Global monopoly of technology

On October 13, 2017, Verizon headquarters.

"God, the American technology industry is going to be ruined by that group of pigs' brains. No, this is an insult to pigs!!"

The CEO of the company, Lowell McAdam, was furious on the spot after seeing a report submitted by the person below. This report is a recent big data statistics of inflows from Mexico. The number and growth trend of Azure-5 mobile phones in North America.

Data shows that in the last month alone, more than one million Azure-5s have flowed into all parts of the United States. What makes Lowell McAdam more fearful is the growth trend behind it, which means it will continue in the future. Growth means not making any response strategies, and there are more than 12 million units within a year.

As one of the four largest operators in North America, Verizon is the wireless communication service provider with the most users. It has a very high signal coverage rate and an LTE network covering the entire United States. At the same time, this company is also the main sales channel for Azure mobile phones. One is an important partner of the Blue Coast Company and a major advertiser of Bluestar Technology.

In short, it is just right to have a strong partnership.

At the moment, a large number of unlocked Azure-5 smartphones are sold frantically from Mexico to North America. This has caused Verizon to lose a lot. Not only his family, but also another major operator, ATT Group, are the same. In fact, the four largest in North America Operators have suffered varying degrees of losses.

This has to be said that there is a problem with the sales link of the Azure series of smartphones in the North American market. Azure mobile phones are divided into unlocked and unlocked versions. Another way to say it is the retail version or the contract version.

The retail version or unlocked version of Azure mobile phone is a single flagship store established by the Côte d'Azur. It is a buy-out product without any restrictions, and of course it is more expensive.

Most international brands are full-band, and of course Azure smartphones are also available. There are dual-band, triple-band, etc., which support automatic network switching. Whether it is in China or North America, it can be used as long as the card is inserted. Of course, there must be A prerequisite is to be within the signal coverage.

However, the retail version of the retail version of the company’s own physical store’s own channels only accounts for a little more than 30% of the Azure mobile phone sales in the United States, and nearly 70% of the shipments are through several major North American operators and other channels. Dealers completed, that is to say, for the contract machine accounted for 70% of the sales.

As for why the Côte d’Azur company’s own channel retail stores can’t be used by local operators in North America, it’s because they sell cheaper, have a huge sales network, plus home advantage, and they have to play according to other people’s game rules.

The contract machine is cheaper than the retail version, but is it really cheap?

The intuitive price is indeed two or three hundred dollars cheaper, but it is actually more expensive.

The differences in models brought about by different regions, basically in many developed countries are mainly mobile phones sold by operators, while in China, the opposite is the case, which is mainly retail channels.

However, in other countries, most of the operators control the entire sales channels of mobile phones. It is not easy for the company's own channels to open up close to 30% of the North American market.

The contract machine in North America can be understood as a similar domestic activity of charging and sending mobile phones. Verizon’s Azure contract machine requires a two-year event. In other words, if consumers in North America buy this contract machine, It means that during the contract period, the prescribed minimum consumption amount must be guaranteed.

For example, the monthly package fee is US$78.2, which means that no matter whether the user uses 50 yuan or 78.2 US dollars, the package fee of 78.2 US dollars will be deducted every month, which lasts for two years, which is a minimum of 1876.8 US dollars. If you exceed the phone bill, you have to charge extra.

It seems that the operator sells the contract machine cheaper than the retail version, but it is actually more expensive. As long as the user purchases the contract machine, the operator can guarantee a stable income of $1876.8 for at least the next two years, and only a lot more.

However, this kind of contract machine, which is cheaper and more expensive, is sold better than the retail version. In addition to the operator’s own channel advantages, the vast majority of mass consumers in North America do not know how to count, and may also account for a lot of it. factor.

Instead, they feel that the contract machine is affordable, and they can only say that happy education is good, otherwise how would the old American capitalists collect IQ taxes?

However, even if the mass consumers in North America are stupid, they can understand that the price of products has soared due to the increase in tariffs. Even if the operators want to make profit, they will not lose the number of good-looking figures.

Local consumers can clearly see that a mobile phone has soared from more than $2,000 to nearly $4,000. If you can't see the large and intuitive fluctuations of these two numbers, you will be really blind.

Now it’s fine. Mexico is reselling Azure-5 mobile phones. The price is dozens of dollars cheaper than the price of the contract machine before the tax increase period, which is equivalent to more than one thousand dollars cheaper, and there is not much to spend. The minimum contract limit for phone bills or other value-added services.

Local consumers will know which one is more affordable, even if they are a pig with an IQ.

But for North American operators such as Verizon, it’s miserable. Every time they sell an Azure-5 in Mexico, they have to lose a fortune that they should have earned, and the profits are lost to Mexican and local gangs. The grey forces were diverted.

The stock market does not deceive people. In the past few days, the stock prices of several major North American operators such as Verizon and ATT Group plummeted neatly.

Verizon’s stock price has plummeted by 18.9% in the past few days, and its market value has fallen from US$220.8 billion to only US$179.07 billion at present; ATT Group is even worse, because the company’s share is larger, so it has plummeted by 20.2%. The market value has fallen from US$207 billion to the current US$165.18 billion.

The Azure series of smartphones accounted for more than 60% of the North American market, and it is no surprise that such a big impact on local operators.

What makes them uneasy is that there is a high probability that the stock price will plummet further. Investors in the United States are extremely realistic. Before the Nielsen report was released, the stock prices of the major North American operators were quite strong. , Pull the hips directly as soon as the report comes out.

If the next Q4 financial report comes out, the performance will be affected. Investors will see this hot-eyed performance report, and the stock price will definitely suffer a further plunge.

It is not unreasonable for Lowell McAdam to be furious in the Thunder. He plans to step down as CEO next year. As a result, he understands that Wang is so tossed, how can KPI be completed?How to get the option stock dividend award?Can you not be angry?

But he calmed down his anger as soon as possible. In order to be able to make a perfect curtain call, KPI performance, and option stock dividends, solving the problem is more important than meaningless incompetence.

This matter must be resolved as soon as possible. Judging from the current situation, the Q4 financial report must not meet the expectations of Wall Street analysts, but if the problem can be solved before the Q4 financial report is disclosed, and the Mexican side of the scalping can be curbed, Add a long-term positive and relatively good news to the bad news. There is still a chance to complete the KPI, and the stock price will slowly rise back.

Half an hour later, Lowell McAdam conducted a temporary external conference call. The attendees were ATT Group, Sparint and other operators.

Just after completing the connection, I heard the scolding voice of my peers.

"How did we choose such a leader? We still have to endure him for two years and three months. Is this God's divine punishment on Magnesium?" On the conference call, ATT Group CEO Randall Stephenson The anticipation of speaking gives people a sense of hopelessness and a sense of collapse.

Although they are all competitive, they are now discussing together.

There's no way, this wave of Sao operations that Wang Wang jumped out not only smashed the rice bowls in the hands of each family, but even brought the pot that everyone used together.

Not only a few major operators, but a series of high-tech companies in North America have not been spared. IBM, SAIF, Qualcomm and other high-tech companies that have close cooperation with the Blue Coast or Bluestar Technology have all suffered. I feel that I am helping them, but these high-tech companies in North America don't know that they hate him.

Lowell McAdam and the others did not hate Luo Sheng for the large-scale reselling of Azure-5 in Mexico, nor did they scold the Côte d’Azur for being authentic.

Because they knew that the problem was not with Luo Sheng at all, so what if they hate or scold him?

Luo Sheng and Côte d'Azur only did things that were in line with the interests of him and his company. Compared to Wang Wang, the elites in the North American technology and financial circles knew exactly where the problem was.

The problem lies in understanding Wang.

Lowell said: "Be prepared for both sides. We need to increase our efforts on K Street. In addition, we still need to have a good talk with Luo Sheng. I will go to meet Luo Sheng in person. No, it is better to contact a few more The Silicon Valley technology giants that have major business dealings, call Samuel and others to come together, so that the possibility of reaching a new consensus will be higher."

Randall replied helplessly: "That's all, I'll be responsible here on K Street, good luck old man."

Lovell sighed softly: "Oh, I hope so."

...