CH148 | Heir

Two months had passed since the launch of the iPhone.

The supply issues had been resolved, yet the demand remained explosive.

Perhaps because of this, smiles were spread across the faces of Taewoo Electronics’ President Woo Sung-il and Taewoo Telecom’s President Lee Joo-young.

“The stock price of Taewoo Electronics has returned to pre-dot-com bubble levels! The iPhone is driving up our shares.”

“Well, considering that Taewoo Electronics owns a 10% stake in Apple and supplies a variety of components, including semiconductors, it’s only natural.”

Taewoo Electronics had only managed to recover to its pre-dot-com bubble level.

Apple, on the other hand, had already surpassed its stock price from before the bubble.

“Taewoo Telecom’s market share in Korea has finally exceeded 60%. The gap between us and KS Telecom, which is in second place, has widened to over 25%.”

“At this rate, we won’t be losing our top spot anytime soon.”

“And our operating profits have also seen a significant increase. Since customers need to subscribe to high-cost plans to use the iPhone smoothly, our profits have grown.”

iPhone users were completely immersed in wireless internet.

However, since they couldn’t access it everywhere, they had no choice but to opt for expensive plans.

"Now, as long as Taewoo Semiconductors stabilizes, all issues will be resolved."

“For the first time, our yield rate has exceeded 70%. We’re still operating at a loss, but if semiconductor prices rise just a little more, we’ll be able to turn a profit.”

Semiconductor prices were gradually rising.

This was thanks to the iPhone’s massive sales volume.

The iPhone used significantly more semiconductors than feature phones, particularly NAND flash memory, a key storage component, which saw a price increase of over 10%.

“Korean-made components now account for more than 30% of the iPhone’s manufacturing cost. Among them, Taewoo Semiconductors holds a 40% share. Naturally, as iPhone sales grow, semiconductor prices will rise, and Taewoo Semiconductors will be able to turn a profit.”

“Additionally, since customers can purchase iPhones at Taewoo Electronics’ retail stores, sales of other home appliances have also increased.”

“I suppose people are buying other electronics while they’re at it.”

There was a good reason I had invested so much time in Apple.

Properly tapping into Apple’s success could benefit the entire Taewoo Group, which is why I put so much effort into it.

“There have also been multiple inquiries about wireless internet subscriptions. Cafés and restaurants have noticed that customers visit Starbucks to use free Wi-Fi, so they’re now looking to install wireless internet as well.”

“Bundle wireless internet services with other plans and sell them together. Since they only need a router, don’t charge extra for it. We’re already making a significant profit—if we get too greedy, customers might turn away.”

“Understood! I’ll keep that in mind.”

At last, most of the issues had been stabilized.

With the long-awaited iPhone launch finally wrapped up, it was time to move on to the next phase.

“I’ll be heading to the U.S. for a business trip starting tomorrow. Please keep a close watch on things while I’m away.”

“We will do our best to ensure everything runs smoothly!”

***

Two days later.

I arrived at the airport in California.

David, who had arrived in the U.S. ahead of me, personally drove to pick me up.

“Boss! Did you know that SAVE Investment has been receiving dozens of calls a day lately?”

“Don’t tell me they’re from Wall Street investment firms?”

“With Apple’s stock price on the rise again, the wolves of Wall Street are howling to get their share.”

They must be seething with regret.

They had sold us Apple’s shares at a bargain price, only for the stock to start rebounding out of nowhere.

And it wasn’t just a simple rebound—Apple’s stock had surged over fivefold from its lowest point.

But this was only the beginning.

Despite the iPhone launch driving Apple’s stock up by over five times, its current price was still only $5.

The aftermath of the dot-com bubble was still lingering.

Apple stock remained undervalued, and rather than just a fivefold increase, it had the potential to surge over thirtyfold.

“Just ignore them. If they have any sense of shame, they won’t push too hard.”

“Boss, you actually think the wolves of Wall Street have shame?”

“They may not have morals, but they should at least have some level of embarrassment. After all, they’ve given and taken back Apple shares multiple times—they can’t afford to be too aggressive now.”

As we talked, we made our way toward Apple’s headquarters.

Fatigue hit me hard after the long flight, and I dozed off, leaving David to drive.

“Boss! We’ve arrived at Apple HQ.”

“I must’ve dozed off for a bit. Thanks for driving.”

“You do know how much my salary is, right? You just hired the most expensive chauffeur in the world for the day.”

We exchanged jokes as we entered Apple’s headquarters.

David headed off to meet with the finance team, while I went to see Steve.

Thanks to the iPhone’s massive success, he looked much better than before.

“Are you getting some sleep these days? You look much healthier.”

“I’ve started meditating. Ever since I began, both my body and mind have felt much lighter.”

“So, you actually have time for meditation? I heard the European launch is just around the corner.”

“All the preparations are complete. We’ll officially launch the iPhone in the European market starting next month.”

More great news.

Since the iPhone had already taken off in the U.S. and Korea, its chances of success in Europe were extremely high.

That would mean even higher sales—great news for Taewoo Electronics and Taewoo Semiconductors.

“Is China the next target after Europe?”

"The preparations for entering the Chinese market are already complete. At the latest, we'll be selling iPhones in China before the end of the year."

China was a crucial market.

For the iPhone, China was an untapped goldmine.

Even in my past life, China had been the number one country in iPhone sales. The moment we entered the Chinese market, sales would multiply several times over.

"If you encounter any difficulties entering China, feel free to contact me. I happen to have some connections there."

"I’ve already received some help through David. I doubt I’ll need more, but if anything comes up, I’ll be sure to reach out."

The conversation continued in a friendly and lively atmosphere.

It would be nice if things stayed this way, but for another leap forward, I had to bring up a difficult topic.

"How is the development of the iPhone 2nd generation going?"

"…The development team is working on it. We’re planning to launch the iPhone 2 in two years, but we haven’t yet added any features that could be considered truly innovative compared to the first generation."

"Since the first iPhone was such a huge success, even if the second generation lacks groundbreaking features, sales will still increase."

"That’s exactly what worries me. I’m afraid Apple might lose its reputation for innovation."

It was because of its innovation that the iPhone had achieved massive success.

But innovation, by definition, meant radical change, and achieving that every time was nearly impossible.

"I believe I can offer a little help."

"Really? If it’s your advice, I’m always ready to listen!"

"You can make calls with the iPhone, and you can also take photos and record videos."

"That’s obvious."

"Wouldn't it be natural to enable video calls as well? And with wireless internet, users could make video calls for free, without spending a dime on phone bills."

FaceTime— a feature that wouldn’t be developed for several more years.

The technology for video calls already existed, so integrating it into the iPhone wouldn’t be too difficult.

It just required a shift in perspective.

"That’s an excellent idea. If users can make free video calls, they’ll love it. But it still feels like something is missing for a true innovation. Come on, bring out more of your hidden ideas."

"What about adding a navigation feature? The iPhone already has a maps function, so why not use it for navigation?"

"With the current iPhone’s performance, it might be a bit challenging. But as semiconductor performance improves, it should definitely be feasible for the second generation."

I had already given two pieces of advice.

But Steve didn’t look satisfied at all. His expression clearly said, “Is that all you’ve got?”

"Hmm… What about integrating a credit card function into the phone?"

"If you're talking about e-commerce, the iPhone already supports online payments."

"No, I mean putting an actual credit card inside the iPhone. Instead of just online purchases, users should be able to pay at supermarkets and restaurants using their iPhone as a credit card."

I had just introduced Apple Pay.

This was a technology that required near-field communication (NFC), which had already been developed.

"A phone that replaces credit cards… Now that’s an excellent idea. If we can integrate all these features into the iPhone 2, no one will be able to say we lack innovation."

"That takes care of the second generation. But what about the third and fourth?"

"That’s why I started meditating. Every day, I’m thinking about how to make the iPhone even more innovative."

I needed to ease Steve’s worries.

After all, I already knew exactly what kind of innovation he was looking for.

"I believe the future of the iPhone lies in artificial intelligence. Instead of using fingers to operate the phone, users should be able to control all functions with just their voice. What could be more innovative than that?"

"Artificial intelligence! It’s not that I haven’t thought about it. But developing AI requires an enormous amount of time and money, so I had to put it on hold for now."

"Apple doesn’t have to bear the burden alone. Taewoo Electronics will share the manpower and funding. We want to develop AI together!"

AI wouldn’t just benefit the iPhone.

If users could control music, TVs, computers, air conditioners, and other home appliances through voice commands, Taewoo Electronics could grow into a global leader.

"AI development will be more difficult than you think. The costs could be astronomical—are you sure about this?"

"My grandfather always told me: ‘Never fear investment if you want to stay ahead of the times.’"

"That’s an excellent philosophy. Then let’s build it together. But… are you planning to take 50% of the shares again this time?"

"Taewoo Electronics will cover more than 50% of the investment costs. In return, I ask that you concede 50% of the shares to us."

"That’s unfortunate, but I have no choice."

Apple still lacked financial strength.

A few years from now, iPhone sales would bring in billions, making Taewoo’s support unnecessary.

But right now, the situation was different.

Apple needed Taewoo’s resources and funding to even begin developing AI.

Of course, this could end up being a bad deal for Taewoo Electronics.

They could have just developed AI independently without partnering with Apple.

But I had my reasons for making this deal—there was something else I wanted from Apple.