On October 13, 2017, Verizon Headquarters.

"Oh God, the technology industry in America will be destroyed by the decision-making level of the pig brains. No, this is an insult to the pigs!!"

The company's CEO Lowell McAdam was furious when he read a report submitted by the person below. This material report was a recent big data statistics on the number and growth trend of the Azure-5 mobile phones flowing from Mexico to North America.

Data shows that in the past month alone, more than one million Azure-5s have flowed into the United States. What scares Lowell McAdam even more is the growth trend behind it, which means that it will continue to grow in the future, which means that there will be no coping strategies, and that there will be more than 12 million units within a year.

Verizon, one of the four major operators in North America and the most users, has this extremely high signal coverage rate and a LTE network covering the entire United States. At the same time, this company is also one of the main sales channels of Azure mobile phones, an important partner of Costa del Azure, and a major advertiser of Blue Star Technology.

Anyway, it's right to have a strong partnership.

At present, a large number of lock-free versions of the Azure-5 smartphones are frantically resold from Mexico to North America, which has caused Verizon to suffer heavy losses. Not only him, but also another major operator, At&T Group. In fact, the four major operators in North America have suffered losses to varying degrees.

This has to be discussed in the sales process of the Azure series smartphones in the North American market. Azure mobile phones are divided into unlocked versions and lock-free versions. Another way of saying is retail versions or contract versions.

The retail or unlocked version of the Azure mobile phone is a single flagship store established by the Costa 1. It is a buyout product and is not bound by contract, so of course it is more expensive.

Most international brands are in full-band bands, and of course the same is the case with Azure smartphones, including dual-band, triple-band, etc., which supports automatic network switching. Whether in China or North America, you can use it as long as you plug in a card. Of course, there must be a prerequisite, which must be within the signal coverage range.

However, the shipment of retail versions of the Costa 1000, the company's own physical stores only accounts for more than 30% of the sales of Azure mobile phones in the United States, and nearly 70% of the shipments are completed through several major North American operators and other channel dealers, which means that contract machines account for 70% of the sales.

As for why Costa çaña's own channel retail stores cannot beat local operators in North America, it is because they sell cheaper and their sales network is huge. Plus the home court advantage, they have to play according to other people's game rules.

The contract machine is cheaper than the retail version, but is it really cheaper?

Intuitive prices, it is indeed two or three hundred dollars cheaper, but it is actually more expensive.

The model differences brought about by different regions are basically the main mobile phones sold by operators, while in China, the opposite is the main ones for retail channels.

However, in most other countries, operators control the entire sales channels of mobile phones. It is not easy for Costa 1 to leverage nearly 30% of the market share in the North American market.

The contract machine in North America can be understood as a domestic event similar to charging phone bills and giving mobile phones. Verizon's Azure contract machine requires a two-year bonding event. In other words, if North American consumers buy this contract machine, it means that the specified minimum consumption amount must be guaranteed during the contract period.

For example, the monthly package fee is US$78.2, which means that the user will deduct the package fee of US$78.2 each month, regardless of whether the user uses the 50 yuan phone fee or US$78.2. It will last for two years, which means that the minimum number of US$100 million phone fees will be charged, and an additional charge will be charged if the excess is exceeded.

It seems that operators sell contract machines cheaper than retail versions, but in fact they are more expensive. As long as users purchase contract machines, operators can guarantee stable profits of US dollars in at least the next two years, and only a lot more or less.

But this kind of contract machine that is cheaper and more expensive is better than the retail version. In addition to the operator's own channel advantages, most of the majority consumers in North America may not know how to calculate their minds.

Instead, they think the contract machine is affordable, so they can only say that Happy Education is good, otherwise how can American capitalists harvest IQ tax?

However, no matter how stupid the North American mass consumers are, the price of products soars. No matter how much operators want to make concessions, they will not lose the numbers to look better.

Local consumers can clearly see a mobile phone soaring from more than $2,000 to nearly $4,000. If these two intuitively large fluctuations are not visible, they will be really blind.

Now, Mexico is reselling the Azure-5 mobile phones, and the prices sold are dozens of dollars cheaper than the contract machine before the tax period, which is equivalent to more than one thousand dollars at once, and there is no minimum contract limit for how much phone bills or other value-added services.

Even if local consumers are a pig, no matter how urgent the IQ is, they will know which one is more affordable to choose.

But it is a tragedy for North American operators such as Verizon. Every time Mexico resells an Azure-5, they have to lose a profit that they should have made sure to make. The profits are diverted by the gray forces in Mexico and the local gangs.

The stock market will not lie. In the past few days, the stock prices of several major North American operators such as Verizon and At&t Group plummeted neatly.

Verizon's stock price has plunged 18.9% in the past few days, and its market value has dropped from the previous $220.8 billion to only $100 million; at&t Group is even worse because the company's share is larger, so it plummeted by 20.2%, and its market value has dropped from $207 billion to the current $100 million.

The Azure series of smartphones has a market share of more than 60% in the North American market, which is no surprise that it will have such a big impact on local operators.

What makes them uneasy is that the stock price is highly likely to plummet further. Investors in the United States are extremely realistic. Before the Nelson report was released, the stock prices of several major operators in North America were quite strong, and the report was immediately awkward.

If the performance is impacted as soon as the next q4 financial report comes out, investors will definitely experience a further plunge when they see this eye-catching performance statement.

It is not unreasonable for Lowell McAdam to be furious. He will be planning to step down as a CEO next year. As a result, after understanding the king's trouble, how can KPI be completed? How can I get the option stock dividend reward? How can I not be angry?

But he still calmed down his anger as soon as possible. In order to be able to end the curtain call perfectly, for KPI performance, and for option stock dividend rewards, solving problems is much more important than meaningless incompetent fury.

This matter must be resolved as soon as possible. Judging from the current situation, the Q4 financial report will definitely not meet the expectations of Wall Street analysts. However, if the problem can be solved before the Q4 financial report is disclosed and the reselling in Mexico is curbed, and the bad news is added with relatively good news for long-term positive news, there is still a chance to complete the KPI, and the stock price will slowly rise.

Half an hour later, Lowell McAdam held an interim external conference call, and the attendance was the same operators such as At&T Group and Sparint.

As soon as I finished the connection, I heard the voices of my colleagues cursing.

"How could we choose such a leader? We have to endure him for two years and three months. Is this God's punishment for magnesium? "On the call, Randall Stephenson, CEO of At&T Group, said in an expectation of speech, giving people a sense of powerless despair and a little bit of a collapse.

Although they are all competitive relationships, we are discussing together now.

There is no way. The tricky operation that Dongwang jumped out not only destroyed the jobs of each company, but also brought the pots that everyone used together.

Not only a few major operators, but a series of high-tech companies in North America were not spared. High-tech companies such as ibm, Saifro, and Qualcomm that have close cooperation with the Costa ça or Blue Star Technology have all suffered disasters. Wang Dawang is trying so hard that he is helping them, but these high-tech companies in North America don’t know how to hate him now.

Lowell McAdam and the others did not hate Luo Sheng because of the large-scale reselling of the azure-5 in Mexico, nor did they call the Costa 's inauthenticity.

Because they knew very well that the problem was not Luo Sheng at all. Even if they hated him, what if they scolded him?

Luo Sheng and the Costa del Azure just did things that suited him and his company's interests. Compared to the King, the elites in the North American technology and financial circles knew very well what the problem was.

The problem lies in the King of Understanding.

Lowell said: "Prepare for both ends. We need to increase our efforts on K Street. In addition, we still need to have a good talk with Luo Sheng. I will go to interview Luo Sheng in person. No, it is best to contact a few Silicon Valley technology giants who have major business dealings with him and call Samuel and others to go together. This will make it more likely to reach a new consensus."

Randall responded helplessly: "That's all I can do. I'll take charge of this on K Street. I wish you good luck, old man."

Lowell sighed, "Oh, I hope so."

...
Chapter completed!