My 1999
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!
After withdrawing his thoughts, Xu Liang replied:
“When any innovative product is first launched, peers will question and belittle it, and users also need to adapt and learn. I think this is normal.
Before the telephone was born, didn’t everyone think the telegraph was 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 sternly: "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 moment.
"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 Kunlun mobile phone sales."
James' 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 in despair."
Xu Liang kept smiling. The old man didn't lie. Apple wanted to cooperate with Verizon at first, but Jobs was too domineering. The old man in front of him refused to agree to some cooperation agreements that he thought were unequal.
In the end, Apple went to cooperate with the largest ATT.
Why did Apple plan to cooperate with Verizon first?
And the old man was so confident to reject 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, the old man saw that Apple's sales were good, which led to an increase in ATT's users, and he shamelessly went to Apple for cooperation.
To put it bluntly, he made a mistake and tried to make up for the loss.
"ATT accepted Apple's conditions." Xu Liang said lightly.
"That's because ATT is spineless. I directly drove the arrogant guy Jobs out of my office."
James looked serious, making it impossible for Xu Liang to tell whether his words were true or false.
But Jobs was famous for his arrogance, and the story was at least half true and half false.
"Why did ATT make such a big concession, Mr. James, have you ever thought about this question?"
The old man narrowed his eyes slightly and tilted his head to look at Xu Liang, "You mean, ATT saw the potential of Apple?"
Xu Liang said solemnly: "To be more precise, it saw the potential of smartphones. The birth of smartphones brought an opportunity for a reshuffle in the telecommunications industry."
The old man smiled with a hint of ridicule.
"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, or smartphones, which are similar to those of Motorola and Palm executives. He does not think that smartphones are a subversive force for the mobile phone industry.
Because of this cognition, the old man rejected Apple and started bargaining with himself again.
Thinking of this, Xu Liang suddenly envied Apple. ATT can be said to be fully betting on the iPhone.
With such heavyweight channel support, Apple's sales are crucial.
It is difficult for Kunlun Mobile to find such a like-minded teammate. The old man in front of him treats Kunlun Mobile the same as he treats other mobile phone companies, and he does not intend to give too much preferential treatment.
If he does nothing, when Apple's sales take off completely and ATT also takes off, the old man's attitude should make a 360-degree turn.
But can he really do that?
That would give Apple the golden opportunity for development.
"When the sales of mobile phones reach 1 million units, the sales strategy will be formulated by both parties through negotiation."
Xu Liang had no choice but to adopt a roundabout tactic. The old man was most concerned about sales.
As long as there is sales and it can bring benefits to Verizon, everything can be discussed.
After thinking for a while, James nodded.
If Kunlun Mobile can prove its strength, then he is not the kind of person who sticks to the old ways. As long as the benefits are in place, everything can be discussed.
"Third, Kunlun Mobile must enjoy the right to share the call charges." Xu Liang then proposed conditions.
Hearing this, James was 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 suddenly changed his face, which shocked the executives of both sides who had not interrupted.
How could he suddenly get angry when they were talking well?
Lei Jun, who was sitting next to Xu Liang, was sweating in his heart.
From a practical point of view, he hoped that the company would reach a cooperation with Verizon, because only in this way could the gap with Apple in sales channels be narrowed.
Xu Liang smiled faintly, he had seen such scenes many times.
"Kunlun is not listed, and it is indeed not as good as Kunlun's market value, but Kunlun's boss is me.
As long as I want, it is not difficult to let Verizon change its CEO!"
Seidenberg's face changed suddenly.
"Are you threatening me?"
"If you think it is a threat, then it is."
The blunt words made the atmosphere in the office instantly fall into the freezing point.
Whether it was the staff of Verizon or Kunlun, they didn't dare to breathe when they saw the two bosses at loggerheads.
Seidenberg took a deep breath.
He almost forgot that the young man in front of him was not only the boss of a small mobile phone company.
He was also the boss of the world's largest hedge fund, Pacific Fund.
If he really wanted to make things difficult for him.
Acquiring 5% of Verizon's shares and then winning over a few hedge funds as partners would affect the entire Verizon operating strategy and even replace him.
"I want to protect Verizon's interests."
Hearing his attitude soften, Xu Liang also took advantage of the situation.
"By giving part of the profits to Apple, ATT will indeed make less money.
But once Apple opens up sales, ATT will make more than just a little bit.
It's the same as raising fish. If you don't want to feed the fish pond, how can the fish grow fast?"
"Feeding too much bait can easily kill the fish."
James is also an old man in the industry with nearly 40 years of experience. How could he be easily convinced by him?
Although many netizens think that Kunlun phones are better than Apple phones, in the eyes of those who really know the industry, Apple is still far better than Kunlun phones.
Because the background is different.
And Apple has a market value of tens of billions of dollars, what does Kunlun Mobile have, a valuation of one billion dollars? Or two billion?
Even Apple didn't impress him, let alone Kunlun Mobile, which is only temporarily ahead of Apple in momentum.
Cooperation is fine, but there is no way to share the money.
"If we reach 1 million sales..."
James waved his hand.
"Let alone 1 million sales, even if it is 10 million, we will not take out the phone bills for sharing, 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 of operators."
Seeing that Xu Liang's face was about to sink again, Seidenberg hurriedly said.
"We can make concessions on subsidies."
Xu Liang: "How much?"
"100 US dollars per mobile phone."
"Too little, I hope Verizon will subsidize 200 US dollars per mobile phone."
James was stunned and shook his head quickly.
"Impossible. For 1 million mobile phones, we need to subsidize 200 million US dollars, which is a very large number."
This number sounds scary, but due to the cooperation between ATT and Apple, the price of iPhone 3G contract phones is as low as 199 US dollars and 299 US dollars, and the subsidy for a single phone is as high as 325 US dollars.
However, that was the second mobile phone, and the subsidy for the first generation of iPhone was not that large.
"The larger the subsidy, the cheaper the contract phone price, and accordingly, the bundled two-year network access agreement package and tariff can be appropriately increased.
If the monthly tariff is 30 US dollars, it can generate 720 US dollars of revenue for Verizon in 24 months.
But I believe that with the convenience of Kunlun mobile phone's large screen Internet access, the traffic consumption will definitely not be small, and the actual tariff consumption will be higher than predicted."
Xu Liang knows very well where the profit point of operators is. Directly earning personal phone bills is only part of the profit point. There are also a series of derivative businesses such as family packages, fixed-line packages, broadband services, etc. that can be developed.
As long as users enter this network, they can try to scrape more money.
James shook his head gently, "We need to upgrade and maintain hardware facilities such as signal towers and base stations every year. At the same time, we also support more than 100,000 employees. Your plan is not attractive to us.
Even if the tariff is raised, the profit we can get is very limited."
Xu Liang frowned. The trend of high subsidies for contract phones was also brought up by Apple.
After the explosion of smart phones, a mobile phone is subsidized by two or three hundred dollars at any time. The subsidies between telecom companies have become a bloody sea, and the annual subsidy amount is in the tens of billions of dollars.
Of course, all this money will be earned back through "high-priced packages", which is actually equivalent to a disguised consumer loan, which is paid after enjoying it, but the repayment tool has become a phone bill.
"100 dollars is too little." Xu Liang said.
The difference between a subsidy of 100 dollars and no subsidy is not big. At least the price of a mobile phone priced at 500 or 600 dollars should be reduced by half to attract more people to buy it.
Although 500 or 600 dollars is only a week's salary for many Americans, Americans have no habit of saving money, and paying too much money at one time will also reduce their desire to buy.
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