YM778.TV Chapter 865 - The wolf is here
Motorola’s headquarter is pleased with their last month’s China’s mobile phone sales and wanted Schnepp to keep an eye on it. Motorola pagers have a disadvantage in China and the importation taxes for electronic devices are very high. Although Motorola uses efficient assembly lines to lower their production costs, when the pagers are shipped to China, the cost becomes higher than Aiwa Pagers.
Also, many pager manufacturers appeared in China last year and their pagers were much cheaper than Motorola. Although Motorola pagers were still doing well, that’s after they had a price cut. Also, lesser people are buying numeric pagers and Motorola would be overtaken by Aiwa Pagers this year.
The profit from pagers is not high, and Motorola rather uses the marketing fees for pagers on their mobile phones. This will increase their profits. But this only applies to China. In Europe and other developed countries, mobile phones had already started to replace pagers.
Schnepp had prepared in advance and got consent from the headquarter to build a factory in China. This is the reason why their mobile phones can get high profits. If the Chinese factory, which manufactures Motorola pagers for them, renewed their contract with Motorola, Motorola pagers will also be profitable.
Although the headquarters did not pin the blame on Schnepp, Schnepp felt this was all Aiwa Electronic’s fault. If Aiwa Electronic had not entered the pager market, they could continue to profit from their pagers for at least 5 more years!
You all manufacture mobile phones now? This time I will teach you all a lesson. I will let you know how powerful Motorola is!
Until now, Schnepp is still confident that Motorola phones are the best in the world, and Aiwa phones and Wind and Rain phones are at least 3 years behind them!
Schnepp was confident that he will be promoted to Asia-Pacific Regional President if everything goes smoothly in China. He might even get the opportunity to enter the board of directors.
Knock, knock…
“Come in.”
“Mr. Schnepp, this is the report on Aiwa phones, and Wind and Rain phones’ specs from our technology department. Please have a look.” The person-in-charge of the China branch technology department passed a file to Schnepp.
Schnepp looked at the facial expression of the other party and suddenly got a bad feeling.
He quickly opens up the file and starts reading it. The more he reads, the more shock he was.
How is this possible? How can China’s electronic factory produce such phones? These phones are even better than Motorola’s phones, and it is also installed with Lenovo’s Pin Yin method of typing, which is more user-friendly than what they are using.
Their phones’ screens are bigger and brighter. The casing is metallic, buttons are sensitive, the signal is strong, and the battery’s capacity is bigger. Their phones even come with an original spare battery!
The exterior design is beautiful, and there are a variety of colors to choose from. The specs of these phones had won Motorola!
Other than the exterior designs, Wind and Rain’s phones and Aiwa Phones had the same specs and used the same technology.
That’s right. There are rumors that Wind and Rain Electronic and Aiwa Electronic have the same shareholder, and both companies often cooperate.
“Mr. Schnepp, Mr. Schnepp?”
“What?” Schnepp replied impatiently.
“Should we ask the HQ to allow us to sell the latest model of phones in China?”
In the past, the phones sold in China’s market were older models and were at least 6 months behind other developed countries. This was because China is backward. Outdated phones are already the best phones in China, and Chinese manufacturers use old technologies. Only Nokia phones from Europe can compete with Motorola. But Nokia had entered the Chinese market much later and is no match for Motorola in this market.
It can be said that the Chinese market is a place for these overseas companies to clear their leftover stocks. But this is the past. With Aiwa and Wind and Rain introducing their mobile phones, these companies will be courting death if they continue to do this!
The changes to the market will affect these overseas companies’ strategies. They could no longer produce phones in large numbers as they have no markets to clear their old stocks.
If these mobile phones have to sell their latest products in China, then they must find another market to clear their old stocks. But where can Motorola find another market as big as China?!
……
“President Watanabe, these are the figures from our tests on Aiwa and Wind and Rain phones. Their phones are better than ours, and our market share will shrink further. After the distribution and marketing cost, we will not have any profits!”
Panasonic China’s person-in-charge, Junji Watanabe, heard the report from his subordinate. Why is it Aiwa and Wind and Rain again? Why are they always against us?!
These two companies had never developed mobile phones before, and their first phones are outstanding. How is this possible?!
……
China’s person-in-charge for Nokia was also staring at the findings. Nokia had prepared to enter the Chinese market with their mobile phones and thought they only have to watch out for their main rival, Motorola.
But Aiwa and Wind and Rain suddenly appeared from nowhere, and their phones’ specs are better than all the phones sold by Nokia in China. The exterior designs are more beautiful and are domestic brands. With their brand awareness in China, these two companies will surely hold significant market shares. How can Nokia outperform the rest?
On this day, companies like, Ericsson, Sony, NEC, Siemens, etc. who were selling their mobile phones in China, knew their biggest rival is no longer Motorola or Nokia. It should be Aiwa and Wind and Rain.
Aiwa Pagers had only appeared in the market for 3 years, and they caught up with Motorola. This showed how strong Aiwa Electronic’s R&D is.
If they did not strategize well and allow Aiwa and Wind and Rain to develop their mobile phone business, they would have no chance in the future!
The wolf is here!
First, these companies must cooperate. The Japanese companies had just returned to China after the Japanese and Chinese Governments signed some treaties.
Japanese companies no longer have advantages in the industries now. Their main products were mobile phones and digital cameras. But now, Aiwa and Wind and Rain had launched their own phones!
The Japanese companies know the strategies for these two companies well. They are good at snatching market shares, especially in China. Once these two companies held the majority of the market share, the Japanese companies will be kicked out of the Chinese market!
This must now happen again!