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At a high-level meeting of Lemon Technology, Suning did not breathe a sigh of relief like other executives after hearing the report about Apple's shift to game consoles.

“Boss, Apple is now making games, so we should be able to focus our resources on dealing with our competitors,” said Lisa, the marketing director.

Suning shook his head: "No, continue to monitor Apple. Gaming is just a temporary measure. As long as Jobs and Wozniak are still around, they may return to the personal computer market at any time."

"But their funding is running out, and making games is just a small-scale operation..."

“Small ventures can also grow into something big.” Su Ning interrupted her. “Atari also started small and grew into a large company. We can’t let our guard down.”

After the meeting, Suning kept Robert, the legal director, behind.

"Robert, I want to do something, but it has to be kept absolutely secret."

"You say."

“Apple has three founders: Jobs, Wozniak, and Wayne, who just left. Wayne had 10% of the shares, which he sold to two other people.” Su Ning tapped his fingers on the table. “I want to… buy Apple’s shares.”

Robert was taken aback: "Buy Apple stock? Why? That company isn't worth much right now."

“They’re worthless now, but what about later?” Suning said. “Wozniak is a technical genius, and Jobs was visionary. As long as these two are still around, Apple has a chance to turn things around. Rather than waiting for them to grow into competitors, we should become their shareholders now.”

"But you're the owner of Lemon Technology. Wouldn't it sound bad if word got out that you're directly buying shares in a competitor?"

“So we can’t buy it directly.” Su Ning had already planned ahead. “We’ll buy it in someone else’s name. My brother, Forrest Gan, will be the nominal investor, but I’ll control the funds and the decision-making.”

Robert pondered, "Technically, it's feasible. But the question is, would Jobs and the others sell? Especially Jobs, who treated Apple like his own child."

“We should contact Wozniak first,” Suning said. “He’s under the most pressure right now. Apple isn’t making money, and Jobs is stubborn. Wozniak is more pragmatic and might consider cashing out some of his shares to improve his life.”

"What about Steve Jobs..."

“If Wozniak were to sell, Jobs would either have to sell as well or buy Wozniak’s shares himself—but he didn’t have the money.” Su Ning calculated very clearly, “In the end, Jobs could only accept the involvement of external investors.”

"Understood! I know what to do."

"Remember! I have high expectations for Apple and Steve Jobs, and Apple will be our front man in the future."

……

Two days later, Robert arranged for an intermediary to contact Wozniak through the Self-Made Computer Club.

The meeting was arranged at a café in Palo Alto.

The middleman's name was Mike, and he was an old-school tech industry broker.

“Mr. Wozniak, I’m representing an investor who is very interested in Apple,” Mike said, getting straight to the point.

Wozniak asked warily, "What kind of investor?"

“An individual investor, optimistic about the future of personal computers and admiring your and Mr. Jobs’ talent,” Mike said, following the script. “He wants to buy a stake in Apple.”

Wozniak hesitated: "Apple is... not worth much now. We only sell a dozen or so units a month and are still losing money."

“So you need more funding, don’t you?” Mike smiled. “This investor is willing to pay a fair price and will not interfere with the company’s operations; he’s just making a financial investment.”

"how much is it?"

“That depends on how many shares you’re willing to sell and how you want to value the company.” Mike pulled out a calculator. “Based on Apple’s current assets and sales, a company valuation of… $50,000 would be reasonable.”

Woz smiled wryly: "Fifty thousand? We've invested more than that."

“But this is a reasonable valuation based on the current situation.” Mike said professionally, “If it takes off in the future, the valuation will rise. But right now, 50,000 is the market price.”

Woz remained silent.

He really needs money.

In the year or so that he worked for Apple, he had almost no income, relying entirely on his savings and occasional freelance work.

"I will think about it."

“Of course. But there’s something you might not know…” Mike lowered his voice, “Lemon Technology is also in contact with Mr. Jobs, wanting to acquire the entire Apple.”

Woz looked up abruptly: "What?"

“I heard the offer is quite high. If Jobs agrees, you either sell your shares or your stock will be diluted,” Mike said. “Instead of waiting passively, it’s better to cash out some of your shares proactively. That way, you’ll have security no matter what happens to Apple in the future.”

This is Robert's strategy—to create a sense of urgency.

Sure enough, Wozniak suffered from insomnia.

On one hand, they were following in Jobs' footsteps and continuing to fight, but the future was uncertain and their funds were running out.

On the other hand, one could cash out a portion of their shares, get some money to improve their life, and still be able to continue working at Apple.

Then he went to discuss it with Jobs.

"Steve, someone wants to invest in Apple."

Steve Jobs was designing the game console circuitry, not even looking up: "Who?"

"An individual investor wants to buy shares."

"No sale." Jobs was straightforward. "Apple belongs to both of us; it can't be owned by outsiders."

“But we need money…” Wozniak said. “We only have a few thousand dollars left in the account, and we won’t be able to pay next month’s salaries.”

"Once the game console is made, we'll have money."

“It takes time to make it, it takes time to sell it, and it takes even longer to get paid.” Wozniak was unusually firm. “Steve, we can’t live on ideals forever.”

Jobs finally looked up and stared at Wozniak: "You want to sell your shares?"

“I’m considering…selling a small portion, like 5% or 10%. Getting some money will give the company some working capital.”

How much will you sell it for?

“If we base the company’s valuation at $50,000, selling 10% would be $5,000,” Wozniak said. “$5,000 is enough for us to last three months.”

Jobs scoffed: "A valuation of $50,000? Apple is only worth $50,000?"

“That’s all it’s worth now,” Wozniacki said honestly.

The two had a fight and parted on bad terms.

……

A week later, Wozniak contacted the middleman, Mike.

“Mike, I’ve decided to sell 10% of my shares. But there are a few conditions.”

"You say."

"First, investors cannot interfere with the company's operations. Second, they cannot sell their shares to Lemon Technology or our competitors. Third, if Apple raises funds in the future, investors will have priority to co-invest."

Mike nodded: "These can all be written into the agreement. What about the price?"

"Five thousand US dollars, the company is valued at fifty thousand."

"make a deal."

The agreement was drafted quickly.

The name listed in the investor's column is: Forrest Gan.

Wozniak paused for a moment when he saw the name: "Forrest Gump? Is that the ping-pong player, Forrest Gump?"

“Yes, that’s him,” Mike explained. “Mr. Forrest is interested in investing in technology, and his brother works in the tech industry and gave him some advice.”

Wozniak recalled that Steve Jobs had said that Suning, the owner of Lemon Technology, was like Forrest Gump's brother.

But then I thought, Forrest Gump is a celebrity, so it's normal for him to make investments.

Furthermore, the agreement explicitly states that the shares cannot be resold to Lemon Technology, so there shouldn't be any problem.

So, he finally signed it.

The $5,000 check arrived quickly.

Woz left three thousand in the company account and took two thousand for himself, so he could finally pay off his overdue rent.

When Jobs found out, he was naturally furious.

"You sold it?! Sold it to that Forrest Gump?!"

“Only 10%, Steve. The company needs money…”

"That's the lemon boss's brother! Aren't you just inviting a wolf into the house?!"

“The agreement states that it cannot be resold to Lemon,” Wozniak argued. “Besides, Forrest Gump is only a financial investor and does not participate in operations.”

Jobs paced angrily in the garage: "You don't understand! This is just the first step! If we buy 10% today, we can buy even more tomorrow! Then Apple won't be under our control anymore!"

"Then do you have a better idea?" Wozniak snapped. "If you don't have money, I won't sell my shares, and the company will shut down next month! What's the use of 100% ownership if the company closes down?!"

The two had another big argument.

But what's done is done.

Jobs finally calmed down and said, "Okay, now that we have external shareholders, we need to formalize things. Let's set up a board of directors, me, you, and that Forrest Gump guy sending a representative."

"Row."

“But we must retain control of the company.” Jobs stared at Wozniak. “Do you agree?”

"agree."

……

Robert reported to Suning that the transaction was complete: "Boss, the 10% stake, worth five thousand US dollars, has been transferred to Mr. Forrest Gan's name."

What was Steve Jobs' reaction?

“I’m very angry, but I’ve accepted it. Now I’m demanding that a board of directors be established, and Mr. Forrest Gump can send a representative.”

Su Ning nodded: "Who should we send?"

“I suggest sending someone discreet to keep our relationship with Lemon Technology under wraps,” Robert said. “I know a retired accountant named Henry; he’s reliable and keeps his mouth shut.”

"Okay, let's use him. Make it clear: in the boardroom, talk less, listen more, and vote for Jobs in the crucial votes—as long as he doesn't make personal computers."

"clear."

Henry soon joined the Apple board of directors as “Mr. Forrest Gump’s representative.”

The first board meeting was held in the garage.

Jobs, Wozniak, and Henry sat on a broken chair they'd bought at a flea market. "First thing," Jobs said, "Apple will focus on games for the next six months. I'm confident the console will make money."

“The second thing is that we need formal financing. Wozniak sold 10% of his shares and got $5,000, but that’s not enough. I want to raise $20,000 to give up 20% of my shares.”

Following Suning's instructions, Henry asked, "What about the valuation?"

"The post-funding valuation is $100,000," Jobs said confidently.

Woz wanted to say it was too high, but he didn't say it.

Henry nodded: "Mr. Forrest is willing to co-invest and maintain his shareholding percentage."

Jobs glanced at Henry: "You guys seem to have a lot of faith in us."

“Mr. Forrest Gump believes in your talent,” Henry said, following the script.

The financing plan was thus finalized.

Forrest Gump invested $2,000 to retain a 10% stake.

For the remaining 18% of the shares, Jobs wanted to find other investors.

Seeing that Suning and Agan actually kept their promise, Jobs's aversion lessened somewhat.

Someone as exceptional as Steve Jobs is naturally unruly, and Suning will need patience to win over this industry giant.

……

Two months later, Suning called Robert over and asked, "Robert, how's Apple doing now?"

"The game console was designed and called 'Apple Arcade,' and we were going to find a contract manufacturer to produce it. Jobs was negotiating distribution channels, wanting to put it in bars and entertainment venues."

Do you feel it has a good chance of success?

"Uncertain. Atari is currently the leader, and market competition is fierce."

After thinking for a moment, Su Ning said, "Give them a helping hand secretly."

"Help?" Robert asked, puzzled. "We're competitors."

“We have invested in Apple now,” Suning said directly. “If Apple succeeds in making games, we, as shareholders, make money. If Apple fails in making games, but accumulates experience and capital, it may return to the computer market in the future—at that time, as shareholders, we can exert influence to make them avoid Lemon’s main battlefield and make differentiated products.”

Robert understood: "You want to keep the apples alive, without letting them die, but also without letting them threaten the lemons. If necessary, you can use them to prove that the lemons don't have a monopoly—look, there are apples on the market too."

“Yes.” Su Ning nodded. “And if an antitrust investigation comes one day, I can use Apple shares to say: I’m supporting a competitor, how can that be considered a monopoly?”

"clever."

“So we should help Apple appropriately,” Suning said. “For example, we can introduce them to some contract manufacturers and offer them better prices. Or, we can let them try using Lemon’s channels—selling through authorized resellers, but they have to sign an agreement that they can only sell game consoles, not computers.”

"Would someone as proud as Steve Jobs accept help?"

"Under the guise of business cooperation, Apple's game consoles are sold through Lemon's channels, with Lemon taking a cut. It's mutually beneficial, so he's unlikely to suspect anything."

Jobs was indeed interested in the proposal.

Jack, the sales director of Lemon, went to negotiate in person and acted very convincingly.

“Mr. Jobs, our boss thinks there’s a market for Apple’s game consoles and wants to try them out through Lemon’s distribution channels,” Jack said. “But it’s limited to game consoles; it can’t include computer products.”

"Why help us?" Jobs asked warily.

“To make money!” Jack said with a laugh. “If your game consoles sell well, we’ll take a cut. This is business, not helping out.”

How much?

"15% of sales, which is 5 percentage points lower than the industry average. But you must guarantee the quality of supply and after-sales service."

Jobs did the math and thought it was worthwhile.

Lemon has 287 authorized resellers, covering major cities across the United States.

If game consoles could be sold through these channels, sales would definitely increase significantly.

"Okay, let's cooperate."

The agreement has been signed.

Apple game consoles started appearing in Lemon Technology's dealer stores, placed in a corner, but at least they had entered the mainstream channels.

In the first month, more than two hundred units were sold.

Although it wasn't a huge amount, it was a massive success for Apple.

Finally, we have a stable cash flow in our accounts.

……

At the quarterly summary meeting, Suning looked at Apple's report and showed a satisfied expression.

"Apple now has monthly revenue of around $10,000, barely making a profit. Jobs and Wozniak can be paid salaries, and the company has survived."

"Boss, is it really a good idea for us to support potential competitors like this?" Lisa was still a little worried.

“Let me ask you,” Suning said, “what would happen if Apple died and lemons were the only dominant player in the market?”

"We will monopolize the market."

"and then?"

"Then... the government might investigate, customers might feel that we are a big company bullying them, and the media will write negative reports."

“Yes.” Suning nodded. “So we need Apple to survive. To survive in a way that’s neither too good nor too bad, to have a certain presence, but not to pose a threat. That way everyone can see that the market is open, there is competition, and lemons are not monopolized.”

He paused for a moment, then continued, "And through our Apple shares, we can know exactly what they're doing. If they decide to get into computers again, we'll know in advance and be prepared. If they continue making games, we'll make money as shareholders. We won't lose money either way."

The executives were all convinced.

This game went too far.

……

Apple is alive again; Jobs' ambition has returned.

At a board meeting, he proposed a new idea: "I think the game console market is too small, and we should consider returning to computers."

Wozniak frowned: "Steve, we've just stabilized..."

“But not a personal computer like Lemon.” Jobs’ eyes lit up. “Something different. Like… a computer that focuses more on design and user experience.”

Henry, representing Agan, spoke as instructed by Suning: "Mr. Jobs, differentiation is a good strategy. But it requires a lot of R&D investment, and Apple doesn't have enough funds right now."

“So we need to raise more money,” Jobs said. “I want to make a prototype and show it to investors. It will cost about... fifty thousand dollars.”

"What is the company's current valuation? Can you raise 50,000?"

"If the prototype is built, the valuation could reach 500,000," Jobs said confidently.

Wozniak sighed, "Another empty promise."

But Jobs had already made up his mind. He let Wozniak start designing the new computer while he went to find the funding himself.

……

Henry immediately reported the situation to Suning.

"Jobs wanted to make a new computer and take a differentiated approach."

"In what specific direction?"

"I don't know yet, but from what he said, he wants to make a 'computer that is like an art piece,' with design as the top priority."

Suning pondered.

This is indeed a different path.

Lemon takes a pragmatic approach—high cost-performance ratio, full functionality, and annual upgrades.

If Apple focuses on design and creates high-end, aesthetically pleasing computers with a superior user experience, it could indeed open up new markets.

“Let them do it,” Suning finally decided, “but control the pace of funding. When they raise funds, we will co-invest, maintain our shareholding ratio, and may even increase our shareholding appropriately. But don’t let them raise too much money; let them develop slowly.”

"Why? Shouldn't it be nipped in the bud?"

“If Apple makes a high-end computer, it will attract a group of users who value design and experience,” Suning analyzed. “These users were not Lemon’s target customers in the first place—they are willing to pay a high price for design and experience. If Apple succeeds, it will actually help us educate the market: a computer can be more than just a tool; it can also be a work of art.”

“Moreover,” he added, “once Apple establishes itself in the high-end market, we can launch a premium series for Lemon and directly reap the rewards. They pave the way, and we follow suit. It saves time and effort.”

Robert was full of admiration: "Boss, you're using apples as an experimental field."

“That’s right.” Suning smiled. “If they succeed, we learn from them, follow up, and surpass them. If they fail, our losses as shareholders are limited, and we also lose a potential competitor. Either way, we don’t lose out.”

……

By mid-1973, Suning's layout was basically completed.

Lemon Technology firmly occupies the mainstream personal computer market, with monthly sales exceeding 5,000 units and a market share of over 70%.

Apple Technology survives in the shadows, making a small profit from game consoles, and has also begun secretly developing "artwork computers".

Suning has increased its stake in Apple through its brother, Agan, and now holds 15% of the company, allowing it to stay informed and exert influence.

More importantly, there appears to be competition in the market…

There are lemons, apples, and several other small companies.

No one can say that lemons are a monopoly.

At an industry forum, a reporter asked Suning, "Mr. Su, now that Lemon has such a large market share, does this constitute a monopoly?"

Suning answered calmly: "The market is open. Apple is right next to us and doing quite well. If it were a monopoly, Apple would have died long ago. This shows that there is sufficient market competition and users have choices."

When he said this, he knew perfectly well why the apple could survive.

It wasn't because of sufficient market competition, but because he needed Apple to survive.

Business warfare is not just about fighting and killing, but also about calculation and planning.

Suning, on the other hand, is like playing chess, controlling the opponent's pieces while making the board appear fair.

This is the most skillful form of competition: making the opponent think they have a choice, when in fact all paths are within one's own calculations.

...(End of chapter)