Top of the Great Era

Chapter 2940 Sharing Risks

Even on the same production line, different batches of products will have different qualities.

This provides a choice for many suppliers.

Whoever gives more money has priority.

You can get a better batch.

Therefore, for mobile phone manufacturers like Xiaomi, which focuses on the ultimate cost-effectiveness and puts great pressure on suppliers in terms of purchasing prices, the batches of goods they get will definitely be poorer. On the surface, the two mobile phones use the same parts provided by the same supplier, but in fact there are big differences.

Generally speaking, Apple treats its suppliers the best.

Therefore, the spare parts that Apple gets from suppliers are often the best. Whichever supplier is included in the "Apple supply chain" sequence can expect to make big money!

Samsung is an exception.

Because Samsung also has its own mobile phones.

The displays currently produced by Samsung are divided into three categories.

The first category, the best batch, is supplied to Samsung’s own mobile phones.

For those who are slightly worse, apples are provided.

The worse ones are supplied to other mobile phone manufacturers including Asda.

This is still Samsung giving face.

Because Samsung's high-end screens are in short supply in the market, many manufacturers may not be able to buy them even if they want to. If they can't buy them, they can only buy high-end screens from LG or BOE, which will greatly reduce the product quality.

From this perspective, any mobile phone manufacturer except Samsung and Apple faces such strategic risks.

The company may face a supply crisis of Samsung's high-end screens at any time.

The reason why Apple does not face such strategic risks is not because it pays more, but because it has leverage over Samsung. The two sides reached a compromise and exchange after a series of patent wars.

In this regard, domestic mobile phone manufacturers are almost up to par.

Now Asda can get the screens and other spare parts it wants from Samsung with peace of mind because of the coordination between Zhou Buqi and Li Zairong, and Asda's promise that its self-developed chips will be outsourced to Samsung's wafer factory for foundry production.

This is soft power.

There is a gap between its hard power and that of Apple.

If Asda can have a number of core patents for OLED screens that the future OLED industry cannot avoid... then this is absolute hard power, and Samsung will no longer be able to cut off supplies to Asda due to "supply and demand".

Astar will not engage in the display screen industry.

However, if Asda can own some core patents of OLED screens, it can form a certain constraint on Samsung Display and greatly reduce its own strategic risks. In the past, the leading domestic mobile phone brands Huawei, Xiaomi, and vivo have not been able to solve this dilemma and are all struggling to supply Samsung.

Boss Zhou doesn't want this situation to happen to him.

Zhou Buqi said: "It's very risky to enter the market now."

Zhou Shaoning said in a deep voice: "Well, it's very big! This will not only distract us, but also put us at great risk." Zhou Buqi smiled and said, "It's good that the risk is big!"

"Ah?" Zhou Shaoning frowned, thinking that Boss Zhou always plays by his own rules. "The risk of such industrial transformation should be borne by the companies engaged in this industry, and has nothing to do with Astar."

"What kind of talk is that?" Zhou Buqi was very dissatisfied. "Isn't this a typical employee's mentality? Is this how you usually educate your employees?"

Zhou Shaoning said frankly: "The thinking of workers is normal. They don't care about things that don't concern them and are self-centered. People live for themselves, not for a company or a group. Our pre-job training that teaches employees to regard the company as their home and the group as their pride, and to determine their personal behavior based on the company's position is, to be honest, brainwashing young people."

Zhou Buqi burst into laughter.

I think the criticism is correct.

Zhou Shaoning said: "I think the training of young employees should come from the unity of the company and the individual's understanding, so as to maximize the creativity of employees, which is especially important for design and technical talents. If the employees and the company are unified by brainwashing, even if they are truly unified, their thinking will be rigid and it will be difficult to be innovative. No one among the technology giants in Silicon Valley dares to do this."

"So the operating costs of Silicon Valley giants remain high. This is the most executive and efficient management method that has been proven in practice." Zhou Buqi waved his hand and said, "I didn't tell you about the company's management strategy. Now I'm talking about the opportunity of OLED screens!"

Zhou Shaoning said: "At present, even the most professional people find it difficult to evaluate the usability of OLED screens. LCD screens have one advantage, that is, large and small screens can be switched at will, which is very friendly to display manufacturers. But OLED screens are not so good, they are too thin and too weak. Small screens are okay, but if they are supplied to computers and TVs, the stability will only be worse. For now, this is a very risky track."

In the past, the display screens of televisions, computers, tablets, and mobile phones were all the same, LCD screens, with the only difference being size.

The more it is used, the more mature the technology will be and the lower the cost will be.

The technical characteristics of OLED screens mean that they are difficult to popularize on large screens.

Even if it is really done, it can only be used on mobile phones.

  How much does this cost?

Zhou Buqi said: "It is because of the high risk that it is easier to enter the market! If this track is determined, not to mention what the price of related patents will be, once the market understands it, will the EU still approve the sale of such patents?"

"It really is."

Zhou Shaoning nodded.

Now that no one understands OLED, buying OLED screen related patents at this time will encounter fewer obstacles and lower prices. If this industry really develops in the future, let alone higher prices, it may be difficult to buy even at a high price.

Zhou Buqi said: "Now, Samsung is the only company targeting the OLED market, right?"

Zhou Shaoning smiled and said, "That's not true. Several other display manufacturers also have this intention. However, Samsung is the only one that has the real strength."

  Zhou Buqi waved his hand, "That's right! Samsung is a giant in the display industry, fighting with LG every day. Samsung and LG together have monopolized the world's LCD panel market! Whether in Europe or the United States, I believe they don't want to see the display market being monopolized by Koreans!" (Liquid crystal screen is LCD screen. LCD TV refers to TVs with LCD screens.)

"Ah."

"Now, Samsung is consolidating the market, but it has no competitors. Isn't that letting it do whatever it wants? The EU certainly doesn't want to see Samsung dominate the market, but it has no other choice. If even LG doesn't stand up to compete, no one will be qualified to compete with Samsung. If Estar stands up and is put on the EU's decision-making table, who will they prefer? The same goes for the Americans!"

“And the United States?”

Zhou Shaoning took a deep breath and knew that Boss Zhou would not be so ambitious and would not be satisfied with just this German startup OLED screen company.

Zhou Buqi said: "Since we have done it, don't miss it. Take out 10 billion US dollars to pave the way for the future strategic stability of Asda! No one wants to see a market monopoly. If Samsung is the only one in the market to integrate the patent market, no one wants this situation to happen. Isn't it another Qualcomm? If the OLED screen fails, it will be fine. If it succeeds, Samsung will be the only one in power and lawless. Selling the patent to Asda can at least form a competitive relationship and constrain Samsung. In this matter, I believe that any institution and regulatory department will be more inclined to Asda! Qualcomm has already slaughtered Europe, and the EU is definitely unwilling to cultivate another Qualcomm."

"Of course..." Zhou Shaoning certainly knew the various benefits that would come from entering the market now. "Everything else is fine, but the most worrying thing is actually the risk. Maybe when Samsung sees that Estar has entered the market, Li Zairong will be so grateful that he will treat you to a meal! You really helped him a lot and helped him share the risk!"

Zhou Buqi laughed, "Okay, very good! Li Zairong and I have a good relationship, we are both real buddies. How can we let him bear the risks of the industry alone? I will do him a favor. When I go to Korea, I will ask him to make arrangements for me and entertain me well!"