Reborn Entrepreneurial Giant.

Chapter 157 Future-Proof Protocols

The development of Jumei is good, and the glory will not be bad. The negotiation with Qualcomm is coming to an end. After communication with Duolun, everyone basically reached an agreement:
In the next five years, Honor can only purchase Qualcomm chips. Unless there are major quality and safety risks, or with the permission of Qualcomm, it can use chips designed by other companies or itself in the low-end product line.

During the five-year period, Honor’s annual sales of mobile phones using Qualcomm chips will exceed 5000 million units. The patent licensing fee for all Honor’s mobile phone products will continue to purchase Qualcomm chips at a maximum of US$300. Even if the patent fee is charged at a rate of 5%, each mobile phone of Honor will Only need to pay 15 US dollars patent fee.However, if the annual sales volume of Honor mobile phones only reaches 3000 million units, it needs to be priced according to the maximum benchmark of US$500...

In addition, the IP authorization agreement for CDMA baseband chips can be automatically activated. This agreement can be extended for three years. The sales volume of mobile phones will increase by up to 1 million units, and the CDMA patent authorization fee will increase. If the standard is reached within 5 years, each mobile phone needs to pay $1, $6 for the 3th year, $7 for the 5th year, and $8 for the 7th year.

There are many other rules and restrictions. For example, the chip design company designated by Honor cannot be a major manufacturer such as Texas Instruments. In principle, it can only be used by Honor and its sub-brands. The fee standard pays additional patent fees and so on.

The whole agreement looks very outrageous. Although Qualcomm doesn't think Honor can do it, even if it does, it will still be beneficial to Qualcomm.Qu Li is of course more satisfied. Even if Honor meets the conditions stipulated in the contract in the eighth year, based on the subsequent 5% Qualcomm tax calculation, the patent fee of 7 US dollars is quite cost-effective, and 140% of 5 is 7.

Not to mention the specific details, but also signed the principle of non-discrimination and most-favored treatment to ensure that Honor's patent licensing fee is the lowest in the industry. It’s fine if Honor doesn’t meet the standard within 5 years. Once it resists pressure from Apple and other companies, its future achievements will be limitless.Perhaps the biggest rogue in the world, the United States, can only threaten Glory!
Qu Li came to Beijin, and the head of Qualcomm flew to Beijin at the same time. The two sides held a press conference and signed this far-reaching strategic cooperation agreement under the witness of reporters, basically opening up the markets of developed countries such as Europe, America, Japan and South Korea. .Of course, the details of the contract will not be announced, only that the Honor mobile phone will use Qualcomm chips.

If the benefits of cooperating with Qualcomm are not seen, the disadvantages will appear first, which means that the progress of the research and development of Honor's first full touch screen mobile phone will be greatly delayed, and the first half of this year will be out of the question.

The domestic media is very concerned about the cooperation between Honor and Qualcomm. In 2007, the sales volume of Honor mobile phones was less than 10 units. However, after the large-scale supply began in 2008, the global sales volume reached 50 units in the first quarter. It has the convenience of smart phones and touch screens. , and has a higher battery life than the iPhone, which is why many consumers choose Honor G1.It's just that the business-style design doesn't attract as many young people as the iPhone.

At this time, the international and domestic markets began to diverge, and the domestic demand for 3G versions grew even faster. Therefore, T-Mobile’s purchases were concentrated on the 3G version. There was no 3G network in China, but in 2008, mobile companies increased their purchases of Honor G1. Intensive efforts, the total number exceeds 30, and it has also received orders for 1 TD network test mobile phones.

The evaluation of Honor G1 in China is very high, and it is generally believed that this mobile phone has surpassed or reached the level of top flagship phones of international brands.In March this year, the official website of Honor USA released the first Android upgrade package, which improved the performance of Honor G3 in all aspects. This service that exceeded consumer expectations attracted the first batch of loyal fans for Honor.

Upgrade services have also been launched in China. You need to download the upgrade package first and upgrade with special software. Generally speaking, it is quite troublesome, but there are many geeks in the first batch of buyers, at least major domestic manufacturers have purchased a large number of them. .

Honor G1 has exceeded the expectations of domestic consumers, half a step ahead, and iPhone is one step ahead, so consumers have far more praise for Honor than the industry.

Although Qu Li attended the signing ceremony between Honor and Qualcomm, he did not actively answer the reporter's questions and handed over the scene to Zhou Shaoning.

"How long does it take for a company's revenue to go from zero to 20 billion, Honor's answer is 1 year."

"Honor's mobile phone sales in 2008 are expected to exceed 200 million units."

"With the rise of domestic high-end mobile phone brands, Honor's annual revenue may exceed 100 billion."

"Honor cooperates with Qualcomm, the international market is unimpeded..."

All kinds of soft articles are flying in the sky, and various media interpret the meaning of this cooperation.

Well, the news released by Honor and Qualcomm is very limited. The main thing is that Honor will purchase Qualcomm chips to provide mobile phones for operators of CDMA/CDMA2000 network standards.But because of the contract with T-Mobile, the Honor G1 obviously can't, it can only be the next one.

T-Mobile soon sent an inquiry letter, and Qu Li's reply was simple: Qualcomm is a nightmare that all mobile phone manufacturers cannot escape, and we have no choice.

Honor, which has no choice, is not in a hurry to expand its product line, but focuses on polishing high-quality mobile phones. This depends not only on mobile phone design capabilities, but also depends on supply chain companies. Unlike before, the success of the iPhone and Honor G1 was based on the name of Google. , There is also almost no reserved support from operators, making smartphones the direction of transformation for many mobile phone companies, and there are not many companies that are trying to become a smartphone supply chain...

Honor and Hutchison Whampoa officially launched cooperation negotiations. They want to introduce Honor 3G mobile phones to improve user data usage and earn more money from users.Not only Hutchison, but also operators in major developed markets around the world have sent invitations for cooperation.

The entire Glory company is filled with a relaxed and happy atmosphere. The international market department is developing rapidly, and the domestic market is not bad. Even China Telecom, which does not have a mobile phone license, has contacted Glory, let alone China Unicom. Making money is fun.It's a pity that Qu Li, as the leader, is calmer than them, not to mention predicting risks in advance.

"Global Smartphone Market Outlook!" Qu Li held a meeting at the headquarters of Honor Beijin, and the main directors of the International Business Department, Da Duo and Pavo, flew back to attend.

"Whether smartphones can eliminate feature phones is the choice of operators and consumers..." Qu Li outlined the future of smartphones in a few words, mainly talking about the challenges that Honor phones will encounter in the future.First of all, we must know that Honor is not Apple, and the global brand awareness is not high.

"Nokia, Motorola, HTC, especially Samsung, their supply chain integration capabilities are worse than ours. Honor just has the first-mover advantage. How long can this advantage last? How long will HTC's Android smartphone be released..."

"Maybe in two or three years, all mobile phone brands will use Qualcomm chips and Google's Android operating system. Where are our advantages?"

"I don't think much about it. The first thing is to improve product competitiveness. They launch ten products every six months, and we launch one product a year. Keep improving to ensure that Honor's mobile phones are world-class in terms of product design and manufacturing, hardware performance and user experience. It takes two or three years to establish brand influence, and then..."

"Then there is traditional advertising marketing, which provides consumers and operators with richer choices..."

"All of the above are symptoms, not the root cause. We must have differentiated competitive advantages. Mobile phone processors, operating systems, LCD screens, and camera capabilities are all fine. The cooperation with Qualcomm is based on this consideration, but we need time..."

"Because global operators need us, we will use the fastest speed to seize the market under the premise of ensuring quality and production capacity!" Qu Li ruthlessly poured cold water on the hot-blooded founder team. What are the current achievements? Be proud!

(End of this chapter)