Top of the Great Era

Chapter 2917 Main Contradiction

Apple is too powerful. It is the company with the highest market value in the world, with annual revenue exceeding US$1700 billion, net profit of nearly US$400 billion, and market value approaching US$5000 billion, almost twice that of Google and Microsoft.

However, the market value still cannot reflect Apple's strength.

Apple is currently in a stage of being severely undervalued.

Apple's price-to-earnings ratio is only 13 times.

The P/E ratio is the capital market's prediction of a company's long-term prospects. The higher the P/E ratio, the more optimistic it is about the long-term future; the lower the P/E ratio, the more worried the capital market is about the company's long-term profitability.

During the period when global technology stocks were booming, Apple's price-to-earnings ratio was only 13 times.

The reason is simple: it’s because of Tim Cook.

The market and the media all believe that Cook is not a good person. He has no innovation, no design, and no courage. Not only does he not understand technology, but after taking office, he fell out with the big shot who dominated Apple's technology during Jobs' time and fired him.

This results in Apple's price-to-earnings ratio being pitifully low.

Just compare and you will know.

Amazon's P/E ratio is over 120, Facebook, Google, and Ziweixing International's P/E ratios are over 50, and Changyou's P/E ratio is 40. Even Microsoft, which is in turmoil and has to replace its CEO, has a P/E ratio that is almost twice that of Apple.

Tim Cook is a good-tempered and nice guy, but it is impossible to say that he has no temper at all.

He held his breath in his heart at the outside world's almost contemptuous attitude.

This is also the reason why he colluded with Li Zairong and Zhou Buqi behind the scenes to jointly attack Qualcomm.

  He wants to show courage!

He wants to solve the strategic risks for Apple!

He wants to solve the fundamental problems that even Steve Jobs couldn’t solve back then!

Cook really doesn't know much about product innovation.

During the years he served as Apple's CEO, his greatest contribution to Apple was to make up for the strategic shortcomings of Apple's products and lead the development of the M series and A series chips, thereby removing the restrictions imposed on Apple by Intel and Qualcomm in the chip field.

Especially the A series chips for mobile devices, which are designed to compete with Qualcomm to the end, have become Apple's trump card of competitiveness in the Cook era.

Such technological innovation is actually much more difficult than product innovation and design innovation.

And it's not of the same order of difficulty.

Even small domestic mobile phone manufacturers such as Meizu and Hammer can make a lot of product innovations. However, few domestic IT companies have the courage and ability to stand up to monopoly-level industry giants such as Intel and Qualcomm.

If the mobile phone made by Hammer is quite interesting and the difficulty of product innovation is 1, then the difficulty of technological innovation for companies like Huawei and Asda that develop their own chips is at least 1.

As for other mobile phone manufacturers...

Let’s take a break.

Don't take on a job if you don't have the skills. Just be honest like Xiaomi, avoid the technology track and focus on the market and products to achieve the best business results.

Whether it is Apple, Samsung, Huawei or Asda, in the early stages of development, products are the core competitiveness. The main contradiction at this time is the contradiction between product supply and market demand. The first priority is to make the product popular with consumers and to sell the product.

However, after becoming an industry giant, the main contradiction changed.

The brand of the product has been established.

It can be sold.

The main contradiction is not the contradiction between supply and demand on the C side, but the contradiction between supply and demand on the B side. In other words, the contradiction of whether the product can be sold has been solved, and the next thing to solve is to produce the product at low cost and low risk!

In the production process of mobile phones, the biggest pressure comes from chip supply.

  In other words, if you want to accomplish this, you must develop your own chips and compete with Qualcomm!

Why did Huawei develop its own chips in the past, while other mobile phones such as Xiaomi, OPPO, ZTE, Lenovo, Coolpad, Gree, etc. failed? Because Huawei's mobile phones are the best in China, and they have broken out of the domestic market and established a brand in the international market with an increasingly larger market share.

Huawei has basically solved the main contradictions on the C-end and can now move on to the contradictions on the B-end in the next period. Other mobile phone manufacturers have too low market share and too low profit margins. They are lucky to survive. They have not even solved the contradiction between product supply and market demand in the first stage, and the second stage is still far away.

However, even if these manufacturers really resolve the conflicts in the first stage and enter the second stage, they may not have the courage and vision to deal with the conflicts in the second stage.

In the second stage, we will target industry giants like Qualcomm.

If you want to get rid of Qualcomm, it will be very dangerous.

Apple, Samsung, and Asda are the three giants in the global mobile phone industry, and they are in strong competition with each other. The reason why the three companies put aside their differences and quickly reached a consensus on the idea of ​​taking action against Qualcomm is mainly because the three companies have already entered the second stage.

The main contradiction does not come from the consumer market, but from the oppression on the supply chain and from the plunder of the mobile phone industry by chips!

Therefore, although the three companies have their own ulterior motives this time, their ultimate goal is the same.

This creates the prerequisite for cooperation.

Zhou Buqi was very happy when he saw that he was finally going to drag Apple into this. He quickly made a long-distance call to China and called Secretary Xu who was in the core power circle. "Secretary Xu, I'm Zhou Buqi. Excuse me... Haha, well, I'm on vacation and I have something to ask you."

Secretary Xu smiled and said, "Is it about the new energy vehicle industry and the smartphone industry?"

Zhou Buqi smiled and said, "Yes."

Secretary Xu said politely, "Mr. Zhou is truly an outstanding entrepreneur. Even when he is on vacation, he never forgets about work."

Zhou Buqi sighed, "I dare not forget. Behind hundreds of thousands of employees are hundreds of thousands of families. If I relax a little bit, it will be passed down layer by layer, which may cause thousands of grassroots employees to be laid off. I dare not rest for a moment!"

Secretary Xu said: "Mr. Zhou is truly a model entrepreneur."

"Okay, let's not talk about this anymore." Zhou Buqi smiled modestly, and was immersed in the beauty's tenderness. He almost forgot about work. "How is the matter I mentioned? Have the leaders decided?"

Secretary Xu hesitated for a moment, but still said bluntly: "Well, basically a consensus has been reached. I estimate that there will be an official statement within a few days."

"Oh? How about it?"

Zhou Buqi was very happy and was never disappointed with the efficiency of domestic decision-making.

Secretary Xu seemed a little embarrassed, "Mr. Zhou, there are some things that may not be guaranteed to be done."

Zhou Buqi didn't care, "It's okay, I can accept it!"

"It has been decided to promote the development of the new energy vehicle industry and elevate it to a major national strategy. President Zhou's proposals have been widely recognized by all sectors of society." Secretary Xu half-truthfully echoed, "President Zhou's contribution is huge, and we all see it."

Zhou Buqi smiled and said, "It should be!"

"But..." Secretary Xu was a little embarrassed, "But there is one request that was not passed. You said you wanted to break the convention and let Tesla build a wholly-owned factory in China, but this proposal was still not passed. Many people do not want to break this convention. If Tesla is allowed to build a wholly-owned factory in China, I am worried that it will form a bloodbath trend for domestic car companies."

Zhou Buqi said openly: "I accept it! However, I still have to say that if Tesla had not come to China, the development of the domestic new energy vehicle industry might have taken a long detour. Also, I don't think Tesla can cause a bloodbath in the domestic automobile industry. There may be pain in the short term, but in the long run, the benefits will definitely outweigh the disadvantages. As long as the market is opened up and domestic private forces are actively involved, those traditional car companies will definitely not be Tesla's opponents, but our private forces can completely stop Tesla! Just like the domestic Internet industry and mobile phone industry are fully qualified to compete with international technology giants."

Secretary Xu said regretfully: "Mr. Zhou, you know, I am only responsible for notification."

Zhou Buqi smiled and said, "I know. It doesn't matter. If Tesla cannot come to China, there are other options. What about the mobile phone industry? What I am most concerned about now is the antitrust investigation of Qualcomm, which is related to the survival of the domestic mobile phone industry."

"Approved. The corresponding investigation team has been launched. There will be a formal official announcement in three days at most!"

Secretary Xu finally gave a gratifying response.

"it is good!"