510: Chapter 510 The Three Sang Meeting, Clearance Sale

"Aren't we being a bit too panicked? Transsion's monthly production capacity is only 15 million units. Even at full capacity for a year, that's only 180 million units, which doesn't even reach one-fifth of global Flash Memory shipments."

"They can't shake our market position at all."

"By the time their production capacity ramps up, our Triangle Zero should be in mass production. There's absolutely no need to lose money just to make a splash right now."

"Do you think the production capacity they reported is real?"

"Don't compare our production ramp-up speed with Transsion's; that's just asking for humiliation."

The two factions immediately started arguing in the office.

After all, Lee Jae-yong did not intervene, which meant it was not an issue.

The sales department believed that market share was more important than short-term profits; once customers shifted toward Transsion and formed an ecosystem bond, it would be difficult to win them back.

The finance and R&D departments felt that the losses from price cuts were too great, and lowering their own status for a product that had not yet gained traction was not worth the cost...

It would be better to use that money on their own 3.0 R&D and compete head-on.

They argued for over half an hour, but Lee Jae-yong still didn't say a word.

Because he knew that both factions were considering the group's interests, and both sides had valid points.

What he was truly worried about was never just the minor gains or losses in the Flash Memory market.

"Enough! Look at yourselves, do you really think this is a vegetable market?"

He pointed at everyone present and scolded them, using the harshest language possible.

"You are executives, not a bunch of idiots!"

"When facing Apple, BlackBerry, and other competitors before, I didn't see any of you like this."

"Now, the moment Transsion is mentioned, you panic like shrews. Is this still our Samsung?"

Everyone present lowered their heads. It wasn't really that they were overreacting; it was because they truly had a physiological fear whenever Transsion was mentioned.

That's right, Transsion had already been imprinted in their minds, and it seemed that every one of their products... would cause a huge blow to the industry.

And then they, the pioneers, would be forced to lower prices.

Kim Ki-nam watched Lee Jae-yong for a while and noticed that his anger had indeed subsided, so he put forward his own insights:

"Mr. Lee, I think we should still lower the prices?"

"However, we cannot admit defeat. We should introduce tiered price reductions to lock in their capacity for two years in advance."

"Even if we earn a little less, we must snatch the customers back."

Seeing that this head of the storage department was not particularly panicked, Lee Jae-yong nodded in satisfaction.

"Let's follow this method. For the entire UFS 2.0 series, we will implement a global uniform price reduction of 15%. For those willing to sign long-term contracts, we will offer a maximum discount of 30%, with a 5% reduction per year, effective immediately."

"Mobile, consumer-grade storage, and memory modules will all have their prices reduced simultaneously."

Although this person was mentally prepared, he couldn't help but be startled after hearing this price.

"Mr. Lee, this scale is too large; I won't be able to answer to the board of directors."

"You don't need to worry about the board of directors; I will convince them."

"The so-called loss of over a billion dollars is just earning a little less. But if we don't lower prices and let other friendly competitors get ahead, then that would be our true failure."

"You only see the Flash Memory right now. If they release memory modules, hard drives, and so on next..."

"What will we use to hold onto our customers then?"

"Lowering prices now is not just for market share, but to bind our customers."

"Let them know that Samsung still has cost-effectiveness and is still worth the wait."

"Don't let them dive straight into Transsion's camp."

Lee Jae-yong stared straight at these engineers and, for the first time, felt the terror of Transsion.

The finance department really didn't expect that a small choice had already pushed them to the brink of a life-and-death crisis.

The researchers also felt a wave of pressure at this moment. After all, Transsion had already laid out the path to the future before them; how they would proceed from here was up to them.

Sure enough, just as they were thinking, Lee Jae-yong had already locked his gaze on them, and his attitude softened slightly:

"President Kim, I am quite satisfied with your research capabilities. In 32-layer stacked Flash Memory, you are at the forefront of the world. I hope you can conquer 64, or even higher, 128 as soon as possible..."

Speaking of this, Lee Jae-yong also looked at the engineers present. This technology...

But people, as long as they are pushed, might be able to unleash infinite potential.

As for what happens if they fail?

Just replace them with a new batch, right?

"I know this will be very difficult, but with Transsion providing a template... I believe this path is far less difficult than before."

In his words, Lee Jae-yong kept pointing out the direction to this head of R&D.

That is to learn from them, that is to copy!

But Kim Ki-nam sighed. Copying Transsion... he didn't have the guts for that.

After all, the last one who dared to do that... was probably already starting a new business.

"Mr. Lee, if it were an average company, it would be fine, but if it's Transsion, they have long since locked down the patents."

And their legal department has been watching us; if not handled well, it will bring disaster to the company.

Hearing this, Lee Jae-yong also sighed. He knew Transsion was not an ordinary company, but he didn't expect it to be this tricky.

"How about this!"

"I will extend your deadline. Within two years, develop the capability to reach their 'Youth Edition' level..."

"Guarantee to complete the mission!"

Seeing Lee Jae-yong take a step back, Kim Ki-nam didn't dare to push his luck further. After all, once he played with fire too much, he would really lose his life.

After the meeting ended, he immediately convened his team to discuss the next route. After all, if the 128 issue couldn't be solved, the 64 product had to be brought out.

At the very least, they had to be one step ahead of companies like Micron!

...

In the afternoon, the official Samsung Electronics account released a global announcement simultaneously:

"To promote the popularization of storage technology and give back to global consumers, Samsung has decided to adjust the prices of all its storage and memory modules, with a 15% reduction across the entire line."

"The above is for the civilian sector. As for long-term contracts, we welcome major manufacturers to come to our company to discuss procurement matters, and we will offer the most sincere prices in the entire industry."

"We guarantee that our partners will not lose out."

"As expected of an international friendly competitor, they are so generous. Once production capacity is up, they start benefiting the whole world."

"As expected of a storage leader, voluntarily sacrificing profits for consumers, it's so conscientious."

"I was originally planning to wait for domestic products, but now that Samsung has lowered prices, I'm decisively buying Samsung. After all, domestic products have a lot of hype, but we aren't sure about the actual technological maturity."

"Big brands are more reliable after all. After all, things like memory modules need to be able to last for several years!"

"To the guy above, 'benefiting the world' my foot!"

"This is clearly because they see domestic technology has risen, and they are starting to slash prices for a hunt."

"Rest assured, this trick of theirs is useless."

"I suggest we fast-forward to the next step: Samsung clearance sale. You think 15% is the end, but you didn't expect this is just a beginning."