Rebirth 08: Rise from copycat phones

Chapter 249 Why did Zhiyun succeed? (-word chapter, please subscribe)
As July passed and August arrived, Zhiyun Technology released the sales information of S12 on its official website for the first time.

The title is 'Warm congratulations to our company for selling over 12 million S phones! '

Since late June, the S12 phone has been sold in fifty-three countries and regions around the world, covering major economies around the world.

Total sales exceeded 32 million units!
Basically, except for the previous 10 million units in stock, the remaining sales will follow the production capacity!
Every time a batch of mobile phones is produced by the four major OEM factories, they are immediately airlifted to all parts of the world for sale and then quickly sold out.

At several city airports where major production bases are located, cargo planes from Zhiyun Airlines can be seen taking off and landing almost every day.

We operate various spare parts and finished products at the most efficient speed, forming an air freight system covering the world.

By the way, Zhiyun Airlines has also developed into a fairly large airline company, owning or leasing more than ten cargo planes, flying around the world all year round.

It may sound a little special for a company to own its own cargo airline, but in fact Zhiyun is so special!

Because Zhiyun is not only an electronic consumer terminal company, it is also a semiconductor company, and its affiliated companies cover the entire semiconductor industry chain and the mid- and upper-stream electronic consumer industry chain. The freight volume between the company headquarters, its subsidiaries and cooperative companies is actually very large.

At the same time, electronic products are time-sensitive and high-priced. In order to maintain the efficiency and smoothness of the entire supply chain, Zhiyun must have a strong air transportation system.

After Zhiyun announced the sales performance of the S12 mobile phone, the stock price continued to rise, and it seems that it will once again hit US$ billion.

And this sales volume also made many so-called technology bloggers and media feel slapped in the face!
You know, many people have vowed before that Zhiyun’s new products this year have no innovation, and Zhiyun has begun to rely on its old reputation and can only stack hardware mindlessly.

Many people have vowed that the sales of S12 may suffer a Waterloo and will not be as good as the S11 mobile phone that came out last year and brought many surprises to people.

However, the reality is not like this.

The S12 phone, which seems to have no innovation on the surface, has continued to break the sales record set by the S11 phone. Even with a monthly production capacity of million units, it is still out of stock worldwide and there is a panic buying phenomenon.

Various media outlets quickly reprinted and reported the news, and many portal websites had related homepage news.

On self-media platforms such as Weibo, the news that S12 sales exceeded million units directly topped the hot search list.

This is not only driven by Zhiyun Technology's marketing department, but also by many netizens who spontaneously promoted the popularity.

There is no way. The two words "Zhiyun" are absolutely hot words in the domestic media field. It can even be said that no matter what the news is, as long as the two words "Zhiyun" are mentioned, there will be an immediate effect of attracting traffic.

The news about Zhiyun’s flagship S series is the hottest topic among all!
Before this year's flagship phone launch conference, various news reports about the S12 phone, such as revelations, exclusive insider information, and authoritative estimates, could easily make headlines.

Especially after the massive rise of self-media and the emergence of many bloggers in the past year, these bloggers have tried various ways to attract traffic. Among the messages posted by technology bloggers, almost ten of them are generally related to Zhiyun.

Today we talk about the Zhiyun S series, tomorrow we talk about the A series, and the day after tomorrow we talk about the C series, then we talk about artificial intelligence, various semiconductor chips, and finally we talk about wafer fabs. After that, we will introduce or criticize the products in the ecological chain one by one.

After a month, there are all kinds of topics.

And whether you criticize or praise, you can get traffic.

The two words "Zhiyun" bring a lot of traffic and popularity, and everyone in the media industry wants to get a share of it...

So we can see that after the release of S12, a group of technology bloggers reported and commented on it, and many of them were critical.

But now, a large group of people have come up to praise it... It's because the sales performance of S12 is so amazing that if we insist on criticizing it, it would feel like we are lying and it would be easy to be attacked by the onlookers.

Of course, even so, there are still many people who will stand firm and continue to criticize... No matter how well it sells, the S12 has no innovation. It is a product of old wine in a new bottle, which represents the decline of Zhiyun Technology's innovation and the exhaustion of its talents!

Anyway, Zhiyun will be finished tomorrow...

Then some netizens will joke: That’s right, Zhiyun is about to go bankrupt. Hurry up and buy an S12 while it’s still alive, otherwise you won’t be able to buy one if Zhiyun goes bankrupt tomorrow.

An official sales report from Zhiyun Technology has once again sparked a frenzy of technology news!
Countless people have been discussing the sales performance of the S12 mobile phone.

Some people even tried to analyze in depth: Why are the sales of S12 so explosive?
Why have we been able to achieve such good results in most markets around the world?

Why is it that even in a severely suppressed market like the United States, Zhiyun phones can still occupy around 15% of the smartphone market share?

Why is it that in a special market like Japan, Zhiyun phones are able to occupy more than 40% of the market share?

Why can Zhiyun phones still achieve such large sales in emerging markets such as India, Brazil, and Indonesia?
Why, in an economically developed place like Europe, Zhiyun phones can still occupy more than 30 percent of the market share?

why?
Many technology bloggers and even some people majoring in social sciences and economics are trying to explain why!
In fact, it is not just these outsiders. In fact, people from countless other mobile phone manufacturers in the entire mobile phone industry are also watching Zhiyun for in-depth research and analysis.

It is not just the mobile phone industry. Even in the Internet and high-tech industries, and even bosses and executives in ordinary industries are trying to figure out one question: Why is Zhiyun successful?
A famous expert wrote an article saying that Zhiyun's rise is only due to China's talent advantage. A large number of cheap engineers have provided Zhiyun with sufficient R&D capabilities. At the same time, a large number of cheap workers have provided Zhiyun products with low production costs.

But other domestic mobile phone manufacturers and even other high-tech companies also have the same advantages. Why haven't they achieved such great success?
The world's number one, with a market value of nearly 600 billion US dollars... Even if all the so-called high-tech companies in China that rank behind Zhiyun were combined, their market value would not be as high as itss!

Some experts also say that Zhiyun’s success is due to its proactive competitive culture.

And citing the example of insider information, when Zhiyun promotes a project, it often sets up multiple project teams, and then conducts research and development simultaneously. In the end, only the most successful project team is selected, and the other losers are either absorbed by the winning project team, or sent to other project teams to start over, or are dismissed due to optimization. This internal competition culture has brought about the prevalence of overtime culture and extremely high work intensity in Zhiyun.

Then he said sourly that although Zhiyun's engineers have high salaries, they earn it by working hard... Working overtime every day, it's hard to say whether they can live to be 50 or 60 years old.

It is also said that Zhiyun’s success lies in its extreme emphasis on and pursuit of technological innovation. Its huge annual R&D expenditure is the highest in the world!

This is not nonsense. According to Zhiyun's public financial report, Zhiyun Technology's "R&D and innovation" expenditure exceeded 12 billion US dollars in the first and second quarters of 1.

The annual R&D expenditure is likely to exceed 16 billion US dollars... What does this mean?
The market value or valuation of a large number of so-called high-tech companies in the country is less than 16 billion US dollars!

The total market value of many mobile phone companies is not even enough for Zhiyun’s annual R&D funding!

This is really embarrassing, isn't it!

Of course, these people will not say that these R&D funds do not all belong to the terminal business of smart technology. In fact, the R&D funds for various smart terminal businesses are not that high, probably only about 20 to 30 billion US dollars.

More R&D funds are mainly occupied by semiconductor design, semiconductor manufacturing, artificial intelligence, and various miscellaneous new technology research and development.

In addition, staff salaries are only a small part of the total. Most of the money is spent on the purchase, installation, depreciation and commissioning of various scientific research equipment.

For example, the semiconductor manufacturing department, that is, Zhiyun Microelectronics, has very high R&D funding, reaching more than one billion US dollars per year, which is basically the same level as TSMC.

Even because of its backward technology, the various investments it makes to catch up with advanced technology actually cost more than TSMC.

The experts and scholars who listed these data vowed that Zhiyun's huge success was achieved by spending money... With more than 10 billion US dollars in R&D expenditure each year, this is a win without any effort.

What does it mean to have an R&D investment of more than 16 billion US dollars a year, equivalent to about 110 billion?
Among all the companies in the world, Apple has the largest R&D investment, far exceeding the second-ranked fruit company's R&D investment of more than 3 billion US dollars.

At present, China's total investment in scientific and technological research and development is about one trillion yuan, of which corporate R&D investment accounts for 80%, or about 800 billion yuan.

Among them, Zhiyun’s R&D investment of 110 billion yuan accounts for about 10% of the total R&D investment of the whole society and 14% of the R&D investment of all enterprises.

exaggerate?

Yes, it is that exaggerated!

----

There are also people who know some inside information and try to explain it from the perspective of R&D, especially in terms of staff treatment, working environment, and corporate culture.

So many people quoted the statements of some current or former R&D personnel of Zhiyun Technology.

One of them used to be a senior engineer at Zhiyun Technology, and later resigned to start his own technology company. In order to promote his company's business, he directly attacked Zhiyun during an interview, and every few words he made heed to the fact that he used to be a senior engineer at Zhiyun!

This former senior engineer of Zhiyun Technology introduced the culture and working atmosphere of Zhiyun Technology in this way: "Many people say that Zhiyun has a culture of overtime. To some extent, this is true, especially for some important projects that need to be rushed. The R&D pressure is often very high and the time is very tight, so there will be more overtime."

"But these are usually core projects, and ordinary people can't get in to work overtime!"

"Why? I have money. What? Overtime pay? Overtime pay is just a few dollars. What's important is project bonus and performance!"

"For example, if you are working on the underlying architecture of the Yun OS system and can enter such a core project team, you can easily earn 300,000 to 500,000 yuan a year, and among senior engineers, there are many who have a combined annual income of over a million yuan."

"So many people are trying to get in!"

"But it's not that easy to get in. I remember that a project team next to us wanted to find an architect. They first recruited on the company's intranet, and then more than 400 qualified people signed up. In the end, they chose one from these 400 people!"

"This kind of top-level position doesn't recruit externally at all. You've never even heard of it."

"Also, I've heard about the salary levels of people working in artificial intelligence next door. I'm jealous of the salaries of those people!"

"How much exactly? I can't tell you. They also have salary confidentiality regulations. We can't hurt others. But I can tell you that if you get into this kind of core department and work for two years, even if you stay where you are and don't get promoted, you can buy a house in Shenzhen. It's easy and stress-free."

“So, there is overtime at Zhiyun, but only core projects will have more overtime, while for ordinary projects, relatively speaking, there is not much overtime!”

When I was in Zhiyun, as far as I know, most project teams were relatively flat, take myself as an example!

"At the time, I lived in the company's talent apartment. It was a pretty nice apartment. I lived on the 20th floor, right by the beach. The apartment for one person was about 40 square meters. It had all the basic amenities and there was someone to clean it."

"I usually get up around seven, go to the gym downstairs for a run, then go upstairs to take a shower and have breakfast. By the way, it's free."

"Then I take the company bus to the office building to clock in for work, which is around nine o'clock. When I get to work, I usually don't start working right away. Instead, I stroll around, you know, say hello to my colleagues, chat with them, and then make myself a cup of tea or coffee."

"Then wait until 9:30 for a morning meeting, where your superiors will assign you tasks or discuss some technical issues."

"It's usually 10 o'clock when the meeting is over. At this time, I usually choose to write code for an hour, and then at 11 o'clock, I will dawdle and wait until 11:30 to get off work and have lunch!"

"After lunch, I rested in the lounge for an hour or so, then went to work at 2:30, wrote code for about two hours, had a group discussion before leaving get off work, and then got off work at about 5 o'clock!"

"Of course, there are some people who cannot complete their work tasks and need to catch up or even work overtime, but most people, in most cases, do not need to work overtime in our business department..."

"Why? Because overtime pay is too expensive. Every department has a limited overtime budget. If you work too much overtime, the overtime expenditure of the entire project team will exceed expectations. The human resources management department will come to hold you accountable, and the project leader will be punished!"

"It's so easy to earn overtime pay!"

"Anyway, in Zhiyun, under normal circumstances, you have to complete the work tasks with quality and quantity, and you can't procrastinate or work overtime."

"So, to be frank, when you work at Zhiyun, your colleagues can all leave work on time, but you have to work overtime every day. That means you are not capable enough and cannot adapt to Zhiyun's R&D work. Resign as soon as possible, otherwise you will be laid off sooner or later!"

"I know you're going to say this is just slacking off."

"This is what I'm going to say next. Our work efficiency is very high. If you ask me, I don't know why!"

"Always being in that kind of environment, it seems that all problems have become simpler. In fact, there was a period of time when I was in a bad mood because of a breakup. I tried to write code casually, only writing for one or two hours a day, and the rest of the time I was slacking off and watching TV series. Then guess what, after about a week, my immediate boss, the director, called me over!"

"At first I thought I was going to be reprimanded or even laid off, but the director who graduated with a PhD from an Ivy League school said to me with a smile that my recent work was very good, the results were very good, and the code quality was very high, and asked me to keep up the good work..."

"I had the same idea as you at the time, which was ridiculous, but when I look back at the code, I have to say, it's really well written. Even if I were to write it now, I can't reach the level of the original code!"

"Not only me, but also my former colleagues, are very skilled, and the whole working atmosphere is very relaxed and pleasant... More importantly, maybe we are so good, so although we encountered many problems when we were working on the core architecture of the system, none of them could really stump us. Basically, when a problem arose, we would have a group discussion with a few people, and solve it by brainstorming!"

“I still believe that the three years I worked at Zhiyun were the best period of my life in terms of R&D.”

“Why did you start a business?”

"Well, actually I followed the company's internal entrepreneurship program. After the project was recognized, I got investment from the company's venture capital department. Strictly speaking, I am still a Zhiyun employee now!"

"The project is very successful. We are now preparing to discuss the A round. The lead investor will be Zhiyun Future Fund under Zhiyun Investment. We also welcome investors to pay attention to my project and consult on investment-related matters!"

------

Many people have tried to prove from various angles why Zhiyun Technology has been successful, but each company has its own explanation. To be honest, no one except Xu Shenxue himself can figure out why Zhiyun has been successful.

why?
He, Xu Shenxue, has some money, memory and knowledge from later generations, and a scientific research system.

With these three factors combined, Xu Shenxue believes that it would be difficult for him to fail... the only suspense is how successful he can be!

Of course, the fact that Zhiyun Technology has achieved what it has today was beyond Xu Shenxue’s expectations and exceeded his estimates.

Zhiyun Technology is developing too fast... The rapid development of Zhiyun Technology has also driven the rapid development of various companies under Xiannvshan Holdings and Liuhe Investment.

In the end, a situation was formed where everyone was rushing forward at a rapid speed.

Zhiyun Technology's various intelligent terminal products are like a huge locomotive, dragging the consumer electronics industry chain, semiconductor design, semiconductor manufacturing, semiconductor equipment, semiconductor raw materials and other related industry chains behind it to move forward rapidly!
The kind that can't be stopped! Today, Zhiyun has become so big and influential that it can't be stopped.

Once the locomotive Zhiyun stops, the loss will not only be Zhiyun’s own huge revenue of more than 200 billion US dollars, but also mean the collapse of the entire Chinese electronic consumer industry chain and even the Chinese semiconductor industry chain!

Behind this, there are many industries, such as chemical industry, precision equipment, optics and many other so-called traditional industries.

To give a simple example, the production line of Wecoo Industrial requires a large number of various mechanical equipment. Although many of the equipment are imported, in order to reduce costs, Wecoo Industrial has been promoting a strategy for equipment controllability, seeking and supporting domestic manufacturers of corresponding equipment for substitution.

Even if it is only based on cost considerations, Weiku Industry has already promoted the development of domestic precision equipment to a certain extent.

So...a mobile phone, it's more than just a mobile phone!
Never!
Mobile phones, like cloth, cars and other products, are industrial consumer goods, and any kind of industrial consumer goods is an economic leader!
Behind it is a whole host of industrial chains that can be driven!

Behind the mobile phone is the electronic supply chain, and behind the electronic supply chain is the semiconductor industry chain, and then there is also a large number of precision instruments and other industry chains.

These links are linked together and can affect the entire industrial system!

Why is cloth so important in the modern economic system? It is because cloth may seem simple, but it is actually a leading industry that can drive the development of the entire industrial system.

For quite a long time, the economic proportion of the textile industry accounted for about 30% of the entire economic system.

It was only much later that it was surpassed by the automobile industry.

Gradually, the consumer electronics industry has also become a leading industry in the economy. Mobile phones, PCs, and various home appliances have become new leading industries, occupying a considerable proportion of the economy.

In modern society, the consumer electronics industry and the automobile industry are both very important economic leading industries.

Therefore, in Xu Shenxue's industrial layout, the left hand is electronic consumer products of various smart terminals with mobile phones as the core, and the right hand is electric vehicles!
We will directly grasp the two major economic leading industries, and then lay out the industrial chain based on these two leading industries, such as upstream semiconductor design and manufacturing, and even upstream semiconductor equipment and raw materials.

At the same time, the electric vehicle industry is also planning to develop various rare metals needed for lithium batteries and electric motors... Of course, while outsiders are still shocked by Hailan Automobile's autonomous driving technology, the investment department of Liuhe Investment has quietly completed the development of various rare minerals needed for lithium batteries and electric motors, especially lithium mines. In addition to acquiring several large lithium mining companies in China, they have been integrated into "Chenglin Mining".

At the same time, it has actively gone overseas to acquire a large number of lithium mines and smelting companies.

One of the major acquisitions was the purchase of an Australian lithium mining company, which accounts for 30% of the world's lithium mining production capacity.

No one even knows that several lithium mining companies under Liuhe Investment have quietly controlled approximately 43% of the world's lithium production capacity, and are continuing to acquire various lithium mines for their layout.

Recently, it has gone to South America to acquire various minerals and has acquired a lot of lithium mineral resources.

To put it bluntly, the current global lithium price depends to a certain extent on the performance of the lithium mining companies under Liuhe Investment.

Of course, electric cars have not yet gained traction, and the global demand for lithium ore is far less than after the 1920s in the original time and space.

Nowadays, the price of lithium ore is not expensive, and people pay much attention to lithium ore, which makes Xu Shenxue's advance layout relatively smooth.

In order to facilitate their own acquisitions, several lithium mining giants under Liuhe Investment have actually been deliberately suppressing lithium ore prices and engaging in price wars... Anyway, the money lost is just a small amount compared to controlling global lithium mining resources.

Compared with lowering prices and reducing the cost of electric vehicles and promoting the development of the entire electric vehicle industry, it is not worth mentioning.

So the electric vehicle industry has already taken off, but the price of lithium ore in the market has continued to fall... The lithium mining giants under Liuhe Investment are desperately increasing production and lowering prices in order to squeeze out other lithium mining companies and try to acquire them.

As a result, the lithium mining industry and the memory industry have been similar in the past year. They are obviously booming but are not making money, and are even losing money.

This is a competition between capital giants, which sometimes seems counterintuitive.

Of course, the lithium mining industry is still a very niche industry with a very limited overall market, so Liuhe Investment can do this. But if electric vehicles appear on a large scale in a few years and form a certain trend, it will be difficult to continue doing this.

It is worth noting that the field of electric vehicles, especially the self-driving or assisted-driving electric vehicles developed by Xu Shenxue, is also extremely dependent on the semiconductor industry.

What is the core of automatic assisted driving?
Big data algorithms or AI, what is behind this? It is high-performance chips that can provide a lot of computing power.

A Hailan car needs to be equipped with a large number of various chips, most of which are low-process functional chips.

Although these chips have a low manufacturing process, they are often very functional. At the same time, they are very special automotive-grade chips, which have high requirements for packaging technology and must be able to withstand various harsh and extreme environments.

In addition to these low-process functional chips, ordinary vehicles also need them!
Many people think that cars are mechanical products, but in fact they are not. Modern cars, even fuel vehicles, have a large number of various chips integrated into their subsystems. It’s just that traditional car companies generally don’t talk about it, and ordinary people generally don’t understand it.

In the era of automatic assisted-driving electric vehicles, the requirements for chips are even higher, because a large number of high-computing-power automotive-grade chips are needed.

Hailan Automobile's automatic assisted driving system uses the 'Hailan' series of automotive-grade high-performance computing chips designed by Zhiyun Semiconductor.

This thing is not a low-process chip, but a high-performance chip based on 32-nanometer process!

At the same time, Zhiyun Semiconductor's automotive-grade chip design department is also cooperating with Hailan Automobile to develop the next-generation Hailan chip, which will use a 28-nanometer process.

In the future, the technology will continue to advance to 14 nanometers or even 7 nanometers.

Therefore, modern automatic assisted-driving electric vehicles are also built on the advanced semiconductor industry chain.

It's because Xu Shenxue is determined to develop semiconductors no matter what... If he can't develop semiconductors and can't control them independently, he will be strangled no matter what he does.

What about PC Internet, mobile Internet, smart terminals, automatic assisted driving electric vehicles, consumer-grade drones or robots, smart factories, etc. ... All of them will roll their eyes if someone strangles the semiconductor industry.

All rootless duckweed!

But Xu Shenxue hated being strangled by others and felt no sense of security at all.

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Of course, it is not easy to promote the development of the semiconductor industry chain.

Let’s not talk about other things for now, but this money is absolutely indispensable!
It's not just the money that Xu Shenxue gets from cashing out his shares. What's more, it requires large-scale shipments from Zhiyun Technology, Wecoo Electronics, and even other domestic consumer electronics manufacturers, so that sufficient orders can be provided to the two core subsidiaries, Zhiyun Semiconductor and Zhiyun Microelectronics.

Only when these two companies have orders can they generate revenue and invest large amounts of money in research and development and establish production lines.

Zhiyun Semiconductor can design a variety of advanced chips.

Zhiyun Microelectronics can invest heavily in various wafer fabs, packaging plants and other semiconductor manufacturing plants, and these plants require a large number of various semiconductor equipment and raw materials.

This gives the semiconductor equipment and raw material industry chain under the Fairy Mountain system a chance to survive...

The various equipment developed by Gulf Technology, such as front-end lithography machines, etching machines, back-end lithography machines and other core equipment, have the most basic order guarantee, and then promote mass production, and carry out continuous technological upgrades in the process, and then expand more markets.

Some of Gulf Technology's seemingly backward I-line lithography machines, KRF lithography machines, etching machines and other equipment on a series of production lines with a process size of more than 100 nanometers, or even 200 to 300 nanometers, rely on Zhiyun Microelectronics for their survival.

Then the development of Gulf Technology can drive the development of a large number of subsystem supply chain companies and the corporate projects behind them.

As a result of this chain of events, what is ultimately reflected is that Zhiyun's various terminal products act as the locomotive, forcibly leading a large number of various industrial chains behind it, especially the semiconductor industry chain, forward!

Therefore, Xu Shenxue is also very concerned about the sales of the S12 series of mobile phones... This thing is the flagship product of all Xu Shenxue's business layout.

Its success or failure will largely determine the future and fate of a large number of subsequent industries.

----

The sales volume of 32 million units has met Xu Shenxue's expectations, and even exceeded them.

Because one thing outsiders don’t know is that the sales volume of the S12 Pro with a -inch large screen accounts for a very high proportion.

In the chairman's office of Liuhe Investment, Xu Shenxue, as usual, was sitting with Ji Chenghe and several other group executives, drinking tea and holding a small meeting.

Ji Chenghe said: "Initially, we estimated that the sales of the Pro version would account for about 13% of the entire series. After all, this model is more expensive and has a larger screen size, which is a challenge to previous mobile phone usage habits."

"But based on sales over the past month and a half, our Pro version sales account for 12 percent of the entire S series sales, and market feedback shows that there is a greater demand for the Pro version!"

Ji Chenghe, holding the report, said with a smile: "This can also be reflected in the scalper market. The S12 Pro is more popular and has a higher premium."

"Based on the market feedback, we have adjusted the production capacity of our products in July and increased the production capacity of the Pro version. According to our forecast, if the market develops healthily, the sales volume of the Pro version should be able to reach 20%!"

"This will effectively increase the average selling price of our entire S12 and bring higher gross profit!"

Although they are all S12 phones, the price range of Zhiyun Technology's S series phones is actually quite large, starting from 16 yuan for the standard version with GB, crossing over yuan, and finally reaching more than yuan.

Although both S12 phones are sold, the profit of the Pro version is hundreds of yuan more than that of the standard version.

Therefore, if possible, Zhiyun Technology would naturally prefer to sell more high-priced, high-profit Pro versions.

After taking a sip of tea, Xu Shenxue said, "It seems that people's acceptance of large screens is much greater than expected. The large-screen strategy for each series of mobile phones next year can be expanded!"

Ji Chenghe said: "Yes, I think so too. The S series has made a good start. Next year, the A series can also have a large screen version of more than 5 inches, and the Zhiyun C series can also go for a high and low combination of 4.7 inches and more than 5 inches. This year's 4.3-inch screen is still a bit small!"

Bai Qiwen of Vico Electronics just laughed and said, "We at Vico Electronics are doing quite well. Our MAX4 has a -inch large screen. The market feedback after its release is very good. I estimate that the sales volume will reach a new high!"

Xu Shenxue asked: "Oh? Can this phone sell 20 million units?"

After saying this, Bai Qiwen felt a little embarrassed: "The goal of 20 million units is still a bit high. Our estimated goal is 15 million units. After all, this phone is not cheap, with an average price of 3,000. And our Xiaolan brand appeal is still a little weak. If we do too much at the low end, it will be difficult to do high-end."

Xu Shenxue said: "If we can achieve a sales volume of 15 million units, that would be pretty good. By the way, how are the performances of the other models? What is the sales target for this year? What is the expected sales volume for next year?"

Bai Qiwen said: "At present, the main models sold by Vico Electronics are the Little Blue series, Little Blue M series, Vico K series and Vico W series. The best-selling ones are the Little Blue M series, which focuses on the market of 5 to 999 yuan. Among them, the Little Blue M, which is the main product promoted this year, has good sales because its low-end youth version is priced at yuan. We estimate that we can sell about million units this year."

"As for the Vico brand, its sales are generally lower than that of the Bluestar brand, accounting for only about 40% of the total sales. The best-selling series is the low-end Vico W series."

"This year, our goal is to achieve sales of 160 million units, and next year we aim to achieve total sales of 200 million units."

"In order to achieve this sales volume, we are actively exploring overseas markets. We have achieved considerable results in the market construction in the ASEAN region and India. The sales volume from these two regions has accounted for about 30% of our company's mobile phone sales. In the future, we will continue to promote the construction of overseas channels and try to expand channels in South America."

Xu Shenxue said: "The goal is very good, and the path is right. Although the domestic market is large, the competition is also fierce. Almost all mobile phone manufacturers in the world are competing in the domestic market, and the competition among domestic mobile phones is also very fierce. Therefore, if we want to continue to grow and develop, we still have to actively go abroad!"

“As for the strategy of going global, there is no need to blindly imitate Zhiyun. The market positioning and brand value of the two companies are too different and there is no comparability. The main overseas outlet for Weiku Electronics should still be based on emerging markets, especially ASEAN and South America!”

The mobile phone markets in different regions of the world are completely different. For example, the US market has a large share of the high-end market because of its high per capita income and the fact that operators generally adopt the contract model.

Therefore, relying solely on the North American market, the fruit can rise rapidly and achieve large sales volumes.

Similarly, even if Zhiyun is suppressed in the US market, it is still unwilling to give up this part of the market unless it is absolutely necessary... After all, it makes money, which is not shameful!

A similar situation exists in the European market, where the per capita income is generally high and contract phones are relatively popular. Therefore, mobile phones priced at five, six or even seven hundred dollars can occupy a considerable market share locally.

Similar situations also exist in other economically developed regions.

In these places, some mid- and low-end mobile phone brands can forget about gaining much market share because their phones are positioned too low-end and local consumers don’t like them.

As for what you said about just piling up materials and charging high prices...your brand is not good enough and you can’t support it.

The local consumers are not stupid. There are obviously Fruit, Zhiyun, and Four-star brands to choose from. Why would they choose a low-end, unknown brand like yours that I have hardly heard of?

Under such circumstances, it is actually very difficult for many domestic mobile phone manufacturers to enter the markets of these developed countries.

On the contrary, some emerging markets with large populations, including the domestic market, are more friendly to them, after all, they have price advantages.

Smartphones priced between two and three hundred dollars are mainstream in these places, while the high-end market priced above six hundred dollars accounts for a much smaller proportion.

This very small proportion of the high-end market has basically been swallowed up by Fruit and Zhiyun, and other mobile phone manufacturers have no chance.

If Weiku Electronics wants to continue to maintain rapid development, in addition to the domestic market, it must seize market share in ASEAN, India, South America, West Asia and other regions.

Therefore, Xu Shenxue still agreed with Bai Qiwen's strategic choice.

As for how to do it specifically?
What else can I do? Just keep rolling!

Relying on cost-effectiveness to go overseas, they have snatched the mid- and low-end market share from other international mobile phone manufacturers, especially traditional mobile phone manufacturers such as Nokia!

If a typical domestic mobile phone manufacturer like Weiku Electronics wants to continue to rise and maintain a high growth rate of several dozen percentage points each year, there is only one way: to wipe out traditional mobile phone manufacturers represented by Ounuoya!
This is a cruel road of life and death competition!

The kind where whoever loses dies!
(End of this chapter)