The Light of Domestic Products: The whole world begs me to sell

Chapter 266 They Have Stand Up
As soon as the voice fell, there was a huge discussion in the entire reception room, and even Rebsley, who had always been calm, couldn't help tapping the table with his fingers.

Everyone at the scene understood in their hearts what it means to reduce the price of mobile phone chips and no longer charge additional patent fees!
Take a mobile phone priced at 2999 yuan. According to the current chip patent fee charged by Qualcomm, it is about 5% of the price of each mobile phone, that is, an additional 150 yuan for each mobile phone, plus 888 yuan for the Snapdragon 1300. , that means selling a mobile phone needs to give Qualcomm at least 1450 yuan!
This is already 50% of the price of the entire mobile phone, and this is the price after the Qualcomm chip price cut!
And now.

If the Phoenix "Xingyao 005" chip is used, the cost of each mobile phone can be directly reduced by 550 yuan!
For example, Rice Group sold a total of 1.4 million mobile phones last year. Even if only 50% of the mobile phones used the Phoenix chip, that would be 7000 million units, which can save 385 billion!
385 billion! !

In 2021, Rice Group's annual profit will only be 195 billion!
Guigui, through reducing costs, the profit originally contributed to Qualcomm can do too many things!
Whether it is giving back to major shareholders, increasing corporate R&D investment, or even taking part of the land profit to lower the price of mobile phones to give back to consumers, it is excellent. Which option is not better than being cut by Qualcomm? !

And, most importantly.

No matter who gets the first batch of this "Xingyao 005" chip, they can use the high cost performance of this chip to create an affordable mobile phone!

Thinking of this, everyone present was a little excited. As long as the quality of Phoenix's "Xingyao 005" has been verified, and the performance is indeed similar to the Snapdragon 888, then the purchase can be finalized today!

In the blink of an eye, Liu Gang of the Nubia mobile phone asked urgently:
"Mr. Hu, we already know the price. We want to test the performance of 'Xingyao 005'. If there is no problem, I can place an order immediately."

"One more thing I would like to ask is, after we purchase the chip, will there be any additional costs for subsequent system upgrades and after-sales of the chip?"

Hearing Liu Gang's question, the voice in the reception room suddenly quieted down. Obviously, Liu Gang's concern is also the concern of everyone.

Factory Manager Zhang didn't wait for Hu Lai Hu to answer, and took the conversation directly.

"Mr. Liu, we have prepared the test chip for 'Xingyao 005' and will provide it to you in a while. Our semiconductor department has professional chip performance testing tools. Of course, you can also take it back to the factory and test it yourself."

"As for the follow-up system upgrade and after-sales issues of the chips Mr. Liu mentioned just now, we have free after-sales service and system upgrade services."

"Okay, that's great!"

Everyone is completely relieved. For mobile phone companies, chip after-sales service and subsequent system upgrades are also crucial.

As we all know, Qualcomm and MediaTek are two well-known mobile phone chip companies in the world, but why has it been difficult for MediaTek's chips to go high-end for so many years, and more of them are mixed in low-end mobile phones and counterfeit phones?

In addition to the gap between its own performance and Qualcomm, it is also related to MediaTek's after-sales strategy.

Because the chip price of MediaTek itself is cheaper than that of Qualcomm, in order to control costs, MediaTek did not adopt the same free upgrade and free after-sales strategy as Qualcomm in chip after-sales, but adopted a paid upgrade method.

To put it simply, buying a MediaTek chip is a one-shot deal. After selling the chip to you, it will provide you with the underlying system of the current Android version and the corresponding software. Next, if you want to upgrade the system and upgrade the Android version, you need to pay again.

This method is obviously not good for high-end mobile phones. The current flagship phones have to be used for two or three years. Is it possible that an Android system will not be updated for two or three years?
This is obviously impossible.

But once it needs to be updated, there will be a steady stream of after-sales costs in the future.

Therefore, after considering performance and after-sales issues, most manufacturers all choose Qualcomm chips as the main chip for flagship mobile phones, and MediaTek chips are mostly used in the low-end mobile phone market.

Director Zhang naturally knew everyone's worries, and continued:

"In addition to the price and after-sales service, I can also promise you here."

"'Xingyao 005' is the first mobile phone chip of our Xingyao series. Next, we will continue to develop the Xingyao series. Now the performance of 'Xingyao 005' surpasses that of the Snapdragon 888. The next model of our Xingyao series The performance will exceed the current Snapdragon 8 GEN 1."

"And this kind of chip performance upgrade will continue, and we will also fully consider everyone's profits in terms of price."

Continue to develop the Shining Star series? !
Will the next one directly surpass the Snapdragon 8 GEN 1? !
It has to be said that the promise of the factory manager Zhang completely dispelled everyone's doubts, and the last sentence "we will also consider everyone's profit in terms of price" mobilized the emotions of all the bosses present.

Not to mention that the Phoenix chip has brought too much profit after reducing costs. In fact, many mobile phone manufacturers have also complained about Qualcomm in the past two years.

The final reason is that Qualcomm has cut leeks too hard in the past two years.

The Yanguo mobile phone market sold 2016 million mobile phones in 5.6, and will sell 2021 million mobile phones in 3.29.

It stands to reason that with the decrease in mobile phone sales in the market, everyone's life will be difficult, but Qualcomm is just the opposite. Qualcomm's annual profits have gradually increased over the years.

Especially after HiSilicon is completely shut down in 2020, Qualcomm’s profit in 2021 will be as high as 91 billion US dollars, and this is the figure after deducting the 71 billion US dollars in scientific research expenses. However, if the scientific research costs are less, Qualcomm can easily break through 100 billion US dollars in profits. !
Compared with Qualcomm's profit in 2020, it is only US$51 billion.

Why is Qualcomm able to increase profits by 98% in just one year when the number of mobile phones sold is less?

Qualcomm relies on its monopoly advantage to raise chip prices crazily. Domestic manufacturers without any bargaining power can only pass the price on to users. It is said that Qualcomm is squeezing the profits of mobile phone manufacturers, but in the end, it is Qualcomm who crazily cuts off ordinary users. of leeks.

but……

Qualcomm's price increase is understandable to mobile phone manufacturers. What makes the big manufacturers have a lot of opinions on Qualcomm is that Qualcomm has been poor in the past two years.

It’s fine if the performance of the Snapdragon 888 doesn’t improve much, and the price can be tolerated, but the problem is that there’s no way to solve the problem of overheating.

Now all the Android camps use the Snapdragon 888, and the flagship of the Snapdragon 8 GEN is not enough to compete with the Hongguo mobile phone!
Originally, many major manufacturers were trying their best to occupy Huawei’s high-end mobile phone share. As a result, due to the problem of the Snapdragon chip, most of Huawei’s high-end market was completely occupied by Hongguo. Now the entire high-end mobile phone market is Hongguo. One big family!
Thinking of this, everyone is more looking forward to Phoenix "Xingyao 005" and the follow-up Xingyao series.

But just as everyone was gearing up for the chip test, someone suddenly stood up behind the reception room and said loudly:
"Mr. Hu, Mr. Zhang, we don't need to test Xingyao chips anymore, we want to directly sign a purchase agreement for 100 million chips!"

"But I just want to ask... We are the first to sign a purchase agreement with Phoenix Chips, can we be the first to get these chips?!"

As soon as the words fell, everyone froze for a moment.

Fuck, there are manufacturers who are willing to place orders directly without even doing chip testing?

The Phoenix Group is indeed very strong, and has experience in producing chips before. However, the Phoenix chip "Xingyao 005" is also a mobile phone chip that has never been released on the market. The specific compatibility, heat generation, and power consumption are not clear. Don't trust the Phoenix chip too much?
Hu Lai was also taken aback for a moment. He looked up and saw that the person speaking was Mr. Li from Meizu Mobile.

Factory Manager Zhang was about to speak, but unexpectedly Mr. Li continued to speak:
"Mr. Hu, Mr. Zhang, you should also know that our Meizu mobile phone was recently acquired by Geely."

"We urgently need to launch a very bright mobile phone to revive our strength, so I hope to be the first batch of mobile phone manufacturers with the 'Xingyao 005' chip."

"I really believe in the reputation of our Phoenix Group, so we are willing to trust your company's 'Xingyao 005' chip performance data, and we are also willing to use more Phoenix chips in the future."

Hu Lai was quite surprised, but it is understandable for Meizu to make such a decision in the current situation.

He exchanged a glance with Director Zhang without showing any trace, nodded after thinking for a moment and said:
"Mr. Li, you actually trust our Phoenix chips so much, so naturally we will not disappoint your trust. The first batch of chips from 'Xingyao 005' can be given priority to you."

"After the contract is signed, we will have a dedicated person to connect with you and cooperate with you in system optimization and software development for the Android system."

???

When Hu Lai gave an affirmative answer, everyone froze.

Originally, everyone thought that they could sign the contract after simply testing and looking at the physical chip, but they didn't expect to encounter the Meizu mobile phone, which is even more ruthless!
Fuck, seeing that Meizu mobile phones are taking the lead, all the manufacturers are a little hesitant, should they follow?

While hesitating, several mobile phone manufacturers who were in a bad situation also responded.

"Mr. Hu, we are also willing to directly purchase a batch of Xingyao chips. I am so fed up with Fire Dragon 888. Not only is it unbearably hot, but it is also very expensive!"

"Mr. Hu, we also purchased a batch. Qualcomm is completely ruined now. We clearly know that Samsung's foundry is not as good as TMC, so we have to let Samsung do it. The most annoying thing is that Samsung's foundry cost has been reduced so much." Many, Snapdragon 888 and Snapdragon 8GEN1 have risen so much, it is completely cutting us off as leeks.”

"Mr. Hu, don't say anything, let's buy some too..."

In a few words, the atmosphere in the reception room became more enthusiastic, and many representatives of the remaining mobile phone manufacturers were dumbfounded.

Damn, are you so busy with purchasing now?
……

On the other side of the sea, in the Qualcomm Group office.

"Boss, this is the latest information from Yan Country. The Phoenix Group has launched their 5nm mobile phone chip without any surprises. They named it the 'Xingyao' series."

"Judging from the data they announced, the performance of their 'Xingyao 005' is better than our Snapdragon 888, and their announcement specifically mentioned the problems of power consumption and heat generation. It seems that they should have solved it well."

Listening to the assistant's report, An Meng's expression was gloomy, as if he was facing a formidable enemy.

To be honest, since Phoenix Group developed a 5nm lithography machine, he knew that it would not be long before Phoenix's 5nm mobile phone chips would be on the market.

However, he did not expect that the performance of Phoenix's first 5nm chip directly surpassed Qualcomm's most powerful Snapdragon 888 chip and solved the problems of heat dissipation and power consumption.

"Boss, do you think that the performance of Phoenix's chips may be exaggerated?"

"exaggerate?"

An Meng shook his head. The confrontation with the Phoenix Group in the field of vehicle chips gave him a deep understanding of the Phoenix Group. The possibility of this is extremely slim.

"No, from what I know of them, they have never exaggerated their performance and parameters on any product, and this time will be no exception."

After saying this, An Meng was not in the mood to continue talking on this topic, and changed the subject:
"Now we should be more concerned about the selling price of their Xingyao chips. Have you found out their specific selling price?"

"Ah."

The assistant nodded:
"They went on sale two days ago. According to the news that came back, the price of their Xingyao series is about 135 dollars."

"Moreover, their chips are sold at a fixed price and there is no follow-up patent fee. I heard that many Yanguo manufacturers have signed purchase agreements with the Phoenix Group."

Anmeng's face became more gloomy. The price of 135 US dollars and the performance is better than the Snapdragon 888, which is too tempting for Yanguo mobile phone manufacturers.

If Qualcomm does not change its sales strategy in time, it is likely to go into the situation where the Snapdragon 8155 chip was squeezed out of the market in large numbers.

An Meng fell silent, picked up the information provided by his assistant and looked at it in detail for a long time.

After a while, he said slowly:

"Mike, inform the CEO of Yanguo District that all mobile phone chips we sell in Yanguo need to be repriced, and we must reduce the price to respond!"

"Price reduction?! Okay, how much will the boss reduce the price?"

"Our price will follow the Phoenix Group to lower it. They are 135 US dollars, and we have also reduced it to 135 US dollars. We have good market channels and reputation in the Yanguo market for so many years. I believe this price can stabilize all Yanguo manufacturers. .”

After saying this, An Meng paused intentionally and continued:

"Mike, you will go to the technical department to urge me later. The development speed of the next generation of Snapdragon will be accelerated, and the next generation must solve the problem of overheating."

"Also, you inform TSMC and ask them to reduce the foundry fee."

"Now the price of our chips has been greatly reduced, and the foundry costs have to be reduced. Moreover, SMIC has taken the initiative to reduce the foundry costs of 5nm and 7nm not long ago, and now the foundry costs of the entire industry are decreasing. "

"Boss, what if they don't agree?"

"Disagree? Then you tell them that the world of the chip industry has changed!"

"They're already on their feet."

(End of this chapter)