We're building a super chaebol in Hong Kong

Upon hearing this senior executive's words, all of Motorola's senior management personnel, including Robert Galvin, simultaneously focused their attention on him.

"Mr. Abbott, please share your insights," Robert Galvin said directly and sincerely.

Abbott quickly stood up and addressed everyone, "I believe that the primary task at hand is to deal with this batch of inventory. At the current market price, we clearly cannot compete with Yun Sheng's S4 mobile phone. Our products have no advantage whatsoever; in fact, they seem extremely cost-ineffective.

Therefore, a price reduction is imperative. At the same time, we cannot ignore those loyal fans who have always supported us.

I suggest that we offer partial refunds to our existing customers who have already purchased our products. Although this may cost us more than ten million Hong Kong dollars, in the long run, it will not only earn the trust of these loyal fans but also establish a positive image for Motorola.

You should know that we also need to spend a considerable amount on advertising, and this measure of refunding customers is, in itself, a very attractive piece of news, a good topic for us to promote for free!"

"Mr. Abbott's strategy is excellent, and I fully agree. This approach is far more powerful than traditional advertising. It can not only increase the number of our die-hard fans, but even if our new products cannot compete with Yun Sheng's S4 in terms of functionality, we can still gain a portion of the market share through price advantages and refund strategies.

After all, not all consumers are pursuing such complex functions. For many people, a mobile phone is enough as long as it can make and receive calls.

Therefore, although the price reduction will reduce our profit per phone, as long as sales increase, our total profit will gradually grow.

Considering that we have invested more than 100 million US dollars in the research and development of this product, and the current sales volume is only more than 40,000 units, this is obviously a failing grade.

Therefore, we should not only continue to sell this product but also learn from Yun Sheng's S4's successful experience and develop the next generation of more competitive mobile phones on its basis.

Compared with Hutchison Telecom, we have a deeper foundation in the field of electronic products.

Now, Yun Sheng's S4 is just a fusion of entertainment electronics and mobile phone functions.

With this direction, we are confident that our next-generation product will definitely surpass Yun Sheng's S4 and do better!" A senior executive stood up and passionately supported Abbott's idea.

"I also agree."

…

Just as Motorola was discussing how to save itself, on Hutchison Telecom's side, Yun Sheng's S4 mobile phone had already gone crazy in sales.

Motorola suffered a great loss due to the impact of Hutchison Telecom's new product.

But what does this have to do with Hutchison Telecom?

They were just releasing their new product as normal.

Whether a product sells well or not is a market behavior.

Motorola's poor sales and the wave of returns can only be blamed on their own products not being good enough; they can't blame others.

In the blink of an eye, July 31st passed, and time came to August.

And Hutchison Telecom also announced good news to the world.

Although with the passage of time, the sales volume of Yun Sheng's S4 mobile phone is getting lower and lower, even at its lowest, the daily sales volume worldwide still reaches thousands of units or more, and it can even break 10,000 units on weekends.

Therefore, Hutchison Telecom officially announced to the public that the sales volume of Yun Sheng's S4 mobile phone officially exceeded 500,000 units in one month, reaching 518,266 units!

In fact, this record broke 500,000 units on July 29th, but seeing that there were still two days left before the end of the month, Hutchison Telecom simply waited until the end of the month before officially announcing it to the public.

In contrast, Motorola's new mobile phone product, the Motorola MicroTAC, was much more embarrassing.

Motorola's subsequent series of strategies alleviated their situation, and sales also broke 100,000 units again.

At the same time, after this incident, Motorola gained a group of loyal fans in Europe and the United States.

Of course, Hutchison Telecom doesn't care either.

The world is such a big market, and it is impossible for Hutchison Telecom to completely monopolize it.

If it really monopolizes, then the European and American governments will definitely target Hutchison Telecom.

Therefore, competition is actually a good thing!

However, although the sales of Motorola's current Motorola MicroTAC mobile phone have finally started to rise, the profit has been greatly reduced.

Relying on that little profit, Motorola doesn't know how long it will take to break even.

Moreover, they may not be able to wait until that time. Their next-generation Motorola mobile phone new product is about to be released because Hutchison Telecom cannot wait for them for too long. In a year or two, if they do not release new products, Hutchison Telecom will also release their new products.

Therefore, Motorola's Motorola MicroTAC mobile phone is destined to have a high probability of not being able to truly break even.

Of course, their research and development is also accumulating more new technologies. Even if they don't break even, they have already accumulated more foundation for the next generation of products.

In Hong Kong, due to the unclear future situation in Hong Kong, although Hong Kong's economy is clearly gradually improving, many people are choosing to leave Hong Kong and immigrate to European and American countries.

Therefore, even in August 1984, Hong Kong's real estate market has not yet recovered.

During these two years of the real estate crisis, Su Cheng's companies have accumulated a large amount of land, commercial building properties, shops, etc.

In addition, the Peak villa area, Mid-Levels villa area, Deep Water Bay villa area, Repulse Bay villa area, Clear Water Bay villa area, Kowloon Tong villa area, Kowloon Bay villa area, and other famous luxury residential areas in Hong Kong, during these two years, due to the continuous departure of these rich people from Hong Kong and immigration overseas, many villas have also been sold off by them.

Compared with other residences and land, the price reduction of villas is even greater. Two years ago, a villa could be sold for more than three million Hong Kong dollars, but now it can even be reduced to more than one million Hong Kong dollars at most!

Because, with the immigration of many rich people, the number of rich people in Hong Kong is decreasing, and the demand for villas is naturally also decreasing.

Meanwhile, Su Cheng seized this opportune moment to secretly direct his companies, including Tianqi Property, Su's Group, and Hutchison Whampoa, to purchase villas being sold off by wealthy emigrants at low prices.

In just over two years, companies under Su Cheng's control had secured the property rights to over 200 villas!

These villas were generally in prime locations.

For instance, there were two or three villas next to Li Ka-shing's Deep Water Bay residence, and several near Cheng Yu-tung's family villa as well.

After purchasing these villas, they were naturally not left vacant but were instead offered for rent.

Su Cheng certainly wouldn't sell these villas in the short term; they were valuable assets.

He knew that with the development of the mainland market, a large number of wealthy individuals would emerge.

Once these individuals had money, their greatest desire would be to own a villa in Hong Kong, the Pearl of the Orient.

Therefore, in twenty or thirty years, most of these villas would be worth hundreds of millions, or even over a billion Hong Kong dollars.

Currently, these villas cost just over a million Hong Kong dollars for the cheaper ones, and only a few million for the more expensive ones. Buying at these prices was an absolute steal.

Although inflation would mean that the purchasing power of money now would not be the same as in the future, the increase in property prices would definitely outpace inflation!

Therefore, buying these villas was a very worthwhile investment that required little effort.

Although the rental income might not be high now, once the real estate industry recovered, rents would rise along with property values.

So, the current low rents were only temporary.

In addition to these two hundred-plus villas, Su's Group, Hutchison Whampoa, Tianqi Property, Oriental Press Group, Cary Bank, Tianwen Oil, and others were secretly buying up commercial buildings, industrial buildings, land, and more in Hong Kong.

These prices were generally around half of the peak prices from 1981. For example, a commercial building that was traded for 600 million Hong Kong dollars in June 1981 was purchased by Su's Group for only 300 million Hong Kong dollars.

Furthermore, Hongkong Land was already the largest landlord in Hong Kong, owning numerous properties in Central, Causeway Bay, Wan Chai, Tsim Sha Tsui, and other areas.

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At the same time, most of the government land auctioned off in Hong Kong over the past two years was acquired by Su Cheng's companies at low prices.

The Hong Kong government also didn't know the future of Hong Kong's real estate market, so they decided to continue auctioning off land regularly, even with the low prices, in order to raise funds. These funds would ultimately end up in British hands, which was unavoidable.

Therefore, Su Cheng's current control over Hong Kong properties was terrifying.

If these figures were made public, not only would ordinary people be shocked, but the Hong Kong government would probably be stunned as well.

According to Su Cheng's secret statistics, a full third of the commercial buildings in Central, Hong Kong's most prosperous CBD area, belonged to Su Cheng or his companies.

In Wan Chai, Causeway Bay, Tsim Sha Tsui, Mong Kok, and other areas, the number of commercial buildings and shops owned was also countless.

Only the Hong Kong government had a vague idea of these figures, because taxes had to be paid on transactions.

However, it was only a vague idea; it was very difficult to compile accurate statistics.

Moreover, the Hong Kong government should be grateful to Su Cheng.

Because without Su Cheng's constant secret acquisitions of these properties over the past two years, Hong Kong's fiscal revenue would have been disastrous.

Li Ka-shing, Bao Yugang, and others also purchased a large number of properties during this period, just like Su Cheng, taking advantage of the real estate slump.

However, compared to Su Cheng, their acquisitions were only a small fraction of what Su Cheng had acquired; there was no comparison!

Therefore, Su's Group, Hutchison Whampoa, Tianqi Property, Hongkong Electric, and others had all added an important business: property management and rental collection!

Based on the current property prices and rental ratios, it might take twenty or thirty years to recover the investment from these rentals.

But Su Cheng knew that current rental prices were still very low.

Once the negotiations above were concluded and the future situation in Hong Kong became clear, everyone would have confidence in Hong Kong, and the real estate sector would naturally usher in another period of vigorous development.

At that time, not only would his properties appreciate greatly, but rents would also increase significantly.

Relying on rental income, Su Cheng would be able to do nothing and still have countless rents flowing into his pockets every year!

It could be said that Su Cheng was now Hong Kong's biggest landlord, far ahead of other landlords who made a living from collecting rent.

Most importantly, Su Cheng's companies not only owned properties in Hong Kong but also owned many properties around the world.

For example, Su's Group, in addition to owning a large number of properties in Hong Kong, also owned properties in Singapore, Macau, Bangkok, Tokyo, New York, Los Angeles, London, Paris, and many other overseas cities.

These overseas properties, if not needed for other purposes, were also rented out, just like the properties in Hong Kong.

Therefore, if an organization were to compile a ranking of the world's largest rental income earners, Su Cheng would definitely rank in the top three, or even number one.

Su Cheng couldn't imagine who could surpass him.

In fact, the acquisition activities of Su Cheng's companies, to some extent, curbed the continued downward trend of Hong Kong's real estate industry.

However, this mitigating effect was relatively limited.

The main reason was that Su Cheng instructed his companies to adopt an extremely low-profile approach to secretly conduct acquisitions, rather than publicizing them widely.

Even when acquiring commercial buildings with a market value of hundreds of millions of Hong Kong dollars, they tried to avoid public disclosure.

If the counterparty was a listed company and had to disclose information, they were strictly required not to reveal that the acquirer was a company under Su Cheng.

Under this rigorous acquisition strategy, although Su Cheng's companies had purchased a large number of properties, the overall impact on the Hong Kong property market was still limited, with some impact but not significant.

Tseung Kwan O, Central Mansion in Tseung Kwan O, sitting on the top floor, Su Cheng looked at the property data in his hand and smiled with great satisfaction.

He had finally realized his dream of becoming Hong Kong's biggest landlord.

He had such an idea in the early stages.

After all, he knew the general trend of Hong Kong's real estate in the future.

He could learn it from Xiao Ai.

Although Su Cheng's appearance had a certain impact, the general trend would definitely not change too much.

Therefore, he was full of hope for the future of Hong Kong!

(End of this chapter)