Restart life

Chapter 444 0434 [The electronics factory can't keep up with my sales speed]

At least 15 Nokia phones on sale in 2009 had Wi-Fi capabilities.

Therefore, they can seize on this and relentlessly criticize Apple phones.

This made Apple users lose face.

The lowest price for an iPhone is 4999 yuan, and the highest price is 6999 yuan, which is equivalent to two or three months' salary for an average programmer.

Those who can afford this thing aren't short of money; they value face even more. Now that Apple makes them lose face, why would they even bother buying it?

As a result, Apple's sales in mainland China were dismal, and early Apple fans flocked to buy the Hong Kong version.

Every day, there are people who specialize in buying and selling Hong Kong versions of Apple products in Shenzhen, and this business has made some people quite rich.

Late May.

Mobile QQ and QQ Xuanfeng have launched HarmonyOS versions.

Other third-party applications launched around the same time that are compatible with HarmonyOS phones include UC Browser, UC Video, and Baidu Reading (a reading software).

China Mobile has never developed a HarmonyOS version of Fetion, nor has it developed an Apple version of Fetion.

According to the idea of ​​the senior management of China Mobile, it would be best if all China Unicom and China Telecom users did not use Fetion.

Even though the Ministry of Information Industry intervened and China Mobile agreed to let China Unicom users use Fetion, it was still a blatant case of discrimination—China Mobile users could send Fetion for free, but China Unicom users had to pay to do so.

Isn't this just leaving a market vacant for others to occupy?

As early as the initial release of HarmonyOS A1, ByteDance released WeChat, which is compatible with Symbian phones, and promoted it on Renren.com, HaiNei.com, and ByteDance's Weibo account.

Many Symbian users register for WeChat, but the usage rate is not very high; some even uninstall it on the same day they register.

At that time, WeChat's functions overlapped too much with those of mobile QQ, but its user base was only a fraction of that of mobile QQ.

Only by possessing groundbreaking features can a company possibly expand its market despite the pressure from mobile QQ.

"Still can't send voice messages?" Chen Guiliang disregarded the pressure from the telecom operators; he wanted to launch WeChat's voice messaging function as soon as possible.

Guo Feng shook his head:

"There are too many problems to solve, and most of them are hardware and underlying technical challenges. With the CPU performance of mainstream mobile phones on the market today, recording and encoding an audio clip in real time will cause the phone to lag or overheat if it records for even ten seconds longer."

"Another issue is the limited storage space on mobile phones. Don't be fooled by the large storage spaces of HarmonyOS, Meizu, and Apple phones, which have 8GB or 16GB. The mainstream mobile phone storage space is less than 2GB, and some phones even have only 256MB. A single voice message can easily be tens of KB, and users also need to store other content, so the phone can fill up after only a few voice messages."

"These two issues are the most crucial. When we develop the WeChat voice messaging feature, we can't just target high-end phone users, can we?"

"We must wait for hardware upgrades and widespread adoption. The best time to launch WeChat voice messaging will be when mainstream mobile phone chips have better performance and mainstream mobile phones have more storage space."

Chen Guiliang said, "Then let's wait. Keep the relevant plans hidden and don't reveal them."

……

In early November, Meizu announced that sales of the M8 had exceeded 150,000 units.

In mid-November, HarmonyOS A1 announced that sales had exceeded 100,000 units.

Two news items have shaken the Chinese mobile phone industry!
This sales volume is nothing, but Meizu and HarmonyOS are both making mobile phones for the first time, and they are making smartphones with full touch capacitive screens.

Currently, only three brands of fully touch-screen capacitive mobile phones are sold in mainland China: HarmonyOS, Meizu, and Apple.

Although smuggled ham sausages have appeared, officially imported ones have not yet entered the mainland market.

Business owners with a keen eye for the market are finally starting to realize this.

Lenovo headquarters.

Liu Chuanzhi told Yang Yuanqing, "We must keep up with capacitive screen phones. Also, China Mobile's OPhone system is unreliable; just release a couple more models to fool people. Lenovo should also stop developing its own system; developing an application ecosystem is too troublesome."

"Join the HarmonyOS camp?" Yang Yuanqing was somewhat reluctant.

Liu Chuanzhi said, "We adopted the Android system. I specifically studied HTC, and they sell very well in Europe and America. We adopted HTC's development model, where there are already many Android applications. We made a phone to test the waters in the North American market first."

Yang Yuanqing asked: "First the United States, then China?"

Liu Chuanzhi nodded: "That's right. We'll learn from HTC and first develop the US market! No matter how well it sells in the US, we'll publicize Lenovo's successful overseas expansion and then take advantage of the situation to hype up public opinion in the domestic market."

Yang Yuanqing immediately understood.

Lenovo actually did exactly that. Their first Lenovo Android phone was released in the US. Then they started advertising it domestically, saying that American users were raving about Lenovo phones, blah blah blah.

The hidden meaning is simple: Even American dads say it's great, so why aren't you buying it yet!

This has become a common practice for Lenovo, including with its computers. Many of their new computer models are first released in the United States before being launched in China.

Meanwhile, at Huawei, CEO Ren is struggling with this decision.

They have been cooperating with China Telecom, and the upcoming capacitive screen smartphone project is also a China Telecom customized phone.

Ren Zhengfei wanted to use the HarmonyOS system, but China Telecom required the Android system.

The reason given by the telecom leaders was that the Android system had become very mature due to HTC's strong sales. In contrast, the HarmonyOS system had only sold 10 units so far, thanks to Chen Guiliang, and who knows what problems might arise next.

The two sides simply couldn't reach an agreement.

Mr. Ren had no choice but to fly to the telecommunications headquarters to discuss the matter with the leaders in person.

Ren Zhengfei explained, "Many IT companies in China are now developing HarmonyOS applications. However, Android applications are mainly available overseas, and Chinese consumers cannot use them. If we want our phones to sell well, I believe we should adopt the HarmonyOS system."

The telecom executive said, "What you said makes sense. Let's have another meeting to discuss it."

Discussions continued from the end of November to mid-December, but the telecom companies failed to reach a conclusion, leaving Huawei with no choice but to wait for news.

Just then, ZTE quietly joined the Android camp.

ZTE's first capacitive touchscreen smartphone was a customized device for the European operator Orange. European operators didn't care about HarmonyOS; they specified that it had to use Android.

Android is starting to make its move!

……

Meizu is also making efforts overseas.

I don't know how Huang Zhang managed it, but France Telecom suddenly ordered 5 Meizu M8s.

Chen Guiliang was confused when he heard the news. How come Meizu was suddenly sold to France?

It's estimated that France Telecom found Meizu phones to be very good and much cheaper than Apple phones, so they reached a cooperation agreement with Meizu with the mindset of getting a bargain.

Regardless of how it was achieved, Meizu heavily publicized the news, and its domestic sales experienced a small surge.

The December issue of Mobile Circle magazine published a lengthy article: The Chinese smartphone market has officially entered an era of fierce competition!

"...Meizu has resolved its supply chain issues for the M8, and production capacity has been fully released. Domestic sales are about to exceed 20 units..."

"HarmonyOS A1 is catching up rapidly, with daily sales reportedly surpassing Meizu's. This magazine contacted Mr. Chen Guiliang, who said that HarmonyOS phones are selling over 4000 units daily, and they are actively contacting BYD to open another production line..."

"Meizu and HarmonyOS phones are both manufactured by BYD Electronics. BYD is also Nokia's largest global contract manufacturer, and it also manufactures phones for brands like Motorola... BYD Electronics is currently operating at full capacity, making it difficult to open additional production lines for HarmonyOS..."

"This magazine contacted Mr. Wang Chuanfu, the newly crowned richest man in China. He stated that BYD is currently acquiring land and will expand its electronics factory next year, ensuring sufficient production capacity to meet the needs of various mobile phone brands..." "This magazine also contacted other mobile phone contract manufacturers such as Foxconn and Flextronics, and found that all of these manufacturers are fully booked with orders. Mobile phone production orders from all over the world have kept China's major contract manufacturers extremely busy..."

"Nokia smartphones remain the top-selling brand, but there's no sign of them making capacitive touchscreen phones yet. Faced with challenges from HarmonyOS and Meizu, Nokia has announced price reductions for several smartphone models..."

Nokia's usual tactics have come into play again.

Price reduction!

Whenever a strong competitor emerges, they resort to price reductions.

The Nokia 5130XM, a smartphone, has surprisingly been reduced in price to 880 yuan.

There are as many as five Nokia smartphones now priced between 1000 and 1500 yuan.

The Nokia N96 and 5800XM, two high-end and mid-range smartphones respectively, have seen their prices drop by 1000 yuan compared to six months ago. Their prices are now on par with Meizu and HarmonyOS.

With Nokia lowering its prices, Motorola, Tianyu, Lenovo, and other smartphone manufacturers had no choice but to follow suit.

Otherwise, don't even think about selling it!
The Lenovo O1, which was initially advertised as costing 4999 yuan, can now be bought for 1299 yuan. It's outrageous.

Smartphones have already dropped in price, so why won't feature phones?
Various promotions are being launched offering free handsets.

Consumers who were about to buy a mobile phone were overjoyed, as mobile phone brands across the board lowered their prices, benefiting countless ordinary people who couldn't afford good mobile phones.

Furthermore, in conjunction with the national 4 trillion yuan stimulus package, initiatives such as sending mobile phones to rural areas and even setting up sales outlets in townships were implemented. Farmers began to widely adopt mobile phones, directly impacting the telecommunications industry's analog phone business.

When one domino falls, it triggers a chain reaction.

As a result, ByteDance's Weibo users have surged!

……

Meizu headquarters.

Huang Zhang stared at the daily sales figures, his brow furrowed, unable to feel happy.

Although the Meizu M8 experienced a sales surge, its daily sales have gradually declined over the past two weeks.

The application ecosystem is gaining momentum.

As more and more third-party applications are adapted to HarmonyOS, consumers have begun to vote with their feet.

Huang Zhang finally understood what Chen Guiliang meant by "application silos".

The Meizu M8 is currently an application island. It's impossible for large companies to develop an application specifically for Meizu just for its 20+ users.

Does this mean Meizu is abandoning its self-developed operating system and joining the HarmonyOS camp directly?

Huang Zhang is facing a difficult choice.

He switched to the Meizu community and became increasingly anxious as he read the posts.

"There are fewer and fewer people here. If this continues, we're probably doomed."

"What can we do? The Meizu M8 has been out for almost a year, and we still can't even use Mobile QQ. Damn it, I'm thinking of buying a HarmonyOS phone."

"I'm a poor student. I worked for two months during the summer vacation to buy a Meizu phone. Where am I going to get the money to buy a new phone?"

"Wait until Chinese New Year. Anyway, you're still in school, so you should be able to receive lucky money."

“What a load of rubbish! I come from the countryside, and I can only get two or three hundred yuan in New Year’s money at most.”

"..."

There will be another sales surge during the Chinese New Year.

But Chen Guiliang understood Huang Zhang's feelings—insufficient production capacity!
He had lost count of how many times he had called Wang Chuanfu: "Mr. Wang, the pre-orders for HarmonyOS phones have piled up to nearly 5 units. Could you open another production line?"

Wang Chuanfu replied helplessly, "We really can't get any. Right now, not only BYD, but all the mobile phone OEM factories in China are fully booked. Don't worry, the local government is handling this as a special case and has urgently approved the land for me. We've already started leveling the ground in some areas, and we can start building the factory and expanding production capacity next year."

"I don't care, we must open another production line!" Chen Guiliang was particularly anxious, as he needed to stock up for the Spring Festival sales surge.

Wang Chuanfu said, "I'll try my best to find a way. Don't rush me, it won't help. And don't bring up any betting agreements, betting won't magically conjure up a production line."

Chen Guiliang said, "BYD is a member of the HarmonyOS Foundation. Please, I'm begging you!"

Two more days passed.

Wang Chuanfu called personally: "I'll give you a Motorola production line."

"Thank you. I'll fly to Shenzhen to treat you to a meal after the Spring Festival!" Chen Guiliang finally breathed a sigh of relief.

Chinese mobile phone manufacturers have benefited from a surge in global smartphone sales this year.

Even working overtime, we still can't keep up!
BYD, Foxconn, Flextronics... they are all choosing new factory sites, or acquiring land next to their existing factories to expand their facilities.

In early November.

HarmonyOS Technology Co., Ltd. announced that sales of HarmonyOS phones have officially exceeded 20 units, with more than 6 pre-orders remaining unshipped due to stock shortages.

This really surprised our competitors.

In just over two months, 20 units have been sold, with another 6 units available for pre-order.

This might not be a big deal for a major brand, but HarmonyOS is a new brand!

The day after the announcement, Rong Xiuli, CEO of Tianyu, received a call from an investor: "Ms. Rong, I think we should make capacitive screen phones. Joining the HarmonyOS camp would be a good idea."

Rong Xiuli said, "I'll discuss this in a meeting."

One investor stated firmly, "If we don't join the HarmonyOS camp to make capacitive screen phones, I think we should be having a board meeting, not a high-level meeting!"

Rong Xiuli remained silent.

She secured a full 5 million RMB in investment during the economic crisis. The investors, who had previously refrained from interfering in company affairs, are now suddenly issuing orders and making demands.

You have no choice but to agree!
Rong Xiuli did not convene a high-level meeting, but directly called Chen Guiliang's private phone: "President Chen, I will honor my bet and admit defeat in the newspaper tomorrow. Tianyu will join the Hongmeng camp."

"A warm welcome. Just admit defeat in the newspaper, that's enough," Chen Guiliang said happily.

Rong Xiuli said, "If I lose, I lose. I won't renege on my debt."

The following day, several newspapers published a short article in which Rong Xiuli publicly admitted that she had lost the bet and acknowledged that Chen Guiliang and HarmonyOS phones were exceptionally awesome (the content of the bet).

The news spread quickly because it was so gossipy.

Two business owners made a bet on a TV show, which everyone took for fun and thought would be over. Unexpectedly, one of them actually published a statement in the newspaper acknowledging defeat.

Following this, an exclusive interview with Chen Guiliang was published in China Entrepreneur magazine, and Chen Guiliang was also the cover figure of this issue.

On the cover, Chen Guiliang smiles and looks ahead, holding a HarmonyOS phone in his hand.

The cover story is titled: "A keen business sense is a gift, and his insight is so precise that he never makes a mistake—Chen Guiliang, a prodigy of our time!"

(End of this chapter)