Two months had passed since the iPhone was released.
The supply issues with the iPhone had stabilized, and the explosive response continued unabated.
Perhaps because of this, smiles were widespread on the faces of Taewoo Electronics CEO Woo Seong-il and Taewoo Telecom CEO Lee Joo-young.
"Taewoo Electronics' stock price has returned to pre-dotcom bubble levels! The iPhone is driving Taewoo's shares upward."
"It's only natural since Taewoo Electronics holds a 10% stake in Apple and supplies everything from semiconductors to various parts."
Taewoo Electronics had only just recovered to the pre-dotcom bubble situation.
Meanwhile, Apple's stock price had already surpassed its levels before the dotcom bubble burst.
"Taewoo Telecom's market share in Korea finally exceeded 60%. The gap with the second place, KS Telecom, has widened to over 25%."
"It looks like it will be very difficult for anyone to dethrone them from the top spot now."
"And operating profits have increased significantly. Because using the iPhone smoothly requires expensive data plans, operating profits have grown."
These were iPhone customers deeply addicted to wireless internet.
But since wireless internet was not available everywhere, they had no choice but to subscribe to the costly plans.
"Once Taewoo Semiconductor stabilizes, all problems will be solved."
"It has surpassed a yield rate of 70% for the first time. Although it is still not out of the red, if semiconductor prices rise a little more, the structure is such that it can turn profitable at any time."
Semiconductor prices were gradually rising.
This was possible thanks to the tremendous sales volume of the iPhone.
Compared to feature phones, the iPhone used a large amount of semiconductors, especially NAND flash semiconductors used as core storage devices, whose prices had increased by more than 10%.
"The cost of Korean-made components accounts for over 30% of the iPhone's manufacturing cost. Among those, Taewoo Semiconductor holds 40%. As iPhone sales increase, semiconductor prices will naturally rise too, allowing Taewoo Semiconductor to turn profitable."
"And because iPhones can be purchased at Taewoo Electronics product stores, sales of other home appliances have also increased."
"It seems customers buy other electronic products while purchasing the iPhone."
I hadn't wasted the time invested in Apple for nothing.
Because if we properly tap into Apple, the whole Taewoo Group benefits, which is why we put in such effort.
"We've also received wireless internet subscription inquiries from several places. Knowing that customers come to Starbucks to use free wireless internet, cafes and restaurants are now asking about wireless internet subscriptions."
"Sell wireless internet as a bundled product. Since wireless internet can be used as long as there's a router, don't charge separately for it. We're already making good operating profits; if we get too greedy, customers may turn away."
"I'll keep that in mind!"
Finally, most things had stabilized.
With the long, drawn-out iPhone launch behind us, we could now move on to the next stage.
"I'll be leaving for a business trip to the U.S. starting tomorrow. Please both take good care while I'm away."
"We will do our best to ensure no problems arise!"
***
Two days later.
I arrived at the California airport.
David, who had arrived in the U.S. earlier, was already there to pick me up, driving the car himself.
"Boss! Did you know that these days, SAVE Investment Company gets dozens of calls a day?"
"Could it be calls from Wall Street investment firms?"
"As Apple's stock price is hitting an upward curve again, the wolves of Wall Street are clamoring to get their share."
How bitter it must be for them.
They had sold Apple's shares to us at a rock-bottom price, and now Apple's stock price had started to rebound.
Not just a simple rebound, but a more than fivefold increase from the lower limits of the stock price.
But this was just the beginning.
Even though Apple's stock price rose more than five times with the iPhone launch, the current stock price was only about five dollars.
This was due to the lingering aftermath of the dotcom bubble.
Apple's stock was still undervalued, and its price was set to rise not just fivefold, but more than thirtyfold.
"Just tell them to ignore it. If they had any conscience, they wouldn't push harder."
"Do you really think the wolves of Wall Street have a conscience, boss?"
"Even if they don't have a conscience, they must at least have some sense of shame. They've repeatedly handed over Apple's shares and taken them back, so they won't push too hard."
While we were talking, we headed towards Apple's headquarters.
I felt exhausted from the long flight, and I quickly fell asleep, leaving the wheel to David.
"Boss! We've arrived at Apple's headquarters."
"I must have dozed off. Thanks for driving."
"You know how much I get paid, right? Today, you hired the most expensive chauffeur in the world."
We entered Apple's headquarters, exchanging jokes along the way.
David moved to meet with the finance manager, and I met Steve.
Thanks to the huge success of the iPhone, his complexion looked much better than before.
"You've been sleeping better lately, haven't you? You look healthier."
"I've started meditating. Since I began, both my body and mind feel much lighter."
"You must have time for meditation then. I heard the European launch is just around the corner."
"All preparations are complete. We'll officially launch the iPhone in the European market starting next month."
This was very good news.
Since the iPhone was successful in both the U.S. and Korea, it was highly likely to do well in Europe too.
If that happened, iPhone sales would increase, which would be great news for Taewoo Electronics and Taewoo Semiconductor as well.
"Is China next after Europe?"
"Preparations for entering China are also complete. We expect to start selling the iPhone in China by the end of this year at the latest."
The Chinese market was important.
Especially for the iPhone, China was a gold mine.
Before my return, China was already the country with the highest iPhone sales, so entering the Chinese market meant sales would multiply.
"If you face difficulties entering China, feel free to contact me. I have connections there."
"I've already received some help through David. I'm not sure if I'll need your help, but if that happens, I'll let you know."
The conversation continued in a warm and friendly atmosphere.
I hoped this atmosphere would last, but for another leap forward, I had to bring up something negative.
"How is the development of the second-generation iPhone going?"
"The development team is working on it. We plan to launch the second generation the year after next, but we haven't added any truly innovative features compared to the first generation."
"The first-generation iPhone was such a huge success that even without innovative features, the second generation will likely sell even more."
"That's why I'm more worried. I fear that Apple's hallmark innovation might disappear."
Innovation was the reason the iPhone became a massive success.
However, innovation, by definition, meant radical change, and it was impossible to produce such groundbreaking innovation every time.
"I think I might be able to offer some help."
"Really? I'm always ready to accept your advice!"
"You can make calls with the iPhone, and also take photos and videos."
"That's obvious."
"Well, then surely it should be capable of video calls too, right? Moreover, if you use wireless internet, video calls could be made free of charge."
FaceTime.
I mentioned free video calls, which would only be developed years later.
The technology related to video calls had already been developed, so integrating it into the iPhone wasn't particularly difficult.
It just required a change in perspective.
"That's a great idea. If customers could make free video calls, they'd love it. But calling that innovation might be a bit of a stretch. Hurry up and show me what else you've got."
"How about adding a navigation feature? The iPhone already has map functionality, so why not make it usable as a navigation device?"
"With the current iPhone's performance, it might be tough, but as semiconductor performance improves, it will definitely be feasible in the second generation."
I gave him two pieces of advice.
But Steve didn't look satisfied at all; he seemed to be silently urging me to come up with more ideas.
"Hmm, what about adding credit card functionality into the phone?"
"Electronic commerce can already be sufficiently handled through the iPhone."
"No, I mean putting an actual credit card inside the iPhone. Not just e-commerce but enabling payment with the iPhone's built-in credit card at regular stores or restaurants."
I brought up Apple Pay.
This technology required near-field communication (NFC), which had already been developed.
"A phone serving as a credit card? That's an excellent thought. If you can incorporate all the functions you mentioned into the second-generation iPhone, you'll avoid criticism about lack of innovation."
"You say the second generation can be handled like that, but what about the third generation and fourth generation?"
"That's why I started meditating. I think about how to make the iPhone an even more innovative product every day."
I needed to ease Steve's worries.
Because I already knew what kind of innovation he wanted.
"I believe the future direction of the iPhone lies in artificial intelligence. Developing AI that allows users to operate all iPhone functions simply by voice without needing to use their fingers. Where could there be a more innovative feature than that?"
"Artificial intelligence! I've thought about that too, but developing such AI requires a lot of money and time, so I put it on hold for now."
"Apple doesn't have to bear the burden alone. Taewoo Electronics will share personnel and funding. We want to develop AI together!"
Artificial intelligence was not only necessary for the iPhone.
If it could play music through voice commands and control various home appliances like TVs, computers, and air conditioners, Taewoo Electronics could grow into a world-class company.
"AI development will be more difficult than you think. It could require astronomical funds. Are you okay with that?"
"My grandfather taught me not to fear investment to avoid falling behind the times."
"That's very wise. Then, let's try developing it together. But will you take 50% of the shares again?"
"Taewoo Electronics will cover more than 50% of the investment cost. So please concede a 50% share."
"It's unfortunate, but we have no choice."
Apple still lacked sufficient funds.
In a few years, the iPhone would generate huge profits without Taewoo Electronics's support.
But the situation was different now.
Only with Taewoo's manpower and financial power could Apple embark on AI development.
In truth, this might have been a loss-making business for Taewoo Electronics.
They could have developed AI independently without partnering with Apple.
Yet, Taewoo chose to align with Apple because they wanted to gain something else from the partnership.
TL/n -
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