Reborn in 2011, 985 missing from two copies

Chapter 745 Samsung Note 7 Released, Samsung Note 7 Exploded!

Lee Kun-hee became increasingly angry the more he thought about it.

Cui Zaizhi was also furious.

However, the two of them did not have a good solution to this.

Aside from impotent rage, all that's left is the Samsung Note 7, which will be the grand finale in the second half of the year!

Use the Samsung Note 7 for a do-or-die battle to reverse the decline!

Old Huang is also very mild-mannered.

In addition to focusing on Xingyi mobile phones and mobile phone chips, Xingyi Technology also released its new generation flagship graphics card RTX 1080 with a 14nm process in April.

All models are manufactured using a 14nm process, offering performance comparable to the RTX 980 Ti, but at the price of an RTX 980!
It became an instant global sensation upon its release!
What's worse, it was released two months earlier than Nvidia!

Moreover, upon release, it was the Starry Sky Technology reference design, along with a host of non-reference graphics cards from ASUS, Gigabyte, MSI, and other manufacturers, and was launched simultaneously worldwide!
This infuriated Lao Huang:

"Damn it! Nvidia's GTX 1080 hasn't even entered mass production yet, and Starway Technology's RTX 1080 is already selling like hotcakes worldwide! And so many brands are launching at the same time, with ample production capacity!"

"By the time our GTX 1080 is released two months later, potential customers will have already bought the RTX 1080. Who will still buy our GTX 1080 then?"

"Fake!"

"Fake!"

Old Huang was furious, but there was nothing he could do.

Nvidia has completed the development of its GTX 1080 and needs to find TSMC to manufacture it, which depends on TSMC's 16nm production capacity.

However, Xingyi graphics cards are all from their own wafer fabs, allowing for immediate coordination of internal resources, resulting in higher efficiency and enabling them to launch two months ahead of schedule.

But in those two months, life and death were decided!
Left with no other option, Huang could only urge the company to speed up the mass production of the GTX 1080 and try to launch it as early as May.

However, in May, before the GTX 1080 was even released, Starry Semiconductor released the next-generation high-end graphics card, the RTX 1070!

It boasts performance comparable to the RTX 980, but at the price of the RTX 970!
It's also a 14nm graphics card, boasting powerful performance and low power consumption, making it another mid-range option.

Unsurprisingly, the RTX 1070 is also selling well globally.

Old Huang was so angry his liver hurt: "Fine, fine, really fine! Now look what's happened! Not only will the GTX 1080 not sell, but our GTX 1070, which won't be released for another two months, will also be a waste! It will also be unsaleable!"

"That Wang Yi is my nemesis, Huang!"

"Wang Yi is my nemesis!"

Tesla was also severely impacted.

Last year, Xingyi Auto's S5 and X5 became global bestsellers as soon as they were released.

However, in the early stages, Xingyi Auto's production capacity was insufficient, with a monthly output of just over 1 units. This was not enough to meet domestic demand, and there was not much supply in overseas markets, so Tesla was not in a hurry.

The most severely impacted are the domestic BBA (BMW, Mercedes-Benz, Audi) brands and Porsche's entry-level models.

In the fourth quarter, Xingyi Auto's monthly production capacity continued to increase, reaching 20,000 units, and even approaching 30,000 units!
Not only did it satisfy the domestic market, it also began to export overseas, starting to seize Tesla's market share!
But Musk remains unconcerned.

Last year, Xingyi Auto's production capacity was still ramping up, producing only 10 Xingyi S5s and 5 Xingyi X5s in a year.

Of these, 12 vehicles were sold domestically, while only 3 were exported overseas, thus having a very limited impact on Tesla.

Many overseas customers can't buy the Mazda3 Star, and don't want to wait too long, so they can only buy a Tesla!
But this year, everything has changed!

After a year of ramping up production, Xingyi Auto's monthly production capacity has stabilized at 3 units, with an annual production capacity of up to 36 units!

The combined sales of the Xingyi S5 and Xingyi X5 in China average around 2 units per month, with an additional 1 units sold overseas!

This has greatly impacted Tesla's market share and snatched away Tesla's target customers!
This has led to a continuous decline in Tesla's sales!

As a result, Musk had no choice but to start lowering prices.

Even so, sales were still dismal.

This puzzled Musk greatly:
"Why is this happening? Previously, our Teslas were more expensive than Xingyi cars, but we couldn't outsell them."

"Now that the price has been reduced, the selling price is about the same, so why can't it outsell Xingyi Auto?"

"Me, Elon Musk, the founder of electric vehicles, can't beat someone who sells mobile phones?"

The subordinate said helplessly, "Chairman, we lost because we didn't sell phones!"

"???" Musk was dumbfounded: "Why?"

There is a hierarchy of contempt within the industry.

Musk believes that building cars is the true charm of a man, while making mobile phones is just a small-scale endeavor!
"Chairman, Tesla only sells cars."

"But Xingyi Technology sells not only cars, but also Xingyi mobile phones, car-machine interconnection systems, Xingyi tablets, Nintendo Switches, and Xingyi smartwatches!"

"They form a complete ecosystem, achieving ecological interconnection!"

"When you drive a Tesla, the passengers use the in-car infotainment system, but it's just a few crappy apps, it's not very interesting."

"But when driving the Xingyi car, passengers can watch dramas and play games on the car's infotainment system. They can even use the large screen as a TV and play Switch games in the back seat! Navigation is done directly through the LCD instrument panel, so it's not affected at all, and it's very powerful."

"But our Teslas don't have that!"

"Especially the Xingyi Smart Edition, with its NOA assisted driving under precise high-speed maps, you almost never need to take over, which is very worry-free. Tesla can't do that."

"Yes, it's a boon for long-distance drivers. Before, when driving long distances, it was easy to get tired and sleepy because you had to concentrate the whole time. Now, with the precise map-assisted driving on the highway, you basically don't need to take over except when stopping at service areas. It's very relaxing, and you don't get tired at all. It's a blessing for all drivers!"

"Smart driving is possible on city expressways with accurate map navigation."

"We at Tesla can't compare to any of these!"

"This..." Musk fell silent; even he was tempted by what he heard.

But he still stubbornly insisted, "It's just high-speed intelligent driving and precise map expressway intelligent driving. Those underdeveloped areas don't have precise map navigation, so they can't use intelligent driving! Why don't they buy Teslas?"

The subordinate sighed: "There's nothing we can do, Chairman. People in these less developed areas prefer the range-extended version of Xingyi Motors."

"For them, the range-extended version has an unparalleled advantage over the pure electric version."

"Why?" Musk was even more puzzled.

"Chairman, the infrastructure in underdeveloped areas is inadequate, the circuits are aging, and power outages are prone to occur, especially in winter and summer, and there are even periodic power outages."

"These days, it's really tough when the power goes out; you can't use any appliances."

"But with the Xingyi extended-range version of the car, the battery can store 30 to 40 kilowatt-hours of electricity and can discharge it to the outside. Even if there is a power outage for one or two days, it will be enough."

"Even if there is no electricity, you can use range extender generators to continue your journey without any impact."

"But it's different for our Teslas. Once the battery runs out, we're stuck. Without a charger during a power outage, it's difficult to even go out!"

"Therefore, people in these areas prefer the Xingyi range-extended version of the car, which ensures they have no worries about power outages and range anxiety!"

"This is true not only in underdeveloped regions of developed countries, but even more so in developing countries."

"In countries like India, where power outages are frequent, every household among the high-caste rich buys a Mazda3 extended-range electric car!"

"With 40 kilowatt-hours of electricity and a tank of gas, we won't have to worry about power outages for days!"

“I see.” Musk frowned.

Arrogant as he is, he looks down on range-extended electric vehicles and prefers pure electric vehicles.

Unexpectedly, it was the extended-range electric vehicles that he looked down upon that completely outclassed Tesla's pure electric vehicles.

"Well, luckily Xingyi Motors only sells 10,000 vehicles overseas, which is only 120,000 vehicles a year, otherwise we would be in big trouble!"

"Chairman, breaking news! The fourth phase of Xingyi Automobile's factory has also started production, and capacity is ramping up!"

"!!!" Musk broke out in a cold sweat: "The fourth phase of the Xingyi Auto factory has also started production. Doesn't that mean that after the monthly production capacity is fully utilized, it will need to increase by another 10,000?"

"Doesn't that mean that once production ramps up, Xingyi Auto's monthly production capacity will reach a terrifying 40,000 units?"

"Annual production capacity of 48 units?"

"Crazy! Crazy!"

"With such a large production capacity, Xia Guo definitely can't handle it all. I estimate that more than 20 will have to be exported overseas!"

"How will we sell Teslas then?"

"It's over, Tesla is finished, we're in big trouble!"

Musk felt a chill run down his spine, immediately conjuring up terrifying consequences.

But what you fear most is what happens.

After several months of ramping up production, Xingyi Auto's total monthly production capacity reached 40,000 units in June!

With sufficient production capacity, more and more Xingyi S5 and X5 vehicles are being shipped overseas and sold all over the world!
Even more critically, the Xingyi S5, which has been on the market for over a year, and the Xingyi X5, which has been on the market for nearly a year, have both experienced periodic price reductions to clear inventory, resulting in a surge in sales once again!
This further reduced Tesla's sales.

Although Tesla released the Model 3 with a very low price in April, it was only available for pre-order, and the earliest delivery would be in the third quarter of 2017.

Consumers simply cannot afford to wait a year for delivery.

After the price reduction, the Xingyi S5 Enjoy Edition is only 100,000 yuan more expensive than the Model 3, and it is readily available. It also has higher configuration and stronger product strength!

As expected, many users gave up waiting for the Model 3 and chose the Starry S5 Enjoy Edition instead!
This left Musk devastated, and the Model 3, which he attempted to turn the tide, failed to achieve its intended effect. Meanwhile, Xingyi Auto's sales continued to soar.

Both models have maintained domestic sales of around 1 units.

Overseas sales are slightly higher for the Xingyi X5, with monthly sales of around 1.2 units, while sales for the S5 are slightly lower, with monthly sales of around 1 units.

The total monthly sales of 42,000 units are well-matched with the monthly production capacity of 40,000 units.

The delivery period was also very short, which was just right.

After clearing out most of its inventory, Xingyi Auto released the all-new Xingyi S5 in July.

The entire series has seen a significant increase in configuration, but the prices of the Enjoy and Premium versions have not increased.

After the Smart Edition, priced at 76.88 yuan, saw a significant increase in features, the intelligent driving system was also greatly upgraded. Instead of raising the price, in order to increase the sales ratio of the Smart Edition, the price was actually reduced from 76.88 yuan to 71.88 yuan!
In just over a year since its launch, Xingyi Auto has sold a total of 35 units.

Among them, there are about 50,000 units of the intelligent version equipped with LiDAR, which has reduced the R&D cost of the 64-line semi-solid-state LiDAR from 100,000 yuan per unit last year to more than 20,000 yuan!

The cost has been reduced by more than 70,000, and the price of the Smart Edition has also been reduced by 50,000!
The Smart Edition, which is 20 yuan more expensive than the Premium Edition, has only sold so-so.

However, the Smart Edition, which is only 15 yuan more expensive, saw a significant increase in sales!

In addition, over the past year, public acceptance of intelligent driving has greatly increased.

The domestic sales share of the Xingyi S5 2016 Smart Edition has increased from 10% in the previous generation to 20%!

The proportion of overseas sales has increased from 15% in the previous generation to 30%!

This improvement will further reduce the R&D costs of LiDAR, and the price of the Smart Edition will be reduced to only 10 yuan more than the Premium Edition!
The sales of the Smart Edition will be phenomenal.

But this isn't urgent; we have to take it slowly.

The cost of 64-line semi-solid-state lidar has decreased, but the development of 128-line lidar has already begun.

With the 64-line semi-solid-state lidar technology as a foundation, the R&D investment for 128-line lidar can be reduced, and from R&D to mass production, it will only cost a few hundred million RMB.

However, the research and development cycle is very long, at least three years.

因此128线激光雷达的量产，要2017年-2018年。商用得2018年-2019年！
Similarly, Xingyi Technology achieved self-development and self-production of 3D millimeter-wave radar in 2014, and commercialized it in 2015.

However, the development of 4D millimeter-wave radar only achieved a breakthrough a few months ago and has only just begun mass production.

In addition, automotive-grade certification takes time, and the new Xingyi S5 didn't even make it in time!

Although the development of 4D millimeter wave technology does not cost much, the development speed is not fast and it will take two or three years to develop.

Unfortunately, both the 128-line semi-solid-state lidar and the 4D millimeter-wave lidar are products that are several years ahead of their time, and they all need time to be refined.

However, the Xingyi X5 2016 Supreme Edition and Smart Edition, which were launched in September, have been upgraded with 4D millimeter-wave radar!
Despite the same configuration upgrades, the prices of the Enjoy and Premium versions have not increased.

The price of the Smart Edition has actually been reduced by 5!
This sparked another sales frenzy.

In particular, the pioneering use of 4D millimeter-wave radar not only greatly enhances the intelligent driving capabilities of the Smart Edition, but also significantly improves the assisted driving capabilities of the Premium Edition!

This has led to a significant increase in the sales share of both the Premium and Smart versions.

The successive launches of the two new models have enabled Xingyi Auto to achieve monthly sales of over 5 units in the past three months.

A monthly production capacity of 40,000 units could not support a continuous monthly sales volume of 50,000 units, and the delivery cycle was about a week.

This is normal in the industry.

Even for BBA (BMW, Mercedes-Benz, Audi), the delivery period used to be around half a month, and there were very few cars available immediately.

Of course, the delivery time for BBA cars is much faster now, and many cars are even available for immediate pickup on the same day.

There was no other way. Under the impact of Xingyi Auto, the sales of BBA (BMW, Mercedes-Benz, Audi) plummeted by about 30%. The situation changed from supply falling short of demand to supply exceeding demand, so there was naturally stock available!

As Xingyi cars sell better and better, even a monthly production of 40,000 units is not enough to meet demand, and it is only natural that it takes a week to pick up a car.

Seeing this, the CEOs of BBA (BMW, Mercedes-Benz, Audi) and Porsche were filled with envy, while Musk gritted his teeth!

Anger is anger, but reality is reality.

Whether it's BMW, Mercedes-Benz, Audi, or Volvo, they have all set their sights on Xingyi Technology's 4D millimeter-wave radar and have expressed their intention to purchase it.

Wang Yi naturally wouldn't refuse, especially since the deliveries wouldn't be until next year, by which time production capacity would be sufficient!

Large-scale purchases by major competitors also help to reduce the cost of 4D millimeter-wave radar!

However, Wang Yi didn't pay much attention to this; he left it to his subordinates.

Whether it's configuration, performance, price, intelligent driving, or intelligent interaction, the Xingyi S5 and X5 have no rivals!
It won't be until the second half of next year, when Tesla's low-priced Model 3 begins delivery, that it will pose a real threat.

But it doesn't matter.

The Xingyi S3, which is comparable to the Model 3, has already been developed!
Xingyi Auto's Phase 5 factory is currently in production!

At the beginning, production capacity is still ramping up, with a monthly output of only 2,000 units. Once production capacity is ramped up by the beginning of next year, with a monthly output of 10,000 units, it can be launched directly to the market.

With deliveries six months earlier than the Model 3, the same price, higher configuration, better experience and intelligent driving, what can the Tesla Model 3 compare to?

Wang Yi's attention, however, has returned to the mobile phone sector!

To be precise, on the Samsung Note 7!
After being consistently outperformed by the Starry Sky X3 flagship phone for half a year, Samsung finally held the Note 7 launch event.

Samsung has high hopes for the Note 7.

Samsung Chairman Lee Kun-hee personally attended the launch event to support the Samsung Note 7!

三星note 7搭载三星自研的14纳米猎户座Exynos 8890 SOC，3500毫安电池，自研30瓦三星快充，5.7英寸2K全面屏。

The configuration is mediocre, and the performance is only at the level of the Kunpeng 920 in the Xingyi X2, which is far inferior to the Kunpeng 930 in the Xingyi X3.

Samsung has high hopes for the company and is willing to spend a lot of money on advertising.

Once it was released, a massive publicity campaign began.

Moreover, they're spending money on advertising and marketing on a global scale, as if it's free.

It's fair to say that Samsung went all in on the Note 7.

This marketing offensive greatly increased the Note 7's brand awareness, and sales should have soared.

Unexpectedly, it was released not long before the Xphone 6 was released!

The Xphone 6 is powered by the Kunpeng 930 processor, features a 2K full-screen display and a pop-up camera below, completely outclassing the Note 7's large forehead and chin!

It surpasses the Samsung Note 7 in appearance alone, and its performance is also superior in every aspect.

The key is still the price. Despite switching to a BOE 2K flagship full-screen display, the price remains the same as the previous generation, with no price increase!
As expected, users who were planning to buy the Samsung Note 7 ended up buying the full-screen Xphone 6 instead!

This left Samsung with no recourse.

The only solution is to intensify marketing efforts!

If the product itself isn't good enough, marketing can make up for it.

Unfortunately, Samsung's marketing director is not Lei Jun, and is not even one-tenth as good as Lei Jun.

The only solution is to spend more money!
With such an overwhelming marketing campaign, Samsung Note 7 sales should have continued to grow.

But things didn't go as planned. On September 15, a piece of news shocked the entire internet.

Samsung Note 7 explodes!

This incident quickly went viral online.

Even if Samsung tries its best to suppress it and remove it from the trending topics, it will be meaningless.

Other competitors were very kind and arranged for it to trend on social media.

LG kindly arranged for South Korea to trend on social media!

Sony orchestrated a trending topic in Japan!

Apple orchestrated trending topics in the US and Europe!
Domestic competitors also managed to get it trending on Chinese social media!

Global third place!

However, Samsung does not acknowledge that it was just an explosion, stating that the cause of the incident is still under investigation.

However, before the results of the investigation are available and Samsung has figured out how to defend itself, a Samsung Note 7 user in Japan and a user in France have also experienced explosions!

After three consecutive explosions, the public has raised serious questions about the safety of the Samsung Note 7.

Samsung was also in a real bind; even Lee Kun-hee was itching to curse.

"Damn it! Another explosion!"

"You said it was an accident the first time, but now it's happened three times! There have been three explosions!"

"What do you say?"

Terrified, Cui Zaizhi could only say, "Chairman, whether it was an accident or not is still under investigation..."

"Stop spouting nonsense!" Lee Kun-hee was so angry he almost laughed. "President Choi, you all know what really happened! Don't tell me it was all an accident!"

(End of this chapter)