Chapter 413, 128-129: I want him to shock the whole world! (4000 words)
Hillhouse's silence soon received a response.

Although Ning Yuan and Gao Huaijun tried every means to delay the suspension of supply to Qualcomm and Sansang, after observing for a month and completing the quantity agreed in the contract, they did not sign the supplementary agreement and directly stopped the supply.

This action also marks the complete break between Hillhouse Group and several major chip design groups!

Now, even if Hillhouse Technology wants to find a new Plan B, it is unrealistic.

This means that if Hillhouse Technology is unable to launch its own self-developed products in December, or if its self-developed chip products are delayed, the overall profit of the entire group will be greatly affected!
This news was also reported in China's financial reports as soon as possible.

[Hillhouse’s chip supply cut shocked the world: it no longer buys Qualcomm chips, and its self-developed Qinglong processor has set off an industry storm! ]

[Chips are stuck in the neck! Hillhouse is cut off from supply again. Why did Qualcomm and Sansang stop supplying Hillhouse Technology's flagship models? 】

[Hillhouse suffered from chip supply cut-off, self-developed Qinglong is about to become a regular employee!]

[What is the latest status of Hillhouse Mate and P series? Get a comprehensive understanding in one minute! ]

【Observation| Hillhouse’s chip supply cut forced it to tackle tough problems. 】

[Surrounded by crisis, what is the solution to Hillhouse’s chip supply cut?]

For a long time, China's chip industry has been more or less described as having a heart disease. The entire electronic technology industry, and even the technology industry, have been worried about the insufficient supply of domestic chips.

However, this has not been able to persuade industry insiders to turn to supporting China's domestic chip industry.

The reason is that foreign chips are so delicious!
Not to mention the complete monopoly on high-end chips, how much money I want to cheat you out of is entirely up to my mood.

Even if the competition is fierce, low-end chips with basically no technical barriers may cost only a few cents or even just a few cents each.

For a Chinese company to produce a qualified chip, the cost may be close to one dollar per chip!
In this situation, who the hell is crazy enough to choose domestic chips?

The price is expensive, and there may be various bugs, and various incompatibilities occur frequently.

There is no possibility of iteration at all!
Under the premise that low-end chips cannot compete, it is impossible for you to come up with high-end chips!

It's a fool like Hillhouse that is using its own industry to ruminate on the chip pit.

Starting from the simplest low-end mobile phones, to tablets, to laptops, and finally to high-end flagship mobile phones, we have taken one step at a time, constantly eliminating bugs. It took more than five years to get to this point today.

Therefore, even friendly competitors who have very bad relations with Hillhouse cannot help but worry about this company.

The supply cut by mainstream chip manufacturers is no joke!
If you don’t have a CPU, why are you still selling Hammer phones?
Take a shower and go to sleep!

They were able to confirm almost immediately that Hillhouse would be out of stock at least for the entire month of November, and whether there would be a shortage of stock in December or after December would depend on whether the production capacity of its self-developed Qinglong could be released.

This... has never been experienced by any Chinese technology company before.

It is so exciting and so arduous!
"What the hell! Hillhouse's chips have already threatened Qualcomm and Sansun? Hillhouse is too low-key!"

"Hillhouse has been working on chips for more than five years. There are almost no schools in China with high-quality undergraduate education in microelectronics. The main point is that it is almost the same as not having studied. Their people are gradually formed over the years."

“This is really awesome…”

"It's hard to comment. Hillhouse has already embarked on the path of resisting foreign capital. I wish Hillhouse success!"

At this time, the onlookers who seemed to understand what had happened were also stunned.

Unexpectedly, the so-called business war would appear in such a tragic way.

Although Hillhouse is considered a world-class enterprise, it is, after all, a company composed of two large businesses. Hillhouse Technology alone cannot compete with the attacks of Sanofi and Qualcomm!

[Oh my god! No way! At first I thought it was some troll army attacking Hillhouse, but I didn’t expect it was Qualcomm and Sansang’s general attack on Chinese companies? This is incredible! ]

[Now it is not just Hillhouse’s problem, but whether China can stand out and become a large-scale Chinese chip company. 】

【Big to a certain extent is strong. How can you be so big if you are not strong? Just like seeing a huge tiger in the forest, you say it is "big but not strong", do you believe it? If it is not strong, how can it grow so big? Now Hillhouse has become so big that no company can ignore it. It is normal to be blocked. Now Hillhouse wants to do self-research, which makes it their enemy. Who knows if this company will become the next Nokia? So I would rather not have your order, but I will kill you! 】

【Chinese products will work, such as Hillhouse's chips. Let me give you another example. I bought a few Dyson vacuum cleaners at home, but they are easy to break. It is better to use a puppy vacuum cleaner. Dyson's fan with air cleaning function is better. There are also Miele washing machines, refrigerators and so on. After using them, I feel that Chinese products are actually OK. Now Chinese products are rising very fast. As long as there is enough foundation, enough talents and enough market, it is difficult to fail in manufacturing. This is a scientific thing, and there is no need to be superstitious. Just block it, I believe Hillhouse will be able to do it this time! 】

【If you do a survey, you will find that young people prefer domestic brands, but middle-aged people don’t, because they have experienced a period when domestic products were very poor and have a deep impression of them, and in the past, various laws and regulations were not good. But now the times are different, legal supervision is relatively better, and young people are more dedicated and innovative than before. In general, Chinese people still have the tendency to buy domestic products to be cheap, and to buy foreign products to be classy. When they hear about imported products, they think they are classy, ​​and they are willing to spend more money as long as they are imported, no matter where they are imported. However, the proportion of this population is gradually decreasing, and in the future, it will be the world of companies like Hillhouse! 】

[Who would give their lifeblood to their direct competitor? Unless Hillhouse withdraws from the chip market forever, no other large company would dare to trust Hillhouse 100%. The current blockade seems accidental, but it is inevitable. Hillhouse will do it. When they release their self-developed flagship mobile phone, I will support them. ]

[To be honest, the brand of Hillhouse represents high quality. The first flagship I bought was Hillhouse. Because I have used Hillhouse products one by one and they are really of good quality, good service and good experience. This time is the same. If Hillhouse has a new flagship product, I will definitely support it as soon as possible! ]

Even Qualcomm and Sansang did not expect that a simple business action would trigger such a violent emotional backlash among the Chinese people.

Isn’t it just that the contract has expired and is not being renewed?

Is such a big reaction necessary?

In fact, they don’t understand at all that the Greater China complex in the hearts of the Chinese people is playing a role.

In this world, there are only two countries.

One is China and the other is a foreign country.

As long as China enters an industry, whether it is automobiles, mobile phones, chips, airplanes, trains, clothes, shoes, etc., it does not matter how poor its foundation is.

But you must be strong enough!

We must be the best in this field!

If you are not strong, then there is something wrong with your ability.

What is Chinese football? It can’t even go to the World Cup. It can’t even compare to a country as small as a booger like Iceland, whose population is not even one million.

No matter how poor the level of football in China is, and no matter how few people are interested in pursuing it, it can't be less than a country with a population of only a few hundred thousand, right?
This kind of comparison and contrast really broke the defense of the Chinese people who are always striving to be the best.

The same is true in the chip field now.

Hillhouse Chip has been able to stand out in this field, and there is a glimmer of hope that it can defeat companies such as Qualcomm and Texas Instruments.

In this situation, if you use underhanded tactics to block Hillhouse, the Chinese people will naturally react with stress.

Do not agree!
This is absolutely not allowed!

"Oh! This is damned! We originally just wanted to give Hillhouse Technology a hard time so that they would give up chip research and development, but now the Chinese government has called us directly to interfere." Qualcomm's general manager Amon was a little dazed. After pacing in the office for a few steps, he said dissatisfiedly.

"You guys weren't smooth enough in this matter." "How could Hillhouse secretly develop a flagship chip?"

"If Taiwan Electric hadn't warned us, we wouldn't have known that this company had taken such a subversive action."

Qualcomm Chairman Simons, who was standing by, couldn't help but say this with dissatisfaction.

In his opinion, when Hillhouse started to develop low-end chips, they should have joined forces with Sansong, Texas Instruments and other companies to block Hillhouse so that they would not have even a chance.

How could it be like this? Now that others have already become powerful, we can only force them to take a single path and try again moving forward.

"How could we possibly imagine that?"

"There are so many companies that want to make chips, and quite a few that make low-end chips."

"But... we didn't expect that a small company like Hillhouse would actually be preparing to develop a flagship chip!"

Amon took a bottle of whiskey from Simmons' wine cabinet, poured out a glass and started drinking.

As professional managers, they all serve the short-term performance.

Who would consider the so-called long-term performance!
If your performance declines significantly within three months, you will be fired.

To provide shade for future generations?
That's a dream!

If you don't sell chips, others like Texas Instruments or Sansang will.

So if Qualcomm doesn't sell, wouldn't it be a fool and a fool?
"Now that it has been done, it must be done thoroughly!"

"No matter how much they beg, we don't need to pay attention. Just treat this customer as lost."

“Flagship chips, how can it be that easy to make?”

"I guess they will just delay until they can't develop the product anymore, and then come to us for help, right?"

Simmons said coldly on the side.

Some of what Hillhouse has done have really hit Qualcomm's sore spot.

How dare you set your sights on flagship chips? If you really make them, who will buy our products?

You know, the profit margin of a mobile phone is generally less than 10%.

However, Qualcomm can often make more profits from this phone than ordinary mobile phone manufacturers.

It is equivalent to a mobile phone manufacturer working for Hillhouse Capital.

You are simply hitting someone in the face.

Suppress, must suppress severely!
Amon didn't expect Simmons to be so sure that Hillhouse's R&D would fail, and he nodded.

Would Qualcomm, such a big company and the regent behind all Android phones, be afraid of an ordinary mobile phone company?

joke!

. . . . .

Soon, it was December.

Sure enough, it was just as the major self-media and friendly companies thought.

Hillhouse's P series and Mate series mobile phones were sold out one after another in early November, and the company also rarely opened the reservation mode for new Mate series mobile phones early.

This means that Hillhouse has indeed used up all of its existing exogenous chips completely and completely destroyed them!

Hillhouse's lack of high-end chips has become a consensus among everyone, whether consumers or competitors.

The loss of product niche caused by product shortages is fatal.

When consumers see that you are out of stock, they will naturally consider buying other brands of mobile phones.

And your competitors will not give in to you at this time.

Taking advantage of this opportunity, we directly bargained for the most favorable price and snatched the ecological gap left by Hillhouse Technology during this off-season.

I really sympathize with you, but I also really want to grab the market!
Without Hillhouse's flagship mobile phone, in November and part of early December, local companies such as HTC, Lenovo, Zhongwei, Blue-Green Factory, and Coarse Grain Factory were all expanding rapidly to seek a larger market share.

Hillhouse Capital is now struggling to survive, and whether its self-developed production capacity can keep up is another matter.

So although many customers felt sorry for Hillhouse Technology, considering the instability of later products, most people waited and watched for a while, and then saw that its competitors were constantly lowering prices.

So they are also trying to buy other mobile phone products to give it a try.

In this winner-takes-all era, the siphon effect of leading brands has absorbed the vast majority of those who can only watch on their mobile phones.

Those who buy smartphones today are no longer the explorers and pioneers of a few years ago.

The penetration rate of smartphones has now exceeded 90%!

That is to say, nine out of every ten mobile phones sold are smartphones.

There is only one mobile phone, which is sold as a low-end feature phone, and most of them are mobile phones for the elderly that cannot keep up with the times!
Therefore, Hillhouse's flagship mobile phone no longer has the strong differentiation as before, and it is impossible for it to have the same strong customer stickiness as Zhongwei mobile phones after they were restricted in the future.

The most your customers will feel is pity for you.

At this time, even within Hillhouse Technologies, the situation was extremely depressing!
Sales and profits as huge as those of a flagship phone.

Say no, it's gone.

Who wouldn’t be anxious!

At this time, the other side.

When Gao Huaijun looked at the finished Mate 10 prototype in his hand and tried it a few times, he felt that he had achieved the effect he wanted. He said to Min Weiguo beside him, "This is a milestone product of Hillhouse. I want it to shock the whole world!"

(End of this chapter)

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