Tech startup: I really do make mobile phones!

Chapter 246 Technological Orange
The day after the press conference, just after eight o'clock in the morning.

The familiar alley in Shenzhen that leads to the North China Strong Orange Technology office is now completely blocked by a surging crowd.

The heads and buyers of various distributors craned their necks, anxiously staring at the tightly closed roller shutter door.

"Make way! Make way! Let us through to open the door!"

Five young men dressed in Orange Technology's marketing department channel team uniforms struggled to push through the crowd, their foreheads covered in sweat.

They were the specialists in charge of the North China Strong Office. Originally there was only one person, but as Orange Mobile's distribution business in North China Strong increased, the number was increased to five.

The crowd began to stir as soon as the roller shutter was halfway up.

"Commissioner Wang! Commissioner Wang! It's me, Fatty Liu from Jinan!"

A portly boss was waving his arms.

"Give me 5,000 Orange 3s! No, 8,000! Cash only! Have the finance department transfer the payment via Orange Pay immediately, no delays!"

Another voice immediately shouted, "Old Wang! We've cooperated so many times, this time you absolutely have to send me three thousand units to Zhengcheng first!"
My dozens of secondary distributors have been calling me non-stop. If I don't supply them with goods soon, they're all going to come to Shenzhen and tear down my stall!

"What? You don't have any stock in your warehouse right now?" Someone's voice changed upon hearing the specialists' explanation: "When will we have it? Tomorrow? Tomorrow is too late! My phone lines are practically going crazy with calls to chase up the delivery!"

As Wang received one almost identical call after another urging delivery, he felt a chill run down his spine as he watched the growing number of agitated distributors gathering at the door.

He shouted to his equally overwhelmed colleague, Lao Li, "Quick! Call the headquarters supply chain team and the contract manufacturers again to urge them to increase production!"
Ask if we can allocate some of the inventory reserved for e-commerce channels to prioritize our core channels in North China, such as first-tier cities and provincial capitals!

These oranges are selling like hotcakes!

As Old Li dialed the number, he complained, "E-commerce inventory? What are you thinking! Yesterday, the official website and platform flagship stores were sold out in ten minutes after the links went live, didn't you know? There aren't any spare machines left!"

At the same time, on the first floor of the Shancheng Bancheng Building, was the Orange Technology flagship store.

At 8:30 a.m., half an hour before the store officially opened, a long, winding queue had already formed outside the store, stretching for nearly a hundred meters.

The queue included students who stayed up all night to wait, young white-collar workers who took time off work to come, and many parents who came to buy things for their children as a reward after the college entrance examination.

As soon as the store door opened, the crowd surged in like a flood.

The exhibition area was instantly packed with people.

"Let me touch it! Let me touch that logo that changes color!"

"This feel, the quality of this casing, is it really only 999? Am I dreaming?"

"Shop assistant! Shop assistant! Get me one in coral blue, just give me the receipt, I want this one!"

A long queue quickly formed in front of the cashier, and the staff were so busy that they didn't even have time to drink water.

Chen Lan beamed with joy as she watched the POS machine continuously spit out sales receipts and the rapidly decreasing inventory figures on the computer backend, which were about to run out.

While directing the restocking, she immediately picked up the phone and urgently sought help from Wang Cunhao, the head of the channel team, to request more supplies.

In the vast fifth and sixth-tier towns and villages, the Nietzsche mobile phone factory direct-sale stores have also seen a long-awaited return of activity.

At the store entrance, a loudspeaker played a loop of the message, "Orange 3, only 999, take home a 4G phone!" which was particularly eye-catching.

Many customers who were just passing by or planning to look at the Nietzsche 2 and other products were attracted by the Orange 3's cool appearance and incredible mid-range configuration, and stopped to take a look.

With this configuration and this price, Orange is directly undermining the mid-range market by leveraging the low cost of its self-developed components!
"Boss, is your Orange 3 really like the ad says, able to play those online racing games without lag?"

"Don't worry! Look at the back of this phone, when it gets hot while playing games, the orange logo changes color and lights up, it's super high-end! Let me tell you, this configuration is just as good as those phones that cost two thousand yuan on the market!"

"Wow, that's amazing! My Nietzsche 1 is so laggy, I'll take one! This price is such a steal!"

Leveraging Nietzsche Channel's extensive network reaching deep into counties and townships, the popularity of the Orange 3 spread like wildfire to the lower-tier markets, quickly becoming a "cost-effective marvel" in the eyes of countless young people in small towns.

As for wheat, it's known online for its high cost-performance ratio. But now that we have "Nietzsche" with guaranteed quality and "Orange" with its own low-cost, high-performance supply chain, offline consumers don't recognize wheat as cost-effective!
The online battlefield is also in a very favorable situation.

At 10:00 AM yesterday, after the press conference ended, the Orange 3 went on sale online for the first time on Orange Technology's official website and flagship stores on various partner e-commerce platforms.

"Countdown 3, 2, 1, link up!"

Almost the instant the purchase link lit up, the inventory numbers began to jump wildly at an astonishing speed.

In just a few dozen seconds, as if it were just the time it takes to refresh a page, the first batch of tens of thousands of mobile phones were all displayed as grayed out "sold out".

"That's it? I only hesitated for a second before deciding which color to choose!"

"Damn it! How much stock did you guys actually prepare? Are you putting on a show?"

"Please restock! @OrangeTechOfficial, please restock quickly!"

The customer service backend was instantly flooded with inquiries about restocking times.

Colleagues in the software team of the technical department stared nervously at the server monitoring screen. Despite having made ample preparations for capacity expansion, the sudden surge of traffic, comparable to that of a top e-commerce promotion, still caused the system to issue an overload warning.

Because of the passive "hunger marketing," consumer enthusiasm was completely ignited on major social media platforms.

[First on the entire internet! Hands-on experience with the Orange 3 Obsidian Black – the build quality is absolutely amazing!]

[Real-world test of the Orange 3 cooling system: After playing "Orange Wars" for an hour continuously, the back of the phone flashed orange light. Although the frame rate was slightly lower, it remained rock-solid!]

[Wang Gehu Review: A Well-Deserved King of Budget Phones? Orange 3 In-Depth Experience Report: Aside from the charging port, I can hardly find any flaws!]

[Just got this from the store downstairs, a reward for my college entrance exam. My parents both say it's good-looking and inexpensive. Orange is awesome! (voice cracks)]

Countless users spontaneously became "word-of-mouth promoters," enthusiastically sharing their purchase experiences, usage insights, and real-life photos and videos.

"Color-changing logo", "Smooth gameplay", and "Explosive cost-effectiveness" have become frequently used keywords that have gone viral.

The Orange 3's reputation as the "king of budget phones" spread across the internet overnight.

The tech media reacted just as quickly.

The Orange 3's initial sales were a huge success, potentially redefining the market landscape for budget smartphones.

[Looking at the rise of the domestic supply chain from the Orange 3: The synergistic cost effect of the Maritime Silk Road chip, Orange Technology's motion-sensing control system, glass body cover, cooling system, and Far Orange battery is beginning to emerge]

[A phenomenal product? The Orange 3 ignites the market with its extreme cost-effectiveness and differentiated design; is the Orange aiming for the mid-range market?]

Discussions about the Orange 3 have even transcended the tech world itself, sparking wider public attention and debate.

"Did you manage to snag an Orange 3?" has almost become a new greeting among friends.

Chen Mo's office is located on the 16th floor of Building B in the Far Orange Building.

Lin Xiaoxia walked in quickly, carrying a preliminary sales data report that was still warm from the printer, her face filled with barely suppressed excitement.

"Mr. Chen, it's out! It's completely out!"
The orders from North China were so high that they overwhelmed our servers. The first batch of stock in all our directly operated stores was almost completely sold out within hours of opening, and online channels sold out in seconds!

The entire internet is talking about our Orange 3!

The last time Orange Technology gained this much attention online was when Fantasy Liu and Ali Ma kicked it when it was down!

Chen Mo stood in front of the floor-to-ceiling window, looking down at the scene in the Far Orange Industrial Park below, which seemed busier and more vibrant than ever before.

Listening to Lin Xiaxia's report, a smile appeared on his face that was both expected and tinged with emotion.

Users of the Orange 1 have been using it for about three years. This year, the sales volume of the Orange 3 has exploded because of the combination of old users upgrading their phones and the high cost-performance ratio of the Orange 1.

"Once the notice is issued, the supply chain must operate at full capacity to ensure that production capacity keeps up, while the quality control of outsourced contract manufacturers must be strictly enforced without any slackening."

The marketing department is closely monitoring feedback and user reviews across all channels, especially genuine feedback on the color-changing effect of our cooling system. This is our first time using a cooling system, so we need to be cautious!

He turned around, his eyes bright and determined. "This is just the beginning! We want to make the word 'Orange' truly synonymous with 'technology equality' in the public's mind."

The sales storm sparked by the Orange 3, much like its unique blue-to-orange gradient logo that lights up when in operation, spread like wildfire throughout the market as soon as it was lit.

The following day, Lin Xiaoxia, the marketing manager, walked briskly into Chen Mo's office again, carrying a more detailed report, her face beaming with barely suppressed excitement.

"President Chen, the final data is in!" Her voice trembled slightly with excitement: "Orange 3's total sales across all channels in the first 24 hours—78.5 units!"

She placed the report solemnly on Chen Mo's desk, adding:
"This has broken the single-day sales record set by the Samsung Galaxy S2 in China last year, and created a new 24-hour sales record for the domestic smartphone market in 2012!"
Moreover, our inventory turnover rate is extremely high, and feedback from our channels indicates that most regions are still experiencing severe stockouts, and market demand is far from being met!

Chen Mo looked at the striking number on the report and tapped his fingertips lightly on the smooth tabletop.

78.5 units, which means that sales of nearly 8 million yuan were achieved in one day.

Even he couldn't help but feel a surge of emotion when faced with this result that far exceeded his initial expectations.

"Well done!" He looked up and gave Lin Xiaxia an approving look: "Notify the supply chain and contract manufacturers to maintain high production capacity and ensure stable supply in the future."

On the marketing side, the marketing team must keep a close eye on public opinion and user feedback, especially the color-changing effect of the cooling system—collect every detail!

"Understood, Mr. Chen!" Lin Xiaoxia replied energetically, then turned and quickly left to relay the instructions.

Chen Mo leaned back in his chair, his gaze falling once again on the report.

He knew that this number was like a huge boulder thrown into a calm lake, which would inevitably cause a huge upheaval throughout the industry.

At the same time, within the various competitors, there was indeed a somber or anxious atmosphere due to the explosive performance of the Orange 3.

Wheat Technology, headquarters in Wangjing, Beijing.

Lei Jun looked at the market briefing that his assistant had urgently brought him, his brows furrowed tightly.

“78.5. And it’s only been 24 hours,” he muttered to himself, his fingers tapping unconsciously on the table.

Will the Wheat 1S achieve this sales figure on its first day?

It's worth noting that Lei Jun invested heavily in Vancl Finished Products this year to develop online sales channels for wheat.
He turned to co-founder Li Wanqiang, who was standing beside him, and spoke in a heavy tone.

"The Orange 3's basic configuration is similar to our upcoming Wheat 1s, and the pricing, especially the heat dissipation design, is quite competitive."
I suspect they are operating at cost, or even at a slight loss, to seize market share.

They're sparing no expense to secure their place at the forefront of the 4G upgrade cycle as quickly as possible!

You should know that the Wheat 1s, which is about to be launched by Wheat Company, has a basic configuration similar to the Orange 3 and does not have a cooling system, but the price they have agreed on is 1499!
What is Chen Mo trying to do?

Isn't the smartphone market a blue ocean market right now?

As for flipping the table?

Lei Jun took a deep breath and decisively ordered: "Pass the word down that the progress of our 'Red Wheat' project, specifically the sub-brand targeting the Indian market, must be accelerated at all costs!"
In addition, pay close attention to user reviews of Orange 3, especially their deeply customized system based on Android 4.0, to see if there are any advantages that our MAIUI can learn from, or any pitfalls that need to be avoided.

We absolutely cannot fall behind in the pursuit of value for money, nor can we allow ourselves to be left too far behind.

Lei Jun also knows that the smartphone industry landscape is beginning to take shape this year, and the next step is for everyone to divide the pie!

Orange's current plan is to capture the low-end and mid-range markets!
The office of Little Ma at the Tengxun Building in Nanshan.

After listening to COO Ren Yuxin's report on the sales data of Orange 3, Xiao Ma was silent for a moment, his eyes behind his glasses flashing with a complex light.

In the past, he would never have paid attention to the influence of hardware manufacturers, but who told Orange to suddenly step into the field of instant messaging!

"78.5." He pushed up his gold-rimmed glasses. "This time, junior, you've unleashed a beast that can shake up the entire market!"

His focus was not on the phone itself.

"The hot sales of Orange 3 will be like a tsunami, greatly boosting the installation volume and daily active users of Orange Treasure's entire application matrix."

Their app stores, browsers, and even the recently transformed "MaiXieTong" which focuses on the enterprise market, will gain huge exposure and potential users through this.

Little Ma looked at Ren Yuxin, his tone serious.

“We are not worried about Weixin’s dominant position in the personal social networking field for the time being, but Orange’s approach of starting with hardware and building a software ecosystem in reverse is becoming clearer and stronger.”

We need to be more wary of this model of 'hardware-driven traffic, ecosystem monetization'.

Furthermore, we need to accelerate the pace of our internal benchmark enterprise communications pilot project. We can't let them get too comfortable in this niche area and develop unrealistic expectations!

At the headquarters of Sanjing Electronics in the Zhonghua District, the president of Sanjing Zhonghua District looked rather grim.

Originally, it was doing very well in the domestic mid-to-high-end market thanks to the Sanjing brand and its full supply chain technology advantages.

Unexpectedly, the Orange 3, a dark horse, delivered a heavy blow, directly driving the price of mid-range smartphones down to below 1,000 yuan!
Although the Sanjing brand had a premium in China at this time, when the same configuration was priced lower than that of domestic brands, it would still steal away some users!
"999 yuan? How exactly did they manage to reduce the cost of the 4G module and that cool cooling system to this extent?"

He looked at the preliminary disassembly and analysis report of the Orange 3 submitted overnight by the technical department and felt incredulous.

"The chips from the Maritime Silk Road, the glass cover, motion sensing system, and heat dissipation technology developed by Orange Technology—their vertical integration capabilities and cost control are terrifying!"

Sanjing Electronics naturally possesses the most comprehensive vertical integration capabilities in the supply chain, but it struggles to control costs.

One issue is the country's electricity and energy resources, and the other is the cost of importing raw materials.

He immediately convened the core market team and issued instructions.

"We must immediately adjust our market strategy for our low- and mid-range product lines!"

We cannot rely solely on past brand premiums.

Inform the R&D and supply chain departments to put aside their pride and quickly come up with a solution that can effectively counter the competition from the Orange 3, a "cost-performance monster".

At the same time, we will increase cooperation and resource investment with domestic operators to stabilize our core business through the contract phone market.

Chen Mo probably never expected that the release of Orange 3 would force Xiaomai to change the pricing of Xiaomai 1s and Sanjing to change its market strategy!
As for other domestic brands, such as Zhongxing, Juhua, Huanxiang, Lanchang, and Lvchang.

These brands also held emergency meetings almost simultaneously.

The sudden emergence of the Orange 3 sent a chill down the spine of the already fiercely competitive mid-range market.

In 2010, the mid-range market segment was priced between 2000 and 3500 yuan.

In 2011, the mid-range market segment was priced between 1500 and 2500 yuan.

In 2012, with the release of the Orange 3, the minimum price was driven down to 999 yuan.

Many users who originally planned to buy mid-range phones from these brands switched to the Orange 3 because of its extremely high cost-performance ratio.

"We must immediately reassess the product positioning and pricing strategies for our upcoming flagship models!"

"Their 'visual heat dissipation' design is a very successful marketing highlight. We must increase our investment in product appearance and differentiated innovation, and we can no longer stick to the old ways!"

"We must cut all the losses in the supply chain! Otherwise, we won't be able to fight this battle at all!"

"Why don't we learn from oranges and develop, produce, and centrally procure our own supply chain?"

"Are you kidding me?! 30% of the annual profit goes to R&D, 30% goes to building production lines, no marketing, no salaries, no dividends to shareholders, is a company that doesn't make a profit still a company? Are you some kind of clown hired by a monkey?"

For a time, the entire domestic mobile phone industry was on high alert due to the terrifying performance of the Orange 3, as if facing a formidable enemy.

A more brutal and intense market competition centered on ultimate cost-effectiveness, breakthroughs in core technologies, and supply chain efficiency has been fully ignited.

The success of Orange 3 is by no means an isolated victory for a single blockbuster product.

More like a ferocious catfish, it stirred up the domestic smartphone market, which was beginning to solidify in 2012, with an unstoppable momentum, revealing the sharp edge of "Technology Orange"!

(End of this chapter)