Hongjun Communication Equipment Company, in June, had sold 260,000 units of MP4 products.
The first batch of 200,000 units planned to be produced was sold out in early April.
For this reason, the company also deliberately increased production by 100,000 units as inventory for subsequent product sales.
However, judging from the gradual decline in popularity of the product in the market, the remaining tens of thousands of units in stock can last at least three months.
When the company's first smartphone is officially launched, MP4, an old product, will be officially withdrawn from the market. Of course, this product will also become the first successful product in the company's history.
Crazy sales have also brought enough profits to the company.
After excluding the company's production costs and operating costs, and deducting product taxes, the company obtained a net profit of nearly 90 million.
This kind of net profit value directly frightened the old employees who used to work at Pineapple Communication Equipment Co., Ltd.
The company has now expanded its senior management and recruited several managers, but Xu Cong still retains the senior executives of the company.
This net profit of nearly 100 million directly exceeded the previous valuation of the company, and Xu Cong successfully recovered his capital with a product.
At the same time, based on the current scale and market influence of the company, it is estimated that if Xu Cong changes hands again, the price may be higher than what he paid for it.
Riding on the popularity of MP4 products, the company will also accumulate inventory for many years and sell most of it within a few months.
When Xu Cong first took over the company, the company had nearly tens of thousands of mobile phones in stock. During this period, with the help of the close relationship between dealers and the company, the company could easily sell these products slightly above the cost.
The price flows to the dealers.
Regarding the inventory of such products, Xu Cong has no intention of making money from these products, but the products are accumulated in inventory and occupy the company's warehouse area.
In order to be able to sell these products as quickly as possible, we have given many discounts to dealers in terms of prices.
The original price of the product in the market is 2,000 yuan, which is currently the price range of most regular domestic brands of feature phones.
Of course, most of the feature phones in China are sold by being tied to operators. The number of mobile phones actually sold in the mobile phone market is far less than the number of mobile phones sold by operators.
In many cases, in offline mobile phone stores, most of the mobile phones sold are knock-off phones.
After all, the price of counterfeit phones is not expensive, and the profits for dealers are also very huge.
For example, the cost of a copycat phone is about 600 to 700 yuan, and if sold to a dealer, it will generally only sell for less than 900 yuan.
After dealers obtain these knock-off phones and sell them in mobile phone stores, the price will generally be between 1,300 and 1,500.
The huge profits make dealers in the offline mobile phone market willing to sell these mobile phones. At the same time, the price of less than 1,500 yuan also makes some consumers willing to buy these copycat mobile phones at low prices.
After all, today’s mobile phones are quite different, and most users buy mobile phones just to be able to make calls and send text messages.
Unlike the era of smartphones, the experience of mobile phones is directly linked to the hardware.
This time, in order to completely clear out the company's inventory, the offline quotation given to dealers was less than one thousand yuan.
Of course, Xu Cong also got some information from the former director of the purchasing department. Before Xu Cong acquired the company, the company's hardware cost for producing this product was 800 yuan.
The quote given to the former dealer was about 1,400 yuan.
In the current functional phone market, except for some well-known brands, most products are sold in smaller quantities as the price rises.
Often, for some products whose prices differ by no more than 500 yuan, the sales volume gap between the two is doubled.
The price is higher than that of copycat phones, the profit margin is similar to that of copycat phones, and the sales volume is smaller than that of copycat phones, which makes the sales of this product produced by the company slow, which also makes the company accumulate a large amount of inventory.
The accumulation of inventory caused the company's cash flow to begin to break, and it did not have enough funds to produce new products. It also made the former chairman of Pineapple Communication Equipment Company understand that he was not suitable for this industry, so he had to choose to resell the company.
After Xu Cong took over the company, the product price quoted directly to dealers was greatly reduced, and it was only a little over 100 more expensive than the copycat machine.
However, the appearance, packaging and quality of the product are indeed better than those of copycat machines.
There is not much difference in price between the two, but there is a huge difference in appearance and packaging, which also allows dealers to start taking over the company's inventory.
After half a year of Xu Cong's operation, the company's mobile phone inventory has been basically cleared, and the inventory of MP4 products has been less than 40,000 units.
The plan to build a smart phone has begun to be put on the agenda.
Members of the company's purchasing department began purchasing components as early as April this year.
Among them, the most important core components come from the top domestic upstream supply chain manufacturers.
These supply chain manufacturers also include the supply chain components company established by Xu Cong himself.
Those insignificant components are purchased from Huaqiangbei or some domestic companies that are relatively good but do not have much reputation in the market.
For the procurement of components this time, Xu Cong still chose to produce an inventory of 200,000 units first.
As a time traveler, Xu Cong clearly understood that the Guozi Phone ushered in the era of smartphones, but the overall sales volume of the first-generation Guozi Phone at that time did not reach too high a level.
The brand-new product experience of Guozi mobile phone has brought many surprises to the whole world, but that era was still the era when Nokia and Motorola were domineering, and most users were not particularly sensitive to technology products.
At the same time, some users who knew about the product took a wait-and-see attitude and did not take action directly.
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As a result, although the newly launched Guozi mobile phone has been highly praised, its sales are not optimistic at all.
According to statistics from relevant statistical agencies, the number is 1.3 million units.
The sales volume of 1.3 million units is still the result of two years of sales.
Of course, the main sales area of ​​the fruit company at that time was only North America, and it did not expand to the global market, which is why its sales volume was only so high.
However, compared with the annual sales of tens of millions of Nokia and Motorola units in North America at that time, the sales volume of the first generation of Guozi mobile phones was obviously not enough.
In Xu Cong's view, new products will bring an amazing feeling to the entire market, but most consumers still need to try and accept it slowly.
In the feature phone market, products are produced based on consumer demand, but as the first smartphone, consumers are obviously selected based on the product.
Getting consumers to accept new products is also a slow process.
At the same time, this product is aimed at the current Chinese market.
Whether consumers in the Chinese market are willing to pay a more expensive price to buy a mobile phone whose brand influence is far inferior to that of major international manufacturers is also unknown.
Xu Cong knows very well that half a step forward is a genius, and one step forward is a madman.
The products I am releasing now are simply a big step forward in the mobile phone market.
There are probably very few consumers, especially those from China, who can truly accept it.
Through the current development of the market, the overall influence and reputation of the company's brand, and the consumption power and consumption outlook of domestic consumers.
When Xu Cong was considering purchasing, he had to determine the quantity of components to be purchased to ensure that they would not be sold out, as the previous chairman had accumulated too much inventory for the company.
Even the initial purchase quantity was not for batches of 200,000, but for batches of 100,000.
However, Xu Cong wanted to take a gamble. At the same time, a larger purchase volume would lower the price of components to a certain extent, thereby reducing the cost of the product.
The hardware aspect is proceeding in an orderly manner, and as for the software system level, Xu Cong began to recruit software programming professionals at the beginning of this year.
Taking advantage of the company's reputation and the graduation season in April, the company also officially established a software department in this month of June.
The current software department has a total of sixty internal members.
Among these sixty people, a small number are returnees from overseas. They have worked for foreign companies for many years. In order to recruit such top engineers, the company's salary is almost the same as the salary of company executives.<
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Fortunately, there are only six people in this group, so Xu Cong can easily pay their wages.
In addition to elite engineers, we have also recruited programmers who have worked in the industry for many years. These people have sufficient experience and are currently the largest number of people in the company's software department.
The number of these people in the company is thirty-nine.
As for the remaining fifteen people, they are college graduates from top universities across the country.
Although they are fresh graduates, these graduates are all top-notch personnel with very good abilities, but they lack work experience.
Xu Cong recruits these graduates for the future of the company and to cultivate corresponding talent reserves.
After all, as a graduate of a top university, his ability and qualifications are outstanding in the industry today, and his future development level through work and study cannot be underestimated.
After gathering the company's software team, Xu Cong himself took the lead in starting the research and development and programming of the mobile phone system.
According to Xu Cong's plan, we will strive to complete the company's first mobile phone system in the next few months.
And improve the system to adapt and optimize the hardware of the company's first smartphone.
Chapter completed!