Free Web NovelThe reason Steve Jobs had invited me to the negotiating table with the American telecom companies was similar to why he had called Verizon as bait to lure AT&T.
“Jobs. It’ll be difficult to release the iPhone in Korea. The iPhone uses GSM as its base communication standard, doesn’t it?”
GSM was a second-generation communication standard developed in Europe.
It was also a standard that Korea and Japan did not use.
“On the other hand, Korea adopted CDMA. Ah, now that I think about it, that must be why you chose AT&T as well. Unlike them, Verizon uses both CDMA and GSM.”
Jobs nodded and added,
“The United States uses both GSM and CDMA. But I don’t need to explain why we adopted GSM, do I?”
“Of course not. Because of Europe. And we’re at the point of transitioning from second generation to third generation as well.”
“See? When I talk to Charlie, I don’t need to explain anything! These idiots never understand what I’m thinking!”
Since I immediately grasped it and gave the right answer, Jobs slapped his knee in delight.
“We’ve already prepared both the 2G GSM version and the third-generation mobile communication technology version, WCDMA.”
“iPhone 3G?”
They’d already prepared that? Just from the hint I’d given, development had moved that fast?
“How do you know that name?”
“Hmm... I just figured that since it’s third-generation mobile communication, you might have named it that.”
“Hahaha. As expected from the man who came up with the name iPhone. That’s right. It’ll be called the iPhone 3G. It’s based on WCDMA, but if the connection drops, it can use CDMA and GSM as well.”
I clicked my tongue inwardly. Jobs truly was a thorough businessman.
If Verizon had agreed to sign with them, he would have pushed that model forward.
“Originally, I planned to refine and upgrade it and release it the year after next. If Verizon had signed with us, the release date would’ve been moved up.”
“And you’re saying you’ll move up the release because of Korea?”
“Of course. Otherwise why would I go this far, Charlie?”
I looked at him with suspicion.
Was I supposed to believe that he was doing a simultaneous release because of me?
But even under my doubtful gaze, Jobs continued calmly.
“In the United States, we’ll release two versions at the same time. AT&T doesn’t have proper infrastructure yet, so the GSM version will sell more.”
“That’s why you included the condition to expand third-generation infrastructure in the contract earlier.”
“Right. I plan to upgrade the iPhone every year. In a few years, second generation will step aside, and third-generation technology will become the mainstream, won’t it?”
It had taken quite a long time for the transition from second to third generation, but after that, communication technology had advanced at a rapid pace.
“And the real iPhone starts with 3G. It needs to support video calls. 2G can’t handle that data.”
“Video calls? I didn’t see a front-facing camera on the iPhone you unveiled.”
“It hasn’t even launched yet. There’s no reason to install a front camera now. The 3G version already has it.”
So Jobs had planned everything. I nodded.
“Fine. If it’s WCDMA, Korea is already building the infrastructure, so there shouldn’t be a major problem. Seoul, Gyeonggi Province, and major metropolitan cities already have service. But isn’t there one major issue left?”
“You mean WIPI? That’s exactly why Charlie should take exclusive distribution rights in Korea. Charlie can make anything happen, can’t he?”
“You’re telling me to get rid of WIPI.”
It wouldn’t be difficult.
Mandatory WIPI installation had only recently been implemented. Abolishing it was entirely within my capabilities.
“That’s right. And you handle all the permits and approvals too. We’re not strangers, are we?”
He’d learned all the bad tricks and was using them freely.
In other words, I was supposed to handle all the troublesome work.
“Fine. But Korea alone isn’t enough. Expand the scope to Korea, China, and Japan.”
“You’re asking for exclusive rights over all of East Asia?”
I nodded. Jobs stroked his chin.
“You’re Apple’s largest shareholder, so that’s not a problem. But in Japan, we already have a partner in mind.”
“SoftBank?”
“Who else would it be?”
“I’ll ★ 𝐍𝐨𝐯𝐞𝐥𝐢𝐠𝐡𝐭 ★ leave the contract to them as well. But I’ll negotiate better terms.”
After a brief pause, Jobs nodded.
“Fine. Since you’ll do better than I would, I’ll grant you the right to contract exclusive distribution in the three East Asian countries.”
“So when’s the release?”
“Next May or June? The exact date isn’t set yet.”
“That’s for the U.S., right? What about other countries?”
“Europe in winter that year. Other countries in the spring the year after next.”
His vague answer made me shake my head.
“Let’s launch in the United States and Korea at the same time. You should at least do that if you want me to move comfortably.”
Jobs frowned.
“A simultaneous launch is too much...”
Judging from his reaction, production contracts had likely already been arranged based on the U.S. launch.
“Foxconn is handling the contract manufacturing, right?”
Foxconn, the world’s largest EMS, was a Taiwanese company specializing in electronics contract manufacturing.
Apple produced most of its products, including the iPhone and iPod, through Foxconn.
“Foxconn is the main manufacturer, but we also have contracts with several other manufacturers.”
“Does it have to be contract manufacturing? Have you considered producing directly?”
Apple insisted on designing in the U.S. and outsourcing production.
“We do what we’re good at. It’s efficient to leave manufacturing to external companies. Foxconn has large-scale facilities and production know-how. That’s why they can produce efficiently.”
“That may be true for now. But if you start preparing now, you could eventually produce independently.”
Apple was a company driven by loyal customers.
The sooner they could control production and provide a fully satisfying user experience, the better.
“I don’t have any intention of doing that. Foxconn is already expanding factories in China.”
The moment I heard the phrase “expanding factories in China,” something flashed through my mind.
‘This could be an important weapon to strike China.’
I organized my thoughts quickly and spoke.
“What happens if Apple cancels its production contract with Foxconn?”
“More than half of Apple’s device production would be paralyzed.”
“I’m not asking about Apple’s damage. I’m asking about Foxconn’s.”
“They’d probably go bankrupt. They’ve already invested massive capital in Chinese factories because of our contract. There aren’t many companies that can fill that capacity right now besides us.”
No manufacturer as large as Foxconn had entered China yet.
Just as I thought. The iPhone could shake China.
“Jobs. Can you say that if Apple products are manufactured in Chinese factories, you’ll terminate the contract with Foxconn? When I want you to?”
“What? What kind of crazy—”
Jobs’ voice rose in shock. I cut him off.
“No, I’m not saying we must terminate it. First demand that they close the factory. And if they refuse.”
“...Foxconn mainly produces for us, but they also manufacture other products.”
“I know. I’ll contact those companies separately. But Apple’s move would be the most effective. Apple is their biggest client.”
Jobs groaned.
“If we make that decision, it’ll definitely strain relations with the Chinese government. Charlie. What’s the reason?”
“I’m currently at war with the Chinese government.”
I began explaining in detail the conflict unfolding with China.
After listening, Jobs looked at me as if I were insane.
“You have to approach the Chinese government differently from the U.S. or Japan. Even an announcement that Foxconn will withdraw from China would shock them.”
“I understand the reasoning. I’ll help if I can. But Foxconn’s chairman is Taiwanese and pro-China. Even if I ask, I don’t know if he’ll listen.”
“Jobs. In Korea, there are phone manufacturers called KS Teletech and Pantech.”
He nodded.
“I know them. Smaller than Ilseong Electronics and Geumseong Electronics, but still fairly well-known.”
“Announce that Apple is considering acquiring them. Foxconn will panic and start watching Apple’s moves.”
“What? Acquire them?”
“Yes. Acquiring those two would secure sufficient production facilities.”
“Would they even sell?”
“Maybe not Pantech. But KS Teletech will.” freewebnøvel.coɱ
KS Teletech was a subsidiary of KS Telecom, created solely to produce devices used exclusively on KS Telecom’s network.
Jobs stared at me, waiting for more.
“Even if we fail to acquire them, that’s fine. It’s a card to move Foxconn. But ideally, we should acquire them. Production there can be allocated to Korea and Japan.”
After thinking, Jobs shook his head.
“No matter how I look at it, there’s no reason. When we signed the iPhone production contract with Foxconn, we fixed the profit margin at 3% per unit. It’ll be hard to lower manufacturing costs further.”
“Then use it as leverage.”
“It doesn’t look good to enter acquisition talks and then withdraw.”
His tone showed reluctance.
“Don’t worry. If Apple withdraws, I’ll acquire them and convert them into iPhone production plants. But 3% is too low. Make it 5%.”
“Five percent...”
“If I decide to move, passing it through the board is easy. The only reason I’m not doing that is because I respect you, Jobs.”
“Ah, come on.”
He laughed dryly.
“So do it.”
“Explain your plan in more detail.”
“Well...”
Under his playful gaze, I laid out my plan in detail.
* * *
In the end, the iPhone would launch simultaneously in the United States and Korea.
Timothy had been negative, but Jobs pushed hard.
I secured exclusive distribution rights in Korea, China, and Japan.
After that, I told Han Kyungyeong to meet with American companies that had contract manufacturing agreements with Foxconn and ask them to move in coordination with Apple.
Once everything was settled, I boarded my private jet back to Korea.
Apple’s iPhone announcement had heated up Korea as well.
Unlike in the United States, however, most coverage was negative.
[Apple unveils iPhone. Rumors confirmed.]
On Next, Korea’s largest portal, the news article and the comments beneath it were overwhelmingly critical.
— What’s the difference from a PDA?
— That thing’s going to flop. The features are good but the size is ridiculous.
— We already have MP3 players and domestic phones with good battery life and texting. What’s the point?
The articles seemed written by journalists lobbied by Korean manufacturers.
The comments looked like paid posters.
Hundreds of articles attacking the iPhone without reason made it obvious.
IT experts and even financial reporters were united in tearing it down.
But one person differed — the founder who had created a Korean word processor.
He posted on a community that the iPhone would be a game changer that would completely overturn the market.
He wrote that the next-generation model would likely come with 3G and that traditional mobile phones would gradually disappear, ushering in the era of smartphones.
But unlike his visionary post, most comments mocked him.
Reading it, I couldn’t help but admire him.
“Wow. Did this guy come back from the future too?”
Just as he predicted, the iPhone would open the era of smartphones — and the era of Wi-Fi.
After a long flight, I arrived in Korea and headed to KS Group headquarters to meet Chairman Choi Woosik.
