Our Rise Era

Chapter 245 Pushing profits to the extreme!
[Shengxing] Mobile phones have been very low-key in the past two years.

The first domestically produced mobile phone equipped with the Android system, the Shengxing SX-G1, had mediocre sales, with a total of 70 units sold in the era of the rise of smartphones.

The sales of the second generation [Shengxing 2.0] were also mediocre, worse than the previous generation, with only 50 units sold.

The reason is that there are no highlights.

The price of 1599 is not expensive and is quite affordable, but the configuration of the phone is very average and not as crazy as [Wheat 2].

The brand power of [Shengxing Mobile] has been gradually forgotten after joining the Android system for two years. It is not as well-established as [Samsung]...

In addition, the entire industry chain of Shengxing Mobile Phone seems to be undergoing transformation, and mobile phones, as part of terminal products, do not seem to be given much attention...

……

For various reasons, the once dominant powerhouse in the era of small mobile phones, the once invincible king of China, seems to have fallen behind in the era of smart phones all of a sudden.

But Zhang Yang knew.

【Shengxing】Mobile phones are undergoing transformation.

From shopping everywhere to calming down and quietly developing in depth.

..............................

"You don't have a complete system, a matching processor and chip, and you don't even have your own core stuff. You're leaving without any preparation. It's really a bit impulsive..."

early morning.

The weather in Pengcheng is very cold.

The office didn't have heating on.

When Ge Guoxing came to the office, he saw Zhang Yang sitting by the window, looking at the wind in the distance.

The cold wind made Ge Guoxing's old legs tremble. He quickly wrapped them with a blanket and felt a little more comfortable.

……

a few hours ago.

While he was taking a break, he received a call from his secretary.

[The Android Open Source Alliance will exclude Wheat Technology and terminate all cooperation with Wheat Technology].

After receiving the call, he instantly lost all his sleepiness and rushed towards [Wheat Technology] immediately.

Along the way, he saw the official announcement of the Android Open Developer Alliance.

When he saw the news, he was not shocked. With his flamboyant personality, it was only a matter of time before he left the team.

He was just surprised to leave without any preparation.

"Who's going to wait until we're ready?"

By the window, the wind blew Zhang Yang's hair.

Zhang Yang faced the cold wind, his eyes were calm, and he looked at Ge Guorong with a smile.

In this world, no one will wait until you are fully grown before talking to you about what to do next.

Most of the time, when you have tasted the sweetness of cooperation and can no longer stop, they suddenly show their fangs.

You move forward, lose control, become a puppet, and from then on don't even think about breaking through the blockade. Just be a purchaser and assembler.

If you step back, all your previous efforts will be lost. What can be given to you can also be taken back in an instant.

"If you regret it now, I can mediate..." Ge Guoxing was silent for a moment, then looked at Zhang Yang: "I learned from many parties on the way. Samsung just took out its bargaining chip. This time, the price of the acquisition can be negotiated..."

"Once the arrow is shot, there is no turning back." Zhang Yang shook his head indifferently.

The air froze for a moment.

Zhang Yang silently closed the window, turned on the air conditioner, sat at the table and made tea for Ge Guoxing.

Ge Guoxing sipped his tea.

I feel that this tea is a bit bitter.

"What is the current state of your [Wheat System]?"

"It works, but it's not competitive in the mid-range market. If we're optimistic, it's probably slightly better than the previous [MTK] system..."

"At the Android level of two years ago?" Ge Guoxing frowned.

"right……"

"Where's the chip?"

"Apart from providing the most basic monocrystalline silicon, our design capabilities are very average... If we can find a suitable processing plant, we can barely reach the level of [MTK system], but the cost will be much higher..." Zhang Yang also talked to Ge Guoxing very sincerely about the current situation.

After hearing Zhang Yang's answer, Ge Guoxing was speechless for a moment.

In the two years of the [smartphone era], the changes are terrifying...

It is not an exaggeration to describe it as “several generations behind”.

More importantly, once the system does not have the corresponding chip processor to run, Android two years ago would be very slow and there would be no smoothness at all. If such a mobile phone is put on the market, it will only lead to failure.

"You..." Ge Guoxing sighed: "You used to be a smart person, why are you so reckless now..."

"Mr. Ge, if you came here to criticize me today, then you are wasting your time. Now that things have come to this, the only thing we can do is to move forward..." Zhang Yang replied.

"Judging from your expression, you seem to have a plan for [Wheat 4]? Have you found a supplier? Or, have you found a [cooperative system] in advance? Microsoft? Symbian? Or other systems?" After seeing Zhang Yang's expression, Ge Guoxing seemed to have thought of something and immediately narrowed his eyes.

Zhang Yang and Ge Guoxing looked at each other and narrowed their eyes. "Boss Ge, you don't need to test me. I will negotiate with you directly. I have nothing behind me. I lack everything now, including technology, talents, partners, and suppliers...Boss Ge, in fact, if you don't come to me this time, I will come to you. Your research and development of [chip processor] has been very low-key in the past four years, but I know that you have invested billions. It seems that you have nothing to show for it, but in fact, there should be some breakthroughs, right?"

Zhang Yang's frankness surprised Ge Guoxing a little, but then his expression gradually became serious: "In terms of chip design, the distance between us and the West is equivalent to that of a babbling child. In recent years, we [Shengxing] have indeed invested a lot in the field of chip design and processing, from mobile phones to chip foundries, but the effect achieved is very reluctant. [Taiji Electric] has been able to achieve 28-nanometer mass production technology, and the 20-nanometer technology has been successfully developed, but the process technology of our mobile phone chips is still stuck at the breakthrough of 90 nanometers... This was the level of [Taiji Electric] in 2004..."

"Mr. Ge, is your purpose of joining the Android Open Alliance for chip design technology?" Zhang Yang asked as he poured Ge Guoxing a cup of tea.

"Mid-range mobile phones are not actually profitable. The real money-maker is the chip processor... I experienced this in the era of [Little God]... So, since the beginning of 07, I have been preparing for the transformation. At that time, after repeated research, my team and I finally decided to join the [Android system]. Selling mobile phones is one aspect, and on the other hand, we want to learn something through exchanges with the world's top chip manufacturers through this platform. Of course, it would be even better if there are technical ones. We also have another purpose, which is to hope to be able to undertake [Taiji Electric]'s mainland chip project. While cooperating with [Taiji Electric], we can find ways to make these things. It would be even better if we could receive large international orders, but it's a pity..." Ge Guoxing looked out the window and said quietly.

these years……

This is the reason why he abandoned the huge market he cooperated with MTK and joined the Android system.

However, unfortunately, after joining the entire team, I found that the actual cooperation projects with [Taiji Dian] were very limited.

The two sides are always in an unequal position.

Even if it is another project processing, [Taiwan Electric] will not choose him.

International companies with chip design capabilities all went to Taiji Electronics, and would not choose him...

So, in the past four years...

[Shengxing] Although huge amounts of money are invested in chip processors every year, there is no return at all.

It even fell into a vicious cycle at one point.

You have broken through 90 nanometers.

But all those knockoff phones on the market use 65 nanometers...

What’s the use of your 90 nanometers?

On the radio?

On TV? On various home appliances and machines?

Do not be silly!
The prices of these obsolete products are much lower than yours, so you have no market competitiveness at all, okay?

……

Without a market, there is no way to make back the investment. Without a way to make back the investment, it is destined to be increasingly stretched in R&D investment. With stretched investment, R&D becomes even more meaningless...

Everyone knows that R&D is important.

But as the one chasing...

You are destined to pay countless times more money and effort just to barely see the other party's taillights, otherwise, you will die on the beach.

"No breakthrough in 65 nanometers?" Zhang Yang looked at Ge Guoxing.

"It will take some time..." Ge Guoxing was silent for a moment, then replied.

"Is three months enough?" Zhang Yang asked, "If it is, I will purchase a large amount!"

"Are you kidding?" Ge Guoxing frowned.

"I'm not kidding... In three months, I will do everything I can to perfect my [Wheat System], and then pair it with our chip processor and domestic spare parts to seize the low-end market..."

"The performance and technology of domestic spare parts are average, but the key is that the price is not cheap. How much do you sell low-end mobile phones for? Selling them at 599 like before?" When Ge Guoxing heard this, he shook his head and said, "Before cooperating with [MTK System], you could get the price of 599. If you use all domestic chips, your profit from a mobile phone may be less than 100 yuan. To be optimistic, you can make 50 yuan at most!"

"What if I reduce the profit to 30 yuan? Sell it for 399!"

"Crazy! Cheaper than an old phone?"

When Ge Guoxing heard this, he suddenly stood up from his chair and stared at Zhang Yang in shock.

"Let's take a gamble. We need the market and the market needs us!" Zhang Yang's eyes were red. "As long as we can sell 10 million units, we can make money! They are competing for the market, and so are we! In the low-end to extreme market, we go for cost-effectiveness! To be even more exaggerated, even if we can make yuan per phone, we will sell it!"

"You're crazy! You're courting death!" Ge Guoxing stared at Zhang Yang in horror and was stunned by what Zhang Yang said.

Although Zhang Yang, the gambler, had red eyes, his expression was calm: "Would you like to gamble with me? Three months..."

"..."

Ge Guoxing was speechless for a moment.

After a long time...

Sighed.

"Okay, I'll pay a little bit and play with you..."

"..."

(End of this chapter)