Chapter 725: Come Out, Pear Phone
"Wu Kai, add 20 sets of mobile phone production lines to me. ”
"Group 20, I'll go, Mr. Chen, are you playing chicken blood?"
"Senior brother, don't you have the guts?"
"It's not that I don't have the guts, but 20 sets of production lines are too risky. ”
Signed OEM contracts with major mobile phone manufacturers, and Chen Yu called Wu Kai over.
He has always been in charge of the OEM business before.
It's just that Chen Yu said that adding 20 sets of production lines scared Wu Kai enough.
"How can we do our OEM business without taking risks, and how can we fight with Foxconn without taking risks. ”
Huanyu Technology has been in the foundry business before.
But most of the time, Huanyu Technology produces for itself.
As for OEM, the actual volume is not particularly large.
For example, it was OEM for Huawei at that time.
It's just that except for Huawei, basically most companies produce and manufacture by themselves.
This model is known internationally as IDM.
IDM is called an international integrated component vendor, and to put it simply, it is a one-stop shop that does it all.
Design, manufacture, package, test, and ultimately sell downstream end consumer goods.
The advantages of this model are obvious.
Because everything is done by yourself, it is much better to control the quality of the product than the OEM.
At the same time, it can also be integrated and utilized in terms of resources, and has technical advantages.
In addition, in terms of profits, because it is also part-time, the profits are relatively high.
Of course, the most important thing is that the self-manufacturing will not be controlled by other manufacturers.
However, such a model has its drawbacks.
It makes the business very large, and the management and operating costs are very high. And because all aspects of entry require a large amount of investment, the rate of return on capital is relatively low. It's also because it seems that you can do everything by yourself when you enter all aspects, but when you really do it, you find that any piece is not badly done, but it is very average.
In the market environment, electronic products must go through four links.
Design, manufacture, test, market.
One of the least profitable is manufacturing and testing.
The most profitable thing is design and marketing.
On the other hand, if you are only responsible for design and marketing, you can undoubtedly save costs.
In turn, the same is true for Huanyu Technology's electronic foundry business. Although it seems that Huanyu Technology is the least profitable among the four links, because the foundry technology is the most advanced, it also greatly improves the efficiency of the entire mobile phone manufacturing.
Chen Yu took over so many orders, and he wanted to maximize his entire scale as soon as possible.
As long as the scale of the entire foundry goes up, the manufacturing cost of Huanyu Technology will be lower.
The lower the manufacturing cost of Huanyu Technology, the greater the dependence of other mobile phone manufacturers on Huanyu Technology.
In this way, even if the crisis of domestic mobile phone manufacturers has passed in the future, many mobile phone manufacturers may have to consider whether they really want to take it back and do it themselves?
Therefore, Chen Yu ordered Wu Kai to ask for 20 sets of production lines.
It's just that in the face of 20 sets of production lines, Wu Kai was also intimidated by Chen Yu's big move.
"Foxconn, do you want to fight with Foxconn?"
"Can't you?"
"We don't seem to have the strength. ”
"If you don't have it now, you won't have it in the future, and we have to accumulate the ability to challenge Foxconn now. ”
Although Foxconn's technology is far inferior to TSMC.
And anyone can do the OEM business.
However, when your foundry business achieves a certain amount and monopolizes more than 50% of the global market.
Well, you have a huge say in that.
A series of products that are manufactured by you have to look at your eyes a lot of the time.
This is also a layout for Chen Yu to prepare to pinch European and American technology giants in the future.
"Well, you're awesome, I can't compare to you. We don't have the money, though. ”
Wu Kai spread his hands and said that even if he wanted to build so many sets of production lines, he couldn't do anything.
For production lines like electronics, each group is around tens of millions.
Of course, there are also small workshop-style production lines, and you can get it for hundreds of thousands.
But the production line of hundreds of thousands of dollars can't produce a few mobile phones a day.
The 20 groups add up, Wu Kai estimated that at least 500 million yuan will have to be invested.
This can be done with real money.
"Money is a real problem. ”
In order to acquire two major appliance supermarkets before, Chen Yu was hollowed out.
Although Chen Yu can't really take out hundreds of millions now, after all, Huanyu Technology has had a lot of funds in the past for a while.
But this kind of digging is very detrimental to the company.
If the whole group is constantly in a situation of shortage of funds, if something goes wrong, it is completely doomed.
He has done such a thing once before, and Chen Yu will not do it a second time.
It's just that although funds are tight, it's not impossible to solve.
"Wu Kai, don't worry, we are a little nervous, but some people are not nervous. ”
"Ask someone to borrow?"
"Who else is willing to lend you hundreds of millions at once, or don't ask your father?"
"My dad couldn't scrape together 500 million cash flow after his family went bankrupt. ”
"Forget it. ”
"Mr. Chen, who else has money?"
"Stupid, we don't have money, Wang Xuehong has money. ”
Chen Yu patted Wu Kai, and suddenly Wu Kai came to his senses.
Huanyu Electronics is not Huanyu Technology, at that time he also introduced HTC from Taiwan, that is, HTC Electronics.
It is also the addition of HTC Electronics that has brought Huanyu Technology's foundry technology to a higher level.
Now the whole business is growing by leaps and bounds, leaving behind a lot of competitors.
Chen Yu may have no money, but for Wang Xuehong, the daughter of the god of management, this is a super rich woman.
However, Chen Yu thought that Wang Xuehong was not asking Wang Xuehong to make money.
Although it stands to reason that such business expansion is generally based on the proportion of shares.
If you don't make it up, embarrassed, then dilute your shares.
Chen Yu thought of Wang Xuehong, but he wanted her HTC Electronics to cover all the accounts.
In other words, Chen Yu doesn't plan to make up a penny.
As for not making up, then you have to dilute the shares?
How is this possible.
As the major shareholder of Huanyu Electronics Holdings, who diluted Chen Yu's shares?
As for not wanting to make money and not wanting to sell shares, how could Wang Xuehong agree?
Then it depends on Chen Yu's flickering skills.
"Don't say it, Wang Xuehong is really rich. ”
Wu Kai also showed a smile.
"That's it, I'll go to Taiwan tomorrow. By the way, how is our pear phone doing?"
Huanyu Technology has made low-end mobile phones and ultra-low-end mobile phones before.
Of course, I have also done low-end mobile phones.
But I have never done mid-to-high-end, or even high-end mobile phones.
It's not that I didn't want to do it before, it's just that the conditions were not ripe before, and the time didn't allow it.
If you want to play your own mobile phone brand, mid-to-high-end, high-end mobile phones are the only way for any mobile phone brand.
It can even be said that no matter how well your mobile phone sells, if there is no mid-to-high-end, especially high-end mobile phone brand, then in the eyes of ordinary consumers, you are just an ordinary mobile phone brand. You will never be able to compete with Nokia, Sony, Samsung...... These are some of the giants in comparison.
Therefore, during this period of time, Huanyu Technology has also been silently researching and developing.
The pear mobile phone is the most high-end mobile phone that Huanyu Technology is about to launch so far.