Chapter 1294 – The most expensive and the cheapest

This Wind and Rain S1 is currently Wind and Rain Mobile’s most expensive model. Its retail price is 1,499 USD. Among the current few hundred USD phones era, it stood out.

Of course, this model’s functions are very powerful. When Xu Lihua revealed the phone during the product launch, the crowd was awed.

This phone’s functions are better than Blackberry, Nokia, HTC, etc., and most traditional mobile phones.

The phone’s screen is 260,000 pixels, and it is touchscreen. The camera lens is also upgraded. When Xu Lihua demonstrates the PS functions, the crowd went crazy.

Everyone did not know mobile phone technology had become so advance.

Many people still feel this phone is too expensive. Still, it uses the most advanced technologies from Wind and Rain Electronics and other companies. The cost is almost 1,000 USD, and the operating system cost is higher than most operating systems in the market. This is because the operating system is only used by Wind and Rain Mobile and Aiwa Mobile.

But Xu Lihua mentioned that the phone’s retail price would be lowered within six months as the screen and operating system’s costs are lowered.

Xu Lihua felt this phone should be targeting the high-end market, and the retail price should maintain above 1,000 USD. But the most popular Blackberry model is the market is not as expensive.

They had done market research and felt the high-end mobile phone market is quite empty. They want to be the first to occupy them. Feng Yu does not know whether if this will work, but he was the one who suggested lowering the price of the mobile phones. Mobile phones should be targeting ordinary families, and they will become the most common electronic product in the future.

Xu Lihua added. You are the one who said mobile phones should be developed in two different directions. More expensive with more functions and cheaper with basic functions.

Feng Yu is speechless as he did not expect them to be more extreme than him.

“Old Xu. Your mobile phone is selling more expensive than a PC. Just think about this. How much does a PC cost now? A laptop is only selling around 1,000 USD. Do you think the consumers can accept this price?”

“That’s why we will be focusing on developed countries with more wealthy people. The retail price for our next model will be around 1,000 USD, and we should have given consumers the impression we are a high-end mobile phone. That will be our opportunity to expand our smartphone market share.”

Huh? Feng Yu thought for a while. This is also a good idea.

But there is another problem. People will think Wind and Rain Mobile’s profits will be very high, and that’s why they can lower it by so much in the future.

“Err… this can also work. If you all think this strategy will work, then go ahead. But we will not be making any money from our Chinese market.”

“The retail price for China market is around 10,000 RMB. There are still profits, and we will be targeting the high-end market too. This phone is a prototype to attract attention. With our marketing, we plan to become the mainstream smartphone after our third generation.”

If they are going to introduce a new model every year, it will be three years. Feng Yu thought for a second. Smartphone still has not replaced traditional phones three years later.

“Are you all thinking of overtaking Motorola with only this phone?”

The sales for this phone should not be high, and how will they beat Motorola with it? Motorola is currently the market leader for the US market, and even Nokia cannot win them.

Xu Lihua smiles. “Manager Feng, do you still remember what you said? To develop the cheapest phone. This phone is currently under development, and it should be ready to enter the market before the end of the year.”

Feng Yu raised his brows. “Are you talking about that phone with only basic functions? How much is the cost?”

“Around 45 USD, and we plan to set the retail price at 50 USD!”

50 USD is slightly more expensive than that Nokia phone from Feng Yu’s previous life. In the future, cheap phones will become popular for a period in China and many developed countries.

The best-selling mobile phone in the world is Nokia’s 1100. It sold 250 million and claimed this record could never be beaten.

Even if the profit of one phone is 1 USD, the total profits will be 250 million USD.

“The phone can be launched by yearend?”

“It should not be a problem. We are doing the final test for the materials, and we plan to make the phone last for three years.”

“Only three years?” Feng Yu remembers the Nokia phone can last more than five years.

“Manager Feng, isn’t this what you told us? A mobile phone should last around three years, or else consumers will not change new phones, and the market will shrink. Our phone can last around three years, and using it to the fourth year should not be a problem.”

Alright. That makes sense too.

In Feng Yu’s previous life, most students and seniors are using Nokia 1100. After that, a phone with bigger keypads and larger screens appeared. This model targets the low-income segment, and it’s worthwhile even if the phone can last for three years.

“Our Wind and Rain Mobile will make history with this phone! How many units do you think we will sell?”

“10 million units should not be a problem, and we will continue selling it for three years.”

30 million units?

Feng Yu gave Xu Lihua a side glance. “Can you have bigger dreams?”

“Bigger dreams? Are you saying we can sell 50 million units?”

“We can sell around 50 million units in China alone!” Feng Yu replied confidently.

“What? We can sell around 50 million units in China?! That means we can sell over 100 million units worldwide?”

“100 million units is too little. Just think about it. Pagers are obsolete, and the only portable communication device is the mobile phone. Do you remember how fast pager developed in the past, and how fast mobile phones are developing now? Mobile phones are expensive now. But do you think those who cannot afford a mobile phone will want one? When a cheap mobile phone enters the market, I believe many low-wage workers in the cities will rush to get one to call home.”

“Also, do you think the students will want to own mobile phones? School fees are very expensive, and it’s tough for average families to send their children to schools. They also cannot afford electronic products for them. But if this phone costs only 400 RMB, do you think the family will want to buy one for their children? Also, those elderlies are not using mobile phones is because they don’t want to spend money on the phone, and not because they don’t want to use one.”

“That’s why this model will start a trend of low-cost mobile phones. Cheaper phones which cost less than 40 USD might even appear in another two years. We must focus on lowering the production cost, and the basic functions must not go wrong. If we can achieve that, we will take over the low-cost mobile phone market!”

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