.

They no longer have to run around looking for a pay phone after being paged.

The Governor especially appreciates this function, because there are too many people looking for him, and sometimes it is inconvenient to contact him, which naturally causes a lot of trouble.

In order to make up for the shortcomings of short talk time and long charging time of mobile phones, the Hong Kong government purchased three phones for the Governor-General at one time and used them in turn.

If these bosses, elites, and public servants use mobile phones for work needs, then people in the community use them purely for pretense.

Holding a mobile phone in your hand, swaggering through the streets and alleys, enjoying the envious eyes of others, this is the most awesome time!

If you get a call at this time, press the call button yourself, talk loudly to others, and laugh happily, it will be a huge satisfaction, as if the greatest meaning of life lies in this.

Many of the people in the club are poor at times and rich at times. Even if they have money, they can't stay overnight.

No one knows when they will be hacked to death on the street, so enjoying life in time is the creed of many of them.

In addition, there is serious competition in the community. If you have it, I will have it too. No matter how the money comes from, I just want to buy it anyway...

Driven by this mentality, it is not surprising that among the more than 20,000 mobile phones in Xiangjiang, more than 8,000 mobile phones were purchased by people in the society.

Even with more than 20,000 mobile phones, Xiangjiang Telephone is currently suffering from serious losses.

It suffered losses as soon as it opened, leaving Xiangjiang Telephone's executives dumbfounded.

When they first started to collect data, they were a little frightened, because those in the club would definitely be very showy with their mobile phones, and they would not control the time they spent on the phone at all.

This is indeed the case. When the call data came out, it was obvious that the people in the community had the longest call time.

The average daily call time exceeds 30 minutes!

I really don’t know where they can say so much.

30 minutes is 30 yuan. If you do this for a month, it will be almost 1,000 yuan!

Don't these guys know anything about saving?

According to this posture, I don’t know how long we should wait before the company can enter the capital preservation stage.

But they still have one thing to be happy about.

That is, the feedback of the mobile phone is very good. Although it has various shortcomings, most of the people who use it are very satisfied.

There is still a failure rate, but Kirin Communications Company's repair points are very efficient. Ordinary faults and problems can be repaired in two to three hours, or up to one day.

In this generally slow-paced 1980s, such efficient repairs are already outstanding.

Once you win a good reputation, the next step will definitely be for word of mouth to spread and more people to buy and use it.

Although it is not realistic now, as long as the economy improves, the surge in users is definitely not a dream.

But Xiangjiang Telephone is a listed company after all. If their losses are too large, it will still appear to be very troublesome.

So a few days ago, this group of people found Le Yiling, crying that their losses were unexpectedly large, and on the other hand, they wanted to ask Le Yiling to ask Kirin Communications to lower the price of mobile phones. , allowing them to earn a little more on the price of the mobile phone.

The price of a Kirin mobile phone is 8888 yuan.

Kirin Communications Company's purchase price for Xiangjiang Telephone was 8,000 yuan, which meant that Xiangjiang Telephone only made 888 yuan during the purchase process, and the rest was made by Kirin Communications Company.

This was the result of Xiangjiang Telephone's hard work and Yin Jun's mediation.

Otherwise, according to Le Yiling's plan, they will directly purchase it at the price of 8888, and they will not make a penny on the mobile phone itself.

This is something Xiangjiang Telephone has no solution for.

Le Yiling was their president and the largest shareholder representative. What she said was Xiangjiang Telephone's decision, and the original senior executives had no way to object.

However, Xiangjiang Telephone has always been a public utility company, which assumes certain social welfare responsibilities and is subject to supervision by the Xiangjiang government.

Seeing such a huge loss, which was not easy to explain, Le Yiling also took a step back.

She lowered the shipping price of Kirin Communications' mobile phones to 7,000 yuan, giving Xiangjiang Telephone an extra 1,000 yuan in profit.

In this way, Xiangjiang Phone can earn 1888 profit for every mobile phone sold. The more it sells, the more it earns, which comforts their fragile hearts.

Xiangjiang Telephone's top management didn't dare to push the envelope any further.

In this world, only Kirin Communications Company has produced commercial mobile phones and successfully operated them.

Although Motorola also has mobile phones, the performance and effect of their mobile phones are said to be inferior to Kirin mobile phones. Moreover, they do not have large-scale operations, and Xiangjiang Telephone cannot purchase them from them.

If Kirin Communications is offended and they simply stop supplying, Xiangjiang Telephone, which has invested hundreds of millions, will cry bitterly.

Many people may not believe it, but Kirin Communications, like Xiangjiang Telephone, is still suffering serious losses.

yes!

They sold 20,000 mobile phones, and the payment collected was more than 160 million Hong Kong dollars. After excluding the patent fees and other expenses that need to be paid for each mobile phone, the net profit exceeded 100 million Hong Kong dollars.

This is still three months of sales results. If mobile phones develop rapidly in the future, they will earn even more.

But Kirin Communications Company's expenses are far greater than their income.

First of all, their R&D team has grown several times compared to when it was first established.

Today, there are more than 100 experts recruited from Europe and the United States, and more than 500 local engineers from Japan, South Korea and Hong Kong.

These people all have the highest level of happiness in Hong Kong. Tim, who invented the World Wide Web, gets an annual salary of 2 million US dollars!

Tim is a European, so his values ​​are different from those of the Chinese.

He can give up the patent of the World Wide Web for the development of all mankind, but this does not mean that he will stop eating, consuming, falling in love, getting married and having children.

These all cost money!

And he is responsible for various network research and development in Hong Kong, which is also consuming his talent and energy, so it is natural for him to receive a high salary.

Among this group of engineers, the one who earns the least is HK$100,000 a month.

So think about it, how much does Kylin Communications spend a month to support so many senior talents?

There is also the cooperation with Nokia. Every time a mobile phone comes off the production line, we will also share dividends with them.

Of course, these are just minor expenses.

Compared with Kirin Communications' crazy purchase of patents, the above expenses are nothing.

So far, Yin Jun has spent a total of more than 500 million US dollars on mobile phone baseband structure patents, communication transmission patents, network signal research and development patents, Internet transmission patents... and so on.

And Yin Jun is still buying. As long as it is a suitable new patent, Yin Jun will buy it.

It is conceivable that US$500 million is definitely not the end point. I am afraid that US$1 billion is possible.

If you want to earn this money back, it is unlikely to be possible within ten to eight years if you look at it from an optimistic perspective.

Kirin Communications Company even believes that it is unrealistic to rely on Xiangjiang alone to recover its capital or even make money.

They don't know how developed the mobile phone market in Xiangjiang will be in the future. They intuitively feel that there may be 200,000 to 300,000 mobile phone users in Xiangjiang, which is a huge number.

Therefore, if you want to make money back, you should aim at the surrounding Asian markets.

For example, places like South Korea, Japan, Taiwan, and Singapore.

As long as their mobile phone market is developed, Kirin Communications will make more money and have more funds to participate in research.

This way, we won’t be secretly laughed at and looked down upon by our brother companies.

Who can value a company that just burns money but has no way of making money?

It's just that Yin Jun attaches great importance to Kirin Communications Company and clearly stated that the mobile phone industry will be one of the best industries in the next 40 years and that current investment is very necessary. That's why no one said it to their face.

But the information revealed in other people's eyes still made them a little awkward.

Fortunately, the mobile phone industry is a real high-tech industry and is unique in the whole of Hong Kong. This sense of glory cannot be achieved by other brother companies.

You talk about Qilin Culture’s comics and toys making money, but they don’t have any technical content, right?

Xiangjiang has finally developed such a significant high-tech industry. Shouldn’t we be proud?

What's more, the future is very long. When we develop and our products are sold all over the world, we will surely have great success one day!

At present, we are just in the darkness before Li Shuan!

If you don't have the courage to move forward with huge losses, how can you survive until the day of success?