Chapter 1110 Verizon
In order to suppress Kunlun and Apple, Nokia and Motorola did not hesitate to go out in person and publicize the shortcomings of their smartphones in major media.
Among them, the most criticized ones are the large screen, no physical keyboard, battery life, and expensive price.
Large screens are easy to break, adding burden to users.
The virtual keyboard does not feel as good as the physical keyboard, and it is easy to make mistakes. Xu Liang's ultra-fast typing speed at the press conference that day was regarded as the result of a year of training.
In other words, they believe that for normal users without special training, using a virtual keyboard is definitely not as convenient as a physical keyboard.
This view is supported by many people.
The main reason is that Xu Liang's hand speed was too fast that day, which was not like his normal performance at all.
During the Apple press conference, Jobs pressed the wrong button several times and looked clumsy.
Xu Liang didn't bother to refute such remarks.
Once you become proficient, everyone will become a tentacle monster.
The battery life of Kunlun mobile phones and Apple mobile phones can only last for five hours, which is far less than the long-term standby phones on the market that last for ten and a half months or even longer.
The selling price of US$499 or US$599 was even criticized by mobile phone company executives as "crazy for money."
There were also many executives from large companies who criticized Kunlun Mobile and Apple Mobile, such as Palm CEO Ed Collingen and Motorola CEO Ed Sandel.
These people are the big names in the field of mobile phones, and their reputation is at the peak of their popularity. They expressed their disapproval of smart phones, poured a lot of cold water on the supporters of Kunlun mobile phones and Apple mobile phones, and tried to reduce the popularity of smart phones manufactured by the two major mobile phone companies. Cool down.
At present, neither company has officially launched sales, and there is no feedback from users. Many people have calmed down a bit and have a neutral and wait-and-see attitude for the time being.
Xu Liang ignored the provocations from Motorola and Palm. These people were not aware that they were about to die, so he had no obligation to slap them awake.
Despising and looking down on Kunlun mobile phones is just the right opportunity for them to develop in a vulgar way.
The birth of the iPhone in the previous life also encountered the same problem, and the industry ridiculed, questioned, and threw dirty water.
What happens in the end, time will tell!
Withdrawing his thoughts, Xu Liang replied:
"When any innovative product is first born, peers will question and belittle it, and users also need to adapt and learn. I think this is a normal behavior.
Before the telephone was born, didn’t everyone think the telegraph was very good?
Able to communicate across thousands or thousands of miles.
But later, with the advent of telephones, mobile phones, and satellite phones, users adapted and felt that they were far superior to previous products. ”
James laughed.
"Xu, I was like you when I was young. I always felt that I was right and everyone else was wrong."
Xu Liang shrugged, "Only by persisting in yourself can you win the future."
"I admire your confidence very much. Please tell me your plan."
The old man's smile gradually faded, and his whole demeanor changed instantly.
“Our solution is simple.”
Xu Liang said seriously: "First, Verizon will subsidize Kunlun mobile phone users. The subsidy methods include but are not limited to purchase price difference subsidies, package discounts, free airtime data, etc."
"No problem."
James smiled and agreed readily.
Then he stared at Xu Liang with very sharp eyes.
"But we have to sign a supplementary condition. The size of the subsidy depends on the sales of mobile phones."
“The size of the subsidy also determines the sales of mobile phones.”
Xu Liang looked at the old man without showing any signs of weakness.
The two looked at each other for a few seconds, and James smiled.
"Okay, if you win, we can directly provide the maximum subsidy first.
But if the sales are not satisfactory, you have to get your money back. ”
"What's the specific sales volume?" Xu Liang said.
James smiled and said: "It will be based on the sales volume of 1 million units you set."
"Our target for 2008 is only 1 million units."
"Young people must have confidence."
James continued:
“I believe Kunlun Mobile has this capability.
We at Verizon are willing to invest so many resources in you, and we have high hopes for you. ”
Xu Liang frowned slightly and thought for a while.
"In 2007 and 2008, the sales volume in the United States can be set at 1 million units."
Although the slogans are loud, Xu Liang's family knows his own affairs. Kunlun Mobile is not facing a smooth road, and there are still many variables ahead.
The old man just flattered him a few words and wanted him to stupidly sign his name. That was impossible.
James didn't bother too much.
"Two years is enough. Verizon has always been generous to new partners."
Xu Liang smiled and said, "Second, we have to decide on the details of the Kunlun mobile phone sale."
James's face instantly darkened.
"We have never agreed to this request from a certain mobile phone company. This is really outrageous. All mobile phone sales strategies have always been determined by Verizon itself."
Xu Liang smiled and said: "There is a first time for everything.
In my opinion, Verizon has always been a company that is innovative and experimental. ”
"This is not innovation and experimentation, but an unequal treaty."
James looked at Xu Liang seriously.
"Apple also made the same request as you, and then they had no choice but to go to ATT to cooperate."
Xu Liang kept smiling. The old man didn't lie. Apple originally wanted to cooperate with Verizon, but Jobs was too domineering. The old man in front of him refused to agree to some cooperation agreements that he considered unequal.
In the end, Apple went to cooperate with the largest ATT.
Why did Apple plan to partner with Verizon in the first place?
And the old man is so confident in rejecting Apple?
Mainly because Verizon's network service quality is the best in the United States. Although it is the second largest telecommunications company, its development momentum is not weaker than ATT, or even better.
Later, when the old man saw that Apple's sales were good, which led to an increase in ATT's user base, he shamelessly approached Apple for cooperation.
To put it bluntly, I just made a mistake and planned to make amends.
"ATT accepted Apple's conditions." Xu Liang said calmly.
"That's ATT's lack of spine. I kicked that arrogant Steve Jobs out of my office."
James looked serious, leaving Xu Liang unable to tell whether this sentence was true or false.
But Jobs was famously arrogant, and the story was at least half-truth.
"Why did ATT make such a big concession? Mr. James, have you ever thought about this issue?"
The old man squinted his eyes slightly and tilted his head to look at Xu Liang, "You mean, ATT has taken a fancy to Apple's potential?"
Xu Liang said solemnly: "To be more precise, I saw the potential of smartphones and the birth of smartphones, which brought an opportunity for the telecommunications industry to reshuffle."
There was a hint of ridicule in the old man's smile.
"So, Verizon should sign a contract with Kunlun Mobile at all costs to fight against the alliance formed by Apple and ATT?" Xu Liang has almost figured out the old man's true feelings about Kunlun mobile phones, or smartphones, and how they compare with Motorola, Palm executives are pretty much the same and don't think smartphones are a disruptive force for the mobile phone industry.
Because of this knowledge, the old man rejected Apple and began to bargain with himself.
Thinking of this, Xu Liang suddenly felt envious of Apple. It can be said that ATT is fully betting on the iPhone.
Having such heavyweight channel support is enough to play a vital role in Apple's sales.
As for Kunlun Mobile, it is difficult to find such a single-minded teammate. The old man in front of him has the same attitude towards Kunlun Mobile as he does towards other mobile phone companies, and he does not intend to give too many preferential treatment.
If he does nothing, when Apple's sales take off completely, and ATT takes off too, the attitude of the old man in front of him will probably make a 360-degree turn.
But can that really be done?
That is giving Apple a golden opportunity for development.
"When the sales of mobile phones reach 1 million units, the sales strategy will be formulated by both of us through consultation."
Xu Liang had no choice but to use roundabout tactics. What the old man cared about most was sales.
As long as there are sales and it can bring benefits to Verizon, then anything is easy to discuss.
After thinking for a while, James nodded.
If Kunlun Mobile Phone can prove his strength, then he is not the kind of person who is stubborn and can negotiate as long as the benefits are in place.
"Third, Kunlun Mobile must enjoy the right to share the phone bill." Xu Liang went on to put forward conditions.
Hearing this, James became a little angry and said coldly:
"Do you really regard Kunlun Mobile as Apple, a company with a market value of tens of billions of dollars, and Verizon as a weak and incompetent ATT?"
The old man's sudden change of expression startled the executives from both sides who had not interrupted.
We were having a good conversation, but why did we suddenly get angry?
Lei Jun, who was sitting next to Xu Liang, secretly sweated in his heart.
From a practical perspective, he very much hopes that the company will cooperate with Verizon, because only in this way can the gap with Apple in sales channels be narrowed.
Xu Liang smiled lightly, he had seen such scenes many times.
“Kunlun is not listed, and it is indeed not as valuable as Kunlun’s market value, but Kunlun’s boss is me.
As long as I am willing, it would not be difficult for Verizon to change its CEO! ”
Seidenberg's expression suddenly changed.
"You threaten me?"
"If you think it's a threat, that's it."
The unceremonious words instantly plunged the atmosphere in the office into freezing temperatures.
Whether it was Verizon or Kunlun staff, they didn't dare to breathe when they saw the two bosses at war with each other.
Seidenberg took a deep breath.
He almost forgot that the young man in front of him was not just the owner of a small mobile phone company.
He is also the boss of the world's largest hedge fund, Pacific Fund.
If he really wants to embarrass himself.
Acquiring 5% of Verizon's shares and wooing several partner hedge funds can affect the entire Verizon operating strategy and even replace him.
"I want to protect Verizon's interests."
Hearing that his attitude softened, Xu Liang also borrowed the donkey from the slope.
“By giving part of its profits to Apple, ATT will indeed make less money.
But once Apple opens up sales, ATT will not earn that little bit.
This is the same as raising fish. If you are not willing to sprinkle feed into the fish pond, how can the fish grow fast? ”
“Feeding too much bait can easily overwhelm the fish to death.”
James has been in the industry for nearly 40 years, so how could he be easily persuaded?
Although many netizens think that Kunlun mobile phones are better than Apple, in the eyes of people who really know the industry, Apple is still far better than Kunlun mobile phones.
Because the background is different.
Moreover, Apple still has a market value of tens of billions of dollars. What about Kunlun Mobile, a billion-dollar valuation? Or two billion?
Even Apple didn't impress him, let alone the Kunlun mobile phone, which was temporarily ahead of Apple in terms of popularity.
Cooperation is possible, but sharing money is impossible.
"If we reach 1 million units sold..."
James waved.
"Let alone 1 million units sold, even if it is 10 million units, we will not share the phone bill, because this is the inherent income of the operator.
This is our bottom line and will never waver.
Selling mobile phones is your main profit, and phone bills are one of the main profits for operators. ”
Seeing that Xu Liang's face was about to darken again, Seidenberg said quickly.
"We can compromise on subsidies."
Xu Liang: "How much?"
"$100 per phone."
"Too little, I hope Verizon subsidizes $200 per phone."
James was stunned and quickly shook his head.
"It's impossible. For 1 million mobile phones, we need to subsidize US$200 million, which is a very huge number."
This number sounds scary, but through the cooperation between ATT and Apple, iPhone 3G contract prices are as low as US$199 and US$299, and the subsidy for a single mobile phone is as high as US$325.
However, that was the second mobile phone, and the subsidies for the first-generation iPhone were still not that great.
"The greater the subsidy, the cheaper the contract phone will be. Correspondingly, the bundled two-year network access agreement package and tariff can be appropriately increased.
Assuming a monthly fee of $30, it can generate $720 in revenue for Verizon in 24 months.
But I believe that with the convenience of surfing the Internet on the Kunlun mobile phone's large screen, the data consumption will definitely not be small, and the actual tariff consumption will be higher than predicted. ”
Xu Liang is very clear about the profit points of operators. Directly earning personal phone bills is only part of the profit points. There are also a series of derivative businesses such as family packages, fixed-line packages, and broadband services that can be developed.
As long as users enter this network, they can try to scrape off more oil and water.
James shook his head slightly, "We need to upgrade and maintain hardware facilities such as signal towers and base stations every year. At the same time, we also have hundreds of thousands of employees. Your plan is not attractive to us.
Even if we increase the tariff, the profit we can obtain is very limited. ”
Xu Liang frowned. The trend of high subsidies for contract phones was also started by Apple.
After the outbreak of smart phones, a mobile phone can easily be subsidized by two to three hundred US dollars. Subsidies among telecommunications companies have become a mountain of corpses and blood, and the annual subsidy amount is in the unit of tens of billions of US dollars.
Of course, all this money will be earned through "high-priced packages". In fact, it is equivalent to a disguised consumer loan. Enjoy it now and pay later, but the repayment tool becomes a phone bill.
"100 US dollars is too little." Xu Liang said.
There is not much difference between a subsidy of US$100 and no subsidy. At least the price of a mobile phone priced at US$500 or US$600 must be reduced by half to attract more people to buy it.
Although five to six hundred US dollars is only a week's salary for many Americans, Americans do not have the habit of saving, and paying too much money at once will also reduce their desire to buy.
(End of chapter)