Chapter 1081 Price that can't be lowered
1996 was a year in the mobile phone industry, because mobile phones were selling crazy!
This was the overall commentary of all business people in 1996 when it was about to come to an end in 1996.
Indeed, 1996 was the year when the entire mobile phone industry rose. Before 1996, the annual sales of the entire mobile phone industry were only about 5 million units, and the total output value of the industry was only about 10 billion US dollars.
Although this number seems very large, it is actually just a younger brother among major industries around the world. Only when the scale of the entire industry exceeds 50 billion US dollars can it be barely called a mainstream popular industry in the world.
Of course, many people have realized that the mobile phone industry will definitely become a popular industry in the future, but they did not expect that the mobile phone industry would rise so rapidly.
During the two months from August to September, the three mobile phone manufacturers added up to sell nearly 4 million mobile phones, and this data is still expanding. It is expected that by the end of 1996, the number of mobile phone shipments in 1996 will exceed 10 million.
Historically, this breakthrough was brought by Nokia and Motorola, but in this life, there was a big thousand, and it was vaguely at the top of the three major mobile phone manufacturers.
You know, it only took two years for the entire Daqian to join the mobile phone industry. This speed surprised everyone.
And larger media naturally would not miss this important trend. The famous Fortune magazine published an article titled "10 billion in two months, the inevitability of the rise of mobile phones."
This article is written very well. The article first lists the sales data of the world's three major mobile phone manufacturers in August and September. Among them, Daqian 2 mobile phones brought 2 million sales worldwide, which is a miracle. Finally, the magazine's editor predicts that Daqian 2 mobile phones will likely exceed 5 million units in the whole year of 1996. At the same time, Daqian Group, which ranked 500th in the world, is likely to rush into the top 400, because of the amazing sales data brought by mobile phones.
Then the article began to analyze the factors that Daqian achieved these achievements.
From here on, the article is a bit unobjective. They never mentioned the quality and functional advantages of Daqian 2. Instead, they first said that the world economic situation in 1996 was very good. Almost all kinds of economic miracles were happening around the world. The money in the pockets of ordinary people in various countries also became fuller. This is the main factor in the rise of the mobile phone industry this year.
Then, communication between people in the world has become more urgent, because people gradually discover that timely communication can bring huge benefits.
For example, in the previous stock market, if you are not at the stock market, once there is any change in the stock market, it may be a few days later when the trader contacts you.
But it is different to have a mobile phone. With just one phone call, traders can contact their customers immediately, so as to make decisions as soon as possible and gain huge economic benefits.
Therefore, the article ends up saying that the rise of the mobile phone industry is inevitable, because more frequent communication between people is necessary. In fact, everyone needs a mobile phone, but the price of mobile phones is too expensive, so it is difficult to popularize.
However, Daqian directly gave the price of his mobile phone from more than US$2,000 to US$1,200, which made the price of his mobile phone almost halfway, which greatly increased the sales of his mobile phone.
Anyway, this article has one meaning: Daqian mobile phones sell well because they sell cheaply, and there is no other reason.
It is unknown whether others recognize this or not, but Motorola is very aware of it. They never think that their mobile phones are not selling well, because their mobile phones are not as good as others. After all, how can a mobile phone worth $3,000 per unit be worse than a mobile phone worth $1,200 per unit?
The problem is that Daqian sells it too cheap. If Motorola's mobile phone can also be sold for $1,200 per unit, no, as long as $1,500, then victory must belong to Motorola!
"We want to lower the price!" Christopher gritted his teeth and announced the absolute at the meeting. Faced with this decision, the company's executives looked at each other, and then asked one person, "Mr. President, how much do you plan to lower the price?"
"$2799" Christopher said.
"Will the price be too high if the price drops by $200 in one go?" The executives immediately started to talk.
"Mr. President, the production cost of our Motorola STARTAC is $2,500. You can reduce it to $2,799 in one go. Then, we can make less than $100 with a mobile phone. This is really too low!" Someone immediately stood up and opposed.
"I will let the production department compress the cost!" Christopher said. The production cost of $2,500 was born before because of the need to develop a large number of molds and new production lines. As the sales of STARTAC exceeded 1 million units, the corresponding cost was greatly diluted. So the cost of a STARTAC is only about $2,300, so our profits have not changed much.
And as long as STARTAC can be sold more, the cost will continue to drop, and it can eventually be diluted to about US$2,000 per unit!
"But sir, you probably don't know yet. The union started to make a fuss again. They said that the STARTAC they produced had achieved unprecedented results. This is their credit, so they needed a raise, and they asked for an increase in hourly wages by one dollar in one breath!" said the minister of the production department, standing up and saying.
"What! These bastards, they already have the first-class working hours in the United States. Even the automobile industry is not as high as theirs. They even need to pay for their wages!!" Christopher was furious.
"I know, but these damn workers don't understand. I heard that they are ready to connect and strike. Moreover, the entire production department and all factories may be connected this time. If the strike is big, our production will not be interrupted, let alone cost issues!" The Minister of Production said with a wry smile.
The hidden meaning of his words is to meet the workers' requirements to raise wages, which is the only way, so production costs may not decrease but increase.
"..." Christoph, who had an extremely tough attitude just now, became a little weak in an instant.
Chapter completed!