Just as the Longteng Cup was in full swing, a bombshell announcement broke.
Apple officially announced that the mainland version of the iPhone 4 would resume sales in the Dragon Kingdom.
The news sent the entire internet into an uproar.
Everyone had assumed that, because of the design-patent dispute, the iPhone 4 would be banned from sale in the Dragon Kingdom for at least six months. Yet the ban had been lifted after barely a month.
Digital forums and Weibo exploded in an instant, with speculation flying in every direction.
Some said Apple had paid a fine. Others claimed Apple had reached a settlement with Longyao. Still others said that higher authorities had stepped in to mediate. There was no shortage of theories.
Liu Yutong and the others, however, were not surprised in the least. They had known for quite some time that the ban would be lifted.
The iPhone 4 ban was not merely a matter concerning Apple.
Apple’s supply chain spanned the globe, and a considerable portion of its production capacity and assembly lines were located in the Dragon Kingdom. Just a few of the domestic factories that manufactured products for Apple provided jobs for more than a hundred thousand workers.
Banning the iPhone 4 would hurt more than Apple’s financial statements. It would also affect domestic supply-chain companies and the livelihoods of over a hundred thousand industrial workers.
Of course, the most important development was that, not long before, Apple had signed a long-term cooperation agreement with domestic suppliers in the Dragon Kingdom through mediation by the relevant authorities. The agreement opened up procurement of some core components to local companies.
That was a very important piece of news—extremely important.
At present, the Dragon Kingdom’s mobile-phone industry chain was still immature. The biggest problem was that its domestic smartphone brands were struggling to produce strong contenders. If the entire industry chain was to be upgraded, an outside catalyst had to be brought in.
The Longyao S1’s launch had been a huge success. It had sold more than one million units in less than two months, while overseas sales continued to climb.
Thanks to the Longyao S1’s preinstalled apps and the trade-in campaign, MicroChat’s user base had skyrocketed. Combined with traffic diverted from platforms such as Weibo, the number of registered users had already surpassed twenty million, with daily active users holding steady at more than five million.
But the problem was equally obvious. At the moment, Longyao was the only smartphone brand putting in a truly impressive performance. Yet having only one standout brand was not enough.
The domestic market still needed a heavyweight competitor to stir up the stagnant waters. Otherwise, innovation throughout the industry chain would gradually slow down.
The authorities certainly did not want to see that happen. That was why they had chosen the right moment to loosen the restrictions on Apple and let this catfish back into the pond, forcing the Dragon Kingdom’s mobile-phone industry to develop more rapidly.
Liu Yutong was no stranger to this logic. In her previous life, Xiaomi’s rise had been accompanied by similar industrial considerations. The only difference was that, in this life, her Longyao had become the first company to stand opposite the catfish.
Moreover, before the ban was lifted, an official had already given her advance notice.
Her response had naturally been one of understanding and support.
And she had not been insincere.
Having Apple as a competitor was, in fact, no bad thing for Longyao.
Pressure created motivation, after all.
Besides, the Longyao S1’s sales had already taken off. Even with the iPhone 4 back on the market, it would be difficult for Apple to shake the market position Longyao had established in the short term.
Still, understanding was one thing. When it was time to fire back, they would fire back.
On the very day the iPhone 4 resumed sales, Longyao’s president, Yu Xin, issued a statement through the company’s official channels. The wording was rather interesting.
“Given that Apple has yet to publicly apologize to Longyao for infringing upon our industrial-design patent, Longyao reserves the right to continue pursuing legal action.
“At the same time, we welcome Apple’s participation in fair competition in the Dragon Kingdom market through lawful and compliant means, and we look forward to seeing Apple bring a truly original design to its next product launch.”
The statement sent netizens into hysterics.
Mr. Yu’s Weibo comment section was instantly flooded. The most-liked comments were all poking fun at Apple.
“Welcome to fair competition—but don’t copy my phone’s shell again. Mr. Yu is truly magnanimous.”
“Looking forward to Apple bringing an original design. The sarcasm here is absolutely top-tier.”
“Apple: We’re back on sale. Why are you still hounding us?”
“Longyao: Because hounding you is exactly what we intend to do.”
“But seriously, Longyao really does have class. If it were me, I’d sue Apple into bankruptcy. But Longyao says it won’t pursue the matter as long as Apple apologizes. What do you call that? Magnanimity.”
“The guy above has it wrong. That’s called twisting the knife. Apple will never apologize—not in this lifetime. But as long as it refuses to apologize, Longyao can keep using this incident to humiliate it forever.”
“Hahahaha…”
Meanwhile, at a café in Zhongguancun, Imperial Capital—
A middle-aged man was repeatedly watching a replay of the Longyao S1 launch event on his laptop.
He watched with complete concentration, occasionally pausing the video to jot down notes in a notebook. Sometimes he would rewind and watch the same segment all over again.
This man was Lei Jobs, the founder of Xiaomi.
After watching the replay several times, he finally made an extremely bold decision.
He, too, would use a jaw-dropping price to make the Xiaomi Mi 1 a sensation.
Several days later, the launch event for the first-generation Xiaomi phone was held.
The venue was an ordinary banquet hall. It was not nearly as grand as the National Convention Center, but it had plenty of character and suited Xiaomi’s positioning as a brand for young tech enthusiasts.
A large number of media outlets attended, along with quite a few internet industry heavyweights, including Yu Xin and Liu Yutong.
Lei Jobs stood onstage in his trademark black polo shirt and jeans. Behind him, the screen displayed a render of the first-generation Xiaomi phone.
“Xiaomi Mi 1—1,999 yuan. Born for enthusiasts!”
The moment Lei Jobs announced the price, the entire venue erupted.
At 1,999 yuan, that price was practically enough to grind every competitor in the Dragon Kingdom’s smartphone market into the dirt.
The Longyao S1 cost 2,999 yuan. The iPhone 4 cost 4,999 yuan. Xiaomi’s Mi 1, meanwhile, slashed the price all the way down to 1,999 yuan without cutting corners on specifications. With features such as a Qualcomm processor, a Sharp display, and ample RAM, its on-paper specifications were only a tiny step below those of the Longyao S1.
The tech world exploded instantly. The Xiaomi Mi 1 shot up the Weibo hot-search rankings at a speed visible to the naked eye, while discussion threads on major forums refreshed at a frantic pace.
“1,999! Lei Jobs has gone crazy!”
“The specs are comparable to the Longyao S1, but it’s a thousand yuan cheaper. Is Xiaomi planning to sweep the entire domestic smartphone market?”
“My God, that price is practically an invitation to become friends.”
“Mr. Lei said publicly that Xiaomi’s comprehensive net profit margin on hardware would never exceed five percent. Now that is what I call sincerity! A lot more genuine than certain companies that sell phones for 2,999 yuan while still calling themselves champions of value.”
“Are you taking a shot at Longyao? What’s wrong with you? Do you think developing its own chips costs nothing? Building its own supply chain costs nothing? Do you know how many domestic suppliers every Longyao phone helps support?”
“No, I don’t. I only know that the Longyao S1 is way too expensive.”
“……”
As certain people fanned the flames, supporters of the Longyao S1 and Dami 1 soon began tearing into each other.
Each side had its own claims and its own reasoning. Two phones with clearly different market positions had somehow been dragged into a head-to-head comparison.
It was obvious that someone was deliberately steering the conversation.
Still, this minor war of public opinion was quickly brought to an end by an official announcement.
