Chapter 233: Crisis
They don't know anything about Apple's high-level conspiracy Duke, so although Cai Siqiang is expected of the lawsuit launched by the other party as scheduled, there is no good way. The patent negotiators sent were frightened back by the high price of $20 per patent license.
This asking price shows that Apple has no sincerity in reconciling with the new Nokia Mobile.
Although from the perspective of profit margins, Apple's proposed $20 licensing fee does not seem to be outrageous, because according to the selling price of the new Nokia NOne phone, this licensing fee is only a few tens of percent.
However, considering that the new Nokia Mobile has now lost the protection of key technology patents in 4G, as long as Apple succeeds, those competitors with 4G core patents like hungry wolves will inevitably pounce on it and bite it, and the new Nokia Mobile will face a flood of patent licensing fee requests.
This lesson is too profound. Every time he thinks of his mistakes on the patent issue, Cai Siqiang blames himself. Watching the overseas market be suspended one by one with Apple's lawsuit, Cai Siqiang's heart is bleeding.
This infringement lawsuit not only dealt a great blow to the performance of the new Nokia Mobile in the market, but also dealt a blow to the leading image that it had managed to establish in terms of technology.
Therefore, even the sales to the domestic market have been overshadowed, and countless competitors have made waves in various channels to take the opportunity to hit the new Nokia Mobile, so in the second month, the sales of NOne mobile phones fell sharply, this unexpected situation made the president of Terui like an ant on a hot pot.
Due to the strong market performance in the first month, the president of Terui finally prepared raw materials and components for NOne mobile phones with a monthly production capacity of 20 million units in the last three months. This was originally Terry's most important work and achievement during this time, but who knew that the situation would take a turn for the worse in the blink of an eye, and the raw materials and parts that he had ordered only after asking his father to tell his grandmother had suddenly turned into a black hole that consumed a lot of money.
"Mr. Cai, most of our raw materials and components, most of which are prepaid cash to be given priority, last month, the new Nokia mobile sales broke the $10 billion mark, this month is ready to do a big job, who knew that this kind of thing happened." At the end of the month, Terry reported to Cai Siqiang with a bitter face.
"With this batch of raw materials, we are about to dry up our working capital, and we may not be able to pay these expedited orders in time with the same amount of raw materials and parts arriving next month."
Although it is commonplace in China to default on payment, and it is not uncommon abroad, these urgent orders are signed with corresponding contracts, and they are more harsh in payment. If the payment is not made on time, the supplier can even file a lawsuit for the new Nokia to pay immediately, otherwise it can file for the bankruptcy of the new Nokia.
When NOne mobile phones were soaring, Terry was able to pay in time and get such a huge number of expedited orders without increasing the order price, which was already using his own strength and countless connections, which was a very boastful thing for Terry.
Who knew that in the blink of an eye, this would become a lethal weapon to strangle Terry's neck.
"How much cash does the company have left right now? How much can you expect to pay next month? How big is the gap? Cai Siqiang asked. Terry was the president of Nokia's mobile phone business, and after the acquisition, Cai Siqiang and they couldn't find a new person to take his place, so Terry continued to work.
Honestly, Terry has done a great job for a while. The new Nokia Mobile has divested more than half of its R&D personnel to invest 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 intensive cultivation.
In the past, due to the huge personnel burden and the lack of a flagship model that could compete with Apple and Samsung, Terry has been very aggrieved. Now that these two problems have been solved, Terry is free to do a big job, and recently has been running between raw material manufacturers all over the world, working harder than model workers, and the results are also very significant, basically completing the big problem of raw materials and parts supply.
So Cai Siqiang really has nothing to be picky about Tere's work.
"We have about $2 billion in cash now, and with the proceeds from this month's sales, we're probably going to have $3 billion left in cash by the end of the month, excluding the necessary expenses." Terry said.
"Next month's payment for raw materials and components is about $5 billion, and if sales remain sluggish like this month, then we will not be able to make ends meet, and we will need at least $4 billion in external funding to meet the needs of the company to continue operating."
$4 billion. Cai Siqiang quickly went through it in his heart, the last acquisition of Nokia's mobile phone business, due to the change of the acquisition target, the total amount was only 3.5 billion US dollars, of which Duke also cashed out 2 billion US dollars from MI, so he directly used SAL's own funds to complete the acquisition, and Cai Siqiang's bank loan line of 30 billion yuan from the government has not been used.
Now, this loan is just the right way to make up for the new Nokia Mobile's liquidity needs.
"Next month, this funding gap will be provided for you by the head office, after receiving this batch of raw materials, the follow-up will suspend new purchases, if there is no progress in our patent litigation with Apple, we will focus on mid-range products next month and temporarily survive this difficulty." Cai Siqiang said.
Terry nodded in understanding, in fact, he had done this a long time ago, and the momentum was not right in the second month, only 10 million flagship NOne mobile phones were produced, and other raw materials were placed in the warehouse or used in other models, just like that, and now the warehouse is also full of raw materials and inventory products.
The production and sales of mid-range mobile phones have maintained a relatively stable situation, and it is basically an impossible task to increase sales on a large scale in the short term.
"Mr. Cai, is there no new solution to our lawsuit with Apple now? If this continues, the international market for our flagship models will be completely lost. Although Terry is also a senior executive, the core decisions now come from Cai Siqiang, Dong Feng, Zhao Jianwu and Duke.
"We're trying to figure out how to solve this problem, and I'm sure there will be a way." Cai Siqiang comforted Terry Dao, Cai Siqiang still attaches great importance to this general, and must give him a promising hope, so as not to be poached by others in frustration.
It is not easy for a high-end management talent like Terui who can control an international company to find a suitable one now.