Super Tycoon
Chapter 638: Support from the Opponent
In early October, the Nokia 1100 was launched in China. In overseas markets, the sales volume of this low-end mobile phone has exceeded 150 million units, and is moving towards the sales volume of 200 million units.
Everyone found that this mobile phone can already meet their basic needs. The functions of calling and texting are quite good. If they want to listen to music, they have p3 and p4, and they don't seem to need other functions.
As for black and white screens, plastic casings, etc., they don't care too much, as long as they can be used. Even in developed countries such as Europe and the United States, there are many poor people who want to use mobile phones, but they can't afford a good one. This is exactly what they want.
And this phone is light on the top and bottom, the overall weight is also very light, and it feels good when you hold it. Although it is a plastic shell, it seems to be fine if it falls on the ground. The quality of Nokia is always excellent.
It's just that this phone has encountered a strong competitor in the Chinese market.
In other markets, the Nokia 1100 competes with second-hand phones because other newer phones cost more than them.
But in the Huaxia market, there is also a new mobile phone with a black and white screen, and the price is only rb900.
Nokia has lowered the retail price, communicated with all retailers, and gave them a low price, reducing the retail price to about 1,000 yuan, but it is still 100 yuan more expensive.
One hundred yuan is not a small amount for many people, not to mention that Zhiduoxing is not a very small brand, it has a high reputation in China, and it is even well-known in the world.
Of course, everyone is more familiar with this brand because of its game products, but it is not easy for Nokia to suppress each other by relying on its brand.
After communicating with some retailers, Nokia made some posters and posted them at the door of the retail stores. This poster lists a statistic, Nokia is the leader in the production and sales of mobile phones in the world, and it is the number one in sales in the most markets in the world.
At the same time, Nokia also advertised on TV, also promoting their leading position, in order to suppress other brands. However, other brands cannot refute it, because this is the truth.
But when Nokia launched the slogan of 1100, the first mobile phone in life, everyone understood that Nokia was going to attack Zhiduoxing.
In terms of price, the difference of one hundred yuan is not too big. Many people buy mobile phones with a psychological price range of 500 yuan. Zhiduoxing l1 and 1100 are both below 1,000 yuan and more than 500 yuan.
Especially Nokia publicizes that their mobile phones are of very good quality and are resistant to use. Even the salespeople in some mobile phone stores use Nokia. They will push their mobile phones off the counter, drop them to the ground, and then pick them up to show customers. Nothing happens.
No one can guarantee that their mobile phone will not be dropped. If it breaks after a drop, it will definitely make consumers feel distressed. This is very expensive.
Thanks to these, the sales volume of Nokia 1100 has grown rapidly. Many people think that Nokia is a big brand in the mobile phone industry, with good quality and trustworthy.
It's a hundred yuan more expensive, it's nothing, it's more durable.
At this time, Duan Yongping brought back a bad news. Nokia began to stock up black and white screens and cheap electronic components around the world.
Obviously, Nokia wants to continue to reduce the production cost of 1100, so as to gain an advantage in price again, defeating Zhiduoxing's l1 in one fell swoop.
In the previous life, Nokia really did it, and the price of mobile phones was reduced to 300 yuan, which is unimaginable. No one thought that mobile phones could be made so cheap.
And with the improvement of technology, the price of many materials will drop in the future. Just say that now, with large purchase volume and large production volume, the cost will decrease.
Nokia, this is going to fight a price war!
Old Duan, aren't we also hoarding goods? Why, are you worried that our supply is insufficient?
President, it's not a question of whether the supply is sufficient, but the cost. Their cost is reduced, and the retail price is the same as ours, so we don't have any advantage.
This mobile phone is already cheap, so it is not suitable for advertising alone, otherwise it will inevitably lose money. If it can't be sold, or if it doesn't make money, should we still do it?
Where does Nokia stock up? In the Southeast Asian market, we have already stocked up with Hutchison Huang. Are they stocking up in Europe and the United States?
In Europe and the United States, there are manufacturers of black and white screens as well. The technology there is good, but it does not mean that the whole is good. There are still some companies that will produce low-end products, as long as there is demand in the market.
It's mainly Europe, which is expanding to North America and Asia. We can hold on to Asia, but North America is really not confident. Many screen supplier markets have contracts with Nokia, and they must complete their orders before they can accept our orders.
Adding priority supply clauses to the contract is a common method used by many large companies when signing contracts. Zhiduoxing also has similar clauses in its contracts with some suppliers.
It's just that Zhiduoxing has never purchased black and white screens in Europe and the United States, so it is not familiar with companies there, and has never cooperated with them before. Now it is competing with Nokia and is at a disadvantage.
When the two were worried, Zhang Yang received a call from Thomas, the new CEO of Motorola.
When Thomas came to discuss cooperation with Zhang Yang before, he was only the vice president, and now he has become the CEO, replacing Marvin. Motorola's semiconductor business is also being divested.
The 8-inch fab in Jinmen has initially negotiated with Huaxin International and signed a framework agreement. The rest is some details, and the handover will be completed by the end of the year at the latest.
What does Thomas mean by calling at this time?
Hello, Mr. Thomas.
Mr. Zhang, hello. I contacted you this time because I heard that you are being suppressed by Nokia in the low-end mobile phone market? I think we, Motorola, can do you a favor.
Zhang Yang was a little surprised. Although Motorola and Zhiduoxing have a strategic cooperation, they are actually competitors. Competitors, offer to help?
Oh? Then how can I help? What do you want?
We can help Zhiduoxing Group place orders with several black-and-white screen manufacturers in North America to ensure fair prices. At the same time, we Motorola also has some black-and-white screens in stock, and we will sell them to you as well.
But I hope that the price of the leftovers you buy from us will be based on last year's price. I guarantee that the price of the black and white screens you buy from other manufacturers will never be higher than what you buy in the Chinese market.
Prices refer to last year? In other words, Motorola wants to get rid of the backlog of inventory without losing money. At the same time, it allowed Zhiduoxing to compete with Nokia in the low-end market, which involved Nokia's energy and created opportunities for Motorola to regain its leading position.
This matter is really not bad for Motorola. From a strategic point of view, it is not bad for Zhiduoxing.
Yes, I will send someone to talk to you, we have a happy cooperation!
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