Chapter 233 Crisis
Duke and the others knew nothing about the plot of Apple's senior management, so although Cai Siqiang was expected to do so, he had no good methods for the lawsuit initiated by the other party as scheduled. The patent negotiator sent was frightened by the high cost of $20 per patent licensing fee for each of the other party.
This asking price shows that Apple has no sincerity in reconciliation with the new Nokia Mobile at all.
Although from the profit margin, the $20 license fee proposed by Apple is not outrageous, because according to the price of the new Nokia none phone, the license fee is only a few percent.
However, considering that the new Nokia Mobile has now lost the protection of key 4g technology patents, as long as Apple succeeds, competitors with 4g core patents like hungry wolves will inevitably pounce on them and take a bite. The new Nokia Mobile will face the overwhelming request for patent authorization fees.
This lesson is too profound. Whenever Cai Siqiang thinks of his mistakes on patent issues, he blames himself. Seeing the overseas markets being suspended from selling the lawsuits with Apple's lawsuits, Cai Siqiang's heart is bleeding.
This infringement lawsuit not only greatly hit the performance of the new Nokia Mobile in the market, but also hit the leading image that it has finally established in technology.
Therefore, sales to the domestic market were cast a shadow, and countless competitors were making trouble in various channels and took the opportunity to crack down on the new Nokia Mobile. Therefore, in the second month, none mobile phone sales fell sharply. This unexpected situation made President Terry restless like an ant on a hot pan.
Due to the strong market performance in the first month, President Terry finally prepared raw materials and components for the none mobile phone with a monthly capacity of 20 million units per month. This was originally the most important work and result of Terry during this period, but who knew that the situation would take a sharp turn for the blink of an eye. The raw materials and components that were ordered by his father to sue his grandmother suddenly became a black hole that consumed a lot of money.
"Mr. Cai, most of our raw materials and components are provided with cash in advance. Last month, the sales of new Nokia Mobile exceeded the 10 billion US dollars. We are ready to do a big deal this month, but we didn't know that we were going to encounter such a thing." At the end of the month, Terry reported to Cai Siqiang with a bitter face.
"After receiving this batch of raw materials, our working capital is about to be exhausted. The same amount of raw materials and parts will arrive next month. By then, we may not be able to pay these expedited order payments in time."
Although it is common to arrears of payment in China and is not uncommon for foreign countries, these expedited orders are signed with corresponding contracts and are more demanding in payment. If payment cannot be made on time, the supplier can even file a lawsuit to demand the new Nokia payment instantly, otherwise they can file a new Nokia bankruptcy.
When none mobile phones were making rapid progress, Terry was able to pay in time without increasing the order price to get such a huge amount of ordering, which was already using his strength and countless connections to make a huge connection. This is something that Terry is very worthy of boasting about.
But in a blink of an eye, this became a deadly weapon that strangled Terry's neck.
"How much cash is left in the company now? How much is expected to pay next month? How big is the gap?" Cai Siqiang asked. Terry was the president of Nokia's mobile phone business. After the acquisition, Cai Siqiang and the others could not find a new candidate to take over him, so let Terry continue to do it.
To be honest, Terry has done a very good job over the past period of time. New Nokia Mobile has stripped more than half of its R&D personnel to be invested in application development, and the remaining personnel have begun to turn to the research and development of mid-to-high-end products, focusing on a limited number of mobile phones for careful cultivation. This direction is consistent with Terry's long-standing proposition.
Terry has been very frustrated by the huge personnel burden and the fact that there is no flagship model that can compete with Apple and Samsung. Now these two problems have been solved. Terry is working harder. Recently, it has been running among raw material manufacturers around the world. It is harder than model workers, and its achievements are also very significant. It has basically completed the big problem of supplying raw materials and components.
So Cai Siqiang really has nothing to picky about Terry's work.
"We still have about $2 billion in cash now. With the monthly sales collection, after removing the necessary expenses, we will be able to leave about $3 billion in cash at the end of the month." Terry said.
"Next month, it will be paid for raw materials and components, which will cost about $5 billion. If sales are still as sluggish as this month, then we will be ineffective and will need at least $4 billion of foreign funds to meet the company's needs to continue operations."
4 billion US dollars. Cai Siqiang passed it quickly in his mind. The last time he acquired Nokia's mobile phone business, the total amount was only 3.5 billion US dollars due to the change in the acquisition target. Duke also cashed out $2 billion from Mi, so he directly used SAL's own funds to complete the acquisition. The 30 billion RMB bank loan amount that Cai Siqiang fought for from the government has not yet been used.
Now, the loan just happens to make up for the urgent need for new Nokia Mobile’s liquidity.
"The capital gap next month will be provided by the head office. After accepting this batch of raw materials, new procurement will be suspended in the future. If our patent litigation with Apple does not make progress, we will focus on mid-range products next month and temporarily overcome this difficulty." Cai Siqiang said.
Terry nodded to express his understanding. In fact, he had done this a long time ago. The second month saw that the momentum was wrong, and only produced 10 million flagship none mobile phones. Other raw materials were placed in the warehouse or used on other models. In this way, the warehouse is now full of raw materials and stock products.
The production and sales of mid-range mobile phones have always maintained a relatively stable trend. If you want to increase sales on a large scale in the short term, it is basically an impossible task.
"Mr. Cai, is there no new solution to our lawsuit with Apple? If this continues, our flagship model international market will be completely lost." Although Terry is also a senior manager, the most core decisions now come from the hands of Cai Siqiang, Dong Feng, Zhao Jianwu and Duke.
"We are trying to solve this problem, and I believe there must be a solution." Cai Siqiang comforted Terry and said. Cai Siqiang still attaches great importance to this general under his command. He must give him a hope of promising prospects so as not to be poached by others in discouragement.
It is not easy to find a suitable one like Terry who can control international companies.
Chapter completed!