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Chapter 2266 Ticket

In the afternoon, Galvin and Martin called all the core members of the DynaTAC project team to the small conference room.

"Everyone, take a look at this." He pushed Lemon Technology's technical documents over.

The researchers initially didn't take it seriously, but after reading a few pages, their eyes widened in disbelief.

"This power management module... is 40% more efficient than ours!" one of the key personnel pointed to the blueprints. "And this miniaturized design, with the same functionality, is only half the size of ours!"

Tom also came over to take a look: "Their heat dissipation solution is very clever. They use composite materials instead of metal, reducing the weight by 60%..."

"Where's the battery?" someone asked.

"The nickel-cadmium batteries we developed in cooperation with Japan have an energy density that is 20% higher than the ones we use," R&D Director Martin quickly replied.

"What? If we apply these technologies to DynaTAC..." Tom was shocked, then quickly calculated in his mind: "The device weight can be reduced to less than 2 pounds, talk time can be extended to 45 minutes, and standby time can be doubled. Most importantly—the cost can be reduced by 30%."

A collective gasp filled the conference room.

"How...did they do that?" Tom asked incredulously. "We've been researching this for six years..."

“Because they think from a computer’s perspective,” Galvin pointed out. “Our engineers think about ‘how to make cordless phones work,’ while their engineers think about ‘how to make electronic devices smaller, lighter, and more energy-efficient.’ That’s a difference in mindset.”

Tom put down the document, his expression complicated: "Chairman, if we cooperate, can we really get DynaTAC to go public ahead of schedule?"

"Mr. Gan, the founder of Lemon Technology, promised that mass production would begin within 18 months of the collaboration," Galvin said, "two years faster than our own plan."

Two years!

In the realm of technological competition, two years can mean the life or death of a standard.

At this point, the entire R&D team was excited, as they naturally wanted something that could quickly bear fruit.

……

That evening, Galvin invited John, the director who had the strongest opposition, to dinner at the club.

John Sr. is seventy years old and one of the founders of Motorola; his words carry considerable weight.

"Robert, do you really believe that Chinese kid?" Old John called Galvin by name. "Lemon Technology has only been established for six years, its foundation is unstable. Besides, they make computers, what do they know about communications?"

“But they understand the market.” Galvin poured old John a drink. “John, do you remember when we made our first car radio? Everyone said that listening to the radio in a car was a gimmick and no one would buy it.”

Old John recalled the past and laughed: "As a result, we changed the entire industry."

“It’s the same now,” Galvin said earnestly. “The DynaTAC project was like the car radio back then—the technology was there, but they didn’t know how to make it something that ordinary people would want. Lemon Technology is good at this; they’ve turned computers from tools for professionals into toys for ordinary people.”

"But relinquishing controlling stake..."

“It’s not about giving up, it’s about sharing,” Galvin corrected. “We retain a 51% controlling stake, and the communications patents are still ours. They only have the right to use them, but they bring us what we lack most—the ability to turn technology into a best-selling product.”

Old John drank his wine in silence.

“John, I’m telling you the truth,” Galvin said in a low voice, “If the DynaTAC project continues to burn through money like this, the board will definitely cut it next year. Six years of investment down the drain, and we’ll all become the sinners in the company’s history.”

"But what if the collaboration succeeds?" Old John asked.

“Then we will be pioneers in ushering in the era of mobile communications.” Galvin’s eyes lit up. “Just imagine, Motorola and Lemon joined forces to create the world’s first truly commercially available mobile phone. This will go down in history.”

These words touched old John.

At his age, money is no longer the most important thing; the allure of leaving a mark on history is greater.

“Actually, I’ve already reviewed the proposal in detail, and the design of the independent director is very clever.” Old John finally relented. “Dean Birch… is indeed a suitable candidate.”

"You agree?"

"Let me think about it some more." Old John didn't give a definitive answer, but his attitude clearly softened.

……

The following day, Galvin convened a plenary meeting of the DynaTAC project.

More than thirty engineers and researchers were crammed into the conference room, many of them looking worried—they had all heard that the project might be canceled.

"Ladies and gentlemen, I have two pieces of news," Galvin said, standing at the front. "The bad news is that, at the current pace, the board of directors may scale back or even terminate the DynaTAC project by the end of the year."

The conference room was dead silent.

Six years of hard work...

“But the good news is—” Galvin raised his voice, “we’ve found a powerful partner. Lemon Technologies, they’re willing to invest five million dollars in cash, along with their state-of-the-art miniaturization and power management technologies, to work with us on the DynaTAC project.”

He presented the new timeline after the collaboration: "If the collaboration goes smoothly, we will launch a mass-producible prototype within eighteen months. The product will be available on the market within twenty-four months."

"Eighteen months?!" someone exclaimed. "Our own plan is thirty-six months!"

"Because their technology can solve some of our most troublesome problems." Martin stood up and explained, "I studied their solution carefully, and it is indeed a generation ahead of ours in terms of power management, heat dissipation, and miniaturization."

One of the key personnel raised his hand and asked, "So... are we still leading the research and development?"

"Motorola will lead the communications technology portion, while Lemon will lead the hardware integration and human-computer interaction portion," Galvin clearly defined the division of labor. "Each company will send a team to form a joint project team. The office location... will be in Chicago, close to headquarters."

The engineers began to whisper among themselves.

My mood changed from worry to anticipation.

“This means,” Galvin looked around at everyone, “that your six years of research will not have been in vain. Moreover, you will be among the first people in the world to truly bring mobile phones to market.”

The applause rang out and grew increasingly enthusiastic.

……

Soon, Suning received a call from Galvin.

"Mr. Gan, the board of directors has agreed. However, some terms need to be adjusted."

At 2 p.m., the lawyers for both sides held final negotiations in the Motorola conference room.

The terms and conditions were reviewed one by one, with heated debate ensuing.

Regarding equity, the final compromise was: Motorola 51%, Lemon Technology 49%. However, the board will consist of five members: three from Motorola and two from Lemon Technology. There will be one independent director, jointly nominated by both parties, who will have veto power on key matters.

Regarding patents, the joint venture owns full intellectual property rights to all technologies developed in cooperation.

The joint venture has unlimited rights to use Motorola's existing patents, paying a licensing fee of 1% of sales revenue (far below market price).

Regarding product planning, the first-generation product, "Moving Man," was scheduled to be released at the end of 1976 and launched in early 1977.

The price is tentatively set at $3999, with a target annual sales volume of 50,000 units.

Regarding market channels, in the first two years, sales were mainly handled by Lemon Technology's channels, with Motorola's channels providing supplementary support.

Starting in the third year, all channels between the two parties were fully open. At 5 PM, all terms were agreed upon.

During the handshake, Galvin said, "Mr. Gan, I hope we won't regret this decision."

Suning smiled and said, "Mr. Galvin, I only regret missing opportunities, never seizing them."

……

Three days later, the signing ceremony was held in the lobby of Motorola's headquarters.

More than twenty media outlets arrived, their cameras and microphones aimed at the podium.

The collaboration between Motorola and Lemon Technology has caused quite a stir in the industry.

Galvin and Suning shook hands amidst a flurry of flashing lights.

“Mr. Gan, I hope we can have a pleasant collaboration.” Galvin smiled.

“Definitely, Mr. Galvin,” Suning replied. “It’s a win-win situation.”

Signatures, exchange of documents, and another handshake. Champagne is opened, and the celebration begins.

During the media interview session, the reporters asked pointed questions.

A Wall Street Journal reporter asked, "Mr. Galvin, why is Motorola partnering with a computer company on a communications project? Does this mean the DynaTAC project is facing difficulties?"

Galvin was prepared: "On the contrary, this means we see even greater opportunities. Personal computers and mobile communications are two major directions for future technological development. The collaboration between Motorola and Lemon represents the fusion of these two cutting-edge technologies."

A reporter from the Chicago Tribune asked Su Ning, "Mr. Gan, why is Lemon Technology venturing into the communications field? Won't this divert your attention from your computer business?"

Suning responded tactfully: "The essence of technology is connection—connecting people with information, and connecting people with each other. Computers solved the former, and mobile communications solved the latter. Our cooperation is to create a more complete future experience."

In a corner of the reception, Martin and Zhang, the technical director sent by Lemon Technology, were already having a heated discussion.

"What is the mass production cost of your heat dissipation material?"

"If we mass-produce it, we can reduce the cost to one-third of what it is now," said Engineer Zhang. "The key is the process..."

"If we were to use it on DynaTAC, we would need to adjust the structural design..."

The two tech enthusiasts hit it off immediately, and started sketching with their wine glasses in hand.

……

On the plane back to California, Suning looked out at the clouds.

The assistant asked, "Boss, why do we have to cooperate with Motorola? Can't we develop it ourselves?"

“There isn’t enough time,” Suning said. “Most of the basic patents needed for mobile communications are held by Motorola, AT&T, and Nokia. Developing them from scratch would take at least five years. By then, the market landscape would already be set.”

"But relinquishing controlling stake..."

“Controlling stake is not important; actual control is what matters,” Suning explained. “We will lead the joint venture’s technology research and development, and we will separately acquire the patents held by Nokia and AT&T. In terms of product sales, our channels will account for the majority. As long as the product is successful, it doesn’t matter who owns 51%. What matters is that Lemon Technology has officially entered the communications industry and has a ticket to the door.”

He looked out the window; the setting sun blazed like fire on the horizon.

Personal computers, mobile communications, patent strategy, Apple as a high-end brand...

The chessboard has been set up, and the pieces are all in their positions.

Next, we await the unfolding of the era and see how he will play his own legendary role in this grand game.

Today's collaboration with Motorola is a crucial step in this game.

The era of mobile communication is coming, and he is already standing at the door.

……

A week after the signing, Motorola issued a memorandum, personally signed by Galvin.

The memo is titled: "Strategic Positioning of the DynaTAC-Lemon Joint Project".

The document clearly states: "The cooperation with Lemon Technology is not just a collaboration on a single project, but a strategic move by Motorola for the next decade. This project has the highest priority, and all departments must fully cooperate."

This is rare in Motorola's history. Usually, only military orders or major government projects receive this treatment.

Resources began to be allocated: the DynaTAC-Lemon joint project team was granted an entire floor of office space in the headquarters building; the finance department granted a green channel, eliminating the need for multiple levels of approval for equipment procurement; and the human resources department allowed the project team to recruit top talent at salaries 20% higher than the market rate.

More importantly, Motorola elevated this collaboration to the level of a "corporate survival strategy".

In a closed-door meeting with senior executives, Galvin put it more bluntly: "Gentlemen, we are at a critical juncture of transformation. The walkie-talkie market is shrinking, and the semiconductor business is highly competitive. If DynaTAC succeeds, Motorola can open up a whole new market worth hundreds of billions of dollars. If it fails... we may be eliminated by the times like many established companies."

"Lemon Technology is not a savior, but a catalyst. They bring not only money and technology, but more importantly, a new way of thinking—how to make products that consumers truly want."

"Therefore, this collaboration must succeed. This is not just a project; it is the future of Motorola."

Two weeks later, the joint project team was officially established.

At Motorola, Martin served as Director of Communications Technology, leading a team of fifteen people.

At Lemon Technology, Mr. Zhang serves as the Hardware Integration Director, leading a team of twelve people.

In addition, there are software teams, design teams, and testing teams jointly established by both parties, totaling more than sixty people.

Both Suning and Galvin attended the first plenary meeting.

Suning's speech was brief: "I'll only say three things. First, forget which company you come from; now you are a team. Second, be bold in innovation and don't be limited by existing technology. Third, put the user first—we're not making the kind of phone engineers want, but the kind of phone ordinary people want."

Galvin added, "Resources are not the problem, time is. Our goal is eighteen months. Every day is precious."

After the meeting, Zhang and Martin stayed in the conference room, looking at the timetable on the whiteboard.

“Eighteen months…” Zhang took a deep breath, “It’s very tight.”

“But it’s possible.” Martin pointed to the technology roadmap. “If your power management module is in place by September, and our RF module is optimized by December, we can produce the first prototype by June next year, test it for six months, and start mass production in January the year after…”

The two became more and more excited as they talked, as if they could already see that future where people could freely make calls anytime, anywhere with their mobile phones.

That was a communication era that they were about to usher in themselves.

All of this began when a bewildered established giant seized an olive branch from an emerging giant.

This was indeed a lifeline for Motorola.

For Lemon Technology, this is a ticket to the future.

For the entire history of science and technology, this is the prelude to a new era, which is slowly unfolding.

...(End of chapter)

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