"Although the minimum order of 5 million pieces can be compressed to 599 yuan, it needs to be paid before delivery, and it does not support segmented payment, let alone payment after delivery.

I believe that Mr. Huang, as an industry insider, should know that the price of an integrated chip like Yanque is almost unprofitable at a price of 599 yuan.

For such unprofitable products, we follow a zero-risk tolerance strategy. In order to avoid unnecessary contradictions in the process of subsequent cooperation, I would like to put the settlement method first. ”

Zhang Yi smiled, but what he said made Huang Zhang's heart cold for a while.

Five million, the unit price of 599, that is to say, he has to prepare almost 3 billion in cash, and he has to pay for the goods first, plus other accessories, that is to say, at least more than 5 billion in cash.

Not to mention that Meizu has the support of Zhuhai, even if Meizu is Zhuhai's own son, it is impossible for Zhuhai to gamble with such a large sum of money.

As for crowdfunding, this amount is too big, and he doesn't dare to gamble, in case he is given a non-legal * fundraising, it will be really a bamboo basket.

As a veteran of the manufacturing industry, he understands the profit model of Xinxinding's price, to put it bluntly, the chip itself does not make money, what makes money is the interest rate spread, 3 billion RMB, and the one-year fixed term used to save is two points of income.

For a giant like Xinxin, there are many operations that can be done with such a huge cash flow, and 2 points are underestimated.

After Xinxin has cash, whether it is to invest, expand production or mergers and acquisitions, it will be more comfortable.

Of course, Huang Zhang doesn't understand why Xinxin has not been listed, for Xinxin, whether it is in the big A or in the Hong Kong stock market or NASDAQ, it is easy to go public.

In 20 years, the end point of many companies is to go public, and major shareholders are waiting to be listed and cashed out. The same is true 20 years ago, when TCL mobile phones were sold to the management for 24 million yuan at a market price of at least 300 million yuan, and the rights and interests of investors were seriously infringed, and most of them did not know about it.

TCL Mobile's listing on the Hong Kong stock market turns the assets held by the original shareholders, including the management, into liquid shares.

Huang Zhang still didn't give up: "If the money comes first, how long will it take for the goods to arrive?" ”

Zhang Yi, as the business manager of Xinxin, knew that it was almost impossible for the man in front of him to be able to afford five million tablets, but he still had questions to answer: "If it arrives within a year, if it is five million, we will divide it into batches, with four time nodes, one month, three months, half a year and one year."

Of course, this is the latest time, and in practice, we can also deliver in advance according to customer needs. ”

To put it bluntly, there are only a few companies in China such as TCL, Bird, and Lenovo that can take out this money, and slightly smaller companies will deplete their liquidity instantly.

Huang Zhang said: "Thank you Manager Zhang, if I have any needs in the future, I will communicate with you through WeChat."

In addition, I would like to ask if there are any discounts at Honghu? ”

Zhang Yi said: "Honghu's preferential measures are similar to those of Yanque, from 500,000 to 5 million, and there are different levels of discounts for different order quantities, but in terms of range, Honghu is the cheapest and not cheaper."

Because Honghu uses the most advanced chip manufacturing technology, we are currently in a stage of climbing up with good products, and this cost cannot be reduced. ”

After Huang Zhang inquired, his heart was already cold, where could he get so much money? That's a problem.

At the same time, Huang Zhang also thought that Meizu couldn't come up with so much money, but there are many powerful companies in China, and there are companies that can come up with so much cash, they compress the cost of the core components of the smartphone to less than 400, and then make a shocking price of 999 yuan.

How will Meizu survive?

Huang Zhang sat opposite Zhang Yi with an ugly face, and Zhang Yi whispered: "Mr. Huang, I will remind you privately as a person.

The amount of capital required for five million tablets is indeed too much, and it is difficult for even a powerful company to scrape together so much cash flow in a short period of time.

But there is another way, that is, multiple enterprises join forces, everyone forms a joint venture, and then partners in procurement. ”

Huang Zhang got up almost instantly and shook hands with Zhang Yi: "Thank you so much Manager Zhang, I have to be busy going back to Guangdong Province now, next time I come to Shenhai, I will definitely invite you to dinner, and remember to cheer when the time comes." ”

Yes, the figure of five million is too staggering, it is not something that Meizu can eat, they can find other manufacturers to cooperate.

The news that Huang Zhang got was also obtained by other mobile phone manufacturers.

Samsung's first reaction was: "Xinxin's gameplay is equivalent to hoping that big mobile phone manufacturers will be their distributors."

At a price of 599 yuan, the goods were distributed to large mobile phone manufacturers, and this way was adopted to seize the market in advance. ”

"Xinxin is well aware that their technical advantage will not last long.

It is true that Xinxin will launch smartphone integrated chips first, but whether it is us or Texas Instruments, or Intel and AMD, they are all about to launch smartphone integrated chips.

In order to continue to maintain their advantages in this field, Xinxin does not want to reduce prices on the surface, because if the price is reduced on the surface, it will not be so easy to pull up the price in the future.

Therefore, they adopt such a step-by-step pricing strategy, which can spread the supply of goods as quickly as possible.

Let the big mobile phone manufacturers become their distributors, and they still make mobile phones themselves, even if the goods can't be sold, they can also make products and sell them to consumers, this business is also a sure profit for them. ”

New chips, mobile phone manufacturers, consumers

Xinxin can obtain a large amount of cash flow, can fill the 130nm production line, Xinxin's self-developed 130nm lithography machine is also useful, and the low-price dumping strategy can obtain a large number of markets.

Such a low-price strategy can be directly changed to preferential policies in the future, and the resistance is much easier than reducing the price first and then raising the price.

Mobile phone manufacturers can get low-cost chips, 599 yuan of birds, even if they take it from the hands of large mobile phone manufacturers, they peel off a layer of skin, and the price of getting it will not exceed 650 yuan, and it is not an exaggeration to say that it is not an exaggeration to get the top smartphone chip at such a low price.

For consumers, low-cost chips mean that the price of smartphones will not be high, not to mention that Xiaomi is forcing these mobile phone manufacturers to roll up, and if they don't play the low-price strategy, domestic mobile phone manufacturers can't survive this winter.

As for who loses? Naturally, other chip manufacturers aiming at this cake, half a year later, the market has long been occupied by new chips.

Cao Xingcheng, the boss of MediaTek, almost immediately got the news from the participants:

"599 yuan, this pricing is so that MediaTek's chips do not have any room to survive."

Cao Xingcheng held an emergency meeting in the company.

MediaTek is different from TSMC, TSMC only does chip foundry and semiconductor upstream and downstream industry investment, MediaTek is engaged in chip design in addition to chip foundry, and chip design is the bulk of their profit source.

I saw the business opportunity of mobile phone integrated chips before, but it was preempted by the new core, and then after the launch of MediaTek's integrated chip, I can only get a piece of the pie in this market, and the money must have been earned, the problem is that the new core eats meat, they drink soup, and no one wants to change it.

Not to mention that MediaTek prides itself on being a predecessor in the chip industry, and MediaTek is very unwilling to be left behind by Xinxin.

Therefore, I originally wanted to make a comeback in the smartphone chip market, but before I started, I was hit by Xinxin.

"Let's talk about it, in the face of Xinxin's low-price dumping strategy, what methods we should take to deal with it." Cao Xingcheng spoke.

"According to the pricing of Xinxin products, their official pricing is 799 yuan, and the price of 799 yuan for the 130nm process of Yanque chip is actually good, and we will not be higher than them in price.

As for 599, that requirement is very harsh, will there really be a manufacturer willing to accept such harsh conditions?

I'm skeptical. ”

Cao Xingcheng said categorically: "Since they have released words to any manufacturer, saying that the one-time purchase volume reaches 5 million pieces, the price is 599 yuan."

This also means that no matter what means manufacturers take, the price they buy for Yanque chips will not be much higher than 599.

We can't think of 799 as their official pricing, we need to think of 599 as their official pricing. ”

Tsai Mingjie, one of the founders of MediaTek, if there is no new chip, he will also be the proposer and project leader of the mobile phone integrated chip.

He said: "Lao Cao, don't worry, our chip is still under development.

I do have a solution, and that is that we do subtraction.

Our target market is the mainland, and low price is the trump card to enter this market.

Xinxin's finch has pushed the price to such a low level, and it is impossible for us to continue the past thinking to reduce the price to such a low price.

But we can't just throw in the towel.

At this time, subtraction can be our choice.

In terms of technology, there is no essential difference between us and Xinxin, everyone's technology source is Silicon Valley, they are more experienced than us at most, and the chips they make have lower energy consumption and better performance, which consumers cannot perceive.

For mobile phone manufacturers, it doesn't matter.

We can go and occupy the lower end of the market, and we will lower the price to 500 yuan. ”

Cao Xingcheng nodded: "Mingjie, this is a way, you can tell me how to do it." ”

"For example, Bluetooth chips, we can completely kick them out of the SoC," Tsai said.

With a multimedia decoding chip, users can listen to sound through wired headphones without Bluetooth at all.

Since we have lowered the price to 500 yuan, it also means that the products provided by mobile phone manufacturers to consumers are mainly low prices.

Under such a premise, the Bluetooth function is actually not necessary. Especially now Bluetooth technology needs to be purchased from Xinxin, the price is very high, we can cut this.

Other chips can also take the next choice, such as multimedia decoding, we can not use Sony's chips, directly use self-developed, or use Hongyuan Electronics' multimedia decoding chips.

Anyway, we follow a principle, that is, practicality, we fill the practicality, and on this basis, the cost is reduced as much as possible. ”

If MediaTek's strategy is to give priority to low prices and cost performance is king, then the strategy that Samsung intends to adopt is to take the high-end route as much as possible.

Because Samsung and Xinxin are a bit similar, there are many industries involved in the upstream and downstream of semiconductors, they not only make mobile phone chips, but also make memory chips, Samsung intends to build high-end chips that surpass Honghu, and at the same time package and sell them with their own memory.

"Our pricing strategy is sure to catch our competitors off guard.

Today, TCL and Bird have reached a preliminary intention with us, and they want to order 5 million pieces of chaffinches and 1 million pieces of birds at one time.

Lenovo has also expressed similar wishes, but Lenovo hopes that we will be accommodating and the money will arrive.

Sony Ericsson and Nokia, I feel that they are also willing, but their Huaguo branch can't be decided, and it is estimated that they will have to report to the above.

It is expected that the shipment of finches and birds will be at least 50 million pieces this year. ”

After the press conference, Yu Dazui was making a summary at the internal meeting of Xinxin.

Zhou Xin will not make much of a statement at the public meeting, because in his opinion, this is a good start, but it is far from the time when the coffin can be closed.

Qualcomm hasn't gotten down yet, Samsung hasn't given up yet, Motorola, Texas Instruments, AMD and Intel all have the power to fight in the field of mobile phone chips.

After the public meeting, Zhou Xin communicated with Hu Zhengming alone in the office: "Professor, research and development should be accelerated.

I have a hunch that our technological superiority is being caught up by our competitors.

Honghu is handed over to our own factory as much as possible, even if the yield rate is lower at the beginning.

Honghu's pricing has enough margin, even if the yield rate is 95%, it will not lose.

We've got to get the production capacity up there in the Lion City. ”

Hu Zhengming nodded: "I understand."

We're actually on the right track, we just need to stick to it.

You don't have to worry too much, our competitors have the strength, but the smartphone market is not something that any one can swallow.

This market can accommodate more than enough players. ”

Zhou Xin smiled bitterly, he knew that in the future, he could only tolerate two big players in the mobile phone chip market, Apple and Qualcomm.

If TSMC can still help Huawei OEM, Huawei can also count one.

Both MediaTek and Samsung will be reduced to small players in this area.

With more than 2 billion shipments worldwide every year, there are only two big players, which makes it hard for people who have not experienced it to believe.

Zhou Xin can't say prediction, he can only explain it from the logic of the industry:

"Professor, you should have felt it in the past two years or so.

Smartphone chips are different from other types of chips, and its market size is crucial.

The market size is large enough, and we can keep the cost down.

It is possible to form scale effect and cluster effect.

You can't understand it as a small chip, it's actually a big chip.

It's more like a computer CPU, and the computer CPU ships billions of dollars a year, isn't there only two players, Intel and AMD? At the same time, Silicon Valley has long been there.

The same is true for smartphone chips, which can only hold a handful of players at most.

It is not a multimedia decoding chip, and it will not say that each manufacturer occupies a small market share. ”

Hu Zhengming was a first-hand witness to the rise of Intel back then, "I know what you mean.

The reason why Yanque and Honghu have adopted such a pricing strategy is precisely because we now want to seize the market as quickly as possible. ”

Yesterday the price was wrong, and the lowest was 599.

(End of chapter)