Chen Xiao was not surprised at all when he received Zhou Linghua's call.

MP3 is originally a fast-moving consumer product, and the technical difficulty is not high. It will not take long for a product of one or two hundred yuan to come out.

Lingyue's products are indeed better than Netac's in terms of appearance and quality.

But in the face of cheap, none of this matters.

Chen Xiao said, "Where are you? I'll find you."

Zhou Linghua said nothing, "Just give me an address and I'll come pick you up."

Zhou Linghua took Chen Xiao around the big and small markets in Jiangzhou.

Linghua complained all the way last week, "I don't know why, Netac's MP3 life appeared overnight."

The two walked into the Jiangzhou Department Store.

Perhaps stimulated by Yuedong MP3, Jiangzhou Department Store has also made great efforts to use a large number of MP3s.

Among them, there are high-end brands such as Sony, and low-end brands such as Netac.

And the advertisement of Langkeda is very eye-catching - Netac MP3, Sony technology!

The word Sony is very large, for fear that others will not see the same.

Chen Xiao frowned, indicating that Netac and Sony have already cooperated.

Sony may share its own MP3 decoding technology and battery technology with Netac.

At the same time, Netac itself has an absolute advantage in flash memory.

The combination of the two parties not only maximizes their technical advantages, but also maximizes cost savings.

At the same time, Sony and Netac also took the road of high and low brands.

Those with better economic conditions and more concerned about the brand may choose Sony MP3.

But those who pay attention to cost-effective, look at the cheap Netac, after all, it is using Sony's technology, it sounds more upscale.

Chen Xiao took a look at Netac's selling price. The MP3 with 128 megabytes of memory costs just 400 yuan.

Some sellers even marked the price to around 390 yuan.

Three or four hundred yuan can buy a piece of MP3, such a good thing in the past did not dare to think.

Even if the MP3 feels very cheap to the touch, it is enough for many consumers to be able to listen to music.

From this point of view, Netac and Sony have really suppressed the cost after the cooperation.

Well now, if you want to be famous but not famous, you want Lingyue MP3 with no brand, but it is very passive.

Unless you especially like the appearance of Lingyue MP3, you can spend a little less money to buy Netac, or spend a little more money to buy Sony, which has a stronger brand appeal.

And Sony just released a new MP3, priced at 1199 yuan, its appearance is very similar to Lingyue, and it is also very thin and light.

If you say that Sony copied Lingyue, but it is not exactly the same.

This is very troublesome.

Looking at such a competitive market environment, Zhou Linghua broke out in a cold sweat.

With the reduction in the price of overseas CNC machine tools, the living space of domestic CNC machine tool factories is getting smaller and smaller.

In addition, the profit of CNC machine tools is not large, so Zhou Linghua almost put his life on Lingyue.

Unexpectedly, in just over a month, there are so many competitors in the market.

Chen Xiao and Zhou Linghua just stood there in Jiangzhou Department Store.

Manager Zhang of Jiangzhou Department Store sent Netac's sales representatives out.

The two parties have just negotiated a deal. If Netac's sales are good, Jiangzhou Department Store will get the goods at a lower price.

This means that department stores will be more profitable.

Manager Zhang also saw Chen Xiao and Zhou Linghua, he smiled at them, but didn't say hello.

This kind of smile is very proud. It seems to tell Chen Xiao and Zhou Linghua that it doesn't matter if you didn't choose to bring your products to Jiangzhou Department Store for sale. There are similar products in the market.

Looking at Manager Zhang's eyes, Zhou Linghua felt unhappy for a while.

After leaving the Jiangzhou Department Store, Zhou Linghua said with some gloom: "In this way, Netac's production capacity is very strong. Now he is probably distributing goods all over the country. We are really different from him."

Zhou Linghua also suggested: "Do you think it is necessary for us to spread the coverage of our products? Can we distribute goods including Jiangzhou Department Store?"

Chen Xiao waved his hand and said, "The core competitiveness of the product is not strong. Even if you put our products on the same counter as Netac, the other party will still choose Netac."

Zhou Linghua said speechlessly: "When we asked Sony for lithium batteries, they didn't sell them, which increased our cost."

"Also, Netac originally produces flash memory, and the cost is much cheaper than what we import from overseas."

"In this way, their cost is of course cheap, and we are completely uncompetitive."

Zhou Linghua was a little frustrated, "I still can't do it to others."

Zhou Linghua knew very well in his heart that the only way to be competitive was to lower the price of Lingyue.

But to reduce the price, the first is to reduce the cost.

So far, in addition to MP3 decoding technology and chips, the core technology of storing lithium batteries is in the hands of other companies.

Lingyue's cost remains high.

Zhou Linghua looked at Chen Xiao, but found that Chen Xiao was not in a hurry at all.

Zhou Linghua knew that Chen Xiao had just obtained 3 million meters of financing. He has Yuedong Internet, and the sales volume of MP3 has little impact on him. Of course, he will not worry.

Zhou Linghua was also a little dazed. A year ago, Chen Xiao was only a senior in high school. When he was working with him, he helped Chen Xiao at first.

Unexpectedly, Chen Xiao has grown so fast in just one year.

Chen Xiao said: "We have started to produce lithium batteries. The energy density is much higher than that of Sony's lithium batteries The volume will be much smaller, and of course the capacity will be much larger under the same volume."

"If nothing else, lithium-ion batteries will be available next month. This will greatly reduce our costs."

"Really?!" Zhou Linghua was overjoyed.

The cost of lithium battery occupies a large part of the cost of Lingyue MP3.

If lithium batteries can be produced by themselves, then according to the current sales volume, Lingyue's profits will be greatly improved.

Zhou Linghua asked, "Then do we want to lower the price?"

This was rejected by Chen Xiao.

Brand power is more important than profit.

Even if a little profit is sacrificed, the brand power of the product must be preserved.

The MP3 market is so big that it will disappear sooner or later.

Competing with other companies on MP3 all the time is a complete waste of time.

Chen Xiao looked up at Zhou Linghua and said, "Have you ever thought about making our own mobile phone brand?"

Zhou Linghua didn't hear what Chen Xiao was saying for a while, "What brand are you talking about?"

Chen Xiao: "Mobile phone brand!"

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