Chapter 91: Wooing allies
There are prototypes and thousands of pages of drawings as references, CD drives and CD-ROM development, of course, at great speed. Pen Fun Pavilion wWw. biquge。 info dismantled the machine parts, plus a large number of technical drawings to explain the principle, after that, the R&D personnel suddenly realized, Nima, it turned out to be such a simple thing.
Next, the new start-up electronics company raced against time to register more than 200 international patents related to CD players, CD drives and CDs. Because, if these patents are not registered early, they may be preemptively registered by competitors. In the technology industry, patent barriers are the foundation of existence. Although patents are not omnipotent, they are also bargaining chips for the exchange of interests of big players in the market!
New venture electronics has registered a bunch of application technologies around CD basic patents. Not only is there a large number, but also the patented technology is full of gold.
Even if giants like Philips and Sony want to bypass the patents of the new venture electronics, although it is not impossible, but it will cost more money and longer time, so that the cost of research and development and time will inevitably make its products uncompetitive in the market.
By the end of August, the new start-up electronics company had developed a compact and low-cost CD player. Compared with the original CD player, because of its more streamlined structure, it is also easier to industrialize and mass-produced, and the cost will be cheaper.
After all, the cost of an industrial product increases by a large margin for every additional component. For those large aircraft, the number of standard parts is as high as millions, not to mention the processing of these parts, even assembling these parts will also consume huge labor costs and time. Therefore, the price of large aircraft often reaches tens of millions of dollars or even hundreds of millions of dollars.
Like a plastic bag, it only needs to be molded by an injection molding machine at one time, and the processing process is simplified to the extreme, so the cost is as low as a few cents.
After the CD player was first invented, its parts were often very complicated, and later, with the industrial mass production, countless technicians found that it could streamline the structure and further reduce the cost, and the cost of the CD player, which was originally just invented in the 80s, exceeded 500 US dollars. However, in the 21st century, CD players cost even as little as $10 to produce.
Of course, the CD player developed by the new venture electronics company has not yet reached such a perfect level. But it is already more perfect and cheaper than the initial design that other competitors on the market have painstakingly worked out.
After the successful development of CD player products, Lin Qi was in a good mood and notified Philips and told Philips: "We have developed a technically mature CD player, which is no longer an analog signal, but a real digital signal, and the cost of commercial mass production will be very cheap, if your company is interested, you can send someone to discuss cooperation, of course, I tend to set up a joint venture company, by our new venture electronics and Philips, to share the benefits!"
Although Philips is the inventor of laser storage technology, it was the first to develop a commercial LD. In addition, it is also the earliest proposer of CD technical standards. But Philips is not a winner in LD and CD technology products.
The most successful commercialization of LD is Japan's Pioneer Company, and at present, half of the world's LD is Pioneer Company's LD!
As for CD technology, Japanese manufacturers are also in the lead, and previously, Philips has licensed CD basic patents to about five or six manufacturers in order to promote CD standards. Originally, it was intended to make Japanese manufacturers throw stones, but Sony announced its CD player prototype in 79. Next, in 80~81, a number of Japanese electronics manufacturers announced the development of CD players.
But the major manufacturers have not solved the problem of production costs, after all, if the product is very expensive, consumers may not buy it. After all, there are cheap cassette players on the market, as well as vinyl record players.
Historically, by October 82, Sony's first CD player was officially launched, initially priced at $674, and at the same time, Sony's subsidiary Columbia Records simultaneously launched more than 50 CD records, each priced between $14~$15.25.
In the beginning, music lovers who were accustomed to the noise of cassette tapes and vinyl records made constant sarcasm about the clear and transparent CD players without noise, and some even shouted slogans - only the sound quality that accompanied the noise can have the texture of music. The kind of CD record that can't hear the noise is an emotionless machine sound.
But the mouth says no, but the body is very honest.
In the beginning, CD players were more expensive, so they did not become mainstream in the market. However, with the mass production of CD players, the price gradually decreased, and its market share also increased rapidly.
By 1987, CD records had replaced vinyl records as synonymous with records. By '92 CD records even surpassed cheap music tapes and became the ruler of the music market.
The market potential of CD players themselves is nothing more than billions of dollars per year. But the problem is that after it became the mainstream of the market, it brought about a change in the entire record market.
The record market is a fat cake with an annual output value of more than 10 billion US dollars, not to mention, the gross profit margin of record distribution is far more than that of the traditional industry. Becoming the dominant music market shuffler means that it has the right to cut the multi-billion dollar cake in the market, and it is estimated that it can bring a net profit of $1 billion per year!
That's a billion dollars in the '80s!
With 1 billion US dollars, it has been able to rank among the world's top 500 enterprises. And Wang An, the richest man in China, was at the peak of his wealth at this time, but he was worth more than one billion US dollars. HSBC, one of the world's top 10 largest banks, has an annual profit of only $600 million.
Lin Qi took this market with a total value of 20 billion as bait, and Philips was of course itchy to be seduced. After all, Philips is big, but the size of the company is less than $20 billion. If you participate in the reshuffle of the leading music market, then the strength of Philips may reach a new level.
……
On September 3, 1981, Philips sent the general manager of the professional audio business department, Ke Cilei, to lead the technical team to Hong Kong to analyze the technical content and business prospects of the products of the new venture electronics company, and decide what level of cooperation to adopt according to the commercial prospects of the products.
"Welcome, welcome!" Lin Qi picked up the plane at Kai Tak Airport and happily shook hands with Ke Cilei and others.
"I am also very happy to be in Hong Kong, which is said to be the first of the four Asian tigers and is staging a high-growth economic miracle. "Before Ke Cilei came, he had done enough homework.
The Asian Tigers, mainly Hong Kong, Taiwan, Singapore and South Korea. Among them, the three regions are all Chinese societies, which can't help but make him wonder if the Chinese are engaged in the economy, what kind of magic is there.
Of course, Chinese mainland in this era, due to the long-term blockade, cannot carry out large-scale economic and technological exchanges with the outside world, and has not yet had time to perform magic.
Later generations proved that the mainland should be a large version of the Chinese society, similar to Hong Kong, Taiwan, and Singapore, all of which have great economic development capabilities.
Lin Qi nodded and said, "Asia is the continent with many people in the world. Although most of Asia is poor, it is the world's largest market! A consumer company wants to be greater, and it is impossible to serve only a few consumers in a small number of rich countries in Europe and the United States! In fact, the most successful company should serve a larger population, and better serve the consumer population of Asia, the world's most populous continent, in order to seize the greatest development dividend in the 20 th century and even in the 21 st century. Your company should note that the success of Japanese companies is not due to the size of the Japanese market, nor to the scale of Japan's exports to Europe and the United States, but to the fact that it is now a vested interest in the Asian market and the demographic and market dividends. Japanese companies have not only made full use of the cheap labor and resources of Asian countries to help them reduce the cost of their products, but in addition, they have occupied the consumer markets of various countries through their investments in Asian countries! Philips is an international enterprise, but I think that your company has a relatively heavy proportion in the developed countries of Europe and the United States, but in Asia, especially in China, a huge market that has not yet been explored, the investment is still too small!
"That's true!" said Kotsley approvingly, "Asia is the world's most populous continent, and China is the most populous country in Asia. At the same time, China's huge market potential, more than one billion people speak the same language, high social stability, and the gradual opening of the market to the outside world, which is a very good phenomenon. But the problem is that European companies are too new to the Chinese market, and it is very difficult to find some good translators who understand Chinese Chinese language and culture, after all, learning Chinese is very difficult for Europeans. ”
"You don't need to understand too much. Lin Qi said, "You can look for collaborators, such as our new start-up electronics company." We understand both the international capitalist market and the Chinese, and we can understand the Chinese market. At the very least, the experience of organizing Chinese factories to assemble and produce products for us cheaply is not only not available to overseas companies, but even the vast majority of domestic enterprises in China do not have the ability to organize production with such high efficiency as ours. Your company only needs to establish a joint venture with us to establish a new joint venture brand, and we will be able to produce the most cost-effective and advanced products in the market!"
Ke Cilei said with a smile: "That's a CD player built in your company, does it meet our standards!"
"Mr. Ke Cilei, I am very confident in the products developed by our company!" Lin Qi said, "More importantly, the cost! We are absolutely confident that it is cheaper than the CD players of Japanese manufacturers!"
Ke Cilei glanced at Lin Qi meaningfully.
That's right, cost is the problem that plagues Philips!
In fact, Philips has not developed a CD player, after all, it is the technical standard that came up with it. However, the mass production cost of its products is expected to reach more than 2,000 US dollars.
At such an expensive price, of course, it is impossible to sell it.
If Philips had managed to reduce the cost to $500 per unit, Philips' CD turntable would have been on the market long ago.