Chapter 155: When a whale falls, everything comes to life
In the 1980s, the American Ministry of Justice launched a vigorous antitrust action and split up the global telecommunications giant Bell, resulting in the emergence of eight large companies. Bell companies of different sizes, such as Bell Canada, were also part of the American Bell Company in the early years.
When a whale falls, everything comes alive. The fall of the Bell Empire has led to the emergence of a number of telecommunications companies in dozens of states and regions in America.
Telecommunications companies that were spun off from Bell, such as Atlantic Bell, all want to return to the peak of the Bell empire, and privately competition is fierce.
Atlantic Bell’s launch of free digital cordless phones with prepaid phone charges is so powerful that it has opened the eyes of the American telecommunications industry. For the first time, it feels like it has been a long time since the telecommunications industry. Why are you playing like this?
According to the requirements of this activity, users only need to recharge a phone bill of US$150 at Bell Atlantic to receive a Simon brand phone for free; if they recharge a phone bill of US$400, they can receive a Coolpad phone.
As for receiving a Shenzhou phone, the cost is slightly higher and requires a top-up of US$900!
If you are a new phone user who opens an account with Atlantic Bell, you can enjoy more discounts.
The telephone industry is different from other industries in that users need to pay monthly regardless of whether they make calls or not. Now if you recharge your phone bill for half a year or a year in advance, you can receive the most fashionable phone for free. Digital cordless phone, do you want to do it?
Americans who have also never experienced this kind of routine gave the answer with practical actions. As soon as the promotion was launched, there was a rare long queue in front of Bell Atlantic's telecommunications store. When a new supermarket in mainland China opens to deliver eggs, the long queues are the same!
After the launch of the event, Atlantic Bell attracted more than 100,000 new registered users in three days. You must know that these are new users. Under America’s fully mature telecommunications system, every time Atlantic Bell adds a new user, it means that other new users will The telecommunications company loses an old customer!
Amidst the ups and downs, the major telecommunications companies are completely jealous of Bell Atlantic. What is the difference between this activity and poaching their lifeblood? Is it something that serious people can do?
In addition to being robbed of new users, what makes Sprint, WorldCom, Pacific Bell, Chicago Bell and other telecommunications companies jealous is that within three days, Atlantic Bell grabbed 1.1 users Billions of dollars in pre-deposits for phone calls!
If these American telecom giants could still hold on, they couldn't hold on after seeing how much money Bell Atlantic had attracted in just a few days.
You must know that when these pre-deposits of phone bills enter Atlantic Bell's account, they are basically regarded as Atlantic Bell's revenue, although the phone bills six months or even a year later are collected in advance.
But in the next quarter, Atlantic Bell's revenue will explode. With this huge income, Atlantic Bell will be able to get large profits whether it invests in other projects, acquires companies, or deposits in the bank.
As for how Wall Street views this activity launched by Atlantic Bell and Shenzhou Telephone, Atlantic Bell's stock price explains everything.
In just a few days, Atlantic Bell's stock price took off, rising by more than 15%. All major Wall Street investment institutions raised Atlantic's revenue estimates for the next quarter, and all stock prices also increased. Bullish!
With just one event, users, revenue, and stock prices all skyrocketed. Atlantic Bell’s recharge and free phone bill campaign has had an impact beyond the imagination of the American telecommunications industry, said Atlantic Bell President Ray Mond, in the past few days, has been blown to the sky by the company's board of directors and the media.
“This project was proposed by Shenzhou Telephone. Atlantic Bell Company is very happy to cooperate with Shenzhou Telephone on such a project. Atlantic Bell and Shenzhou will be the best partners!”< br>
Although he was praised by the media, Raymond also knew how to measure when he was interviewed by the media. Now Shenzhou Phone is very important to Atlantic Bell. If he can exclusively cooperate with Atlantic Bell for one more day, Atlantic Bell can get more. A large number of newly registered users and huge pre-deposits of phone bills.
The drastic price cuts of Coolpad and Simon have made these two brands popular in retail stores such as Best Buy, Target, and Costco. It is said that no matter how much advertising is done, the price will be the same. is the most critical!
Although Shenzhou did not cut prices, the sales of Coolpad and Simon still boosted Shenzhou's sales. Moreover, the price cuts of these two brands further highlighted Shenzhou's position in the field of high-end digital cordless phones.
Many people just stick to this idea. For one product, many brands have reduced their prices, but the one that does not reduce their prices will be considered to be of better quality than Bige.
In addition, America is a country where the middle class is the main consumer. When these users buy things, they prefer to buy "high-end goods" to show their taste in life. Shenzhou's brand positioning, on the contrary, It suits their thoughts.
The price reduction, coupled with the joint event with Bell Atlantic, has caused the sales of the three major brands of Shenzhou, Coolpad and Simon to continue to skyrocket. After exceeding 640,000 units in a single day, the Shenzhou series of phones has attracted many customers in America and overseas. Attention from media in electronics, finance and other industries.
Under the spotlight, Shenzhou once again sold 790,000 machines in the American market on a single day, completely detonating public opinion!
“Shenzhou and its brands Coolpad and Simon have set a single-day sales record of more than 910,000 units in North American markets such as America, Mexico, and Canada!”
The Wall Street Journal also focused on it again Targeting Shenzhou, just a few months ago, the Wall Street Journal published an article claiming that Siemens had gained the advantage of America's digital cordless phones. However, the Wall Street Journal probably did not expect that the slap in the face would come so quickly, and that Shenzhou would actually It's a comeback.
“Faced with the price war started by Shenzhou phones, Siemens is somewhat unable to fight back. Middle-class and above families prefer Shenzhou with higher prices. In the mid-range and mass market, Coolpad and Simon have established absolute price competition. The advantage, especially the current selling price of Simon phones, is close to the production cost of Siemens phones
The only thing that is uncertain now is whether the price war started by Shenzhou is due to losses in marketing, or whether it has really established an advantage in cost and developed breakthroughs in key components such as phone chips! ”
The Wall Street Journal pointedly pointed out that the price war started by Shenzhou Phone is to make money at a loss. It sells one machine and loses one, or it develops its own chip components to reduce production costs.
There is a huge difference between the two. If it is the former, then the price war like Shenzhou Phone will not last long. If you kill one thousand enemies, you will lose eight hundred. The more you sell, the more you will lose. The more you use it, the more likely it is that you will no longer be able to play anymore.
And if it is the latter, let alone the digital cordless phone market, the global landline phone industry will probably completely change!
If Dongxin Semiconductor, the parent company of Shenzhou Telephone, developed a phone chip, then with domestic labor, resources and mass production advantages, any phone chip manufacturer in the world, whether Toshiba or Hitachi , Siemens' Infineon, etc. cannot compete with Dongxin Semiconductor at all. The global landline phone chip market will be snatched away by Dongxin Semiconductor!
As soon as this Wall Street Journal report came out, not only Siemens, but also Panasonic, Philips, General Electric, Telephone and Telegraph Company, Toshiba, Infineon, Hitachi, and Texas Instruments wanted to enter the digital cordless phone market. Many chip manufacturers also turned their attention.
"Impossible, absolutely impossible, how could they develop a phone chip!"
In the Siemens office building, Thomas, with red eyes, cheered up all the Siemens Telephone America executives. , in fact, it is also to cheer myself up.
In less than a week, the so-called advantage Siemens had established in America collapsed. Daily sales dropped from a peak of more than 400,000 units to less than 80,000 units today.
On the other hand, sales at Shenzhou Phone are growing like crazy. Thomas can only bet now that Shenzhou Phone is losing money and making money, rather than developing a phone chip. Otherwise, Siemens will never be able to make a comeback in this battle, Simon The selling price is the same as the cost of Siemens, so how can we beat this? !
“This price reduction strategy, Shenzhou’s side, will definitely not last long, we still have a chance!”
Looking at the hysterical Thomas, Compton, who was in charge of the consultant, had a look on his face With a sad face, as a person from a consulting company, this kind of pinning victory on the opponent is actually a defeat.
As a consulting company hired by Siemens, if Siemens fails, AXA Consulting will be disgraced. As the person in charge of AXA Consulting, Compton will not have to take the blame, but there will be a long way to go. For a period of time, it is estimated that no company will be willing to cooperate with him.
Just when Thomas made a categorical statement that it was impossible for Shenzhou Phone to develop its own chips, and that such price reductions could not last long, Shenzhou Phone successively announced that it would cooperate with Bell Canada, Telecom Mexico, and Pacific Bell of California. , Southwestern Bell of Texas reached a cooperation, and then these telecom giants announced the launch of a campaign to give away digital cordless phones by recharging phone bills.
Cooperating with more telecom giants, the sales of Shenzhou, Coolpad, and Simon began to soar further. The single-day sales in North America directly exceeded one million units. The scenario that Thomas hoped for the Shenzhou phone to lose money and be unable to continue to operate not only did not happen, but instead The selling continues.
At this moment, a news report from Nippon Tokyo Finance attracted the attention of countless people, and was subsequently spread wildly by media in Hong Kong and mainland China.
“According to a source from Toshiba Semiconductor, the world’s largest digital cordless phone manufacturer, Donglin Hi-Tech, the parent company of Shenzhou, Coolpad, and Simon, rejected Toshiba Semiconductor’s request for another price increase for phone chips!< br>
It also informed Toshiba Semiconductor that after the contract ends, it will no longer purchase new phone chips from Toshiba Semiconductor. At present, Toshiba Semiconductor President Tsuyoshi Kawanishi has not made a statement on this matter. ”
(End of this chapter! )