NOVEL WEB Chapter 758: 758
The US and Korea will release it simultaneously.
The reason Steve Jobs invited me to the negotiating table with the American telecommunications companies was similar to the reason he invited Verizon as bait to lure AT&T.
"Jobs, it will be difficult to launch the iPhone in Korea. The iPhone uses GSM as its basic communication standard."
GSM is a second-generation communications standard developed in Europe.
It was also a communications standard that Korea and Japan did not use.
"On the other hand, Korea is a country that adopted CDMA. Oh, now that I think about it, the reason I chose AT&T was because of GSM. Unlike them, Verizon is a company that uses both CDMA and GSM."
Jobs nodded and added:
"The United States is a country that uses both GSM and CDMA. So I don't have to tell you why it adopted GSM, do I?"
"Of course. It's because of Europe. And now it's time to move from the second generation to the third generation."
"As expected, when talking to Charlie, there's no need to explain anything! Our idiots don't know what I'm thinking!"
Jobs was so happy that he slapped his knee because he was nice and gave the right answer.
"We have already prepared the 2G GSM version and the 3G mobile communication technology WCDMA version."
"iPhone 3G?"
You already prepared that? You can't believe that progress can be this fast just by giving me a hint.
"How do you know that name?"
"Um······. I guess it's just called 3rd generation mobile communication."
"Hahaha. As expected from the person who coined the name iPhone. Yes, that's right. It's called the iPhone 3G. It's based on WCDMA, but if the connection is lost, it can also use CDMA and GSM."
I stuck out my tongue. As expected, Jobs was a thorough businessman.
If Verizon had offered to contract with me, I would have offered them that model.
"We originally planned to release it in the year after next after refining and upgrading it. If Verizon had signed a contract with us, the release date would have been earlier."
"But are you saying that the release date will be brought forward because of Korea?"
"Of course. Otherwise, why would I do this, Charlie?"
I looked at him with suspicious eyes.
Should I believe the rumors that they're releasing it simultaneously because of me?
But Jobs continued speaking calmly, despite the suspicious looks.
"Both versions will be released in the US as well. The GSM version will be the main version sold on AT&T since their infrastructure is not yet fully established."
"So, the contract terms earlier included a requirement to increase the 3G mobile communications infrastructure."
"That's right. I plan to release an upgraded iPhone every year. After a few years, the 2nd generation will be phased out and the 3rd generation mobile communication technology will become mainstream."
It took quite a while for communication standards to transition from 2nd generation to 3rd generation, but I remember that communication technology developed at a rapid pace after that.
"And the real iPhone starts with 3G. It has to be able to do video calls. 2G won't be able to handle that much data."
"Video calling? I didn't find a front camera on the iPhone that was released."
"It hasn't even been released yet, so there's no reason to install a front-facing camera. The 3G version already has one."
Jobs seems to have a plan. I nodded.
Advertisements
"Everything is fine. If it's WCDMA, Korea probably has the infrastructure in place, so there won't be any major issues. Seoul, Gyeonggi-do, and major metropolitan cities are already providing the service. But isn't there still a big problem?"
"You mean WIPI? That's why Charlie should get the exclusive distribution rights in Korea. Charlie can do anything, right?"
"They're telling me to get rid of WIPI."
Of course, it wasn't a difficult task.
It hasn't been that long since the WIPI installation mandate went into effect, so it was within my capabilities to abolish it.
"That's right. Charlie also takes care of all the other permits and licenses. Are we strangers?"
I see bad things everywhere and learn from them, and I use them all.
He was telling me to take care of all the annoying things myself.
"Okay, but it's not enough to be exclusive to Korea. Please expand the scope to include Korea, China, and Japan."
"Are you asking for a monopoly over all of East Asia?"
As I nodded, Jobs rubbed his chin and said,
"You are the largest shareholder of Apple, so that's not a problem. The Japanese side already has a partner in mind."
"Softbank?"
"There's no other place like that."
"I will also entrust the contract to them. But I will find a better contract on my own."
Jobs hesitated for a moment, then nodded.
"Okay. Charlie can do better than me, so I'll give him the exclusive distribution rights for three East Asian countries."
"So when is it coming out?"
"May or June next year? We haven't decided on an exact release date yet."
"Is that the release date in the US? What about other countries?"
"Europe that winter, other countries the spring of the year after next?"
I shook my head at his ambiguous words.
"The US and Korea will release it simultaneously. It would be easier for me to move if you do that."
Jobs furrowed his brow.
"Simultaneous release is impossible······."
Judging from Jobs's expression of reluctance, it seemed that a production contract had already been signed for the US release.
"Foxconn is doing the consignment manufacturing?"
Foxconn, the world's largest EMS, was a Taiwanese company specializing in contract manufacturing of electronics.
Apple produces most of its products, including iPhones and iPods, through Foxconn.
"Although Foxconn is a major manufacturing company, it also has contract manufacturing agreements with several other manufacturers."
"Do you really have to outsource production? Don't you plan on producing it yourself?"
Apple insisted on a structure in which design and planning were done at the U.S. headquarters and production was outsourced to external companies.
"It's more efficient to do what we can do ourselves and outsource production to external manufacturers. Foxconn is a company with large-scale production facilities and production methods, and that's why they produce our products efficiently."
"It may not be possible right now, but if we prepare from now on, we will be able to produce it independently someday."
Apple is a company that revolves around loyal customers.
Advertisements
So, it was better to provide a satisfactory user experience through in-house production as soon as possible.
"Well, I don't think so yet. Foxconn is already expanding its production facilities in China."
As soon as I heard the keyword "Foxconn's expansion of its Chinese factory," something flashed through my mind.
'Could this be used as an important weapon to attack China?'
I quickly gathered my thoughts and opened my mouth.
"What happens if Apple cancels its manufacturing contract with Foxconn?"
"Apple's entire electronic device production will be paralyzed by more than half."
"No, not Apple's damage. I'm asking about Foxconn's damage."
"It'll probably fail. They've already invested a huge amount of money to build a production plant in China because of the contract they signed with us. There's probably no other company that can run it right now but us."
No manufacturing company as large as Foxconn has ever entered China.
As I thought, it seemed like I could shake up China through the iPhone.
"Jobs. Can I terminate my contract with Foxconn if they start manufacturing Apple products in Chinese factories? Whenever I want?"
"What? What the hell are you talking about······."
Jobs' voice grew louder as he expressed his surprise. I cut him off and continued.
"No. I'm not saying we should necessarily cancel. I'm asking them to close the factory, and if they still don't listen."
"······Foxconn mainly produces our Apple products, but they also produce many other products."
"I have a rough idea. I will contact each of those companies separately. But it would be most effective if Apple took action. Apple is our biggest customer."
Jobs groaned as if he was troubled, then answered.
"That's true, but… If we make that decision, it's obvious that things will get awkward with the Chinese government. Charlie. What on earth is the reason?"
"We are currently at war with the Chinese government."
I started by saying that and explained in detail the conflict we are currently having with China.
After hearing the whole explanation, Jobs looked at me like I was crazy.
"We have to approach it in a completely different way than the U.S. or Japanese governments. If Foxconn were to announce that it was withdrawing from China, the Chinese government would be shocked."
"I understand why. If there's anything I can do to help, I'll help. But the Foxconn chairman is one of the more pro-China Taiwanese. Even if it's my favor, I doubt he'll do it······."
"Jobs. Among the Korean mobile phone manufacturers, there are two mobile phone manufacturers called KS Teletech and Pantech."
Jobs nodded and accepted my words, as if he already knew the company.
"I know. It's smaller than Ilsung Electronics and Geumseong Electronics, but isn't it still a fairly famous mobile phone manufacturer in Korea?"
"Let's make a big deal about Apple acquiring it. Then Foxconn will be shocked and will watch Apple closely."
Jobs' voice grew louder again, as if he was startled.
"What? You want me to take over that place?"
"Yes. If we just acquire those two, we will be able to secure enough production facilities."
"Would you sell it?"
"I don't know about Pantech, but KS Teletech will sell."
KS Teletech was a subsidiary of KS Telecom, and was created to manufacture devices that could only be used by KS Telecom.
Jobs stared at me as if asking me to elaborate.
Advertisements
"It doesn't matter if we don't acquire it. We can just use it as a card to move Foxconn. But if possible, I would like to acquire it. The amount produced there can be sent to Korea and Japan."
Jobs hesitated for a moment and then shook his head.
"No matter how much I think about it, there's no reason for that. When we signed the contract with Foxconn to produce iPhones, we fixed the profit margin per unit at 3%. It would be difficult to reduce the manufacturing cost further than that."
"Then just use it for pressure."
"It doesn't look good to back out after entering into takeover negotiations."
Jobs's voice, muttering like that, had a very unpleasant tone.
"Don't worry. If Apple withdraws from the acquisition battle, I will take over and make it an iPhone manufacturing plant. But 3% is too much, so please reduce it to 5%."
"5%······."
"You know it would be ridiculous to pass the board of directors if I made up my mind to do so, right? The only reason I don't do it is because I respect Jobs."
"Oh, really? Is that so?"
Jobs laughed and scolded me.
"So please do it."
"Tell me more about your plan."
"therefore······."
I explained my plan in more detail to Jobs, who looked at me with playful eyes.
* * *
In the end, it was decided to release the iPhone simultaneously in the US and Korea.
Tim Cook was negative, but thanks to Jobs' strong push, I was able to obtain the right to sign exclusive contracts in three countries: Korea, China, and Japan.
After that, he asked Han Kyung-young to meet with an American company that had a contract for consignment production with Foxconn and ask them to work with Apple.
After finishing all the schedules, I boarded a private plane and headed to Korea.
Apple's iPhone release was also heating up Korea.
Of course, unlike in the US, most of the articles were negative.
[Apple iPhone Unveiled. Rumors Become True.]
The news articles on Next, Korea's top portal site, as well as the comments below them, were all negative.
- How is it different from a PDA?
- That thing looks like it's going to fail. It has good features, but the size is a bit annoying.
― I already have a domestic phone that has an MP3 player, doesn't drain the battery too much, and is good for texting. What does that mean?
It seemed like an article written by reporters who were probably lobbied by Korean manufacturers.
The comments also seemed to have been written by part-time workers.
This was evident when I saw hundreds of articles slamming the iPhone for no reason.
From information and communications experts to financial market reporters, everyone came together as one to criticize the iPhone.
But one person, the founder who created the Hangul word processor, was different.
He posted on the community that the iPhone would be a game changer that would dramatically change the market landscape.
He also posted an article saying that the next iPhone model will probably come with 3G, and that existing mobile phones will gradually disappear and the era of smartphones will begin.
But unlike the thought-provoking article, most of the comments were sarcastic.
The moment I saw that article, I couldn't help but be amazed.
Advertisements
"Wow, did this guy see the future too?"
As this person predicted, the iPhone will usher in the era of smartphones and the era of Wi-Fi.
After a long flight, I arrived in Korea and went to the KS building to meet with KS Group Chairman Choi Woo-shik.
< The US and Korea will release simultaneously > End
< You didn't know >