Chapter 411: Borrowing Chickens to Lay Eggs
"This little guy is so naughty, he will have to be beaten in the future."
"No, how can you teach a child like this?"
"Look at him now, he's getting ahead of himself."
Ron held Algalon in his hands as the latter punched and kicked him, howling.
"Let me see." Kavya reached out to take it and touched it. "You peed your pants."
"Huh? Why is it so hot?" Ron was at a loss whether to laugh or cry.
"You are more familiar with women than children." Kavya rolled her eyes at him.
A servant came and took Agalon to change his diaper.
Ron hugged Kaavia in his arms and glanced at her. Becoming a mother was different. Her scale was several levels more magnificent than before.
"The child isn't hungry, but I am."
"Bah!" Kavya laughed and pushed his head away.
Ron didn't care and dove in. It swung around and directly wrapped around his head.
I hadn't enjoyed it for a few minutes when the phone in my pocket rang.
He took it out and looked at it impatiently, then finally took it with a sigh.
"Boss?" It was Ashish's voice.
"What's up?"
"The design for the mobile phone over there is ready."
"I know. I'll go to Soul Electric tomorrow."
"Can you come earlier?"
"Um?"
"Uh, it's my sister's due date, and she hasn't been feeling well for the past couple of days."
"Have you taken her to the hospital?" Ron took two steps toward the window.
"I checked into the Sur Senior Clinic a week in advance and someone is taking care of me."
"Okay, I understand."
Ron calmly hung up the phone, and just as he looked up, a torrent of energy rushed over him.
Caught off guard, the full load of rations hit his head and face.
Ron was stunned. He opened his mouth wide and touched the corner of his mouth in disbelief.
Warm, with a salty taste.
Kavya glanced at him seductively, her expression smug and a little provocative.
Ron was possessed by his Homelander and took her down on the spot with one strike.
After NEC's mobile phone drawings were handed over to Huazi, they worked on it for half a year and finally came up with a brand new design plan.
After all, there were ready-made technical drawings and Huazi was not starting from scratch, so he was still very quick.
At the time, Soul Electric sent a technical team of twelve people to study there, along with $10 million in R&D funding, a significant commitment.
Huazi had both money and connections. He shared all the details and ideas behind his design with the people at Suer Electric.
This time, not only did he return from his studies, but the other party also sent a technical team to serve as interpretation consultants.
What Ron is holding in his hand now is the engineering prototype made according to the new drawings.
The golden body and semi-clam design all hit the aesthetic liking of Indians.
Judging from the appearance, it looks very similar, but it still has some shadows of NEC phones.
But this is normal, after all, the first generation models are all imitations.
“Do the technical specifications meet the standards here in India?”
"Absolutely no problem, boss, it already has an India Mobile SIM card installed," Ashish replied.
Ron said nothing and started dialing. He dialed not the number for Mumbai, but New Delhi.
The call was quickly connected, and it was someone from Sur Real Estate. He first asked about the project progress, then discussed land acquisition, and hung up after a full five or six minutes.
The phone was slightly hot, but within acceptable limits. The signal was so-so, but it didn't affect normal use.
"If there are any after-sales technical problems, can we handle them?" He looked at the technicians who had returned.
"No problem. Each of us has disassembled the phone many times and knows everything inside." The other party shook his head confidently.
“What about the next generation of design ideas?”
"Well, I'm still considering it, but I already have a direction." Their tone was no longer as firm as before.
"Mr. Suhr, we will also provide assistance to the best of our ability if necessary." The people from Todai also expressed their opinions at the appropriate time.
Ron nodded. He knew that the design of the next two or three generations of Sur mobile phones would depend on Huazi's help.
Their mobile phone design team is like a baby who has just learned to walk. Without someone to support him, he can't go far.
"Okay, let's talk about the most important question." He held up the golden phone. "How much does it cost?"
“Just calculating the hardware cost ratio, it’s Rs 4,600,” Ashish replied.
"So high?" Ron couldn't help but gasp in amazement.
"Boss, we've already used the cheapest materials. The black and white screen, nickel-metal hydride battery, circuit board, and casing are all produced by Suer Electric. However, the chip is too expensive, accounting for more than 40% of the cost."
The phone in front of them uses a Texas Instruments chip, a low-end product line that only meets the most basic needs of a feature phone.
This kind of junk is sold for $40 each, and all the money goes to the patent fees of the old diplomat.
Maybe they put a lot of effort into research and development, but this chip is not the latest product and has been sold for several years.
Today, the cost per chip may be less than $5. You can't imagine the huge profits.
If you want to place a large order, it depends on the supplier.
It’s not that there are no cheap chips. For example, NEC has its own chips, which are about 20% cheaper than Texas Instruments.
But Ron didn't dare to use it. They were already undermining NEC's strength, and if the other party blocked the chip, there would be no point in using it.
So when designing the product, he and Huazi had to choose chips from Europe and the United States to avoid NEC getting caught.
Now, the price has come, the cost is too high.
The hardware cost is 4,600 rupees, so in order to break even, the selling price must be at least 6,000 rupees.
Imported brands such as Nokia and Motorola are often priced at more than 15,000 rupees, and their net profit margin can reach a terrifying 30%-40%.
Mobile phones have become the electronic product with the highest profit margin at present, provided that they are independently controllable.
If Sur's phone wants to reach that level, it will have to cost Rs 10,000-12,000.
To be honest, this price is not competitive compared to imported goods.
Not only is it expensive, but the technology is also far behind.
They sell low-end feature phones, while others sell the latest technology products with many added functions.
The price-performance ratio is too low and it does not provide additional emotional value.
Those who can afford to spend tens of thousands of rupees on a mobile phone do not mind paying a little more and buying a foreign brand.
"After the marketing department's calculations, what price do you think is appropriate?"
"8,000 rupees, otherwise it will be difficult to find a market."
Ron sighed. He now also tasted the pain of his colleagues in the University of Tokyo.
If you want the market, you can't guarantee the profit margin, you can only make small profits but sell a lot.
His original intention in making mobile phones was to expand the scale of mobile users as quickly as possible so that India Mobile, Garuda and Sur Electric could take advantage of the opportunity and develop rapidly.
Therefore, the price of mobile phones cannot be too high, otherwise no one can afford it, and everything else will be empty talk.
8,000 rupees is still too expensive for ordinary people.
In the end, Sur Electronics didn't make much money, only 2,000 rupees, about the same as a VCD, and even less than some color TVs.
This is the pain of being stuck, the pricing power is not in your hands.
"We'll do it at this price first. No matter what, we have to launch our mobile phone products first."
"Yes, boss."
Vertical chess is very important. Whether it makes money or not is another matter. What matters is the quality.
"If the cost comes down after mass production, we will lower the price. My ideal target is 6,000 rupees, which is the price that suits today's white-collar workers."
"Boss, this may take a long time. The main cost is on the chips." Ashish was a little embarrassed.
If a mobile phone experiences a significant price drop, it must be due to the chip.
However, they do not have the final say, and other parts cannot be pressed to this extent even after localization.
"I know. We've tried our best. The lower the price, the better." Ron tapped the table with his fingers.
The price tag of 8,000 rupees will put many people off, even though it is almost half the price of imported goods.
According to common sense, if a product has a substitute with a price cut in half, it will inevitably become a hot-selling product.
But this is difficult to replicate in India because the situation is very special.
The reason is that the gap between the rich and the poor is too huge!
The rich are so rich that they are pouring money, while the poor are so poor that they have no place to live.
Twenty or thirty thousand rupees is just a drop in the bucket for the upper class; they don't care at all.
After being cut in half, tens of thousands of rupees is still an insurmountable gap for ordinary people.
The top of the pyramid is too high. Even if a part of it is cut off, ordinary people still cannot reach it.
Most white-collar workers in Mumbai now earn only 6,000 to 7,000 rupees, and a few can earn close to 10,000.
If the Sur phone is sold at 8,000 rupees, probably only half of the white-collar workers would buy it.
But this is already progress. At least mobile phones will no longer be a privileged product for big bosses and the elite.
The market for luxury goods is not that big, so Sur Electric Appliances is still suitable for taking the cost-effective route.
Truly profitable companies are those that can make money from ordinary people.
The consumption base is different, and it will be even more amazing after the scale effect is formed.
Unfortunately, 6,000 rupees is a hurdle, which is a price that most white-collar workers can accept.
As long as Sur Electric captures this group of people, it will be able to gain a firm foothold in the market and revitalize the Indian mobile market.
This is a whole chess game with huge implications.
"How long will it take for mass production?"
"The design details still need to be polished, and the internal production line will also take time to complete. It will not be available on the market until mid-year at the earliest."
"Let's follow this plan first. The Sur phone must be launched this year."
"Yes." Ashish nodded.
"I want to talk about chips again." Ron said this to the Todai team.
"Mr. Suer, what you mean is..." The leader of the other party was a man named Yu, who had a big mouth.
He started to take charge of Huazi Wireless Products Division this year, and he was the one who led the commercialization of GSM base stations.
Because of the practical experience in Mumbai more than half a year in advance, Huazi's commercialization pace in Southeast China has been significantly faster.
It is said that they are already developing 3G technology internally and are even participating in the formulation of 3G international standards.
In terms of R&D capabilities, it is indeed far superior to Sur Electric.
This is also the reason why Ron set his sights on them. The trick of using chickens and eggs is very useful.
"Are you interested in mobile phone chips?" Ron tempted secretly.
(End of this chapter)
Continue read on readnovelmtl.com
