Chapter Four Hundred and Ninety-Four: We Nokia Refuse to Accept
"President Ren, we..."
Yu Chengdong had never been so depressed before.
He has always been a proud man.
He is also a very capable man.
In the previous series of jobs, he had hardly encountered any failures.
Even if there is, it's just a small setback at best.
But now, when he dominates Huawei's consumer business and launches the first phone, he's a complete failure.
Not only failed, but failed miserably.
The other series of mobile phones are at best the product cannot be sold.
But Yu Chengdong's side is even worse.
Their mobile phones have not even come out of the factory.
Not wanting to ship.
No one really wants it.
An old saying can be used to describe Yu Chengdong's current mood: "This is really a death before a successful career."
When a group of dealers asks your price, they just turn around and leave.
"What, 500 yuan, why don't you grab it?"
"500 yuan is very low."
"What low is low, look at Tianyu mobile phone, 299 yuan, this is still the guide price, our purchase price is 230 yuan."
Don't compare, don't know, once you compare, you will know that there is no minimum, only lower.
No matter what technology Huawei uses, what technology it uses, or what better signal it uses, it’s all useless.
"That's interesting."
Ren Zhengfei smiled.
He was not too disappointed by the failure of Huawei's mobile phone.
Of course, that's not to say he's not interested in cell phones.
On the contrary, Tianyu mobile phone behaves like this,
It made him discover the charm of the mobile phone industry.
If they can also clear a series of mobile phone brands like Tianyu Mobile, the profits are too great.
In particular, they have an advantage over others in the terminal field.
Terminal + front-end, the combination of the two, the power that will explode at that time is absolutely unimaginable.
"Chengdong, what are you doing with a sour face, afraid that I will remove your position as CEO of the consumer business?"
"Mr. Ren, I didn't expect Tianyu's mobile phone to be sold at such a low price."
"You didn't expect, there are many things you didn't expect. However, the situation is not as bad as you imagined."
"Mr. Ren, what do you mean?"
"Chen Yu."
Ren Zhengfei read out Chen Yu's name.
Yu Chengdong understood what Ren Zhengfei meant and said, "Mr. Ren, I'm afraid Huanyu Technology will not cooperate."
"This is not necessarily, as long as it is in the interests of both parties, there is nothing that cannot be cooperated."
Everything in the business is profit.
Although Chen Yu just dug the two of them with his forefoot, it is not impossible to come back to cooperate.
...
"Everyone, Tianyu's mobile phone is priced at 299 yuan, what do you think?"
Xu Ban, president of Nokia China, held a meeting to discuss the next strategy.
"Mr. Xu, I think Tianyu mobile phone is not the same as ours, we don't need to worry too much."
"Tell me?"
"Tianyu mobile phone itself is mainly in the ultra-low-end market, so their Tianyu mobile phone does not pay attention to the brand, they only need to sell the mobile phone. But we are different from Nokia, our Nokia is more high-end than a series of mobile phone brands in the eyes of other users. , the market can also accept higher prices.”
"But what if Tianyu mobile phones enter the mid-range or even the high-end market in the future?"
"It should be impossible. First, Tianyu mobile phone does not have this technology, and second, Tianyu mobile phone brand is not well known. This does not mean that no one knows Tianyu mobile phone, mainly because the positioning of Tianyu mobile phone for users is low-end, even very cheap mobile phones. , even if they want to enter the high-end, users will not accept it.”
"Well, who else is talking about Tianyu Mobile's opinion?"
Xu Ban nodded, but he was not particularly satisfied.
"Manager Jiang, what do you think?"
At this time, Xu Ban looked at "Jiang Zi", Chief Operating Officer of Nokia.
"Manager Jiang, you have led the cooperation with Huanyu Technology before and achieved good results. Tell me your opinion on Tianyu Mobile."
"I think we should follow up."
Jiang Zi thought about it and expressed his opinion.
"Mr. Xu, Tianyu Mobile is a business of Universal Technology. On the surface, he only sells mobile phones, but in fact, Universal Technology has multiple businesses. There are mobile phones, portals, e-commerce trading websites, and online games. Businesses, including music websites. Maybe Tianyu mobile phone is only in the ultra-low-end market, but as long as they are given opportunities, Universal Technology can push Tianyu mobile phones to the high-end through its various businesses.”
"Makes sense."
Xu Ban motioned for Jiang Zi to continue.
"Just like we cooperated with Huanyu Technology at that time, including now we also cooperate with Huanyu Technology in Huanyu Mall. Through their website, our sales volume has been good. The 299 price of Tianyu mobile phone does not seem to affect our Nokia, after all The positioning is different. But if all we see on the street for a period of time are Tianyu mobile phones, it would be unrealistic to say that it has no impact on Nokia.”
Brand not only represents popularity, but also represents penetration.
Some brand awareness is very powerful, but the penetration is not enough.
Some brands are not well known, but their penetration is very strong.
This kind of penetration often affects users' judgments, which in turn affects their choices.
It's easy to understand.
You are using Tianyu mobile phone, I am using Tianyu mobile phone, if the next Huanyu Technology makes a slightly better mobile phone, will you continue to use Tianyu mobile phone?
The answer is that not everyone will use it, but it is very likely.
And this is very likely, it will affect the sales of Nokia's series of mobile phone models.
"At present, Nokia has launched more than a dozen types of mobile phones, including high, medium and low-end mobile phones. We can not consider sinking the market now, but we must consider the future of our Nokia."
"it is good."
Xu is extremely satisfied.
He agrees with what Jiang Zi said.
According to the current sales of Tianyu mobile phones, they are afraid that this year they will exceed the sales of 30 million units.
Such terrifying figures, although the profitability level is not comparable to them, but in terms of sales, even their Nokia has exploded.
At the end of the year, when Tianyu mobile phone roars that it is the first in sales throughout the year, it is not a blow.
The number one sales in the whole year, what is this?
This is also a real strength.
With such strength, why can't they enter the mid-to-high end?
Besides, the Tianyu series can't enter the mid-to-high-end range, can't it be possible to change the model?
It's not too difficult.
"You mean, we also grab the ultra-low-end market?"
"Yes."
Jiang Zi said: "Tianyu Mobile's strategy is not complicated. They use the method of changing sales at low prices. Once the sales increase, their costs will drop significantly."
"How to price it?"
"We Nokia don't have to sell the price of 299, we have the brand premium power, we can launch 399, or even 499, but there is a problem."
"what is the problem?"
"We must make a production plan for tens of millions of mobile phones before making this strategy. Because in this way, we can reduce the overall production cost in procurement, production, and design.
Having said that, Jiang Zi hesitated for a moment and said, "But there are certain risks involved."
Once the mobile phone produced cannot be sold, this wave of losses will be huge.
This is also the reason why a series of domestic mobile phone manufacturers dare not take effective measures.
In the first step, you didn't keep up with the rhythm of Tianyu's mobile phone, and in the second step, you were led by the nose.
But if you don't follow suit, you won't be able to reduce production costs.
If your production cost is not reduced, why can you beat Huanyu Technology?
Regarding this, Xu Ban naturally knew this.
but.
Nokia is no ordinary mobile phone maker.
What others can't do, they may not be able to do Nokia.
Other mobile phone manufacturers do not have this strength, they Nokia have this strength.
Can Tianyu Mobile really monopolize the ultra-low-end mobile phone market?
We Nokia disagree.
"Manager Jiang, I will make the plan well in the past few days, and I will apply to the headquarters."
Xu said.