"The best option is to procure our computing servers from HP Compaq and our storage servers from Jiangnan Group. This is the most logical outcome!" declared an executive during an internal review meeting at Apple Inc.
"But these are servers manufactured in China. Do you really believe they are reliable?"
"Why wouldn't they be? Didn't they pass the stress tests?"
"The stress tests were passed, but stress tests don't account for everything. At the very least, they can't determine the lifespan of the product!" someone interjected.
"..." The executive who had advocated for purchasing Jiangnan servers was suddenly silenced. Another person followed up, "Precisely. I also believe that the lifespan of Jiangnan servers will undoubtedly be a significant issue. Furthermore, we simply don't have the time to verify the lifespan of these Jiangnan servers."
"What if these Chinese deliberately adjusted the settings, sacrificing lifespan for increased efficiency? Wouldn't that be entirely possible?"
"Nonsense! I've never heard of chips being manipulated like that. Storage chips are not like computing chips that can be overclocked!"
"Who knows? There's definitely something amiss here. How could Chinese from those remote valleys possibly create such high-tech storage chips?"
"There's definitely a problem! I strongly oppose procuring chips from China!" This executive's statement earned nods of agreement from almost all the executives present. The few who had reluctantly argued for purchasing Jiangnan servers could only sigh.
In reality, they also felt that servers manufactured by the Chinese must have some issues. It was just that they found it hard to resist purchasing servers that were so cheap and performed so well.
The executives' debate quickly reached a conclusion, with the arguments against Jiangnan servers gaining absolute dominance. All attention then focused on Steve Jobs. He nodded and said, "Indeed, products from China are too unreliable. Since everyone opposes it, let's just set it aside!"
After speaking, Jobs tossed the bid proposal for Jiangnan servers aside.
However, perhaps due to the force he used, the proposal landed on the side of the desk and slowly slid off, falling to the floor, where Jobs then stepped on it.
To be fair, Jobs harbored a deep-seated opposition to China, or rather, he detested China at his core.
This is not an accusation against a so-called great man, but a fact.
After the birth of the iPhone, the first and second generations were prohibited from being sold in China. His public explanation for this was that China was rampant with counterfeit and pirated products, and if iPhones were to be introduced into China, they would undoubtedly be copied extensively.
This statement cannot be definitively called wrong or right.
Because China did indeed copy the iPhone extensively, with all sorts of phones mimicking the iPhone's appearance flooding the market.
However, China never truly replicated the core of the iPhone. The essence of the iPhone lay in its chips and its closed iOS ecosystem. This was something that counterfeit manufacturers could never replicate.
Of course, perhaps the reality proved Jobs right in the end, as mobile phone manufacturers from China have significantly encroached on Apple's market share and, aside from chips and systems, have surpassed Apple in many other aspects.
Alas, chips and systems remain significant limitations for mobile phones, and this is something China cannot replicate.
If Jobs genuinely prohibited exports to China due to concerns about counterfeiting, then following the domestic success of the iPhone 2, which sold over 300,000 units through unofficial channels within a year, Jobs decisively allowed the iPhone 3GS to enter the Chinese market.
Frankly speaking, Jobs looked down on China, believing that Chinese people couldn't afford Apple phones.
Of course, this incident alone cannot be used as evidence of Jobs' dislike for China.
Jobs would travel to India, Japan, and many Southeast Asian countries several times a year, yet he never visited China. Well, this also cannot serve as evidence of Jobs' dislike for China.
Furthermore, even after Apple phones were launched in the Chinese market, China was never the initial launch market; they would typically be released about a month later than other markets. This also cannot be used as evidence of Jobs' dislike for China.
When Cook took over, the iPhone 5 was launched simultaneously in China and worldwide, which is quite normal.
Finally, Jobs once publicly stated that the Chinese market was less important than the Southeast Asian market. This also cannot be considered evidence. Perhaps Jobs was simply experiencing cognitive dissonance?
In conclusion, although Jobs allowed the Jiangnan servers to advance to the second round of bidding, he, like Jerry Yang, ultimately discarded the proposal under the table and didn't glance at it again.
Ultimately, with Jobs' final decision and the unanimous agreement of numerous executives, "American Priority" emerged as the big winner of this bid, securing the entire $250 million order for storage servers out of the total $300 million bid.
Even though the final calculation showed that Jiangnan Server's price per TB was a mere $625, more than half the price of American Priority's $1333 quote, Jiangnan Server was ultimately disqualified.
***
The next morning, the five companies participating in the bid convened at the same cafeteria as the previous day. Steve Jobs was nowhere to be seen. Instead, the head of Apple's procurement department appeared and dryly announced that "American Priority" was the final winner, securing the $250 million order for storage servers.
As for iB
Kapad's expression was rather grim. Samsung and IBM's original representatives had already left. He, believing that at least $50 million of this order should belong to his company, had stayed to sign the contract, only to find his efforts in vain. This was quite disheartening.
However, when he saw the dejected Chinese representatives leaving, he felt a sense of satisfaction. After all, whether it was IBM or American Priority, the business remained within domestic circles, which was far more comforting than seeing it snatched away by those damned Chinese.
"However, it's time to consider how to deal with this sudden newcomer. How did this company obtain such advanced technology?" Kapad muttered to himself.
***
"The goods have all been loaded onto ships. They are expected to arrive at the port next month, declared as semi-finished products. The items are all already manufactured, and I specifically instructed them to affix unmarked nameplates. Besides the internal chips, there will be no other markings from Jiangnan Group!"
"You must establish the packaging workshop as quickly as possible. Once the goods arrive at the port, you need to arrange for workers to repackage the products immediately, affix the 'American Priority' brand, replace the packaging boxes, and finally complete the factory output. This way, they will be considered servers manufactured in the United States!" At Apple's restaurant, Versailles and Huang He met briefly. Huang He raised his glass, seemingly making pleasantries, but in reality, giving these instructions.
"Understood. Everything is ready!" Versailles nodded. Then, the two shook hands and parted ways, with no one able to discern any special relationship between them.
Of course, no one would know that every screw in the storage servers sold by "American Priority" this time was actually manufactured by Jiangnan Server.
The equipment they brought for the bidding was merely a set of equipment brought by Jiangnan Group. However, before leaving the factory, this equipment had all its markings temporarily replaced, transforming it into a server manufactured by "American Priority."
From this, it is believed that "American Priority's" so-called self-developed servers are essentially entirely procured products from Jiangnan Server. Of course, under the guise of Jiangnan Server acting as a contract manufacturer, they enter the United States as semi-finished products, and after a quick "wash" at an assembly plant in the United States, they become pure "Made in USA" products.
Moreover, no one would have guessed that the equipment imported by "American Priority" was actually a lower-tier storage server. This server had a public retail price of $3499 per set, which was $1500 cheaper than the most advanced equipment Jiangnan Group brought to the bid.
However, "American Priority" purchased this "contract manufacturing parts" at $6999 and then sold it to Apple for $7999.
"American Priority" did nothing but act as an intermediary, making a net profit of $1000 per unit. With this $250 million order, they could earn $30 million in pure profit, which was quite pleasing.
On the other hand, Jiangnan Group was even more delighted. After all, servers originally sold for $3499 were now being sold for $6999, doubling the price, while the profit margin had tripled, with each server netting a staggering profit of nearly $6000.
This order brought Jiangnan Group a profit of $180 million.
However, Huang He was not happy.