socalfunplaces Chapter 400 The iPod is About to Be Released
Chapter 400 The iPod is About to Be Released
February 25, 2001, 8 PM.
Summer in Jinan is scorching hot. There's no wind, and the leaves of the plane trees droop, motionless. The cicadas outside the window are chirping incessantly, one after another.
Ling Yun sat at his desk, a document spread out in front of him. He flipped through a couple of pages, but didn't get into it, so he closed the document and set it aside. There was also a cup of tea on the table, steeped for half an hour; the tea leaves had sunk to the bottom, and the water was lukewarm. He picked it up, took a sip, and put it down.
There was a knock on the door, and Chen Lingling pushed it open, carrying a white cardboard box without a logo. She placed the box on the table and said, "Mr. Ling, this is a package from America; it just arrived."
Ling Yun glanced at the cardboard box; the sender's address was Apple Inc., Cupertino. He picked up the box cutter on the table, cut the tape, and opened the box. Inside was foam padding, with a white box nestled in the center. The box was printed with the word "iPod" and a photo of a white player with a round scroll wheel and a black screen. He took out the box and opened the lid.
Inside, a white media player lay, slightly larger than a playing card and less than a centimeter thick. The front was white plastic, and the back was silver metal with a matte, non-reflective finish. The scroll wheel was gray, rotatable, and pressable. The screen was black and white, approximately two centimeters square. Next to it was a pair of white headphones with a thin cable and small earbuds.
Lingyun picked up the iPod and turned it over to look at the back. Engraved on the back were the words: iPod, 5GB, Model A1023, Designed by Apple in California.
He flipped the player over, pressed the button in the middle of the scroll wheel, and the screen lit up with a white backlight and black text. The menu list showed: Music, Browse, Settings, About.
He scrolled the menu wheel with his thumb, the highlighted bar moving smoothly up and down without any lag. He stopped at "Music," pressed the wheel, and went to the next level. It was empty; there were no songs.
He put the iPod down, picked up the instruction manual from the box, and flipped through it. The manual was thin, just a few pages long, printed in multiple languages. The Chinese page read: iPod, 5GB capacity, can store 1000 songs, 10-hour battery life, priced at $399. He put the manual back, picked up the phone on the table, and dialed a number. After three or four rings, it was answered.
"Steve, it's me. I received the package."
The voice on the other end of the phone was Steve Jobs', a little hoarse, as if he had just finished a meeting. "Ling, what do you think?"
Lingyun picked up the iPod, twirled it around, and said, "It feels great, the scroll wheel is smooth, and the screen is good enough. It's just that there are no songs, so I can't listen to anything."
Steve Jobs chuckled. "I copied a few songs for you, by Bob Dylan. You might not like them."
Ling Yun said, "I'll try again."
He turned the iPod over and looked at the connector; it was FireWire, not USB. He took a cable out of the box; one end was FireWire, and the other was 1394.
He connected it to his computer, and a window popped up saying "iPod connected." He opened iTunes on his desktop, and the iPod icon appeared in the left sidebar. He clicked it, and the right side displayed the storage capacity, battery level, and serial number.
He dragged some MP3s from his computer onto the iPod icon. The progress bar started moving, and it was done in a few seconds. He unplugged the cable, and the iPod screen lit up, displaying "Syncing." After syncing, a new "Songs" list appeared under "Music" in the menu. He clicked on it and found over a dozen songs, some by Bob Dylan, and a few by U2. He pressed play, and guitar music came through his headphones—a bit muffled, but not harsh.
He unplugged his headphones and switched to the speakerphone. The volume was very low, almost inaudible, like a radio broadcast. He turned off his iPod and put it back in its case. He picked up the phone and dialed again.
"Steve, the speaker isn't working; the volume is too low."
Jobs said, "Nobody uses the speakers. Listen with headphones; the sound quality is much better. You should try it."
Ling Yun said, "I tried it, and the headphone performance is alright. What are you planning to price it?"
Jobs said, "$399, to be released at the end of October."
Ling Yun was silent for a few seconds. He took the iPod out of its box again, placed it on the table, and turned the scroll wheel. The screen lit up, displaying white text on a black background. He pondered for a moment and said, "This price is too high."
There was no sound on the other end of the phone; Steve Jobs did not answer.
Ling Yun continued, "The economy is sluggish right now, tech stocks are plummeting, unemployment is rising, and consumers have no confidence. A $399 entertainment device isn't a necessity. Many people who want to buy it can't afford it. Sales are estimated to be low; a few hundred thousand a year would be good. What sales target did the board set for you?"
There was a few seconds of silence on the other end of the phone, then Jobs spoke, his voice a little lower than before. "Ling, I know everything you're saying. 399 wasn't set by me, it was set by the board. The marketing department and the finance department calculated costs, profits, stock prices, stock options, dividends. After all that, 399 was the bottom line. Below 399, we wouldn't make money. So 399 couldn't be lowered. They calculated everything, except the market's acceptance of the price. I raised this issue, but the board didn't agree. So now it's become the first trial product, and we haven't even given a sales target."
Ling Yun didn't say anything more. He picked up the iPod, then put it down again. He looked at the white box on the table, with a picture of the iPod printed on it. It was white, clean, and without a speck of dust. He looked at it for about ten seconds and said, "Steve, 399 it is. Let's get the stock out first, let users touch, see, and hear about it. Let them understand the product, give them the impression of a high-end brand, and then release other models later. The key to sales volume is still having a price advantage so that consumers can afford it."
Jobs didn't speak. After a few seconds, he said, "Ling, when are you coming to Cupertino? Let's talk in person."
Lingyun said, "I can't get away lately. There are a lot of things to do back home. I'll come see you when I'm done."
Steve Jobs said, "Okay. As for the iPod, feel free to share your thoughts anytime."
Ling Yun said, "Okay."
The call ended. Lingyun put the iPod back in its box, closed the lid, and placed the box on the corner of the table.
He stood up and walked to the window. The upcoming launch of the iPod gave Lingyun an idea: he could connect the various scattered industrial chains within Xinghuo Group. By using the MP3 product, he could improve the production processes of each product in the industrial chain. With sufficient orders, he could continuously upgrade each industrial chain.
If I want to make mobile phones in the future, the technology level of the companies in the current industry chain is still somewhat insufficient and needs to be improved.