Reborn: Billionaire in College

After a long comparison, Lei Jun asked the audience: "How much does a Xiaomi phone sell for? We haven't released any data so far. Some say it's 2600, some say it's 1600, and some say it costs 1200. Anyway, the suppliers are all here. Can you make it for 1200? If you can, I'll leave it to you."

"This... We have been thinking about Xiaomi mobile phones for a long time and have repeatedly communicated with suppliers. We hope to meet the goals of high quality and low price that fans want. In particular, Mr. Chen from Orange Technology gave me the idea of ​​using e-commerce to sell new mobile phones at the beginning. We eliminated all channel costs and I didn't even plan to invest in marketing costs. I said that good products will speak for themselves, and we must keep the product price low enough."

After saying that, Lei Jun pressed the PPT switch, and the four Arabic numerals "1999" popped up on the big screen.

The whole place was instantly filled with noise!

Many people began to shout excitedly.

After the commotion was over, Lei Jun smiled and said, "I want to tell you that this price is actually very stressful for Xiaomi. This is because it includes customs duties, value-added tax, education surcharge, city surcharge and patent fees. In addition, we have selected first-class suppliers and first-class products in the market at a fair price. We also welcome peers to help us do lending tests. This price is really jumping off a cliff."

At the end of the press conference, Chen Nian, Li Xueling and Yu Yongfu all came on stage to express their support for Lei Jun.

If you want to know why Chen Pingjiang didn't take the stage, it's because Lei Jun didn't dare to...

After the press conference, Chen Pingjiang, Lin Bin and Zhou Guangping said goodbye to Lei Jun and left the 798 Art District.

Just as Chen Pingjiang had expected, as soon as the press conference ended, the Internet was flooded with reports about it.

"It's just like what you said, Mr. Chen. Lei Jun used the same tactics we used to sell the S1. He first sold it online to get orders, and then used the orders to buy components and find factories to produce it."

Chen Pingjiang smiled and asked the two: "How many reservations do you think they can get?"

Lin Bin thought for a moment and said, "20?"

Zhou Guangping: "I can't guess the exact number, but it won't be higher than ours."

Lin Bin smiled and said, "How can they compare with us? First of all, Lei Jun's popularity cannot be compared with that of Mr. Chen, and secondly, they have much fewer publicity channels. When we held the press conference, the iPhone had not yet entered the Chinese market, and the smartphone market was almost blank. Now Xiaomi's competitors include not only the iPhone, Samsung, and HTC, but most importantly, us."

Just one day later, Xiaomi announced that the first batch of people had reached 30.

Chen Pingjiang is skeptical about this number. Maybe there were 30 in the past, but is there still one now?
Xiaomi officially began selling its products through Xiaomi.com on October 10 of that year. After four rounds of rush buying, despite severe shortages of funds and production capacity, the one millionth Xiaomi phone was sold by early March.

Is it still there now?

There is a question mark about Chen Pingjiang.

However, no matter what, this topic of Xiaomi has become a hot topic on the Internet, but the popularity is not even a little bit lower than when Orange released the S2.

"What a conscientious phone, a phone with such high configuration is only 1999 yuan. Sorry, Orange S2, I am leaving you."

"Good money drives out bad money. Xiaomi's price of less than 2000 yuan will put many small workshops that make counterfeit mobile phones out of business."

"It's really good. It's not that the Orange S2 is bad, but the Xiaomi is more cost-effective."

"Sorry, I'm used to my Orange S2, and I really don't like what's so good about Xiaomi. It doesn't have any camera function or HIFI high fidelity."

"As an iPhone 4 user, I don't think there will be any big changes. If I have to change my phone, I will wait until the end of the year to get an iPhone 4s."

"The first generation of Orange received 1 reservations in one minute and 43642 in one hour. In comparison, Xiaomi only received 1 reservations in one day, which is a bit weak."

"Not only that, Orange phones cost money to pre-order, but Xiaomi phones are free to pre-order. There must be a lot of water in it."

"..."

Netizens spontaneously divided into three factions.

Rice powder, orange powder and fruit powder.

They were able to have a normal conversation at first, but then the war broke out.

The netizens of this era are countless times more tough than those in the 20s. They will really get angry when something happens.

Finally, Lei Jun had to come out to put out the fire and issued a statement. The gist of the content was: Xiaomi is still a new company, it is still in the process of learning, and it has great respect for the industry's veterans.

Chen Pingjiang had already returned to Dongjiang for a meeting.

"Xiaomi will not release the phone until October 10. The first 20 people will get the phone by the end of October, and the remaining 10 will probably have to wait until the end of the year. So far, it doesn't have much impact on us. Xiaomi can certainly reduce its inventory by looking for factories with orders, but its production capacity cannot keep up. It is not like us who prepared a large number of ready-made phones at that time."

Zhou Guangping also made a suggestion: "Well, I believe they will be able to solve the problem of production capacity after the Chinese New Year. That means Xiaomi phones will have a substantial impact on our sales next year, and it will be okay in the second half of this year. Then by March, our S3 will also be released, and by then we will have a generation gap with Xiaomi again. Its price will not have an impact on us, and at that time we will lower the price of the S3 phone."

Chen Pingjiang nodded in agreement.

Just as Zhou Guangping said, if Xiaomi mobile phone really takes off, it will have to wait until January or February 2012, so Chen Pingjiang doesn't need to cut himself first.

But the fact that s2 does not reduce in price does not mean that s1 cannot reduce in price.

On the day of the meeting, the price of Little Orange S1 was reduced by 500 yuan, and the selling price was reduced to 1999 yuan.

Although Orange S1 is an old model of the previous generation, it has only been a year and a half so it is not considered outdated.

Lei Jun called that day to express his gratitude. For Xiaomi, as long as Orange Mobile did not lower the price of Orange S2, it would be like giving them a way out. As for S1, it didn't matter.

What Chen Pingjiang didn't expect was that the debate on which mobile phone was better and which one was more cost-effective was getting more and more heated.

Each person has his own reasons. Some people think Xiaomi is good, some think Orange is good, and some people like Samsung and Apple. "Is this a bit of a scam? Xiaomi's total pre-orders are only 30, and it's free to pre-order. Why are so many people talking about Xiaomi?"

"You just found out? Many of these people's accounts are small, and some have only been registered for two or three days. They are obviously well prepared. They are targeting Apple and Orange just to get some attention."

Many people have realized that something is wrong. After all, no matter what, the number of free reservations for Xiaomi phones is only 30, and there shouldn't be such a big discussion about it.

Chen Pingjiang shook his head and said, since Xiaomi wants to use it, just give it to them.

Anyway, Xiaomi M1 has no impact on Orange phones for the time being. Orange phones’ only competitors are Samsung and Apple.

The only manufacturers that are afraid of Xiaomi are Lenovo, Huawei, LG, ZTE, and Coolpad.

There is one battlefield for high-end mobile phones and another battlefield for mid- and low-end mobile phones. Everyone is fighting their own battles and each has their own opponents.

Chen Pingjiang suddenly thought of Yu Dazui, and wondered if he was panicking now.

"How are your preparations for the overseas release of S3 going?" Chen Pingjiang turned his attention back to Orange Mobile itself. In 12, the most important thing for Orange Mobile was to go overseas.

This move has been prepared for a long time!
"At present, many distributors in the EU, Southeast Asia and even South America have expressed interest in our mobile phones and PADs, and are doing preliminary docking work, including qualification review. In addition, we have also had preliminary communication with telecommunications companies in various regions. In the EU, we are carrying out tests according to the RED directive to obtain approval, and we must also have the CE-mark."

"Lithium batteries shipped by sea need to have an MSDS, and those shipped by air also need to have UN38.3. The EU EN62133 certification also requires us to do five tests including vibration test, high temperature shock test, temperature cycle test, short circuit test, and free fall test. In addition, we also need to do consistency test, SAFETY test, Field Trail test, and EMC test."

Chen Pingjiang couldn't help but smack his lips when he heard Lin Bin mention a lot of certifications and tests that needed to be obtained. There are so many rules in places like Europe and America, and there are fewer rules in Southeast Asia.

But no matter how difficult it is, going to sea is something that must be done.

One is to prevent internal circulation in the country, and the other is to create incremental growth.

In the process of going overseas, one is bound to face difficulties in policy compliance, cultural adaptation, marketing efficiency, talent management, etc.

It can be said that challenges and opportunities coexist.

Lin Bin said: "We have several overseas strategies, and we adopt different strategies for different countries and regions. One is to quickly enter the market by acquiring or establishing joint ventures with local companies, using the existing sales channels of foreign-funded enterprises. The advantages are rapid entry and low risk, but the disadvantages are large capital investment and possible conflicts due to different business philosophies."

"The second type is to cooperate with an overseas operator and provide them with customized mobile phone products, that is, domestic contract phones. The advantages are stable sales channels and strong market adaptability, but the disadvantages are over-reliance on operators. Once the overseas operator's strategy changes, we will directly lose the original channel and our profits will be discounted."

"The third option is to directly establish local production lines in the target market. This can reduce logistics costs and respond to the market more quickly. However, the disadvantage is that the initial investment is too large, and training local workers is also a hassle."

"The last option is to copy the proven business model in China, operate as an independent brand, find agents, and open up the market through e-commerce, direct store sales and franchise agents. The advantage of this is that we can establish and maintain our brand image and loyalty, and have complete freedom of operation and decision-making. The problem is that our brand influence overseas is not enough."

Zhou Guangping also went on to say: "ZTE in China has cooperated with Indian operators before, and the results are quite good. Another small brand, Transsion Mobile, also went to Africa in 08. OPPO went to Thailand in 09 and copied the domestic model to do direct sales. I suggest that we invest more in Southeast Asia. After all, the culture is slightly similar and the time difference is consistent, which is convenient for us to manage. In addition, the per capita GDP of countries such as Malaysia and Thailand is higher than that of our country. The populations of Indonesia, Monkeys and Vietnam are all over million."

This time Chen Pingjiang was a little surprised.

Unexpectedly, Lin Bin and Zhou Guangping actually had a disagreement. One wanted to enter the European Union, while the other wanted to focus on Southeast Asia.

Chen Pingjiang nodded: "Let's not consider the first point mentioned by Lao Lin. Frankly speaking, it's not very reliable. Cooperation with overseas operators is feasible, but only in secondary regions. In Southeast Asia, the European Union, and South America, I recommend direct operation. Of course, building factories overseas is definitely feasible. Put one in Europe, France or Hungary, in Southeast Asia it can be Indonesia or Malaysia, and in America it can be Mexico."

Zhou Guangping and others knew Chen Pingjiang's style, and this was basically the final decision.

Of course, this is not something Chen Pingjiang said without any reason.

France is slightly neutral, Hungary is pro-China, Indonesia has an industrial chain, and later Oppo/vivo/Xiaomi all have factories in Indonesia. There are many Chinese in Malaysia.

As for Mexico in America, it’s because Mexicans are so good at rolling, they can even wash dishes very quickly.

"We will go overseas in small portions. 12 is our first year of going overseas. It would be great if we can increase our domestic sales by %."

Lin Bin thought for a moment and said, "Our brand is not well-known overseas. Should we invite a well-known overseas celebrity to be our spokesperson? It would be best if we could find one in Europe, America, or Southeast Asia."

"Well, sure. Go look for it first, and then show it to me when the time comes."

Basically, Samsung is firmly holding the top spot in the overseas market during this period, followed by Apple, and as for the third place, if nothing unexpected happens, it will be Orange.

The difference lies in how much the Orange S3 will lag behind Samsung and Apple when it goes overseas in the future.

In the next few years, domestic brands will account for single digits in global smartphone shipments, or even less than a pitiful 5%.

This will change in 2019.

2019年全球手机出货量为13.71亿部，其中三星全年出货2.957亿部手机，华为2019年出货量则是达到了2.406亿部，处于第三名的苹果2019年全年共出货1.91亿部手机。

The three companies' global market shares are 21.6%, 17.6% and 13.9% respectively.

It was also in this year that Huawei was GANKed.

In 20, Huawei fell behind Apple again, and in 21 it even fell out of the top five and became Others.

Once Orange mobile phones go overseas, they will really face off against Apple and Samsung.

The patent lawsuits that follow are not uncommon. (End of this chapter)