Reborn in 2011, 985 missing from two copies

Chapter 635: Samsung CEO is furious, Cook is desperate
Samsung headquarters.

Lee Kun-hee came to the mobile phone department with great momentum and slammed the sales report on the head of Choi Jae-ji, the president of Samsung Mobile:
"Look, let me see!"

"Is this the Samsung S5 that you put all your efforts into developing? Is this the Samsung S5 that you have high hopes for and you promised me that it will be a best-seller and bring the company back to its peak?"

"The global sales volume in the first week was 200 million units, which is less than the sales volume of Xingyi Technology in one day or even half a day!"

“It’s selling really well!”

Cui Zaizhi lowered his head, cold sweat broke out, and his legs began to tremble.

Sales of 200 million in the first week are extremely bad for a Samsung flagship!
Before the Xingyi mobile phone went global, the sales of Samsung's flagship mobile phones were quite good. For example, last year's Samsung S4 sold five million units in the first week!
But now, there are only 200 million!
Cut it in half!
More importantly, the R&D investment and configuration upgrades of Samsung S5 are much greater than those of Samsung S4, but the price has not increased. It is a typical case of increasing quantity without increasing price.

But even so, sales are still dismal. Not only were sales in the first week halved, but they were also reduced by 40%!
Sales in the first month will definitely be halved, or even reduced to 40%.

The more Lee Kun-hee thought about it, the angrier he got. "Last year, Samsung S4 sold 1200 million units in the first month. This year, S5 sold very little in the first week. How much discount are you going to give me for the first month's sales?"

"Are you planning to sell only 500 million units in the first month? million units for the whole year?"

"I..." Cui Zaizhi opened his mouth, but didn't know what to say, and felt extremely aggrieved.

"What? You're still not convinced?" Lee Kun-hee frowned slightly.

Cui Zaizhi took a deep breath and said, "No, Chairman, it's just that this accident happened for a reason that cannot be ignored."

"Is there a reason? Okay, you tell me."

"Chairman, there are only so many high-end consumer groups. Before Xingyi mobile phones went global, users other than Xiaguo either bought iPhone 5S or the newly released Samsung S5."

"Our S5 has just been released and has the advantage of a large screen. It can be said to crush the iPhone 5S. Therefore, we expect sales of at least 400 million units in the first week and at least 1200 million units in the first month. There is no pressure, and it may even be more."

"But who would have thought that in January this year, Xingyi mobile phones had been fully internationalized. Xphone 3 and Xphone 3 plus, last year's best mobile phones, are still very competitive now."

"Better than our Samsung S5?" Lee Kun-hee couldn't help but ask.

"Yes."

Li Jianxi was a little angry and puzzled: "You mean to say that the S5 series we just released this year is not as good as the Xphone 3 released by Xingyi Technology last year?"

"Yes. Chairman."

"Shit!" Li Jianxi was furious and looked at Cui Zaizhi with unkind eyes:
"Compared with the Xingyi X1 of the same period, it's fine that our S5 can't beat it. Why can't it even beat last year's Xphone 3?"

"Are you all trash?"

"Chairman, except for the processor which is not as powerful as the other party's Kunpeng 902, our Samsung S5 has no disadvantages in other hardware aspects, and the screen and other aspects are stronger than the other party."

"But the Android system we use is several dimensions more powerful than the other party's self-developed XOS system. This directly leads to our S5 not only being inferior to last year's Xphone 3, but even to the Xphone 2pro released in the first half of last year."

"This……"

Li Jianxi was stunned: "The gap in the system is so big?"

"Yes, Chairman. XOS is a 64-bit system, which is 32% more powerful than the 160-bit Android system we use! Moreover, the XOS system is closed and developed by Xingyi Technology. All push and automatic start are managed in a unified manner, and all software is optimized. The actual experience is stronger and smoother than ours. Therefore, the actual gap is not 160%, but 200%, or even higher."

"This has resulted in last year's Xphone 3 and Xphone 2pro being better and more powerful than our newly launched Samsung S5. Many users would rather buy Xphone 3 and Xphone 2pro than our latest Samsung S5."

Cui Zaizhi thought clearly, sales plummeted by 60%!

This matter is too big and the consequences are too serious.

They can't carry it themselves, the Samsung mobile phone R&D department can't carry it, and the entire Samsung mobile phone division can't carry it.

Besides, it’s the Android system’s fault and Google’s fault. There’s no reason why Samsung’s mobile phone department should take the blame.

Hearing this, Li Jianxi was silent: "..."

I know in my heart that Cui Zaizhi is trying to shirk responsibility by saying this.

But the problem is that there is some truth to it!

Everyone knows that the operating system of a smartphone has an extremely important impact on the phone, and it even exceeds the hardware!
Android is not as good as IOS, and IOS is not as good as XOS!

What Cui Zaizhi said is reasonable.

The problem with Samsung phones is that it’s not really because of the hardware.

On the contrary, S5's hardware is much more powerful than Xphone 3, and even has its own strengths over Xingyi X1.

Especially Samsung's A screen, which is better than Sharp's top screens these days.

But the sales volume is far behind.

The first week sales are not as good as the first day sales!
The biggest reason is the system!

Compared with the XOS system, Apple's IOS system is not good enough, let alone the Android system, which is a 32-bit Android system.

It's just complete trash.

"Chairman, you are aware of Samsung's R&D capabilities. We are not inferior to others in terms of hardware. Currently, the only thing we are not as good as Xingyi Technology is our processor."

"However, we have already made comprehensive improvements. The performance of the upcoming Orion 5433 has soared. Next year's Orion 7420 will use a 14-nanometer process and will have terrifying performance, definitely surpassing the same-generation processors from Xingyi Technology."

"Let's not talk about the screen. We have an absolute advantage."

"Not to mention storage. Samsung is a storage giant and uses the latest technology and the most powerful configuration. 3G RAM is the first to be launched by Samsung."

"But as long as the system is not powerful, we at Samsung will never be as good as Xingyi Technology, and will always be just a supporting role."

"Our Samsung sales will never pick up and will continue to plummet."

"It's not that we're not strong enough, it's just that Android is so useless that it's holding us back."

"Let alone other things, the 200% performance gap between XOS and Android cannot be made up. Even the 14nm process cannot make up for such a huge gap."

"This..." Lee Kun-hee was silent, unable to refute.

"Moreover, it is not just Samsung that has seen its Android phone sales cut in half. LG, HTC, Sony and others have also seen their sales drop in half, and their sales have also dropped significantly."

"This is not Samsung's failure, it's the failure of the entire Android camp! It's the failure of the Android system, it's the failure of Google!"

Li Jianxi took a deep breath and looked at Cui Zaizhi: "You mean, we at Samsung should invest huge amounts of money to speed up the development of our own mobile phone operating system?"

Cui Zaizhi nodded quickly: "That's right! Android is a hopeless case. Their kernel is ten years old, at least ten years behind the kernel of XOS."

"Even if you upgrade to a 64-bit system, it's useless. Android has upgraded to a 64-bit system, but the Android software ecosystem can't keep up. A large number of software will still be 32-bit software in the next few years, and still can't take advantage of the terrifying improvement of 64-bit."

"It can be said that as long as we continue to use the Android system, Samsung will lag behind this year, next year, the year after, and the year after that..."

"The only solution is to enhance the strategic positioning and resource investment of our Samsung self-developed system, just like Xingyi Technology built the XOS system, and accelerate the creation of our own operating system - Tizen!"

Samsung has never given up on developing its own system. As early as 2010, Samsung launched its own operating system Bada OS, which was positioned in the mid-to-low-end market. It also launched the first model equipped with this system, the Samsung Wave S8500.

Unfortunately, the system is relatively backward, there are too few compatible software, and its market share is less than 1%, so it has not made much of a splash.

In 2012, Samsung cooperated with Intel to launch the jointly developed Tizen system.

But like Bada OS, Tizen system has not attracted much attention. It is not like Xingyi Technology's XOS system, which is supported by the whole group and ranks first in the first tier.

On the contrary, Samsung's Tizen is still a non-core business, with very little money and manpower invested in it.

Even the upcoming mobile phone is just the $90 Samsung Z1, targeting the Indian market!
That’s right, the Tizen system is used in thousand-yuan phones, and is only limited to the Indian and African markets.

To put it bluntly, it's just testing the waters.

Lee Kun-hee understood what Choi Jae-chi meant: "Okay, the Tizen division will be upgraded to level one, and we will increase investment to fully accelerate the development of the Tizen system ecosystem."

Hearing this, Cui Zaizhi was in a good mood: "The chairman is very wise. We will launch the first thousand-yuan phone equipped with Tizen system, Samsung Z1, in the fourth quarter of this year to test the Indian market."

"That's not enough. We'll try to use the Tizen system on the Note 5 in the second half of next year," said Lee Kun-hee.

"This..." Cui Zaizhi was silent.

"What? Is it difficult?" Lee Kun-hee was a little displeased.

"The development of the Tizen system is not a big problem, the main problem is application adaptation. By the fourth quarter of next year, we will be able to complete the development of the Tizen system and use it on our flagship phones. But the problem is that major application vendors are not compatible with the Tizen system, resulting in a lack of native applications. If our flagship phone uses the Tizen system and users don't use it, then the sales of the Note 5 in the second half of next year will be very bleak."

"What should we do then?" Lee Kun-hee was very angry.

You say the system is not powerful enough and the self-developed system does not have enough primacy. I will invest money in you to improve its primacy.

The result said that there was no application adaptation!

Isn't this funny?

Cui Zaizhi sighed: "There is no other way. We can only do the same as Microsoft's WP8 system. While we are fully committed to research and development, we will also spend a large amount of money to subsidize major application vendors to attract them to adapt to the Tizen system and expand our application ecosystem."

"Well, this is the only way. Prepare your proposal and we will discuss this at the board meeting next Monday."

"it is good!"

Cui Zaizhi was in a good mood.

Regardless of whether the Tizen system succeeds or not, the crisis of the mobile phone division has temporarily passed.

If the system hadn't been to blame, he would have had a hard time explaining why Samsung S5 sales had been halved.

Now, everyone is putting the blame on the mobile phone operating system.

When Tizen becomes big, it can still be said that the Tizen system is not powerful, not that the mobile phone development is poor.

Well, let’s do it!

The newly launched Samsung S5 is in its golden first-selling period, but its sales have been cut by more than half. As for the iPhone 5S and iPhone 5C, which were released only half a year ago, their performance is even worse.

There are only a limited number of high-end users, and they are all attracted by full-screen mobile phones and buy the Xingyi X series, causing the sales of iPhone 5S, which already had only % of its sales, to plummet again.

Sales in the past half month have dropped by 30% compared to the previous month, and have dropped by 5% compared to the same period last year!

The sales of iPhone 5s, which had originally been halved, were halved again.

It is basically in a state of being unsalable, and it is not just in a certain market, but globally.

Nowadays, large screens of 5 inches and above have become mainstream, and the small 5-inch screen of the iPhone 4S is really not selling well.

Poor sales are normal.

Cook was very helpless about this:

"As soon as the Xingyi X1 was released, iPhone 5S sales plummeted by 5% compared to the same period last year when the iPhone 80 was on sale. It's over, completely over."

"Ugh!"

The other senior executives were also silent. The major shareholders were even more angry and gnashed their teeth:
"If I had known this, I should have changed the R&D director two years ago, and the 5S should have gone straight to the big screen!"

"Isn't it? Consumers now like big screens. Only idiots buy our 5S!"

"What's the point of saying all this now? I originally proposed to replace the R&D director and go straight to the big screen, but you conservatives opposed it and supported Kendall Frye to continue with the small screen. Now you're done, right? It's over!"

“It’s completely cold!”

"If the iPhone 5S had a 5-inch screen, or even a 4.7-inch screen, it wouldn't have sold so badly."

"This is the biggest problem. The 5S is not selling at all right now. It's not selling at all."

"Keep lowering the price, and do a promotion."

"The 5S has already dropped to 3499 RMB, how can it be reduced further?"

"If you lower the price to 2999, how will 5C be sold? 1999? Are you giving up face? Are you not interested in the brand?"

"No, we can't lower it any further."

“But what if the price doesn’t drop and they can’t sell?”

"It's not selling well and the price can't be reduced any further. The iPhone 5S is a complete failure. I suggest releasing the iPhone 6 series ahead of schedule."

"I agree. Instead of continuing to reduce the price of iPhone 5S, it is better to release iPhone 6 in advance."

"Seconded!"

"In the past, our iPhone was the absolute overlord in the mobile phone industry, and there was no problem in updating a new generation of mobile phones every year. But now things are different. Xingyi Technology is the absolute overlord in the mobile phone industry. We are being abused terribly, and we can only release new phones as soon as possible."

"Seconded!"

"Seconded!"

Cook took a deep breath and said, "This is the only way. If we accelerate the mass production of iPhone 6 and 6 plus, when will they be available on the market at the earliest?"

Kendall Frye replied: "According to the original plan, the iPhone 6 series will complete production line debugging in June and parts will be delivered in batches."

"In July, Foxconn and Pegatron started formal mass production, with an initial monthly production capacity of 1000 million units, which will be increased to 2000 million units later."

"In August, 30 million mobile phones were shipped in batches by sea and air to distribution centers around the world."

“It will be released on September 9th, and the first batch of 9 countries and regions will go on sale on the 19th.”

"If we accelerate the production and put it into mass production ahead of schedule, it's already April now. We need to communicate with Foxconn and Pegatron to jointly debug the production line ahead of schedule. We need to see if they have enough production lines first."

"But this is not a big problem. After all, the sales of iPhone 5S and 5C have plummeted by 6%, and a large number of production lines have been vacated. They can be directly debugged and converted into production lines for the iPhone series."

The corner of Cook's mouth twitched: "..."

The others also had strange expressions.

Kendall Frye continued: “It will take about a month to commission the production line.”

A major shareholder was in a good mood: "So, the production line will be debugged by the end of May and mass production will be possible in June?"

Kendall Fry shook his head: "The production line will be debugged by the end of May, but some of our parts cannot be delivered."

"Even if we now urge major component suppliers to start mass production and deliver goods ahead of schedule."

"It also takes them about a month to debug the production line and start mass production. In particular, many core components are customized. According to the plan, the first batch of deliveries will be in July. They only started debugging production in May and mass production in June."

"Now everything is ahead of schedule, and parts suppliers also have to re-debug their production lines."

"So even if suppliers start debugging their production lines in April and start mass production of components in May, even if they deliver by air, the earliest they will arrive is mid-to-late June."

"In other words, the iPhone 6 series will start mass production in mid-to-late June at the earliest, and will be shipped to distribution centers around the world in mid-to-late July."

“It will be released in early August at the earliest and will go on sale in mid-August.”

"Fuck! So after all this trouble, we got it advanced by a month?"

Cook was furious!

After a series of fierce operations, we finally achieved the goal one month ahead of schedule!

Isn't this just a waste of time?
Kendall Frye was helpless: "There is no way, Chairman. The screen of iPhone 6 is customized, and many components are customized, not universal. Suppliers also have to debug the production line before they can mass produce for us. Plus, it will take two or three months for delivery. There is nothing we can do about it."

"Ugh!"

Cook sighed, feeling extremely helpless.

The others were also silent.

I thought it would be available in June, but I don’t want it to be in August!

There is not much difference or significance between launching a product in August and launching it in September.

One shareholder was unwilling to accept the result: “Is it possible to speed up the supplier process and list the shares in July?”

Kendall Frye shook his head. "It's difficult. Although many parts are already in trial production and even in stock for mass production, our iPhone 6 series has too many parts, many of which are customized. There are many customized parts that have not yet started production and are out of stock. We need to re-adjust the production line and conduct trial production before we can start mass production..."

"The most important thing is that if we are missing one component, we can't make the iPhone. This is even if all other components are mass-produced and delivered ahead of schedule."

"Alas!" The shareholder also fell silent.

As Kendall Fry said, the original contract was to start delivering parts in July, and major suppliers adjusted their production lines in May, so there was still enough time for production in June.

There is no need to start production in April as they still have orders from other brands that need to be produced and delivered.

Especially for customized parts, it is impossible to adjust the production line in April. Waiting for two months will waste production capacity.

In particular, the later the production, the lower the cost and the selling price, and no supplier will rush to produce early.

"Forget it, then let's notify the dealers and start mass production and delivery ahead of schedule. Even a month early is early."

"Okay!" Kendall Frye responded, also feeling very tired.

Although he was removed from the position of iPhone R&D director and demoted to iPad Pro R&D director, he was still responsible for iPhone 6.

There is no way. After all, he developed the iPhone 6 series and he has to stand his last shift.

The result is that both sides have to worry about it and are so busy!
Of course, it’s not just Apple and Samsung that are experiencing a decline in sales, but also LG, HTC and other friendly companies are experiencing a decline in sales.

However, since these competitors use 64-bit Kunpeng processors, their performance is slightly better than that of Samsung and Apple, and the drop in volume is much smaller.

But it's still horrible.

In particular, the launch of Xingyi X1 opened the era of full-screen displays, catching all major friendly companies off guard.

In response to this, major brands have also begun a series of operations.

LG decisively announced that the new flagship of Kunpeng 906 SOC is under preparation, will be released in May and will be launched globally in June!

Soon after, HTC was not to be outdone and officially announced that its new flagship Kunpeng 906 would be launched soon, and the price was absolutely amazing, dropping to over 4000!

Subsequently, brands such as ZTE, Sony, Meizu, Xiaomi, Coolpad, and Lenovo also officially announced that the new flagship Kunpeng 906 SOC will be released soon.

The earliest ones are available in June, and the latest ones are available in July and August.

For a time, major brands launched their products one after another, which made the fans look forward to it very much.

Motorola, which is equipped with Qualcomm Snapdragon 805, can only watch and worry because of the failure of Qualcomm processor!

On April 4, Zhu Changlin came to Wang Yi's office excitedly: "Chairman, the first month's sales are out!"

The Xingyi X1 series is a groundbreaking full-screen mobile phone. Since its release, its sales have been soaring.

"How much did you sell?" Wang Yi said with a smile.

"4000 million units!"

"So many?" Wang Yi was very surprised.

With the support of full screen, if the starting price is 5000, there is hope of selling 4000 million units in the first month.

In the past, iPhone 6 and iPhone 6 plus, thanks to the first upgrade to a larger screen, sold 4000 million units in the first month. However, there has never been such glory since then.

But the problem is, the starting price of Xingyi X1 and Xingyi X1 plus is 7000, and they have sold 4000 million units!

It can only be said to be incredible.

But after thinking about it, Wang Yi understood the reason.

After the previous iPhone 6 series was upgraded to a larger screen, its market competitiveness was strong, but also limited.

Samsung, LG and other friendly companies all have large screens, and the iPhone 6 series is not the only one.

But now, the full-screen version of the Xingyi X1 series has a monopoly advantage!

Before the water drop screen appeared, it was the strongest level.

As a result, sales exploded.

“However, in June, July and August, new Kunpeng 906 models from other friendly companies will be launched on the market on a large scale, which will have some impact on us,” Zhu Changlin couldn’t help but say.

Although Xingyi X1 is very good, its price ranging from 7688 to tens of thousands puts some users under great pressure.

The price of new Kunpeng 906 phones from other brands, at 3000 to 5000, is quite attractive.

Wang Yi didn't care about this.

The impact of these new Kunpeng 906 phones from friendly competitors on Xingyi Technology is very limited.

Even if your competitor uses the same processor and other configurations are similar, it doesn’t matter.

The XOS system has an actual improvement of 160%-200% over the Android system, which cannot be copied by other competitors.

There is also the full screen, which other competitors cannot copy, at least not this year.

Our competitors' full-screen mobile phones have started development now and will not be available on the market until next year.

More importantly, in June, the Unbounded S6 equipped with Kunpeng 906 will also be launched simultaneously.

By then, the Xingyi X1 series will be a full-screen model, priced at the ultra-high-end range of 7000-10000.

The Skyrim S2 is mainly aimed at the mid-to-high-end market of 3000-5000 yuan.

As for the release of the Unbounded S906 equipped with Kunpeng 2, it will have a certain impact on the Xphone 902 and Xphone 3 plus equipped with Kunpeng 3, but it is not a big problem because the Xphone 4 will be here in September!
Directly upgrade to Kunpeng 910!

(End of this chapter)