Media Tycoon since 1999

Chapter 538 To make a mobile phone, there is plenty of money
At 12:31 am on December 9, Gao Yang took Xu Xin and Lin Yunjiao to meet the founder of Huawei Company, the 63-year-old Ren Zhengfei for the first time.

Gao Yang shook Ren Zhengfei's hand, very excited: "Mr. Ren, I'm really sorry to disturb you during the New Year's Day holiday. Thank you very much for giving me this opportunity."

Ren Zhengfei smiled heartily: "Please sit down. For your sake, my ex-wife Meng Lijun called me, and your father-in-law, Mayor Wu, also called me himself. I don't even have to see you."

Gao Yang asked in surprise, "Mr. Ren, do you know my father-in-law?"

Ren Zhengfei said: "I don't know him, but I have worked in Jinyang for more than ten years. Mr. Wu was the leader of the city at that time. I have seen him visit our research institute. Mr. Wu is very respected by the people of Jinyang. of.

I heard that you are going to invest heavily in mobile phone projects, and are you still interested in Huawei's mobile phone business? "

Gao Yangdao: "Our 51 Group is planning to invest in smart phone projects in the Shudu High-tech Zone to build our own brand. Today, we are meeting with Mr. Ren. First, we are looking for cooperation with Huawei, and second, we want to ask Mr. Ren for advice."

Ren Zhengfei asked curiously, "You want to cooperate with Huawei, how can you cooperate?"

Gao Yang said: "Mr. Ren, on the smartphone project, I would like to implore Huawei to cooperate with 51 Group in an all-round way, invest together, and jointly expand this project to a world-class level."

Ren Zhengfei laughed: "Smartphones are not so easy to make, where does your confidence come from?"

Gao Yang took out two mobile phones from the bag, both of which are the latest version iPhone3G:

"Mr. Ren, of these two 3G iPhones, one is the original version of Apple. The system flashed into this one is the open source operating system Android, which is used for testing.

Android is a start-up company in Silicon Valley. A friend and I have invested in it for 3 years and own 60% of the shares.

The android company spent more than two years developing this smartphone operating system, which has been released in the United States for several months, and is currently cooperating with several telecom operators on customized models.

The experience of using android is no worse than that of iOS on the iPhone. We also firmly believe that the open source system has great development potential and is even expected to become the mainstream of the market.

The android company will invest in the establishment of a Huaxia R&D center in Shudu this year to develop a Chinese version and focus on serving the Chinese market. It plans to start from the Chinese market and seek cooperation from global mainstream brand mobile phone manufacturers.

We have an android system, as well as funds and some joint investors, as well as the strong support of Shudu and even Shuchuan government.

Now, the key lack is technology and talents in hardware R&D and design, so we hope to cooperate with Huawei.

Huawei is an excellent telecommunications and network equipment technology company with strong research and development capabilities.

If Huawei can deeply participate in this project and invest resources, the probability of success will be very high..."

Ren Zhengfei listened carefully to Gao Yang's introduction, then tried the test version of the English version of Android, and suddenly asked: "Mr. Gao, how old are you today?"

Gao Yang said: "Mr. Ren, I am 34 years old. You are the entrepreneur I admire the most, and you are also an elder. You can just call me Xiao Gao."

Ren Zhengfei smiled slightly: "34 years old, so young, how many years have you started your business?"

Gao Yang briefly talked about how he went to Beijing to work as an IT reporter in 99, founded Jiaoyang Company in 2002, and then successively invested in Internet projects, developing into 51 Group, which now employs more than [-] people.

Ren Zhengfei asked again: "How much revenue does 51 Group have now?"

Gao Yangdao: "The 51 Group currently has more than a dozen holding subsidiaries and hundreds of sub-companies. The revenue scale is not large. Last year it was expected to just exceed 30 billion."

Ren Zhengfei asked again: "Then you plan to invest in the smartphone project. Where will the funds come from? Do you rely on financing or bank loans?"

Gao Yang decided to tell the truth: "We all have our own funds. The current debt ratio of 51 Group is very low, and it holds hundreds of billions of cash."

Ren Zhengfei was startled: "Do you have hundreds of billions of funds, or do you have your own funds?"

Gao Yang said: "Yes, Mr. Ren, didn't A-shares just go through a super bull market? We invested heavily in A-shares in 2005. In two or three years, the profit has been dozens of times.

This is a highly commercial secret, and only shareholders and some senior executives in our company know about it.

I am telling Mr. Ren now to show that we have sufficient capital to invest in mobile phone projects. "

Ren Zhengfei looked at Gao Yang, was silent for a moment, then sighed:
"Huawei Company has 1000 to [-] employees. After two or three years of hard work, they still can't earn [-] billion. Then tell me, how do you plan the smartphone project, and what are your medium and long-term goals?"

Gao Yangdao: "Now we only have a general plan. The goal is to become a world-class smartphone brand. In the early stage, we plan to benchmark against Apple, develop and produce high-end models, and then gradually develop mid-to-low-end models.

Establish a brand image with high-end models, guarantee project operating profits, and increase market share with low-end models. "

Ren Zhengfei asked again: "According to your idea, how to cooperate with Huawei?"

Gao Yang said: "Mr. Ren, we hope that Huawei, 51 Group, and other investors will form a joint venture to form this company. 51 Group will have absolute control. Huawei can invest part of the capital, and then inject the current mobile phone business as a whole. This company.

Huawei can account for about 30% of the company's equity. We hope that Huawei will invest more resources in R&D and design cooperation, including introducing a group of excellent project management talents.

With the advent of the mobile Internet era, after the large-scale commercial use of 3G, smart phones will be popularized rapidly. If this project develops smoothly, it is very hopeful that in a few years, it will reach a sales scale of 3000 billion to [-] billion.

Starting from the Chinese market, we can market globally and participate in global competition in the future. "

Ren Zhengfei shook his head and smiled: "You have lofty ideals and great ambitions, but Huawei's mobile phone business is currently weak, mainly providing value-added services for operators and making customized products.

This piece of business has made little contribution to Huawei, or even tasteless, and we are considering selling it.

If you want to invest in such a large project as a smart brand mobile phone and participate in global market competition, it is a huge system engineering and very complicated from R&D and design, internal management to marketing and so on. "

Gao Yang said: "Mr. Ren, I still think it's man-made. The 3G era is not far away. This is a great opportunity for domestic mobile phone brands to get rid of the backwardness.

51 Group can guarantee the capital investment required for the project. Huawei does not need to invest too much money, and it is no problem to invest mainly in technology.

In terms of technological research and development and innovation capabilities, I believe that there is no domestic technology company that can compare with Huawei.

Therefore, it still depends on Mr. Ren's willingness and determination to invest resources. Let's work together to make this project bigger and stronger.

The advantages of the 51 Group are firstly sufficient funds, secondly, the open source operating system of the Android company, and thirdly, the various Internet platforms of the 51 Group, which already have nearly 9 million user traffic.

This is a strong boost to our marketing of our own brand of consumer technology products.

In addition, the android company currently holds 30 billion US dollars in cash through investment in the US capital market, and there will be more in the future.

We plan to invest successively in the global smartphone industry chain through Android, such as investing in chip design companies like arm, chip production companies like Qualcomm, and even downstream chip foundry companies.

The goal of the android company is to establish an open source platform for extensive cooperation in the entire mobile phone industry chain, and to find alliance partners in the mobile phone industry chain.

The long-term goal of Android is to develop into a world-class Internet technology company like Google..."

Ren Zhengfei smiled and said: "Xiao Gao, if other young people talk about such a huge plan and such a huge goal in front of me, I will only think that he is talking too much.

Your Internet business is already successful and doing well, why take the risk of investing in the industry? "

(End of this chapter)