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Chapter 2259 Overwhelming Force

After Lemon Technology held its annual strategy meeting, Suning kept several core executives behind.

"What have those three people from Apple been up to lately?" Su Ning asked bluntly.

John, the intelligence chief, flipped through a folder: "Still tinkering in the garage. Steve Wozniak designed a prototype called the Apple I. It's very rudimentary, just a circuit board. Users have to provide their own power supply, keyboard, and monitor."

"What about performance?"

“It’s even worse than our Lemon 1, with no graphical interface and can only be operated via command line,” John said. “However, Wozniak’s design is ingenious, using fewer parts and keeping costs low.”

How much are they planning to sell it for?

"It's said to be priced at $666, and only the motherboard will be sold."

Suning laughed: "666? That price is interesting. But they forgot one thing—users want a complete computer, not a DIY kit."

Marketing Director Lisa chimed in, "Boss, this kind of product doesn't pose a threat to us, does it? It's too rudimentary."

“If it doesn’t work now, what about later?” Su Ning leaned forward. “Wozniak is a genius, and Jobs is a storyteller. If you give them time and money, they’ll grow into a problem.”

He tapped the table: "We need to block the road before they grow up."

As a time traveler, Su Ning was well aware of the power of Apple and Steve Jobs, so he would never give them any chance.

Unless Jobs and Apple willingly submit to me, they would never be allowed to rise to prominence in this alternate world.

……

The next day, Tom, the purchasing director, was called into his office.

"Tom, how's our agreement with MOS Technology going?" Suning asked.

"It's signed, boss. We've secured 50% of their 6502 chip production for the next 18 months, with priority purchasing rights."

“Okay.” Suning nodded. “Notify MOS that if they want to supply other PC manufacturers, they must notify us three months in advance, and the price cannot be lower than the price they give us.”

Tom was taken aback: "This...this counts as a monopoly, right? Could it be illegal?"

“We didn’t say we couldn’t sell it, we just asked for the right to know and fair pricing,” Suning said calmly. “Do as we say.”

"Yes! Boss."

Next are the monitor suppliers.

“Toshiba,” Suning continued, “sign an exclusive agreement. For the next year, they will only be able to supply us with personal computer monitors in the United States.”

"Boss, Toshiba might not agree..."

“We’ll raise the price by 10%, but they have to sign an exclusive agreement,” Suning said. “We’ll tell them that if they don’t sign, we’ll switch to Sharp or NEC. Japanese companies all want to enter the US market now, so we don’t lack options.”

Tom wrote it down: "Understood, I'll go talk to them right away."

“There are also keyboard suppliers, chassis mold manufacturers, floppy disk drive manufacturers…” Suning listed a series of suppliers, “For all key components, we will sign exclusive contracts where possible, and for those that cannot be signed, we will ensure priority and price protection.”

"The costs will increase significantly," Tom warned.

“It’s worth it,” Suning said. “We want to make it so that newcomers can’t buy parts, or can only buy second-rate parts at high prices. Cost advantage is also an advantage.”

A week later, Tom came to report the results to Suning.

"Boss, MOS agreed. They mainly rely on us for their livelihood now. Toshiba also signed an exclusive deal with an 8% markup. The keyboard and chassis manufacturers are all settled. The floppy disk drive manufacturers were the most difficult to deal with. They wanted to do other business as well, but in the end, we signed a priority supply agreement—our orders will be processed first, and at the lowest price."

“That’s enough.” Su Ning nodded. “Right now, any company that wants to make personal computers either uses more expensive Intel chips or uses substandard parts. They can’t bring down the costs.”

In fact, the senior management of Lemon Technology did not quite understand Suning's treatment of a startup company, feeling it was like using a cannon to kill a mosquito.

However, these executives overlooked the fact that Lemon Technology is also a startup, less than three years old at most.

However, Lemon Technology developed too quickly, and they all unconsciously became complacent.

Sometimes, the only true principle is to destroy what you can't have.

Then Jack Walsh was called in again.

"Jack, how many authorized Lemon Computer dealers are there nationwide?" Suning asked.

"287 companies, owned by business owners. Covering major cities."

"Okay. Issue a notice that, effective today, any distributor that sells personal computers from other brands will have their license revoked immediately and will no longer be supplied with such products."

Jack's eyes widened: "That strict?"

“That’s how strict we are.” Su Ning said firmly, “Tell them that Lemon Technology’s products are profitable enough that they don’t need to sell to other companies. If anyone wants to try, feel free to sell them, but they will have to bear the consequences themselves.”

"Some large distributors may react negatively..."

“Then replace them,” Suning said. “Find those who are willing to cooperate. There’s a long line of people wanting to become our distributors.”

As expected, some dealers protested after the notice was sent out.

One of the largest distributors, the owner of Computerworld in New York, flew directly to Los Angeles.

"Mr. Gan, this is outrageous!" The boss, Mike, had a loud voice. "I've been in business for twenty years and I've never seen such a clause! My shop sells IBM typewriters and HP calculators, and now you won't even let me sell other brands of personal computers?"

Suning sat behind his desk, appearing quite calm. "Mike, how much did you earn from lemon products last year?"

"This……"

“I’ve checked, and 70% of your store’s profits come from lemon products,” Suning said. “You’re selling other brands simply to make more money. But let me tell you—focus on selling lemons, and you can make even more. This year we’re launching Lemon Type 4, and sales will be at least twice that of Type 3. If your authorization is revoked, you can calculate the losses yourself.”

Mike was speechless.

“Furthermore,” Suning added, “if you cooperate, I will give you exclusive distribution rights for the New York area. Anyone else who wants to buy our products will have to go through you.”

Mike's eyes lit up, "Exclusive agency?"

"Yes. But the premise is—only sell lemons, and focus all your efforts on promoting lemons."

Mike hesitated for a few minutes, then finally held out his hand. "Deal."

And so, one by one, the major distributors were negotiated and secured.

Small distributors dare not disobey – lemon products are currently the best-selling item, and running out of stock means closing down.

Lisa is in charge of marketing and has recently received a new assignment.

“Lisa, find a few technology magazines and write articles analyzing the personal computer market,” Suning said. “Emphasis on a few points: First, graphical interfaces are the future, command lines are outdated; second, floppy disks are standard, those still using magnetic tapes are outdated; third, a complete hardware and software integrated experience is what users need, DIY kits are geek toys.”

"Should we name Apple directly?" Lisa asked.

"No need. But after reading the article, readers will naturally make the comparison—oh, Lemon has a graphical interface, Apple only has a command line; Lemon has floppy disks, Apple still needs tapes; Lemon can be used right out of the box, Apple still needs to be assembled. The conclusion is obvious."

Lisa smiled. "I understand, boss. This is called subduing the enemy without fighting."

“Furthermore,” Su Ning added, “we will contact universities and research institutes to develop donation programs. Each key university’s computer science department will receive ten Lemon 3 computers for teaching purposes. The condition is that teaching must use our products and systems.”

"This is about cultivating user habits."

"Yes. Once students get used to the Lemon system, they will naturally recommend Lemon products when they enter the workforce after graduation. This is called starting from a young age."

……

These measures quickly proved effective.

In Los Altos' garage, Steve Jobs yelled into the phone, "What do you mean out of stock? How can there be no stock of MOS 6502 chips?"

The person on the other end of the phone was a parts supplier. "Mr. Jobs, we really don't have any stock. MOS says their production capacity is full, and we'll have to wait four months."

"Four months?! We can't wait four months!"

"Then you'd like to consider the Intel 8080? It's three times more expensive."

Jobs angrily slammed down the phone.

Wozniak was soldering a circuit board when he looked up and asked, "Is there another problem with the component?"

"The 6502 is out of stock, and the monitor supplier said they have an exclusive contract and can't sell to us." Jobs paced back and forth in the garage, furious. "This must be Lemon's doing!"

Ronald Wayne, looking distressed, was doing the bookkeeping. "The banks won't approve loans again. They say the personal computer market is too risky, and now Lemon has a monopoly, making it hard for new companies to survive."

"What about distributors?" Jobs asked. "How many have you talked to?"

“They all refused,” Wayne sighed. “They said they signed an exclusive agreement with Lemon and would run out of stock if they sold other brands. One small shop was willing to try, but they required payment after delivery and a refund if the goods didn’t sell.”

"This is outrageous!" Jobs slammed his fist on the workbench.

Wozniak put down his soldering torch. "Steve, maybe... we should try a different approach. Instead of building complete systems, let's sell motherboards to hobbyists. People like those in DIY computer clubs don't mind DIY."

"Then we'll never grow big!" Jobs roared. "Woz, what we're going to do is change the world! Not just tinker around!"

"But now..."

“There must be a way.” Jobs calmed down. “Suppliers aren’t just in the US. Japan, Taiwan… there are always places that Lemon can’t control.”

He flipped through his contacts, "I remember there's a Taiwanese chip distributor..."

……

A month later, John, the intelligence chief of Lemon Technology, reported to Suning.

"Boss, Apple has found an alternative supplier. They've imported chips from Taiwan; although it's not the 6502, it works. They found a small factory for the monitor; the quality is a bit lower, but it's cheaper."

"As expected," Suning nodded. "What about the distribution channels? Who are they selling their products to?"

"We mainly sell them in DIY computer clubs and geek circles. We also opened a small shop, but sales are very limited. Last month we sold... 37 units."

Lisa laughed, "37 units? We get more than that every day."

"Don't underestimate them! Don't forget how happy we were when we sold just one unit," Suning said. "Keep the pressure on them. If they sell motherboards now, we'll launch an even cheaper Lemon PC and start a price war."

"Lemon Type 3 is on sale?" Jack asked.

“No, release a simplified version,” Suning said. “Call it Lemon 3C, remove the floppy disk drive, use a simplified operating system, and sell it for $1999.”

“This price…” Jack calculated, “Our profit margin is very thin.”

“We don’t rely on it to make money, we rely on it to capture the market,” Suning said. “At $1999, it’s cheaper than the Apple 666 with accessories. Users will do the math—buying an Apple requires assembling everything yourself, which could cost over $2,000, and you still have to assemble it yourself. Buying the Lemon 3C is all-inclusive at $1999, and you can use it right out of the box.” David still had some concerns, “But removing the floppy disk drive will significantly worsen the experience.”

"That's why it's called 3C, not 4-type," Suning said. "It clearly tells users that this is the entry-level model, and if they want the full experience, they can pay extra for the standard version. But the entry-level model is already more than enough to crush Apple's 'advanced DIY kit'."

……

After the release of Lemon 3C, Apple's sales were immediately halved.

Steve Jobs was looking at the sales reports in the garage, his face ashen.

“We only sold 19 units this month…” Wayne said softly.

"How much does Lemon 3C cost?" Jobs asked.

"I don't know the exact figures, but the dealers say it's selling very well. At the price of 1999, many students and families can afford it."

Wozniak said, "Steve, maybe we really should change direction. Let's do something lemons can't do..."

"for example?"

“For example…” Wozniak thought for a moment, “…focus more on user experience? Or… create a graphical interface? Although our technology is not yet sufficient, we can research it.”

Steve Jobs remained silent for a long time.

Finally, he said, "No. We won't do what lemons have done. We'll do what lemons can't do."

"Like what?"

“I haven’t decided yet.” Jobs stood up. “But there must be another way. Lemon has blocked all the conventional paths, so let’s find an unconventional one.”

He looked at the Apple logo on the garage wall. "Remember today. Lemons are suppressing us because they're afraid of us. This shows that what we're doing has value. As long as we don't die, we have a chance to turn things around."

……

Lemon Technology Headquarters, Monthly Summary Meeting.

"Boss, Apple's monthly sales are now less than 20 units, basically withdrawing from the mainstream market," John reported. "There are still people discussing it in the Homemade Computer Club, but ordinary consumers no longer consider it."

"What about the funding situation?" Su Ning asked.

“It’s very stressful. All three of them have invested money and haven’t broken even yet. Banks won’t lend, and venture capitalists aren’t optimistic either—because of Lemon, it’s hard for new companies to succeed.”

Lisa said, "Boss, can we stop now? Apple is no longer a threat."

Su Ning shook his head. "It's not enough. As long as they're still alive, they might be able to turn things around."

"Then what else needs to be done?"

“Poach them,” Suning said. “Wozniak is a technical genius, try to poach him. Jobs may be obsessive, but he has vision, so we can also reach out to him. Tell them, come to Lemon, and you'll get double the salary and have research and development freedom—as long as you don't work for the competition.”

“They’re not coming,” Jack said. “The last acquisition negotiations fell apart, and they’re very resistant to us.”

"Give it a try. It's okay if they don't come, but we need to plant doubts in their minds—there's no future with Apple, only with Lemon. Once the team wavers, it's not far from disbanding."

"Uh? Okay! I know what to do."

“Jack, we have no reason to be complacent, so we must go all out against any enemy, just like a lion using its full strength to hunt a rabbit.”

……

Soon, the headhunting firm's people went to the garage where Apple was located.

Wozniak was debugging a new circuit when a headhunter handed him his business card.

“Mr. Wozniak, Lemon Technology greatly admires your talent. Mr. Gan personally said that if you are willing to join us, you can serve as a senior hardware architect with a salary five times your current income, plus stock options.”

Wozniak paused for a moment, "I'm running my own company..."

"Apple currently sells 20 units per month, while Lemon sells 3,000 units per month." The headhunter was blunt. "Here, your technology can only influence a few dozen people. At Lemon, you can influence hundreds of thousands."

These words struck a chord with Wozniak.

He is passionate about technology and wants more people to use his designs.

"I... I'll think about it."

Steve Jobs was furious when he found out.

"Woz! You can't go! That's the enemy!"

“Steve, I was just saying I’d consider it…”

“Consideration is wavering!” Jobs stared at him. “Have you forgotten how they suppressed us? Cutting off our parts, blocking our channels, and now they want to dismantle our team!”

Woz sighed, "But Steve, how long can we hold out like this? We're almost out of money."

“It will happen,” Jobs said through gritted teeth. “I’ll figure something out. But if you leave, Apple will really die.”

Wozniak looked at the fire in Jobs' eyes and finally nodded, "Okay, I won't leave."

The headhunter reported to Suning, "Wozniak wavered, but was persuaded by Jobs."

“As expected,” Su Ning said. “Continue the contact. Contact us every two months and offer a higher price. One day, reality will defeat ideals.”

……

In early 1973, Apple had less than $10,000 left in its accounts.

Wayne couldn't hold on any longer.

“Steve, Wozniak, I…I want to quit.” Wayne felt guilty. “I’m too old to take this kind of drastic change. Lemon offered me a job doing technical documentation with a stable salary.”

Jobs wanted to curse, but looking at Wayne's gray hair, he couldn't bring himself to do it.

Wayne was the most composed of the three, but also under the most pressure.

He has a family to support.

"Have you made up your mind?" Jobs finally asked.

Wayne nodded and produced the shareholding documents. "I'll sell you my 10% stake for eight hundred dollars. Sorry."

Jobs and Wozniak pooled together $800 to buy Wayne's shares.

After Wayne left, only two people remained in the garage.

"What do we do now?" Wozniak asked.

Steve Jobs stared at the half-empty garage and remained silent for a long time.

Finally, he said, "Woz, I have an idea. Since we can't beat Lemon in making computers, let's do something else."

"doing what?"

“To create… a new way for people to communicate with computers.” Jobs’ eyes began to light up. “Lemon has done the graphical interface, but it can be more intuitive. Lemon has done the mouse, but it can be better. Maybe… we can create a completely new interactive system?”

Woz frowned. "That would take a lot of money and a lot of time."

"So we need to survive first," Jobs said. "We need to do something that can make money quickly to support this research. What should we do..."

He looked around the garage and saw the game console in the corner.

“Games,” Jobs said. “Make games first. Simple, quick money.”

……

Lemon Technology, on the other hand, was relieved to learn that Apple was shifting its focus to gaming.

“The game console market doesn’t conflict with our business,” he told executives. “We can put it aside for now. We’ll continue to monitor it, and if they ever want to make computers again, we’ll suppress them.”

"Boss, aren't we being too harsh?" Lisa couldn't help but ask.

Su Ning glanced at her. "That's how business competition is. If we're not ruthless today, they might overtake us tomorrow. I'd rather be called ruthless than lose."

After the meeting ended, Suning stood alone by the office window.

He knew his methods were dishonest.

Blocking supply chains, shutting down channels, suppressing public opinion, poaching and sabotaging...

These are common but underhanded tactics used in the business arena.

But he has no regrets.

He single-handedly built Lemon Technology to its current state.

He wanted to protect this business, the hundreds of employees who followed him, and the investment his mother had made in Alabama.

As for morality? We'll talk about that after we win.

The phone rang; it was my mother.

"Suning, how have you been lately? Don't overwork yourself."

"Mom, I'm fine." Su Ning's voice softened. "The company is doing very well."

"That's good. Remember to do good deeds and do things that are true to your conscience."

Su Ning paused for a moment, then said, "I will, Mom."

After hanging up the phone, he looked at the design drawings of the Lemon 4 on the table.

A new round of competition is about to begin.

This time, however, his opponent may no longer be the small Apple, but a true giant.

But he was ready.

There is no mercy in business warfare, only victory and defeat.

...(End of chapter)

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