Chapter 537: Expansion of production capacity
Just when the interest-free housing loan policy of the Radiance Group caused all kinds of heated discussions, the Guanghui mobile phone of the Radiance Group was ready to release satellites again.
"Mr. Jiang, we have now pre-sold all this year's output, and even the pre-sale in January next year is almost finished. Do you want to open pre-sales again?", Dai Fuqian said.
Since its launch on October 6, just ten days have passed, and the pre-sale of GPHONE on the official website of Guanghui Mobile has been hot.
According to Jiang Hui's understanding, because of the need to pay a dollar in advance, many people hate the trouble, and even if they intend to buy, they will not go to the pre-sale, but from the actual situation, it seems that this is not the case.
"Which countries are the current orders distributed in?", Jiang Hui asked.
There were only 12 stores in the first batch of Guanghui mobile phones, and Jiang Hui wanted to know how popular GPHONE was in various places.
"At present, the number of pre-orders for pick-up at the three directly operated stores in the United States has reached more than 1.2 million, accounting for one-third of the total. The Celestial Empire has the most directly-operated stores, with the four stores accounting for one-third combined. Reservations for the remaining five directly-managed stores, including the island nation, account for the remaining one-third."
"According to our strategy, we want to make a name for ourselves in the international market first, and then focus on the domestic market, why is there more domestic bookings than we estimated."
Since the domestic network is still 2G and does not support IFI, there is no way to fully reflect the advantages of Guanghui mobile phones when selling GPHONE in China. Considering that there is a tax rebate for exported mobile phones, and the selling price abroad is higher than that in China, the gap in profit margin will come out as soon as it is withdrawn and high, so Jiang Hui wants to sell more mobile phones abroad.
Although the Celestial Empire is a big exporter, the added value of export items has not been high, and Guanghui mobile phone is expected to break this situation, which is very helpful to enhance the corporate image of Guanghui mobile phone.
At the same time, taking into account the special thoughts in the hearts of some Celestial Empire people, I always feel that the popular things in Western developed countries are the best, if the glorious mobile phone can achieve good results in the United States and other places, then there is no worry about not selling well in the country in the future.
"We analyzed it, it should be because GPHONE is too beautiful, it seems to be a product from an alien planet, which is fatal to the attraction of girls."
The reason explained by Dai Fuqian seems unbelievable, but Jiang Hui believes in this judgment.
In the previous life, Apple 4 was the most popular among girls in China, and many little girls with an income of only two or three thousand yuan threw their savings for half a year or even a year into it in order to buy an Apple mobile phone, and even did some indescribable things for this. And the appearance of the GPHONE borrows from the Apple 4, and it is inevitable that the women of the Celestial Empire will go crazy. As for what network speed, you can't use IFI or something, so what does it matter?
It's enough to look good.
"Focusing on the U.S. market, this strategy cannot be shaken in the short term, is our reservation number sorted by each directly operated store or by the whole world?".
"We have numbers for each store and around the world, but what we distribute to consumers is the order of each store."
"That's good, from tomorrow, we will suspend bookings, and we will reopen later, depending on the situation. As for the current distribution, according to the previous plan, priority will be given to the three directly operated stores in the United States, leaving one to two percent of the output for the domestic market."
The reason why we want to focus on the U.S. market, in addition to the considerations mentioned above, is that American netizens have better payment habits, and Guanghui mobile phones can get additional revenue by selling various apps.
For example, games such as "Angry Birds" and "Plants vs. Zombies" are free to download on the domestic version of the mobile phone, and you can only make money by selling props, but on the American version of the mobile phone, Jiang Hui is ready to charge. In addition, the apps of other companies are sold on the Gstore of Guanghui mobile phones, and Guanghui mobile phones also have to take a 30% commission.
Now that the number of apps is small, the sales of Guanghui mobile phones will not be very high in a short period of time, and the benefits may not be obvious. But in a few years, this piece will become an important source of income for Brilliant phones.
In later generations, Apple's commission fee through App sales was as high as 50 to 60 billion yuan a year, completely destroying 99.9% of the listed companies in the Celestial Empire.
And, there's another benefit to app sales. In 2017, Apple's sales and market share were declining, but the sales of the app store were still bucking the trend to a new high. This means a lot to Apple, and it will also be the same for future glorious phones. This means that the user's payment model for software has gradually grown, and after the hardware sales have entered a bottleneck period, it has found a new direction for the company's profitable growth.
This estimate is something that only Jiang Hui can see at such an early stage.
"Okay, but we expect that the production capacity gap of Guanghui mobile phones will be relatively large. Although we are already promoting capacity expansion, in the first half of next year, our own monthly production capacity will only reach a maximum of 2 million, and it may be difficult to keep up with the quality, personnel and other aspects if we improve."
"Then what countermeasures do you have?" Jiang Hui wanted to hear Dai Fuqian's opinion first.
"Recently, Futukang has been negotiating with us about the OEM business, and I think we can consider releasing some of our production capacity to them, and at the same time reduce the pressure on us to train skilled workers."
As an enterprise founded in Baodao, Futukang Company has invested in the Celestial Empire since 1988, is a high-tech group specializing in the production of 3C products and semiconductor equipment, and is also the world's largest foundry, with hundreds of thousands of employees (Jiang Hui was already more than one million at that time) and the world's top IT customer base.
The reason why Futukang has been able to become a leader in the field of global 3C foundry services from a regional enterprise that was unknown more than ten years ago is not only because of its unparalleled execution and the joint efforts of all employees, but also because they have their own uniqueness in terms of speed, quality, engineering services, flexibility, cost, and customer added value.
Being able to strike a balance between speed, quality, and cost is the main reason why companies come to them for OEM. And this happens to be what the current Guanghui mobile phone cares about the most.
"How soon can they start producing GPHONES?"
"From the time the contract is signed, small batch production can start after four months at the earliest, and mass production after five months."
"THAT MEANS THAT IF WE DECIDE IN THE NEAR FUTURE, THEY WILL BE ABLE TO MASS-PRODUCE THE GPHONE IN APRIL NEXT YEAR?"
"Yes, but there is a premise, that is, our spare parts supply must increase production at the same time, and we can't drag our legs."
"Then you can negotiate according to the expansion of production in April next year, and first talk about the volume of one million units per month," Jiang Hui said.
(End of chapter)