138: My Trip to South Korea (End)

LG's high-level executives' price expectations for selling screens externally were around 1,000 yuan. If Red Star's conditions were followed, the screen pricing would be significantly discounted.

Considering only the screen hardware, the cost actually does not exceed 300 yuan. Adding in labor, licensing, and other miscellaneous fees, the cost of each screen would not exceed 400 yuan. Red Star added an extra 20% profit for themselves, meaning the price of the screens supplied to Red Star would be around 500 yuan.

Compared to the company's set guidance price, it was cut directly in half.

If technical costs and early factory investment are factored in, there's basically no profit to speak of.

Red Star's conditions only mentioned hardware and labor costs, without mentioning any technical research and development costs.

"Manager Tang, I will report your conditions to the upper management. After all, I cannot fully decide on these conditions myself."

"I have prepared a hotel for you all. Please wait a moment, Manager Tang. I will send someone to notify you once there is news."

Zheng Dongxiu did not directly reject Tang Mang's conditions. Firstly, because he couldn't make the decision on these conditions, and secondly, he wanted to stabilize the other party to give himself time to report to the high-level executives.

"A hotel won't be necessary. Our branch office in Seoul has already arranged accommodations for us."

"I hope to hear good news from President Zheng soon."

After Zheng Dongxiu saw off Tang Mang and his group, he also hurriedly notified the company's high-level executives of Red Star's conditions. Originally, the procurement cooperation with Red Star wouldn't have needed to alarm the high-level executives, but now that Red Star had brought out the Pearl arrangement patent, it was obvious that under these circumstances, the cooperation between the two parties was no longer a shallow procurement partnership.

It had to be discussed by the high-level executives before a decision could be made.

LG's actions were also very fast. The next day, Tang Mang received a call from Zheng Dongxiu: "Manager Tang, if your company is willing to grant our company the Pearl arrangement patent for ten years, I think we are willing to engage in deeper cooperation with Red Star."

LG's high-level executives held a Board of Directors meeting overnight. After intense discussion, they decided to accept Red Star's conditions. The reason they could accept such harsh conditions was none other than wanting to take down Samsung.

However, regarding the patent licensing, LG hoped Red Star could provide a longer term. After all, two years was indeed too short.

There were too many uncertainties. Not to mention whether LG could complete its sniper attack on Samsung after obtaining the patent within these two years, what if Red Star asked for a high price after the two years passed? Or what if LG finished modifying its production lines but Red Star refused to grant the license?

Therefore, after discussion, LG's high-level executives came up with a term, which was ten years.

Only a ten-year term could give LG a sense of security.

Otherwise, what if Red Star turned its back at any time?

After stating the conditions to LG, Red Star also held internal discussions, including with the high-level executives of China Star. Chen Chen's psychological expectation was a 5-year licensing period. After all, China Star could mass-produce OLED screens in one to two years.

Furthermore, China's OLED industry would also welcome an upgrade explosion in 2018 to 2019. At that time, they could choose to withdraw the license from LG and grant this Diamond-like arrangement to domestic manufacturers, thereby promoting the overall strength and competitiveness of Chinese manufacturers.

Of course, Chen Chen would not stick his neck out for LG. After all, in this world, there are no permanent friends, only permanent interests.

Red Star currently posed no threat to LG. There was some competition and overlap in their mobile phone businesses, but LG also understood the situation of its own mobile phone business; it couldn't really compete with Red Star.

"President Zheng, our President Chen of Red Star very much welcomes reaching a friendly cooperation with LG. A 5-year term is the maximum term given by our company headquarters."

There was a moment of silence on the other end of the phone, but soon the voice came through again: "Five years it is. I hope both sides can achieve a win-win situation."

LG ultimately accepted Red Star's 5-year term requirement. Their high-level executives felt that five years was enough for LG to develop its own unique technology, and by then, they would not need Red Star's license at all.

After the two parties reached a verbal cooperation, it didn't mean the cooperation could start immediately. To officially sign a contract, the professional teams from both sides still needed to discuss the details before completion.

After all, cooperation involving tens of billions of Korean won was of great significance to both parties. It couldn't be said that a verbal agreement alone could truly achieve cooperation.

"Give me a large Fried dough twist and a portion of duck!"

"I'll take a portion of steamed dumplings too, and two more buns!"

"Old Zhang, get me a bowl of wontons too."

In Red Star's cafeteria, Tang Mang and the others were eating like crazy. During these two weeks in South Korea, he had completely had enough of the \"delicacies\" of the Koreans.

Dr. Zhou returned to the country after reaching the verbal agreement with LG. Tang Mang and the others stayed for a few more days, waiting for the domestic professional team to come and sign the contract with LG.

According to the agreement between the two parties, after LG obtains the license from Red Star, it will provide Red Star with 100,000 screens before May and 3 million screens before August. Among them, the first 100,000 screens will be used for the packaging of the Full-screen series, and the subsequent screens are all for this year's new generation kunpeng phone 3.

Now, according to Chen Chen's plan, Red Star releases four mobile phones a year: the low-end shining series, the mid-to-low-end shining note series, the mid-to-high-end Red Star Digital Series, and the high-end kunpeng series.

Due to the price increase of the Red Star Digital Series last year, the vacant mid-range price point will be filled by the newly developed k series this year.

The competition among mobile phone manufacturers has not yet reached that white-hot stage. For example, Xiaomi releases at most two or three models a year, with the main models still being the Xiaomi digital series.

If it were like the later generations when competition was extremely fierce, every company would deploy a \"sea of machines\" tactic, wishing they could release a phone every month. OPPO's Reno series releases three generations a year, Huawei and Honor copy each other, and vivo's S and x series also release two generations of models a year.

Even more so with Xiaomi's k series; the K30 product alone had 8 different models, such as the K30 standard 4G version, K30 5G version, K30 Pro and K30 Pro Zoom version, K30 Speed Edition, K30i, K30 Ultra, and K30S Ultra.

These different models are completely dizzying, which also fully illustrates how fierce the market competition was at that time. Manufacturers needed to constantly release new machines to deal with Rival Companies and market changes.

"President Chen, Oppo sent you an invitation, asking you to attend their new product launch event."

"Oppo? Where is it being held?" Chen Chen asked.

"At the Imperial Capital Film and Television Exhibition Center. Looking at their warm-up posters, this model doesn't seem to have a front-facing camera."

After Shen Rou finished speaking, Chen Chen began to search his memory for which radical model without a front camera it was. Was Oppo that bold?"}],