As a mage, I just want to pursue the truth

Chapter 29 Entering the competitive mobile phone market

"Mobile phones are a consumer product, and they are expensive. Each person consumes at most one mobile phone per year. Generally speaking, most people change their phones every three years."

"Besides, the domestic smartphone market is close to saturation. This is a stock market. If someone else sells one, your sales will be reduced."

"So in recent years, OV, Huawei and Dami have all gone overseas to compete for overseas markets, because the domestic incremental market has been exhausted."

"Mobile phones are not like fast-moving consumer goods and food. I've eaten at a Michelin three-star restaurant, and it's OK to eat at McDonald's and Kaifeng cuisine on a regular basis."

"After using a high-end phone, users will hardly go back to a lower-end phone."

"In other words, the only high-end mobile phone in China right now is Apple, and users won't go back to Xiaomi after using Apple."

"In the first ten years, Xiaomi solved the problems that users needed. In the next ten years, Xiaomi will solve the problems that users want. How can Xiaomi mobile phones transform from the phones that customers need to the phones that customers want?"

“This is what we have been working towards, but there has been no good solution over the years.”

Low-end products that meet basic needs are needed products, while mid- to high-end products are wanted products.

There is no company in the consumer goods industry that does not want to make products that users want.

Regardless of the type of consumer enterprise, like the liquor industry which has existed for thousands of years, the prices of each liquor company must be benchmarked against Moutai.

Moutai is something that people want. Users may not be able to afford it for now and can only drink low-end, need-based products, but they want to drink Moutai.

The advantage of the liquor industry over the mobile phone industry is that a single customer will not consume only one bottle of liquor. His annual consumption is huge, so the valuation of the liquor industry is high. Rice can only enjoy a dynamic price-earnings ratio of more than ten times, while liquor companies can generally enjoy a dynamic price-earnings ratio of more than fifty times.

Zheng Li thought, mobile phones are just like smart computers. If you have money, you can buy a customized smart computer produced by Fashen. If you don’t have money, you can only buy the standard products produced on the assembly line.

Unlike the magic brain, the intelligent brain is a tool for auxiliary calculations, similar to a computer, and can be connected to the magic network for information transmission.

"Brother, do you think brain-computer connection can help Xiaomi mobile phones solve the problem of going from need to want?" Lei Jun nodded: "Yes, with brain-computer connection technology, I am confident that I can lead Xiaomi to occupy a place in the high-end mobile phone market."

Zheng Li corrected him, "Sorry, even if I develop brain-computer connection technology, I can't just open the technology license to Dami Phone. Dami is just one of the shareholders of Kechuang Biotechnology."

"Science and Technology Biotechnology is not deeply tied to Rice, and I will definitely open the brain-computer connection technology to all mobile phone manufacturers."

In Zheng Li's opinion, he did not owe Lei Jun anything. The 50 million yuan that the early venture capital invested in Kechuang Bio had already been multiplied several times. It was impossible for him to license the technology only to Da Mi just because of their relationship as fellow apprentices.

Lei Jun is also a veteran in the industry and knows that profit is above all else:
"I don't need Kechuang Bio's brain-computer connection to be licensed only to rice. Just like endorphins, brain-computer connection will definitely be under-produced when it first comes out."

"I only need to book the production capacity for the first half of the year, which is enough to create a time difference."

"Brain-computer connection will only be put on Rice's high-end brand Mix, and we will restart Mix."

“I only need to be six months ahead of other manufacturers.”

Generally, when new products are first released, the production capacity is seriously insufficient. Before the iPhone 8, people had to pay extra to get the goods two weeks after the autumn launch conference.

"With this time difference, rice can gain a foothold in the high-end market."

"In addition, in our cooperation, we will give you rice at the price it should be at."

Lei Jun’s reasons were not excessive. In addition, he and Lei Jun had a foundation of trust, so the negotiation process for cooperating with Dami would be much shorter.

Zheng Li agreed and said, "Sure. If there is a practical use for brain-computer connection in the future and Da Mi is willing, we can authorize Da Mi to do it through technology licensing."

This is just a novel. I am also a social animal and I often slack off. I refuse to attribute the behavior of the protagonist of the novel to the author!!!
I changed it, I was wrong orz
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(End of this chapter)