Top of the Great Era

Chapter 3183 Strategic Diversity

Zhou Shaoning was in a much better mood than the previous two days.

It turns out that it is not only Asda that has been punished, other mobile phone manufacturers have also been sued by Ericsson. And the location was chosen in South Korea. It seems that Ericsson has not only reached a cooperation with Qualcomm, but also had some exchanges with the Indian authorities and reached a certain agreement.

India now wants to promote "Make in India" and boost the development of the domestic mobile phone industry.

Qualcomm and Ericsson are indeed hurdles that cannot be avoided.

Zhou Shaoning sneered at this and even mocked it. "Qualcomm and Ericsson can achieve their goals, but India is not so good. With India's level, even if mobile phone manufacturing is a very low-end industry, they can't take it over!"

Zhou Buqi laughed and said, "It's not the first time that India has been fooled by Western countries. Even Russia, with its level, can fool India."

Zhou Shaoning said: "In terms of the top level of scientific research in the mobile phone industry, India is definitely not worse than China, but science and technology are just a part of the mobile phone industry, not the key link."

"The icing on the cake?"

Zhou Buqi glanced at him.

This is obviously different from the mainstream view in China. The current trend in China is that research and development is the most important thing in the science and technology industry. People are calling on the public to actively participate in scientific research and children to develop the dream of becoming a scientist from an early age.

Zhou Shaoning gave his own explanation, "China cares so much about scientific research because the domestic IT industry has become an excellent student, having developed from 0 points to 90 points. If you want to improve from 90 points to 100 points, you can only grit your teeth and tackle the technology. India is not good enough, and it doesn't even reach the passing line. Just like an exam, the most important thing is to lay a good foundation and do the simple questions in the front correctly. This is the guarantee. India may be able to do well in the last big question, but the simple questions in the front are a mess, so the score cannot be raised."

Zhou Buqi nodded, thinking that what he said made sense. "There are similarities in many aspects in China. Many people saw that Beijing, Shanghai, Guangzhou and Shenzhen have developed better than New York and London, so they really thought that we have surpassed the old imperialist countries."

"At least we have developed." Zhou Shaoning stretched and looked relaxed. "It's still too early for India! Their traditional concepts are more deeply rooted than those in China. The lower the level, the more serious the traditional concepts. The traditional concepts in China are benevolence, righteousness, propriety, wisdom and trustworthiness, loyalty to the emperor, patriotism, fatherly kindness and filial piety. At least there is room for integration with modern civilization. India is far behind. Their traditional set is in sharp conflict with modern civilization."

Zhou Buqi smiled and said, "Looking at you like this, do you think the Ericsson issue can be resolved?"

"Uh..." Zhou Shaoning was embarrassed. "Samsung's Li Zairong has also been eyeing this matter. It seems that they also want to resolve this matter as soon as possible."

Zhou Buqi nodded and said, "That's for sure. How many mobile phones with self-developed chips did Samsung ship last year?"

Zhou Shaoning said: "35%, that's 1 million units."

"That's right, this is a bigger blow to them! Chips are a business that Samsung cannot avoid. They are also investing heavily in building factories in the United States, trying to learn from Apple and compete head-on with Qualcomm in this field!"

Zhou Buqi heard about some big moves Samsung was making in the United States.

I also feel that Koreans are very ambitious.

It's even a bit impractical.

Apple can fight against Qualcomm because it is an American company.

Why Samsung?
Do you really think that Qualcomm's dominance in the semiconductor field is entirely due to its own strength? Apple and Qualcomm are both close friends of the United States, and if Samsung, an outsider, rushes in, it will be an eyesore.

Zhou Buqi was very cautious in this regard.

I think Samsung's strategy is high-risk and low-return, and it is hard to say it is correct.

Zhou Shaoning said: "It seems that Li Zairong came here this time to pull Estar together to form a mobile phone manufacturer alliance to fight against the intellectual property alliance behind Qualcomm. Otherwise, a single mobile phone manufacturer will lack bargaining power in front of Ericsson."

Zhou Buqi was a little worried, "Is this okay? Be careful or you'll be punished!"

Price alliance is actually a monopoly, which uses the monopoly market position to gain profit in negotiations.

Zhou Buqi said: "Qualcomm can do this because it has always been very aggressive and has always walked a tightrope on the edge of monopoly. They have the most powerful legal team to deal with similar matters. Another point is that the patent alliance led by Qualcomm has indeed used its monopoly advantage to lower patent prices, but for the majority of patent manufacturers, this is actually a good thing. It allows them to rely on Qualcomm's product platform and collect money with peace of mind."

"I do have this concern, but that's not what I'm worried about." Zhou Shaoning pondered, "We develop our own chips to reduce product costs. If the cost of self-developed chips is higher, then there is no point."

“Will it cost more?”

Zhou Buqi was slightly startled.

Zhou Shaoning said: "I am referring to the Indian market. The strategy of developing its own chips or MediaTek chips may not be cost-effective for Asda's current situation. If it can avoid Ericsson's patents and delay for a long time... Ericsson will definitely choose to compromise in the end."

Zhou Buqi laughed, "So confident?"

Zhou Shaoning smiled and said, "You planned it well. We have a strategic advantage. Tactically, it's not impossible to admit defeat. From a long-term strategic perspective, Ericsson is the weaker party."

What is strategy?
Strategy is about options.

The right to choose is that Aistar's mobile phones can choose Qualcomm chipsets, MediaTek and self-developed chips. The direction of MediaTek and self-developed chips seems to be curbed by Ericsson's use of intellectual property rights, but Aistar still has Qualcomm chips to choose.

With Qualcomm chips, Astar can still maintain a profit margin of around 10%.

You can still make a lot of money.

Strategic diversity ensures the long-term and stable development of ASD.

Ericsson can't do that.

They have no choice.

Even always in a passive state.

Ericsson can only rely on patent licensing to collect fees. Whether it can collect patent fees... depends on whether the mobile phone manufacturers are willing to cooperate.

"Huh?" Zhou Buqi was a little surprised, "Refusing to pay the patent fee?"

Zhou Shaoning snorted, "No manufacturer will accept this kind of price now! Humph! I used to work for a communications company in the United States, and I know how their patent charging model is designed. It's a jerk! They are just taking advantage of the big customers!"

"Eat the rich?"

"Yes, they can't afford to file intellectual property lawsuits against small manufacturers, so they simply give up products with a smaller market share and focus only on the big manufacturers. As long as they can take over the big manufacturers, they can recover the patent fees they lost to small and medium-sized manufacturers from the big manufacturers."

"what?"

Zhou Buqi understood it now.

Ericsson charged such a high intellectual property fee not only because Asda used their patents, but also because domestic mobile phone manufacturers did not pay patent fees to Ericsson, and Ericsson had no way to deal with them... As it happened, Asda went overseas and avoided the domestic legal protection strategy, which provided Ericsson with an opportunity to take advantage of it.

Now that we have seized the opportunity, we must not let it go wrong!
They designed a charging model.

All the intellectual property fees that Ericsson lost in the domestic market must be compensated by demanding excessively high patent fees from Estar!