Chapter 73: Turning it into a Hit

Chen Xiao turned his attention to Wang Qin and asked, "Does Sister Qin enjoy listening to music?"

Wang Qin was Zhou Linghua's secretary, but she was quite casual in her manner of doing things. Chen Xiao had noticed several times how Wang Qin would take out a white Sony earphone from her bag and plug it into her ears to listen to music.

Wang Qin nodded and replied, "Yes, I really enjoy it."

Chen Xiao followed up with another question, "What device does Sister Qin use to listen to music?"

Wang Qin retrieved a slim CD player from her bag and said, "This one! President Zhou gave it to me."

"Cough cough cough!" Zhou Linghua coughed awkwardly.

The CD player was a Sony product and appeared to be quite expensive at a glance. It would likely cost at least a few thousand yuan.

Chen Xiao couldn't help but chuckle. He hadn't known what Wang Qin was thinking, but he was pretty sure that modern girls wouldn't carry such bulky CDs in their bags.

With this thought in mind, he found humor in the situation. Technological advancements may have occurred, but human behavior remained relatively constant.

In the 1970s and 1980s, fashionable youth walked around with portable radios, relishing in the ability to play music on the go.

In the 1990s and early 2000s, young people were seen with Walkmans, CD players, or MP3 players, connected to earphones as they enjoyed music on the move. This often led to rather awkward appearances.

In the 2010s and 2020s, modern youth confidently displayed wireless headphones, listening to music on their smartphones while riding the subway, sitting in libraries, or strolling along busy streets. This generation believed that everyone around them was paying attention to their musical choices, making them feel as if they owned the world. They even looked back at those who used CD players in the 1990s with some amusement.

Chen Xiao remarked, "Actually, my inspiration came from the concept of the compact VCD. VCDs decode MPEG video files for separate playback on devices. Can we decode and store music individually on a smaller device for playback?"

Chen Xiao added, "South Korea and Dongyang already possess this technology and have developed corresponding devices. However, due to the high costs, these products haven't seen much traction in the market."

Wang Qin quickly grasped Chen Xiao's idea and exclaimed, "Are you talking about MP3s? I've seen them in Korean dramas. While they aren't available in Jiangzhou, major cities like Yanjing and Shanghai probably have them!"

Being in her twenties, Wang Qin yearned for a more cosmopolitan lifestyle. She often admired the vibrant scenes from Korean dramas, including the stylish attire and gadgets used by the protagonists.

In one particular scene, the female lead and male lead in a Korean drama had a misunderstanding. In response, the female lead nonchalantly retrieved a small MP3 player from her bag and put on her earphones, her smile radiating charm as she sauntered away.

Wang Qin secretly wished she had one too!

Unfortunately, she hadn't been able to buy an MP3 player and had settled for a CD player at the department store.

She enthusiastically described the capabilities of an MP3 player to Zhou Linghua, using enthusiastic language and excitement.

"It's incredibly small, just the size of two lipsticks. It can hold over ten songs, and you can switch tracks using your computer..."

Zhou Linghua was quickly swayed.

He also acknowledged the changing living standards and the fact that today's youth differed vastly from those of the 1960s and 1970s. People no longer merely sought basic necessities; they desired a higher quality of life. The creation of MP3 players was almost guaranteed to be a profitable venture.

Zhou Linghua's business primarily centered around CNC machine tools. While it generated profits, it also presented several challenges. For one, sales were limited as the machines were purchased by factories, and each machine could last several years, if not more. Additionally, delayed payments posed a financial risk, as few companies paid for equipment in full upfront. This resulted in Zhou Linghua spending a considerable amount of time either chasing payments or navigating financial uncertainty.

Given the situation, he found Chen Xiao's proposal quite enlightening.

In recent years, the popularity of VCDs demonstrated the viability of targeting everyday consumers. With direct sales and swift payment cycles, financial stress was significantly reduced.

The same could be said for MP3 players, which had the potential to create similar financial stability.

If the patent application for MP3s was successful...

Zhou Linghua took a sip of coffee, and his heart began to race.

"Chen Xiao, what are you proposing?" Zhou Linghua asked with curiosity.

Chen Xiao explained, "The main hurdle preventing the widespread adoption of MP3s is production and pricing. China lacks specialized production lines and technologies for MP3s, resulting in high costs for imported products. If we can reduce manufacturing costs, scale up production, and lower prices, we could see significant sales."

Chen Xiao continued, "I'm aware that many students in our class, both boys and girls, have their favorite singers. Almost everyone buys tapes featuring their favorite artists. If we can introduce more convenient devices than Walkmans and CD players, I believe they would be well-received."

Zhou Linghua questioned, "Are you suggesting that you've designed an MP3 player?"

Chen Xiao nodded and confirmed, "Yes, I have design plans. The motherboard can be adapted using the VCD production line, although it will require substantial modifications. Additionally, the design of the MP3 decoding chip is more intricate. I can create the design, but finding a way to execute it is the challenge."

The decoding chip was the most complex aspect.

Despite the simplicity of the decoding chip's circuit diagram, it remained a decoding chip. Adapting the VCD production line for this purpose was relatively straightforward.

Once the decoding chip issue was resolved, MP3 player production would become a natural progression.

Zhou Linghua made a swift decision, "I'll gather all the technicians in the factory for a discussion. Let us know when you're available, and we can explore the details further. Producing a prototype initially will guide our further decisions."

Chen Xiao agreed and promised, "I'll organize the relevant information first."

Recognizing the impending entry of Xia Guo into the World Trade Organization (WTO) and the eventual adoption of internationally standardized patent practices, Chen Xiao understood the urgency of applying for patents.

He knew from his memory that the international patent landscape for MP3s was exceptionally intricate.

The first category consisted of audio encoding/decoding patents, including technologies like WMA owned by Microsoft and MP3 owned by Thomson. Additionally, patent management entities like Sisvel were involved.

The second category encompassed invention patents related to MP3 players themselves. The first inventor of MP3s remained a matter of debate, with different parties claiming to be the pioneers.

The third category included other patents, such as those for MP3 player designs, which also had diverse claims.

Due to the tangled web of patents, most companies refrained from paying patent fees, focusing instead on their own product development.

Chen Xiao's approach to patent applications aimed not at international competition against companies like Samsung and Sony, but rather at securing a foothold in the domestic market.

With the vast expanse of Xia Guo, such an opportunity promised significant dividends.