Chapter 059 The Giant's Response
After learning that Wang Manwen was a very serious woman, Meng Qian lost the idea of provoking her. If this relationship is not handled well, he will not catch a fox and will make him mess around. He has been very busy recently and loves his career more. Then he fulfilled the wish of Gu Xinxin, a little spy.
To say that this girl is not bad at all, it is a bit realistic. But in this way, who doesn’t want to live a better life? He himself has no opinions about her, and of course he doesn’t have much feelings for her. In short, it’s just a type that is just about having fun together, and it doesn’t matter if he shows up and separates.
Afterwards, he called Gong Hui again: "You guessed it, she is a serious person."
"Serious, intelligent, capable, are quite suitable for you, right?" Gong Hui browsed the other person's microblog, revealing her confidence in life between the lines.
"She has a boyfriend." Meng Qian was not interested.
"It's not feudal society now, what's wrong with having a boyfriend? As long as you're not married, it's not easy for you to take it away?" Gong Hui was very happy to instigate him.
"I really don't have the intention to do such poaching things." Meng Qian was very interested, "How come you wish I could put my mind on others?"
"Yes, let you stop pestering me," she said.
"You can't help it." Meng Qian stopped the car and waited for the red light and said something else: "By the way, I'm going to discuss business with a large company recently, so I'll give me some advice."
She said: "I have found some information to analyze the business and prospects of Samsung and Apple for you."
"I'll listen." Meng Qian nodded.
Meng Qian attaches great importance to the issue of which party to cooperate with, because he invested heavily in the battery factory and started construction day and night all day and night. The construction speed was very fast. The first phase is expected to be used in May, and it is now April. In order to compete for production, Samsung and Apple are fighting fiercely.
Both sides already know that the outcome will be defeated in one fell swoop.
New batteries have also been studied by them. The technology is not too advanced and can be copied by willing to pay the cost, but the key is patent protection. In developed countries, patent rights are highly valued. Both companies are large companies and will not rashly infringe on technical patents, so they can only seek cooperation.
Let’s talk about Samsung first. Samsung Electronics is on a downward trend. Although based on quarterly shipments, the annual output will still exceed 300 million, accounting for more than 24% of the world’s market and absolutely the number one in sales. Unfortunately, sales are twice as high as Apple, but the profit is less than half of Apple, so I am naturally anxious.
Samsung itself is also studying new batteries, with a lot of investment, but the gap is not a little bit away from commercial mass production. Once it is led by its competitors, it will be as short as three to five years, and it will never be able to turn around in the long run. There will be countless consumers abandoning them, choosing Apple at the high end, and looking for Warwick at the mid-range.
Will Samsung only be able to do low-end business in the future?
This is absolutely not OK, a catastrophe! Once it comes true, their sales of high-end models will be seriously damaged, their revenue will shrink, and their stock prices will plummet. Although Samsung has other departments besides electronics, everyone knows that electronics has made the most contribution. If it falls, the doomsday is far away?
Samsung's South Korean headquarters has frequent high-level meetings.
The board members and senior executives are discussing countermeasures, and the assistant has a solemn report: "Based on our contact with Fuguo Energy, their attitudes are shaky and hesitating between us and Apple. With the upcoming opening of the first phase of the factory, Apple has begun to increase its bargaining chips."
"What about our response plan?" asked the boss.
"There are two types. One is to fight Apple with price and demand, but it is definitely a situation where both sides suffer. This is exactly what the Chinese are happy to see; the second is to increase investment in research on new batteries, such as graphene batteries that are generally optimistic, which have stronger performance."
"Research progress in graphene batteries?"
"According to the news from the laboratory, it is inevitable that the battery's energy density can reach about 2.5 times the original capacity will be doubled, but it will take three years or even more to catch up with the current technical level of Fuguo Energy."
The situation is not optimistic and the initiative is not in their hands. After some discussion, the directors made a decision: "Strive to cooperate with Fuguo Energy, lower the authorization price, and emphasize the advantages of sales. The funds we can use are not as good as Apple, but sales are far greater than them."
"But what if the price is too high?" someone asked.
"Then we will use all this money to research and development of new technologies and stay dormant for a while."
But everyone knows that this is just a helpless move.
On the other hand, Apple is also discussing countermeasures.
The emergence of the new battery caught off guard and there was no warning in advance. Apple's contact with cooperation was relatively late. In the early stage, they were still focusing on the plan to acquire the company with a large-scale price of US$20 billion, which was definitely a big deal.
Fuguo Energy did not agree, and even the rejection format was the same. The company's management is not a fool. As long as the production is properly managed, the value exceeds 100 billion after the market stabilizes, there is hope. Therefore, Apple has to return to the starting point: discussing supply cooperation.
Apple headquarters, Cook held a meeting.
Cook is doing something he often cares about recently: "What's the current progress?"
Assistant report: "In terms of the exclusive authorization fee and years, we have reached an agreement on the supply agreement, and we need at least 200 million batteries per year."
Cook asked: "What is the Chinese offer?"
The assistant said: "Their quotes are floating, which may be based on Samsung's Q1 net profit as a reference. Samsung's Q1 net profit was US$6 billion. Chinese people believe that after we expand, we can eat up Samsung's high-end market net profit. They want half of this 6 billion."
Cook frowned: "Where is Samsung?"
The assistant replied: "The price gap will not be too big, but Samsung's models are too complicated, both high-end and low-end, which is not good for the factory's production lines and pricing."
Cook was a little curious: "If they partnered with Samsung, what's our loss?"
The assistant replied: "People from the technical department have tested Warwick phones. When long-term battery life and fast charging have formed habits, they have a high dependence. We predict that our sales will be reduced by about 30% accordingly. When Samsung and Warwick vigorously develop high-end models, we will suffer greater losses."
Cook asked again: "What is the shortest time to develop new battery technology? "
The assistant replied: "According to the technological inspiration of Fuguo Energy, it will take as long as three years. With the consideration of commercial mass production, the time will be longer."
Cook made a decision: "The choices left to us are already obvious. The research and development is time-consuming and the results are uncertain, so the company cannot afford it."
...
The two IT giants started a price war.
Since the new technology was known to the world, contacts and negotiations have been going on for two months. The first cooperation was won by Warwick, forcing the two giants to put aside their contempt of their opponents and began to focus on comprehensive competitions in terms of prices, demand and profits.
In fact, Meng Qian is not sure about the positioning of the cooperation price.
Unlike the cooperation with Warwick, the exclusive authorized price at that time was the 1.5 billion value obtained by referring to Warwick's net profit of 6.5 billion (mobile phone business). The company's ideal price is: half of the net profit. This value will also be affected by supply.
The 1.5 billion that Warwick exclusively supplies to China is a bit inflated, but it is worth doing so in order to defeat its opponents. Looking at the international market, Apple and Samsung have too many sources of profits. The company's financial departments and marketing departments are all in the market. After complicated calculations, the plan will be drawn.
The one Zong Yan took to Meng Qian’s desk was the reference price.
Meng Qian took it and saw that Apple had a protection fee of US$3 billion, supplying 200 million equipment batteries annually, while Samsung had a battery of US$2.5 billion and 320 million batteries. The reason for the unit price difference was undoubtedly the models. Apple was mostly high-end models, while Samsung inevitably had many mid- and low-end models.
Meng Qian asked: "Samsung's cooperation price is so much less than Apple?"
Zong Yan explained: "Samsung's sales seem to be huge, but it has little profits and a lot of debt. US$2.5 billion is already half of their quarterly net profit in mobile phone business."
"Is it a slap in half of its quarterly profit for the exclusive cooperation?" Meng Qian smiled, ruthless! But there is no need to show mercy to treat foreign companies.
Meng Qian said again: "So, Apple's profit is very high?"
Zong Yan nodded: "In the first quarter of this year, their net profit reached US$10 billion. Apple does not have many expenditure items. They also hold more than US$150 billion in cash reserves, which is as rich as the country, so they have a very strong ability to withstand this price."
Meng Qian felt: "It's more profitable to do business with Apple."
Zong Yan analyzed from it: "But both of them will follow the other party's quoted prices, and what we urgently need is cash that can be cashed in the short term. If we consider it comprehensively, the ideal cooperation price is US$3 billion, but it is lower than 2.5 billion, or a higher supply quantity, which can be accepted."
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PS: Please recommend! By the way, there is not much reference for this cooperation price, and I can't find any precedent. The author just estimates the net profit. If anyone knows it, I hope you don't mind it.
Chapter completed!