Chapter 756: The End of the Era, the Decline of an Iconic Market

Just as Nanshan Special Steel is expanding its territory in various "hidden champion" fields, many companies in the entire Nanshan system are also undergoing various changes.

Among them, Honor Mobile Phone and Nanshan Semiconductor, which are subordinate to Honor Technology Group, which Cao Yang has always attached great importance to, have a lot of big or small things happening.

Since Honor mobile phones began to produce computers, smart watches and other products, it is a bit inappropriate to continue to call them Honor mobile phones, so it was simply renamed Honor Technology Co., Ltd.

In terms of volume, Honor Technology Co., Ltd. is the largest company under Honor Technology Group Co., Ltd.

This is also evident in the name of the company.

THE HONOR WATCH, WHICH WAS LAUNCHED ON THE MARKET FOR THE FIRST TIME THIS YEAR, HAS PERFORMED VERY WELL SINCE ITS LAUNCH.

NOW ITS SALES ARE ON PAR WITH HONOR PAD.

Even its appearance has caused a huge shock to the entire watch industry.

"Mr. Cao, the current sales of our smart watches are very good, and we have found a special additional profit plan."

Xia Qingqing was in high spirits during this time.

As a well-known "strong woman" in the domestic workplace, her popularity is not low at all.

On Weibo, the number of her followers has exceeded 10 million.

This is already the level of a proper second-tier star.

Under normal circumstances, the number of fans of an entrepreneur is an order of magnitude different from that of a celebrity.

That is, there are old freaks in the Nanshan system.

"What additional profit schemes?"

The sales of smart watches will be reported by Honor Technology once a week, so Cao Yang has a number in his heart.

However, he was a little curious about the other profit plans mentioned by Xia Qingqing.

Who doesn't like making money?

"At present, there are only a few default watch face backgrounds, and we can specially design a series of more distinctive watch face backgrounds."

"For example, if this is the Year of the Dragon, then you can design a series of Dragon motifs as the background of the dial."

"For example, you can design some background patterns of different painting styles such as landscape paintings, ink paintings, oil paintings, etc., and you can also integrate some of our car appearance and other information into it."

"When the time comes, you can directly buy relevant patterns in the Honor Health APP, and the price doesn't have to be very expensive, just 9.9 yuan a piece."

As soon as Xia Qingqing's words were finished, Cao Yang probably understood what she meant.

This seems to have the same effect as selling skins in the glory of kings in later generations.

People can make a lot of money selling skins, and this plan to sell the background of the watch face should also make money.

"According to our preliminary estimates, at least one-third of users will buy new patterns."

"And once the first purchase of the pattern happens, often the user will continue to replace some new patterns later."

"And the cost of selling these patterns is basically negligible, almost pure profit."

"IF YOU SELL AN HONOR WATCH, IF YOU CAN HAVE A PATTERN SALES INCOME OF DOZENS OF YUAN EVERY YEAR, WHEN THE NUMBER OF SMART WATCHES ACCUMULATES TO A CERTAIN EXTENT, THIS INCOME WILL BE VERY CONSIDERABLE."

Xia Qingqing continued to report his plan.

And Cao Yang, who approved this plan from the bottom of his heart, naturally agreed without any hesitation.

"If you think this plan is good, then implement it as soon as possible."

……

Xia Qingqing had just left Cao Yang's office when Zhang Jing came over again.

However, the news he reported was not particularly good news.

"Mr. Cao, in recent months, the mobile phone chips we have sold to Huaqiangbei through Yingang Trade have declined significantly."

"According to this development trend, the number of chip sales for Huaqiangbei this year will be lower than last year."

Although Huaqiangbei is not the only market for Nanshan Semiconductor, it occupies a relatively important position in low-end chips.

In the past two years, taking advantage of the rapid development of smart phones, many copycat manufacturers in Huaqiangbei have also made a lot of money.

However, it is precisely because the development of smart phones is too fast that manufacturers from all walks of life have begun to increase related investment.

As a result, the competition has naturally become much fiercer.

Cao Yang is very clear about these changes.

However, since Zhang Jing came to report, he must also listen carefully to the situation.

"Are there other semiconductor manufacturers competing with us for orders, or are Huaqiangbei's copycat machine manufacturers not working?"

The sales of Nanshan Semiconductor will decline, which is nothing more than these two reasons.

So even if Cao Yang already has some guesses in his heart, he still wants to confirm it.

lest they be robbed and they don't know.

"Other semiconductor manufacturers, mainly MediaTek, have always wanted to seize the market in Huaqiangbei with us."

"However, the main reason for this decline is not brought by MediaTek, but the copycat manufacturers in Huaqiangbei, which seem to have quickly become a sunset industry."

"The emergence of low-cost smartphones such as Xiaomi and OPPO has made the advantages of Huaqiangbei copycat mobile phones disappear all of a sudden."

"This iconic market of China's electronics industry has officially entered a period of decline."

Zhang Jing gave his judgment very definitely.

This information was given by Nanshan Semiconductor after careful confirmation.

So he's pretty sure.

"The decline of Huaqiangbei is basically inevitable, after all, many of their copycat practices, strictly speaking, are walking in a gray area, and even infringe on the patents of many companies."

"In the past two years, Shencheng has also stepped up law enforcement efforts in this regard."

"Of course, as you said, Xiaomi, Huawei and other mobile phone manufacturers have launched cost-effective smartphones, which should be the main reason for the decline of Huaqiangbei copycats."

"If you can plan ahead and focus on Southeast Asia or Africa, you can continue your life."

"Otherwise, it will only be completely withdrawn from the stage with the decline of copycats."

Cao Yang thought of Transsion at this time, although they were also developed in Huaqiangbei, but when the smart machine was not yet popular, it began to transform overseas.

I have to say that the leaders of Transsion are still quite powerful in this regard.

The money spent by Nanshan Investment will definitely double the benefits in the future.

"Now our low-end chips are cooperating with domestic independent brand mobile phone manufacturers as much as possible to see if they can give up Qualcomm and MediaTek products and buy them from us instead."

"OPPO and VIVO are already willing to do this, but Xiaomi has no interest for the time being."

"As for Warwick, most of them are designed by themselves and handed over to our foundry, so the room for expansion is relatively limited."

Taking this opportunity, Zhang Jing reported the business development plan related to mobile phone chips to Cao Yang.

Although Nanshan Semiconductor started with automotive-grade chips, its business in the automotive field is also growing continuously.

However, the fastest growing is actually mobile phone chips.

Whether it is the chips used by Honor Technology itself or the chips sold externally, they have made great contributions to the development and growth of Nanshan Semiconductor.

"If there is difficulty in business development, it means that our chip performance is not advanced enough."

"Just imagine, if all the parameters of our chips are ahead of competitors, then even if there is no price advantage, some manufacturers will take the initiative to cooperate with us."

"Whether it's Xiaomi or Warwick, it's possible that one day it will become active."

"But if our chips simply have a price advantage, and the performance is worse or similar than others, then the considerations of various manufacturers will be different."

Cao Yang obviously still hopes that Zhang Jing will continue to improve the chip level of Nanshan Semiconductor.

Over the years, Nanshan Semiconductor has burned tens of billions of yuan every year.

There are two special communities in Modu and Yangcheng, both of which are used to house overseas experts from Nanshan Semiconductor.

"Well, that's true."

"We at Nanshan Semiconductor have slowly passed the stage of starting from scratch and are about to start the next stage."

"According to the current development speed, it is estimated that we will have a new breakthrough in chip process technology next year."

Zhang Jing felt Cao Yang's expectation, but at this time his pressure was not so great.

The entire business of Nanshan Semiconductor has entered the right track.

At this time, no matter where you want to make a breakthrough, it is not as difficult as you think.

"The cooperation with various universities can be continued, and our own talent training cannot be stopped, of course, the action of poaching people must continue."

The cutting-edge technology of chips is still in the United States.

There is no way to admit this, even if you don't want to admit it.

Therefore, Cao Yang has always asked headhunters to poach people from various companies.

Among them, the best effect is Nvidia.

Once Nvidia was taken under the command of Nanshan Semiconductor, and many people were dug into Nanshan Semiconductor.

Later, the people who were recruited into NVIDIA through Nanshan Semiconductor also returned to Nanshan Semiconductor one after another this year.

So even if Nanshan Semiconductor was forced by the United States to sell Nvidia, in fact, it gained a lot of benefits in this business.

Of course, although Nvidia was forced to sell, Nanshan Semiconductor also set up its own team to develop GPUs.

It can be said that Nanshan Semiconductor is now a competitor with NVIDIA.

The GPUs used by Honor Technology are already produced by Nanshan Semiconductor itself.

In the future, the competition between the two sides will become more and more intense.

"The support of relevant departments for the semiconductor industry is still quite large, and many key universities have also added chip-related majors, or expanded their enrollment."

"I think in another five years, China's domestic semiconductor talents will be able to basically meet their needs."

Zhang Jing has been engaged in semiconductors all his life, and he knows too much about the development of the entire industry.

In his opinion, now is the best time for Huaxia to develop semiconductors.

All kinds of application opportunities and various policy support are very strong.

"Our new factory in Yangcheng will be put into operation soon, and we can further consider setting up a new factory in the imperial capital at that time."

"The talent advantage of the magic capital and the imperial capital is still very obvious, some people just want a certain city, if we don't have business there, it will be much more difficult to poach people."

In the past year, with the continuous introduction of Huaxia Semiconductor's support policies, there are more and more cities that want to attract investment from Nanshan.

Not to mention finding Cao Yang directly, there are already several people who hope to persuade Cao Yang after finding Fang Sisi.

Thinking of the talent advantages of the imperial capital, Cao Yang is ready to put the next generation of semiconductor factories in the imperial capital.

When the time comes, three bases will be formed: the imperial capital, the magic capital and Yangcheng, and then a R&D center will be set up in Dongying, Silicon Valley and Europe to attract talents according to the situation, and this layout will basically be enough.

"I just want to report to you about the commissioning ceremony of the new factory in Yangcheng, and many people from Lingnan Province will attend at that time, and many people from the ministry will also participate."

"I've asked Director Mi to help you make an appointment with your schedule."

"Why don't you take five minutes to go on stage and say a few words that day?"

"Otherwise, with so many leaders participating, it doesn't seem good that you don't come to power."

Although Zhang Jing is an academic talent, as the general manager of Nanshan Semiconductor, he is not the kind of nerd.

If he was a nerd, Cao Yang would not be able to hand over the company to him.

"Okay, let's go say a few words."

Cao Yang thought about it for a while, and then agreed to Zhang Jing's proposal.

After all, so many leaders participated, if Cao Yang did not come to power, many people would be a little embarrassed to come on stage and say that it would be a little embarrassing for half a day.

And when Cao Yang and Zhang Jing were discussing the decline of the Huaqiangbei market, MediaTek was also entangled.

"Luo Li, why has our mobile phone chip sales not risen but fallen in recent months?"

Cai Mingjie stared at Luo Li, the head of the sales department, with an unkind face.

MediaTek has invested a lot of R&D resources in the development of new products in recent years, and most of Cai Mingjie's energy has been focused on R&D.

But the corresponding harvest is not very good.

"The mobile phone chips in Huaxia are currently mainly Qualcomm, Nanshan Semiconductor and Huawei HiSilicon with us, among which Nanshan Semiconductor's market share has increased the fastest."

"And our original largest market was Huaqiangbei's copycat mobile phone manufacturers, and most of them are using Nanshan semiconductors."

"The remaining mobile phone manufacturers continue to cooperate with us, but their competitiveness has dropped significantly, and several copycat manufacturers have closed down recently."

"This is the main reason for the decline in our mobile phone chips."

Luo Li explained a little aggrieved.

It's not that their sales department doesn't work hard, it's that customers don't fight.

Obviously, the number of my customers has not decreased, but the sales volume has been declining.

To a certain extent, the decline of Huaqiangbei's cottage mobile phone market is the end of an era.

MediaTek once enjoyed the biggest dividend of Huaqiangbei copycat machine, but now that the market has declined, the dividend will naturally be gone.

"Didn't those copycat phones sell well in the first two years?"

"Why is it declining so quickly now?"

Cai Mingjie can't understand how the world is changing so fast.

Two years ago, he felt that Huaqiangbei's copycat mobile phones would completely change the pattern of Huaxia's mobile phone industry.

But now listening to Luo Li's meaning, Huaqiangbei is completely inadequate.

"The various mobile phone manufacturers in Huaxia are really too rolled."

"For example, Xiaomi's mobile phone, the price of more than 1,000 yuan is similar to the performance of Apple's mobile phone of several thousand yuan."

"There are also domestic brands such as OPPO and VIVO, which are also developing rapidly."

"In order to maintain its market share, Lenovo is also constantly lowering prices."

"Today's smartphone prices have been smoothly classified into the starting price of less than 1,000 yuan."

"This led to the complete collapse of Huaqiangbei's copycats."

"After all, their main price range was around 1,000 yuan."

"Now there is no price advantage, no brand advantage, not even performance advantage, and the collapse of sales is inevitable."

As the head of MediaTek's sales department, Luo Li still has this vision.

Of course, although she saw the change clearly, she herself felt that it had become too fast.

She still likes the days when nothing changed much throughout the year.

Even she misses the peaceful life of her childhood a little.

"According to your statement, has Nanshan Semiconductor's sales in Huaqiangbei also fallen sharply?"

Cai Mingjie asked a question that he was very concerned about.

In his opinion, Nanshan Semiconductor is MediaTek's main competitor.

There is no one of them.

If his opponent is not having a good time, then he can be in a much better mood.

It's like trading stocks, if everyone falls, then even if they fall a little less, they will be in a good mood.

But if you fall and everyone else rises, then the mood is completely different.

Even if the latter is not as big as the previous one, the mood will be worse.

That's human nature.

"Yes, Nanshan Semiconductor's sales in Huaqiangbei have indeed dropped a lot."

"Even they're going to drop even more than we do, because their chips are supplied by copycats that make smartphones."

"And the biggest hit is the smartphone."

Luo Li gave her answer in the affirmative.

This made Cai Mingjie breathe a sigh of relief.

However, then Luo Li said again, saying: "Over there in Huaqiangbei, there is a company called Transsion, which also used our chips before, and later switched to Nanshan Semiconductor." ”

"In the past two years, they have vigorously developed overseas markets, and I heard that the number of mobile phone shipments per month has now reached 3 million."

This news made Cai Mingjie's mood bad again.

Although Nanshan Semiconductor, an emotional family, was also unlucky in Huaqiangbei, the development of Transsion supported by them was very good.

As for Honor Technology, the most important customer of Nanshan Semiconductor, Cai Mingjie is reluctant to think about it.

Because the more I think about it, the worse I feel.

He was powerless to change the situation.

"It seems that we want to further promote the improvement of chip technology and let more manufacturers realize our cost performance."

"Otherwise, if Nanshan Semiconductor robs the market like this, we will have a hard time in the future."

As a technology maniac, Cai Mingjie was not discouraged at this time.

Of course, his idea is very good, and it is difficult to say whether it can be realized when the time comes.

……

"Cousin, fortunately, we have started to expand the market of polar bears and other countries before, otherwise it would be very difficult now."

As soon as Hu Yin got off the plane, he came to Huaqiang City in Yangcheng to see Guo Shuyin.

In the last year, he has spent almost half of his time on business trips.

Today, Nanshan Semiconductor has become the largest supplier of mobile phone chips in Polar Bear.

These are the results of the efforts of the silver gang trade.

"It's a market that's really changing too fast."

"According to this trend, there is no need to wait until next year, and the sales of mobile phone chips in Huaqiangbei in December this year are estimated to fall to less than 2 million."

"Two years ago, that number was 10 million."

Guo Shuyin is also a little frightened now.

Fortunately, his main business is auto parts, and Yingang Trading just invested casually, and the cost has long been recovered.

"There is no way, although the mobile phone market has not become smaller, it has even become bigger."

"But the advantages of Huaqiangbei's copycat mobile phones are quickly lost."

"In this case, it is inevitable that sales will plummet."

Hu Yingang is in contact with mobile phone manufacturers every day, and he is naturally very clear about the changes in the industry.

The rise of Huaqiangbei before, to a certain extent, was due to the fact that the domestic giants were too ugly.

But if it is a better mobile phone, the price is not less than 2000 yuan.

It's cheap and doesn't have much functionality.

However, many consumers want to spend about 1,000 yuan to buy a fully functional mobile phone.

In this way, the emergence of Huaqiangbei cottage mobile phone factory has well satisfied this part of the market.

"On the polar bear side, will it be like Huaqiangbei in the future?"

Guo Shuyin is like a frightened bird, and he feels that he needs to prepare now.

"Unlikely."

"The situation of polar bears is completely different from ours, and the competition among their domestic mobile phone manufacturers is not so fierce."

"Besides, they're not as industrious as we are, and a new phone takes at least half the time to roll out than we do."

"This is a good thing for our chip trade."

Hu Yingang is now very familiar with polar bears.

In the past year, he has not had a lot of in-depth exchanges with the Mao Mei over there.

He chose polar bears as the focus of the future development of the silver gang trade, which was also determined after careful consideration and various investigations.

"Don't put your eggs in one basket."

"The market on the polar bear side should be developed, and the market in Southeast Asia and South America should not be left behind."

"Otherwise, one day the polar bear's side will decline like Huaqiangbei, and you will be in trouble for Yingang trade."

Guo Shuyin reminded Hu Yingang quite seriously.

For this cousin, he still has more feelings.

After all, we all grew up together when we were kids.

"No problem, we will try all overseas markets."

"Especially Nanshan Semiconductor, now all the mobile phone chips can be handed over to us to sell, and I came back this time to participate in the commissioning ceremony of the new factory in Yangcheng, and the latest chips produced there can also be sold to the polar bear."

Hu Yingang told Guo Shuyin about the main purpose of his return to China this time.

Nanshan Semiconductor's latest factory was put into production, in addition to inviting relevant leaders, suppliers, equipment manufacturers, and distributors must also be invited.

As the largest agent, Yinggang Trading is naturally eligible to be invited.

"In addition to helping Nanshan Semiconductor sell products, you should also collect market information in a timely manner and feed back to Nanshan Semiconductor."

"In this way, everyone has contacts and cooperation, and the relationship of cooperation will be closer."

Guo Shuyin has been engaged in enterprises for so many years, and his experience is obviously very rich.

In this regard, Hu Yingang naturally listened carefully.

Someone once said that if your family is in business or works in the government sector, then you must listen carefully to their opinions.

But if your family members are farmers or workers, then you must remember to listen less to their opinions and have the ability to discriminate.

Otherwise, you are likely to make the wrong choice on the road of life.

Although Hu Yingang has not read this, he completely understands the truth.

(End of chapter)

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