Chapter 166 : The Real Reason

Lu Zixin’s goal in Red Letter Software Development Co., Ltd. has been completed. With his smart template designed, the project team can continuously improve the “intelligence” of Red Cloud and let it do more.

And this intelligent voice assistant will also be applied to the next Red Letter smartphone.

……

Lu Zixin returned to Pengcheng and took all the research and dealt with some matters.

“Last month, sales of HX2 have declined, but still remain above 300.” In the office, Su Zhirong reported to him with a data report.

“In terms of production capacity, 20% increased year-on-year, which basically meets market demand.”

“HX2 MOUDLE smartphones are scheduled to be released in the middle of this month, and the current market is scheduled to be around 400,000 units. According to market research, sales of HX2 MOUDLE smartphones should be less than half of HX2.”

Lu Zixin nodded and said: “The MOUDLE mobile phone is a niche product, and because of our selling price, we want to have a breakthrough in the domestic market. It’s hard!”

Samsung, Apple and other foreign brands of mobile phones, obviously many technologies are better than domestic, but domestic sales are not as good as domestic mobile phones, largely because of the domestic market consumption level.

With the pricing of red letter smartphone, it is very difficult to compete for the top three sales. However, in terms of the amount of profit, Red Letter may not be less than them.

At this moment, Beijing, Apple’s Headquarters in Huaxia District, a group of high-level executives are also have meeting to discuss this issue.

“Last month, sales of our Apple mobile phone in China market fell again. This sales volume has dropped by 15%! This is a very bad data!” In the conference room, the head of Huaxia District, Morris Griffin said in english, “What do you think is the problem?”

Maurice Griffin is a standard white man with a tall body and has been the head of Apple’s Headquarters in Huaxia for more than four years.

During this period, he saw Apple’s fiery heat in Chinese consumer market and saw the rise of some Chinese-made mobile phones.

To this day, Apple can still earn tens of billions dollars in revenue from the China market every year! Huaxia is Apple’s most important smart product market in addition to the North American market, so they attach great importance to it.

“Market surveys show that there are several main reasons,” one management said. “The first is that Chinese consumers believe that our new mobile phones lack innovation, so the desire to buy is not high.”

“The second is the rise of Chinese domestic brands, and their low prices are more attractive than our products.”

“The third is that the quality of our products is so good that some consumers think there is no need to replace new phones.”

“These are not the main reasons!” Morris said seriously. “The main reason comes from the electronic Science and Technology company called Red Letter!”

“I personally studied HX2 of Red Letter, which can be said to be the only product in China’s smartphone brand that can compete with us! Red core processor, HX mobile phone system, lithium air battery, these technologies make HX2 occupy the original market Belong to our high-end smartphone market!”

A data analyst said: “Before the launch of HX2, our market sales only declined slowly. At the time of IPHONE 8 and IPHONE X, sales also rose.”

“When HX2 was launched, the sales of the latest IPHONE dropped significantly for three consecutive months, and this trend is still increasing!”

“This is a huge test for us!” Morris concluded. “We must come up with a solution to solve this problem!”

“Li, you are a Chinese, what do you think?”

The management person that was pointed out by Morris said: “There is no doubt that HX2 has achieved a qualitative leap in the performance of China’s smartphones, impacting the high-end smartphone market.”

“Not only us, but also the sales of other high-end smartphones are relatively reduced. Compared with the price, the price of HX2 is now several hundred dollars to more than a thousand yuan lower than our latest Apple phone.”

“If it is a Chinese consumer, they are more willing to choose a more cost-effective mobile phone.”

“Oh, yes, there is another important factor that leads to the loss of our customers. That is, Red Letter Mobile System can use our IOS-side app with the help of Red hub function, which makes consumers more casual when changing phones.”

When he heard Li, Morris and other high-level leaders thought about it.

A moment later, Morris said: “In the absence of new mobile phones, it will reduce the price and increase competitiveness. This is not our practice!”

They have always been the most expensive to sell, and they are equally sought after by consumers. In the global sales rankings, Apple products may not be the first, but in terms of profitability, they are no less than other companies. Even ranked among the top ten of the world’s top 500 companies!

Now, there are products that force them to cut prices and improve their competitiveness. The crowd fell silent.

It was an American who broke the silence. He said: “I think HX2 has invaded our market share. The big reason is because their Red Letter mobile phone system can use IOS-side software, which takes away our loyal users!”

“So I suggest that you immediately let Red Letter stop this violation of our rights!”

In fact, this has already been raised. However, this matter has not been clarified, because the Red Letter mobile phone can use the IOS version software, but it is only an auxiliary function, so that software developers do not have to redesign the software of Red Letter mobile system.

Apple’s patented software and features, Red Letter mobile phones can not be downloaded and used, and there is no direct infringement. As for indirect infringement, the interpretation of laws and regulations related to China is also very vague, and it is not clear at all.

However, this sentence seems to have inspired Morris. He said: “Right, we must let them stop this behavior and compensate us for the loss! We don’t allow Red Letter’s mobile phone to convert any IOS-side software. Do not allow any Apple account to be logged in on other brands of mobile phones, otherwise it is a violation of our rights!”

His eyes glowed, as if he had found the shackles of defeating Red Letter. Other high-level officials have no opinion on this.

Apple has always been so overbearing, for example, they created the so-called “Apple tax.” Any software application consumption on IOS side, Apple will extract 30%!

This is simply robbery. Many Science and Technology companies have expressed dissatisfaction and have caused a lot of protests. However, they only slightly modified the terms, and the money is still the same. Software developers can only bear silently. Last year alone, Apple made a profit of about 90 billion dollars.