Chapter 92: Persuasion

The bus of Xinchuang Electronics brought everyone to the Hong Kong headquarters of the company's Xinchuang Electronics Company. Pen, fun, pavilion www. biquge。 info Adjacent to the site of the new venture electronics company is the new love electronics factory.

Because, the new start-up electronics company does not have its own manufacturing department, so it naturally seems relatively quiet. On the opposite side, there are constantly transport vehicles coming in and out, which is very busy and lively.

Lin ...... The factory next door to you is doing better business than yours. Ke Cilei joked.

"You're right!" Lin Qi said with a smile, "The Aika Electronics Factory next door is a foundry for us. We do not plan to set up a manufacturing department ourselves, but to entrust the production of the developed products to a foundry such as Ekka. Although, they seem busier, most of the work is repetitive work, and ours is more creative. ”

"Since their business is all given by you, why don't you just set up a factory by yourself, or buy it?" Ke Cilei was surprised.

Lin Qi explained: "It is precisely because we don't want to spend our energy on personnel management, so we want to streamline the company's structure as much as possible and entrust the business to the company, and I don't want the company to add more than 10,000 employees in the manufacturing department." So we now have less than 1,000 employees, so we can focus on inventing products. When a product was invented by us, that was in the past, and then in addition to perfecting it, we have turned our attention to new products and new strategies. As for those repetitive tasks, they should not occupy our precious resources and energy! Just as there is a concept of streamlining architecture in the computer industry, in fact, we should also streamline the management of the company. However, outsourcing the business that does not represent the company's core competitiveness greatly reduces the company's staffing staff, and the number of employees is as small as possible, and the meaningless bloated staffing and organization are reduced as much as possible -- this is in line with the concept of streamlining the structure! I strongly suggest that Philips also consider outsourcing its production to a Chinese foundry. In the long run, the labor cost savings and the efficiency of the company's personnel improvement are already very cost-effective. ”

"Lin!" said Ke Cilei humbly, "this idea is very wise, I will investigate the actual production capacity of the Chinese foundry, and then make a proposal to the company." Of course, now we are more concerned about CD players!"

"Please! We've got samples ready. Lin Qi said with a smile.

Then everyone arrived at the specially arranged conference room.

In the conference room, there are several CD players. This is not the prototype provided by Lin Qi, but the R&D personnel of the new venture electronics company who bought and made accessories and assembled the machine after understanding the technology of the prototype. It is much more technically coarse than the prototype, but it can definitely be industrialized and mass-produced, and the production cost should be ahead of the peers of the entire era!

Lin Qi opened a CD disc, and then, pressed the tray switch of the CD player, after the tray popped up, Lin Qi carefully installed the CD disc.

In this CD, more than 20 songs are burned, all of which are currently famous songs in the world, and the copyright is no longer in the hands of Lin Qi, but it is not for commercial purposes, but only burned in the CD in the laboratory, as long as it is not sold in the market, it is not considered piracy and infringement.

“Are you going to Scarborough Fair

Parsley,sage,rosemary and thyme

Remember me to one who lives there

She once was a true love of mine……”

A clear and pure song, through the CD player, slowly released.

“《Scarborough Fair》!”

The representatives of Philips who were present were all employees of the sound system department related to music, so they were naturally very familiar with the famous songs.

"Scarborough Fair" is one of the famous songs of the famous music group Simon and Garfunkel, and this song first sounded in the world's ears as the background music of the film "The Graduate", which was released in '69. That year, it won the Academy Award for Best Film Interlude and the Grammy Award for Best Sound Recording.

In the following decades, this song was covered by countless singers and used in many films, television, animation and games.

Using this song to test the CD player was not Lin Qi's special choice.

Instead, the company's staff selected more than 20 songs, recorded them on CD, and tested the performance of the CD and the record player.

"Excellent!"

"There was no murmur at all. ”

"Oh my God, how many songs are recorded on this CD?"

"It's definitely in digital format, and it's compressed, and it's impossible to record so many songs with an analog signal. ”

Next, one classic song after another was played......

When all the music was finished, the crowd applauded. Philips personnel looked at their watches, and a total of 85 minutes had passed.

"Lin, this CD player is fantastic, not only does the sound quality far surpass that of tape, it is close to vinyl. Moreover, it is possible to store music for such a long time. Ke Cilei said excitedly, "Of course, the most critical question is, if it is mass-produced, how much can the cost reach?"

"I made a simple estimate that the cost of the record player would not have cost more than $300 if the cost of processing and equipment depreciation were not taken into account. "After mass production, after a few years, the R&D costs and depreciation costs of machinery and equipment were recovered, and for further improvement and simplification of the process, we believe that it can further reduce the cost to 100 US dollars." Now, in the face of this product, Philips, would you like to cooperate with us in the production?"

"Of course, I personally strongly agree!" Ke Cilei said in his heart, he must be a fool if he does not agree to cooperate with Xinchuang Electronics.

Although the new venture electronics company signed an agreement with Philips, the standard of CD players is consistent with Philips. But if Philips refuses to adopt this standard, the start-up electronics company can transfer its technology to other companies, especially Japanese companies, even if it cannot continue to produce CD turntables itself!

If you don't cooperate with the new venture electronics, you will have to watch Japanese companies seize the market with higher efficiency and speed.

By partnering with New Ventures, Philips can quickly turn the tide and become a leader in the CD market.

Moreover, the promotion of CDs is not only the benefit of the record player, but also the most important thing - Polygram records!

In '72, Philips Records merged with PolyGram, and PolyGram became an important subsidiary of the Philips Group.

Japan's Sony is aware of the acquisition of a stake in Columbia to cooperate with the sale of its own Walkman and record player. After the competition between traditional tapes and vinyl records became fierce, Sony naturally wanted to open up new markets and gain more competitive advantages by launching CD players.

The temptation of the music record market is more attractive than selling the record player itself.

After all, selling a record player is a one-shot deal, but after the standard of the CD player sold by the company is promoted, it is conducive to the music company controlled by it to release records with new technical standards. In this way, we will be able to gain a unique advantage over other music companies by opening up new markets.

Philips inspected Lin Qi's companies and found that he did not have any music-related companies, so he did not think that Lin Qi could pose a threat to him in the record market.

Therefore, after the company's CD player passed the assessment and demonstration of Philips' technical experts, Philips efficiently approved the cooperation with the new start-up company and invested 50 million US dollars to invest in a production line of CD music players and CDs.

Lin Qi directly reported the project to the central government through high-level channels, and told the central government that the opportunity must not be missed, and if this opportunity is missed, it is impossible for a CD production line to settle in Chinese mainland in the next ten years.

An investment of $50 million, leading technology in the world, and a new industry that has just come out! Moreover, it is the patriotic Hong Kong businessman of Xinchuang Electronics and the internationally renowned Philips company.

As a result, the central government quickly approved the allocation of 200 acres of land in Shenzhen, discounted by 10 million yuan, and lent Shenzhen Xinai Electronics to expand the factory area. Of course, the 10 million yuan does not need to be paid now, but can be paid after the production line is put into operation.

The newly put into production CD player and CD disc factory was entrusted to the OEM of Aika Electronics and Xinai Electronics. The production equipment worth 50 million US dollars will also be leased to Xinai Electronics.

After Xinai Electronics is put into production, it can repay the rent of machinery and equipment with foundry fees. When the depreciation of machinery and equipment is completed, you can consider transferring it to Xinai Electronics at a low price.

However, the brand of CD players and CDs is owned by Xinfei Technology, a joint venture between Philips and New Venture Electronics.

Got a CD player and took the entire production line of Philips, Lin Qi felt that this deal was very cost-effective. Of course, only CD players and optical discs have been converted from analog signals to digital signals.

The new venture electronics company has a better CD-ROM drive, but Lin Qi is not ready to take it out now, in fact, if there is a way to build his own CD record player production line, he will not even pay attention to Philips.

But it is precisely because it is easy to reverse engineer the research and development of products, but it has fallen into a similar problem for many Chinese companies now - it cannot be produced!

Even if it is barely produced, many core components must be entrusted to overseas industry giants to produce.

It is precisely for this reason that Lin Qi is ready to use patented technology and products as bargaining chips to attract Philips to cooperate, so that Philips and Lin Qi can jointly build a CD record player and CD recording production line. In the beginning, the core components were purchased from Philips to make the most profits.

However, when the production lines were moved to China, the consumer market for CDs and CDs was gradually cultivated. It is not difficult to invest sufficient funds and R&D resources to localize all core components.