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In July 1975, the atmosphere in the research and development laboratory at Motorola's headquarters in Chicago was somber.

Martin, the head of the DynaTAC project team, put down the test report in his hand, took off his glasses, and rubbed his temples.

The night was deep outside the window, and he was the only one left in the laboratory.

"It's been six years..." he murmured to himself.

The prototype on the table was as big as a brick, weighed 2.5 pounds, and could only make calls for 30 minutes on a single charge.

Each test revealed new problems: unstable signal, overheating battery, poor call quality...

The most fatal flaw is the cost.

The finance department just sent an estimate: even with mass production, the cost per unit will exceed eight thousand US dollars.

This does not include the costs of base station construction and network maintenance.

"Martin, you're still here?" Tom, a young engineer from the project team, poked his head in.

“Where are you going?” Martin said with a wry smile. “The test data for this month didn’t meet the target again. The board has asked three times when we can expect to see any hope of commercialization.”

Tom poured himself a cup of coffee and placed it on the table: "Are the higher-ups pushing for faster progress again?"

“It’s not just about pushing for progress; we’re considering whether to cut the project.” Martin’s voice was weary. “We’re burning through millions of dollars in R&D every year, and after six years, we still can’t see any hope of making a profit. The shareholders are having complaints.”

Tom was silent.

He understood Martin's pressure.

The DynaTAC project was launched in 1969 with the ambitious goal of "freeing the telephone from the wires".

But reality is harsh; one technical challenge after another arises, and the market prospects are unclear.

The most critical issue is that competitor AT&T is also researching similar technology, and is progressing much faster.

If AT&T launches the standard first, Motorola's six years of investment will be wasted.

……

The atmosphere was somewhat subtle inside Motorola's headquarters building on the outskirts of Chicago.

Chairman Robert Galvin's secretary confirmed for the third time: "Sir, are you sure you want to meet with the founder of Lemon Technology alone? He didn't make an appointment beforehand, and..."

"And he's only thirty-two, of Chinese descent, and his company has only been established for six years," Galvin added, a slight smile playing on his lips. "But he's given IBM a headache and made DEC suffer setbacks. It would be foolish not to refuse someone like that who comes knocking on your door."

"Alright! Let's see what he's asking for."

"Don't be nervous! Perhaps it's a pleasant surprise?"

Ten minutes later, Suning was invited into the top-floor office.

The office was large, and the walls were covered with historical photos of Motorola...

From car radios to walkie-talkies, and then to the first mobile phones.

Galvin was over sixty years old, with gray hair, but his eyes were as sharp as an eagle's.

“Mr. Gan, it’s an honor to meet you.” Galvin stood up and shook hands. “My grandson has been clamoring to buy your Lemon computer, saying that the coolest kid at school uses it.”

“Mr. Galvin, our factory also uses Motorola’s wireless equipment,” Suning replied with a smile.

After a brief exchange of pleasantries, the two took their seats.

"So, what wind blew this rising star from Silicon Valley to our old-school telecommunications company?" Galvin asked bluntly.

Su Ning took a document out of his briefcase and pushed it in front of Galvin.

"This is our market analysis report. Over the next decade, the personal computer market will continue to grow, but the growth rate will slow down. Meanwhile, the communications equipment market, especially mobile communications, will experience explosive growth."

Galvin glanced at the report; the data was detailed and the predictive model was very professional.

"So you came to Motorola to... buy our walkie-talkies? Or car phones?" Galvin asked, his tone slightly teasing.

"I want to work with Motorola to develop the next generation of personal communication devices," Suning said directly.

What exactly does it refer to?

“A portable wireless phone that can be used anytime, anywhere.” Suning drew a sketch on paper. “It’s like a walkie-talkie, but it doesn’t need a base station to relay calls; it connects directly to the telephone network. It’s like a landline phone, but without a wire.”

Galvin leaned forward slightly: "You know we're researching this, right?"

“I know about the DynaTAC project.” Suning nodded. “You did the first public demonstration in New York in 1973. But that device weighed 2.5 pounds, had a talk time of only 30 minutes, and took 10 hours to fully charge. And the price… was estimated to be tens of thousands of dollars.”

Galvin's smile vanished.

These are Motorola's internal data, and the other party knows them perfectly well.

“Lemon Technology wants to get involved,” Suning continued. “We have something that Motorola doesn’t have.”

"for example?"

“First, miniaturization technology.” Suning opened the second folder. “The Lemon 6 motherboard is 40% smaller than it was three years ago, and its power consumption has been reduced by 35%. These technologies can be directly used in communication devices to make mobile phones smaller and lighter.”

Galvin carefully examined the technical specifications and found them to be indeed advanced.

“Secondly, human-computer interaction experience,” Suning said. “Motorola excels in hardware, but user interfaces…excuse my bluntness, your walkie-talkies and car phones are too complicated to operate. Lemon has the best graphical interface designers in the United States, and we can make mobile phones as simple and easy to use as Lemon computers.”

“Third,” Suning held up his third finger, “market channels. Lemon Technology has 287 authorized resellers across the US, covering major cities. If we cooperate, these channels can directly sell mobile phones.”

Galvin pondered for a moment: "That sounds good. But why should Motorola share the pie with you? We can make it ourselves."

“Because of time,” Suning pointed out incisively. “Motorola has been developing the DynaTAC for six years, but it hasn’t gone into mass production yet. Why? Technical difficulties are one aspect, but more importantly, you are waiting for the market to mature and for costs to decrease.”

"If we collaborate, Lemon can contribute miniaturization and power management technologies, which can reduce the weight of the device by at least 30% and extend the standby time by 50%. This would allow the product to be launched two years earlier, seizing the market opportunity."

Galvin fell silent, calculating rapidly in his mind.

Suning then made a crucial statement: "Moreover, Motorola is competing with AT&T on communication standards. If our collaborative equipment hits the market first and becomes mainstream, then Motorola's standard is more likely to be adopted."

That statement hit the nail on the head.

"Tell me your specific plan," Galvin finally relented.

“A joint venture.” Suning was prepared. “Motorola will contribute communication technology and patents, while Lemon Technology will contribute miniaturization technology, power management technology, and market channels. The two parties will each hold 50% of the shares, jointly conduct research and development, jointly produce, jointly sell, and jointly own the patents.”

“50% is too much,” Galvin shook his head. “Communication patents are our core assets.”

“But turning these patents into best-selling products requires our technology,” Suning insisted. “Moreover, we can invest cash. In the first round of investment, Lemon can contribute five million US dollars.” Five million was a huge sum in 1975.

Galvin was tempted, but he was still hesitant.

“Furthermore,” Suning added, “if we cooperate, all of Lemon Technology’s future products—computers, office equipment, and even other electronic products—will prioritize the use of Motorola’s communication chips and modules.”

This is a long-term commitment to binding.

Galvin tapped his fingers on the table, a habitual gesture he made when he was thinking.

"What's the product called?" he suddenly asked.

“You could call it the Motorola-Lemon series, or create a new brand,” Suning said. “But for the first generation of products, I suggest calling it ‘Mover,’ which is simple and easy to remember.”

"Or just create two different brands, one called Motorola Mover and the other called Lemon Mover."

What about market positioning?

"High-end business professionals." Suning's strategy is clear: "The price can be higher. The initial target is not the mass market, but rather to allow corporate executives, lawyers, doctors, and other people who need to communicate anytime, anywhere to use it first. They are opinion leaders and can drive subsequent consumption."

Galvin laughed: "You've even thought of marketing."

“When I make products, I never just make products,” Suning said. “I build a complete ecosystem.”

Then Galvin called in Martin, Motorola's technical director.

Martin was a typical engineer, in his fifties, wearing thick glasses.

He had heard of Lemon Technology, but was skeptical.

"Mr. Gan, to what extent exactly is the miniaturization technology you mentioned?" Martin asked in a very technical manner.

“We can reduce the area of ​​the control circuit board by 40%.” Suning pulled up the technical documents. “This is the power management module of the Lemon 6. It has the same function, but its size is only one-third of similar products on the market. Moreover, the Lemon 6 computer will be available in October.”

Martin examined the blueprints carefully, his eyes gradually brightening: "This design is ingenious... How did you solve the heat dissipation problem?"

“We used a new type of composite material that has good thermal conductivity and is lightweight,” Suning said. “We have already applied for a patent for this technology, which can be licensed to the joint venture. So, sharing the communication technology patent will not disadvantage Motorola.”

"What about the battery? The biggest bottleneck for mobile phones is the battery."

“We have jointly developed a new nickel-cadmium battery with a Japanese company, which has an energy density 20% higher than existing products.” Suning showed test data, “When used in our prototype, the talk time can reach 45 minutes and the standby time is 8 hours.”

Martin looked at Galvin, his eyes saying: These technologies are indeed useful.

Galvin asked the crucial question: "If we cooperate, how much can the R&D cycle be shortened?"

Suning gave a conservative estimate: "If we sign the contract today, we can produce a mass-production prototype by this time next year. The product will be launched in the first quarter of the year after next."

This was at least eighteen months ahead of Motorola's own plans.

The negotiations lasted for three hours.

The main disagreements lie in two points: the equity ratio and the scope of patent licensing.

Galvin insisted that Motorola should have a 51% controlling stake because communication patents were core and he did not want communication technology patents to be shared.

Suning disagreed: "We can give Motorola controlling stake, but the board voting rights must be equal. Major decisions require the consent of both parties, and the patented technology must be jointly owned. We don't want to be an angel investor who ends up with nothing."

"What if things reach a stalemate?"

“We will appoint an independent director, a third party trusted by both parties.” Suning was well-prepared. “I suggest that former FCC (Federal Communications Commission) Chairman Dean Birch be appointed.”

Galvin was surprised by the suggestion, but upon closer examination, he realized it was indeed appropriate.

Birch is highly respected in the industry and has retired, maintaining a neutral stance.

Finally, negotiations regarding patent licensing became the sticking point. Suning ultimately demanded that the joint venture have full access to all the technologies developed in cooperation, while the joint venture could license Motorola's other patents at a preferential price.

“If we develop revolutionary technology, other Motorola divisions that want to use it will have to pay licensing fees to the joint venture,” Suning emphasized. “That’s fair.”

Galvin thought about it for a long time.

Finally, he said, "I need to discuss this with the board."

“Of course.” Su Ning stood up. “This is the full text of my proposal. Please take your time to read it. My flight back to California is the day after tomorrow afternoon. Until then, I will await your reply.”

He walked to the door, then turned back and said, "Mr. Galvin, in the era of personal computers, Lemon caught the first train. In the era of mobile communications, the first train is pulling into the station. Whether or not you get on board will determine who leads the way in the next decade."

"..."

……

The atmosphere was tense at Motorola's monthly board meeting the following morning.

CFO Johnson is reporting on the DynaTAC project's expenditures: "...Over the past six years, the project has invested a total of $23 million. At the current pace, it will take at least three more years to achieve commercialization, with an estimated additional investment of $15 million."

"Forty million US dollars?!" One of the directors almost stood up. "Just to make a 'movable brick'? And there's no guarantee of success?"

The VP of R&D attempted to explain: "This is future-oriented technology; once successful..."

“The future? Who knows what the future holds!” another director interrupted. “The economy is sluggish right now, and the company’s main businesses—walkie-talkies and semiconductors—are both experiencing declining profits. I think it’s unwise to continue throwing money into a bottomless pit at this time.”

The meeting room was divided into two factions.

Conservatives insist: "The DynaTAC project should be scaled down, retaining only basic research and investing resources in profitable businesses."

Activists countered: "This is a strategic investment! If Motorola misses out on mobile communications, it might miss the next era!"

Chairman Galvin remained silent until the argument had nearly ended, then slowly spoke: "Yesterday, I received a cooperation proposal."

Then he distributed copies of Lemon Technology's proposal to everyone.

"Lemon Technology? That computer company?" someone frowned. "Do they even know anything about communications?"

“They don’t understand communications, but they understand miniaturization, power management, and consumers,” Galvin said. “More importantly, they are willing to invest money—five million dollars in cash, plus their core technology.”

The meeting room quieted down as everyone looked at the proposal.

It's important to understand that this was the most confusing period in Motorola's history, as they didn't release their first mobile phone until 1983.

So Motorola was really suffering because it hadn't seen any profits or returns for a long time. The emergence of Lemon Technology was like a divine intervention.

...(End of chapter)