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Chapter 1389 Potential Problems

Seeing that Li Rui had no reaction, Wang Hongxue smiled faintly and said, "I know this news is a bit sudden. Let's do this. How about I give you some time to consider?"

Li Rui smiled and said, "No need to think about it. I can answer you now. I don't want to sell Xingrui."

Wang Hongxue frowned and said, "I can give you a very good price."

"It's not a matter of price. Is Mr. Wang doing business just to make money, and there is no idealistic complex in it? I have devoted a lot of effort to Xingrui. It's like my child. Will you sell your own child for money? I don't think there are those kind of parents in the world." Li Rui said.

Wang Hongxue's face looked a little bad. The relationship between her father, King Baosu and her mother was in a mess. Several families in the family fought for the inheritance. There was really no family affection. She even suspected that Li Rui was deliberately ridiculing her.

After pondering for a moment, Wang Hongxue said: "I admit that Xingrui is developing very well at present, but it has great disadvantages. I took the initiative to acquire it, which is actually helping you solve potential problems."

Li Rui was a little confused.

Wang Hongxue said: "Including the customized machines made for Tonglian, Xingrui released a total of 5 million mobile phones last year. As a new company that has just entered the mobile phone industry, this achievement is indeed very good. Xingrui's selling point is its super high cost-effectiveness. The main reason for this is light asset operation. Is it right?"

Li Rui did not comment.

Wang Hongxue said: "Xingrui does not lay out offline channels, and puts its main energy and financial resources into production and research and development, and sells through cooperation with network and mobile operators. This is not a big innovation, but it can ensure the maximum cost reduction. I appreciate your idea, which is also what I particularly value Xingrui."ъìqυgΕtv.℃ǒΜ

Li Rui waited for her to continue talking.

Wang Hongxue continued: "Star Rui has indeed succeeded at present, but it has also brought trouble in the future. First of all, the cost dilemma. Users attracted by super high cost performance will care very much about this, which means that if Xingrui wants to maintain brand awareness and sales, every future mobile phone must follow the path of super high cost performance, which will make Xingrui's profits lower than most competitors. Your move is very similar to Amazon's kindle, but Amazon can make money by providing subsequent content. Can you?"

Li Rui smiled slightly and thought to himself why can't I?

Of course, Wang Hongxue didn't know Li Rui's killer move, and continued to say: "Xingrui's light asset model has also led to a very important problem, which is after-sales service. You cannot expect to rely on mail for after-sales repairs. The self-built after-sales network will have very high costs. The worst thing is that Xingrui currently has too few products to maintain the return on investment of the after-sales network. This will lead to Xingrui's ultimate return on the model of cooperating with offline channel providers!"

You said yes, Li Rui thought to himself.

"In the long run, Xingrui's biggest advantage now will become the biggest disadvantage in the future. As sales volume expands, if the after-sales service cannot keep up, Xingrui will encounter a lot of trouble. Moreover, the strategy of giving up profits will also put Xingrui in long-term financial pressure."

"I know Xingrui wants to do Apple or Amazon, but Xingrui does not have its own system, platform, and their service base. This is destined that Xingrui's idea is just a dream floating on the clouds. If a strong wind blows one day, it may disappear!"

"Babababababa." Li Rui applauded gently, "Dr. Wang said so well."

This is the truth.

The problem pointed out by Wang Hongxue is indeed a problem that Xingrui mobile phones will face soon.

But what Wang Hongxue didn't know was that Li Rui had thought about these issues long ago and had already started to lay out the layout.

Hardware has no profit, so of course it needs to be made back with software and services.

When it comes to software and services, Xingrui has invested too much, including 91 mobile assistant, Pea Market, Credit Suisse, Erebe, Xingrui Games and Miharen’s various games developed by various... Li Rui has just put on the table and hasn’t served the food yet, so why are you anxious?

Li Rui knows more about the ecological anti-system that software and hardware connects, and has a longer conception. Wang Hongxue said this in front of him, which is a bit like showing off her skills.

As for after-sales repair, the convenience store plan that Li Rui has been promoting is the solution.

In short, the questions raised by Wang Hongxue are not problems, and even if there are any problems, they are expected by Li Rui.

But Li Rui still admires Wang Hongxue in his heart. Being able to see so many potential problems from Xingrui's operating model proves that her success is not a false reputation, but is really capable!

He just wondered, since Wang Hongxue saw other people's problems so sharply, why can't he see the problem of his own HTC phone? He was obviously a cheating start, but ended up in a mess?

Wang Hongxue thought she had grasped Li Rui's flaw and said lightly: "I have said so much, Mr. Li may agree, or may not agree. I believe that if Xingrui transforms quickly, it may be able to continue its current success, but in the future, the mobile phone industry will definitely become a competition among giants, and a slightly smaller company will only become cannon fodder. I really can't bear to see an idea-like company like Xingrui become cannon fodder, so I have provided you with this opportunity."

Her posture was a bit high, just like she said, "Don't be ignorant of politeness."

Li Rui smiled and said, "Thank you, Mr. Wang, for your favor. I am very honored, but I still say the same thing. I don't mean to sell Xingrui."

Wang Hongxue frowned.

Without waiting for her to say anything, Li Rui said: "Let me give you three reasons."

Wang Hongxue nodded.

Li Rui said: "First, HTC is currently in a patent lawsuit with Apple. As far as I know, the result is not very optimistic. If this lawsuit is lost, all models of HTC are likely to lose the magnesium market. And not only Apple, major companies including Korean Star, Noji and Microsoft, have patent disputes with HTC, and Xingrui does not want to be involved in these lawsuits."

Wang Hongxue's face darkened.

The patent lawsuit with Apple is coming to an end, and the situation is not optimistic, and the possibility of losing is more than 90%. As Li Rui said, Apple applied to the Magnesium Court for banning the sale of HTC's mobile phones in Magnesium. This lawsuit is likely to have a significant impact on the subsequent development of HTC.

Li Rui continued: "Secondly, htc's operating strategy is completely opposite to Xingrui. Xingrui pursues the ultimate cost-effectiveness, and htc is just the opposite. Not only is the price high, but the configuration is also very low. This is to treat users as fools."

Wang Hongxue's face changed and she wanted to refute.

Li Rui did not give her a chance to refute and continued quickly: "In the end, I even doubted whether HTC does not have a design department. Each mobile phone is similar in length, and there is almost no change except for the configuration update. As for the platform and service issues you just mentioned, I also want to ask what software HTC has created?"

Li Rui said nothing, but he said the truth.
Chapter completed!
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