To sell, sell phones. This voice was so deafening and thought-provoking, causing various expressions to flicker across the faces of those present.
What did Huang He mean by this?
Wasn't he the one selling phones?
Did he want everyone to help him sell phones?
The crowd was unclear about Huang He's intentions, but Huang He didn't play coy. He straightforwardly revealed his true purpose: "Esteemed seniors, currently, the Chinese mobile phone market is dominated by foreign brands. The only domestic mobile phone brand that has managed to secure a foothold is Xu Zong's Bird, which holds a less than 3% market share."
"Of course, there are also some counterfeit mobile phones in the domestic market, with a market share of about 15%. However, they can only occupy the lowest price segment, earning a meager profit of only one to two hundred yuan per phone. Unlike foreign mobile phones, which have a profit of at least 1,000 yuan per unit. Why is this?" Huang He asked with deep regret.
Some might wonder why there is only one domestic mobile phone brand, Bird, and where brands like Tianyu, BBK, Gionee, and Lenovo, and Xiaxin have gone.
This is because the mobile phones of these brands have not yet entered the market, and some companies haven't even been established. Xiaxin Mobile, the fastest progressing among them, has only begun its design and production, and has not yet been launched.
Therefore, at this time, the only domestic mobile phone brand that can be openly promoted is Bird.
If young people heard Huang He's words, they would likely become enthusiastic. However, for those present, these words had no impact. They were merely curious about Huang He's purpose and plans.
"May I ask, esteemed seniors, what do you think is the biggest reason preventing our own Chinese mobile phone brands from dominating our own Chinese market?" Huang He suddenly asked.
"This..."
"This..."
The esteemed figures present, being important personalities, faltered at this question. It wasn't that they didn't know the answer, but rather they were contemplating Huang He's objective in asking this question, whether there was a hidden conspiracy or scheme, and so on. In any case, they had mulled over these questions more than ten times in their minds. Before they could answer, someone said, "Technology and related components!"
"What a blunt person!" everyone thought. Everyone knew that the limitation to the development of domestic mobile phones was technology. This was the most standard answer, and certainly not the answer Huang He wanted.
Huang He's question surely harbored deeper intentions, such as market factors, government policies, or component imports, and he wanted to use these.
As for technology, everyone knew about the lack of technology and components. But Huang He definitely wasn't looking for these answers.
Firstly, this answer was too simple; even a fool could know it.
Secondly, there was no use for Huang He to get this answer. He wasn't so kind as to solve the problems of technology and components. He was definitely planning some scheme.
Then, everyone heard Huang He clap his hands and say, "That's right, it's exactly this. Chinese enterprises are unable to dominate the Chinese mobile phone market because we lack technology and components."
"Some people might say, we don't have the technology, but foreigners do. We can't produce the components, but foreigners can. We can import all these things from abroad!"
"However, if we import all these things, then the price of the mobile phones we produce ourselves will be over a thousand yuan more expensive than foreign mobile phones. How can such mobile phones have market competitiveness!"
"Therefore, if we want to develop our own mobile phones, we must possess our own technology and a mature domestic electronics industry," Huang He said excitedly. "That is why I have invited all of you esteemed seniors here today, to establish a mobile phone industry alliance!" Huang He declared passionately.
"..." The crowd listened, somewhat confused. They still didn't understand what Huang He meant.
"Mr. Huang, what kind of industry alliance is the 'industry alliance' you speak of?" Chairman Xu of Bird asked.
"This industry alliance is an industry alliance that connects everyone's technology, patents, channels, production lines, and everything related to the mobile phone industry, and shares it with everyone for a fee!" Huang He said.
"To give a vivid example, the industry alliance is like a pot. The pot is simmering with water, waiting for everyone to put in various ingredients, turn it into a pot of porridge, and then everyone eats it together."
"So where do the ingredients come from? Of course, they come from all of us present here!" Before the crowd could fully process this, Huang He continued.
"For instance, our Jiangnan Group and Tianxing Mobile hold 3,147 patents and various technologies related to mobile phones. All of these can be put into the pot for your use."
"Huawei Group holds many communication-related technologies and patents, which can also be put into the pot."
"China Unicom has some information interaction technologies, which are the same. They can be put in."
"Everyone holds some technologies and patents. These can all be put into the pot, and shared by everyone, so that technology and patents are no longer limited to individual households, but can be used by all members of the industry alliance, all of China!"
Huang He's words caused a silence. They had not expected Huang He to say such things, because Huang He's actions seemed to benefit everyone. After all, the total technologies and patents held by everyone present would likely not exceed Huang He's alone. Huang He was truly benefiting society. Was he really so benevolent?
Indeed, then they heard Huang He say, "Of course, considering that the technologies and patents held by everyone are not equal, it would be inappropriate if simply investing technology and patents allowed the use of others' technologies and patents."
"Therefore, all technologies and patents within the industry alliance will be clearly priced and used for a fee. However, to allow everyone to enter the mobile phone industry without any burden, this money will not be collected upfront, but later. Moreover, it will not be collected in a lump sum, but in small, frequent installments."
"For example, Chairman Xu, if you produce a mobile phone, and it uses a certain technology from our alliance, the price is 10 cents per mobile phone."
"Then, after this mobile phone is sold, this 10 cents will be paid to the technology provider. This is called 'use first, pay later'!"
"Of course, considering that a mobile phone will integrate too many patents, it would be troublesome to calculate patents on a per-phone basis. Therefore, the best way to handle this fee is to divide it among the various components of the mobile phone."
"We will actively introduce a large number of domestic electronics manufacturing enterprises in the future. For the technology or patents required for them to produce a certain component, our alliance will provide them. And after their components are sold, the relevant fees will be calculated based on the shipment volume of a batch of products, and then transmitted to the patent providers through the alliance!"
"Of course, this price must be low, absolutely not high, and the price cannot be set by the seller themselves. It must be decided by the alliance's own meeting review."
"At the same time, once a technology reaches a certain sales volume in the alliance, such as 20 million units, or a scale of 30 million units, or after two or three years of sales, the technology can no longer be charged for and must be opened up for free production and use by all alliance members."
"In short, the alliance's patents and technologies are not for making money, but to foster the development of China's domestic mobile phone industry. The prices must ensure that the cost of mobile phone components produced in China has great price competitiveness, thereby ensuring that our finished mobile phones also have high price competitiveness."
"This way, even if our patents and technologies cannot form a complete mobile phone, they can cover most mobile phone components, allowing the entire Chinese electronics industry to grow strong in a short period. For those mobile phone components that cannot be produced, they can be obtained through imports."
"In this way, I estimate that within about a year, China will immediately form a systematic and scaled electronics industry, with over 80% of mobile phone-related components being domestically produced. The cost for enterprises to produce a mobile phone will decrease by more than 60%. Even if domestic mobile phones cannot have the functionality of flagship models priced at over 7,000 yuan like branded phones, reaching the technology level of mid-range phones priced at 3,000-6,000 yuan should not be a problem."
"However, our prices will only be about half of theirs. The price of our domestic mobile phones can even reach below 1,000 yuan in the future, while still maintaining a profit margin of over 30%. In this way, we can regain the Chinese mobile phone market, and even export mobile phones abroad in the future, allowing foreigners to use mobile phones produced by Chinese people themselves!"
"In addition, besides technology and patents, the alliance can also support the development of the domestic electronics industry in other aspects. For example, international negotiations, local policies, public relations responses, mediation of conflicts between enterprises, and most importantly, capital loans and financing development. All members within the alliance can cooperate in these areas, and the entire alliance will be your helper."
"By then, I believe you will not regret your decision today!" Huang He finished speaking, took a hearty gulp of wine, and sat down. "I have finished speaking. I wonder what everyone's opinions are?"
"..." There was a silence in the venue. At this moment, they understood Huang He's intentions. They felt that Huang He was simply trying to find a way to monetize his various patents and technologies. As for developing China's mobile phone industry, it was probably just an excuse Huang He was using to occupy the moral high ground.
However, speaking of which, Huang He's suggestion was indeed interesting. If it could truly be achieved, the domestic mobile phone industry in China would advance by leaps and bounds.
But, were Jiangnan Group and Huang He truly so benevolent? Had he not arranged any traps within this?