Reborn in 2011, 985 missing from two copies
Chapter 395: Long-term planning, working together to support BOE!
Chapter 395: Long-term planning, working together to support BOE!
Wang Yi modestly responded to Mr. Jia’s humble attitude: “Mr. Jia, thank you for your praise. I should have come to Hisense to study earlier.”
"Mr. Wang, you're too kind. Xingyi TV became an industry benchmark as soon as it was released. Hisense should learn from you!" Jia Siyi said with a smile.
"Haha, let's learn from each other and communicate."
"Yes, communication."
Wang Yi still admires Hisense very much.
There is no other reason, Hisense is called the Huawei of the TV field!
In 2005, Hisense developed the country's first high-definition TV processing main chip, "Hisense" VPE1X, filling the gap in TV chips.
With its strong self-research capabilities and product strength, Hisense's TVs are popular all over the world. Since 2004, it has always been the sales leader in China!
In his previous life, he was ranked first in the country for more than 20 years without ever losing.
But this time with Xingyi TV, this situation may change.
But what remains unchanged is Hisense's strength. Even if it loses the first place, it will still remain in second place.
Wang Yi had no doubt about this.
After some greetings, Jia Siyi took Wang Yi to visit Hisense's factory.
You can see that it is very professional.
Currently, many TV brands’ factories are still using old equipment and old production lines, but Hisense has already upgraded and put new equipment into production.
Wang Yi agreed with this.
Sharpening the knife does not delay the chopping of wood. Only by being willing to invest can there be output.
This is also the reason why Wang Yi would rather build his own factory than acquire an old factory from a competitor.
There is no other reason. The equipment and production lines of the old factory of the competitor are too backward. Most of them are used to produce ordinary LCD TVs, which cannot meet Wang Yi's demand for smart TVs.
Even if we acquire it, we still have to replace the new production line, which is time-consuming, labor-intensive and costly. It would be better to build a new factory directly.
Wang Yi would only consider it if it was a newly built TV factory like BYD, where all the equipment and production lines were first-class new equipment.
"Mr. Wang, as you can see, these Hisense smart TVs are all integrated with Xingyi Smart Home IOT modules and are all connected to Xingyi Smart Home. They are expected to be available on the market next month!"
Wang Yi nodded: "Thank you Hisense for supporting our Xingyi Smart Home. We are both in the island city. I hope we can cooperate more and jointly build a highland for the TV industry!"
"That's no problem!" Jia Sixie said with a smile, "We have placed an additional order with Xingyi Smart Home. From now on, all Hisense smart TVs will use Xingyi Technology's Bluetooth chips, WiFi chips, and smart home chips."
Jia Sixie understood clearly that except for the main chip for TV, Hisense did not develop other chips by itself, but bought them from anyone else.
Xingyi Technology’s chips have powerful performance, reasonable price, and also support Xingyi Smart Home!
Well, just buy Xingyi Technology directly to deepen the cooperation between the two parties and deepen the relationship with Mr. Wang.
"Okay, if Hisense has any needs, just let us know. Xingyi Smart Home and Xingyi Semiconductor will fully support you."
"Thank you, Mr. Wang. We do have a lot of cooperation to promote. For example, Hisense TV also needs film and television content, but Hisense does not make video platforms, so I plan to cooperate with Xingyi Video. In the future, Hisense will introduce all Xingyi Video!"
Wang Yi smiled. As he expected, this was Hisense’s olive branch:
"No problem. In this case, we will arrange a technical team to connect with Hisense and provide a complete solution."
"Okay, then how do you calculate the service fee? How much do we need to pay?" Jia Sixie asked the key question.
"Service fee? What service fee?" Wang Yi was stunned.
"Well, Hisense doesn't need to pay a technical service fee for introducing Xingyi Video?"
Wang Yi smiled and said, "No, there is no service fee. In addition, all Xingyi Video membership fees opened from Hisense TV terminals will receive 10% of the terminal commission from Hisense!"
"Huh? Not only do I not have to pay for the service, I can also get commissions? Is there such a good thing?" Jia Siyi was full of surprise.
He thought that Hisense would have to pay some service fees to Xingyi Video after introducing it, but it turned out that not only did he not have to pay any money, he could also get a 10% share of the profits!
What a pleasant surprise.
"Of course, Hisense is the first to fully support Xingyi Smart Home and Xingyi Video, so I will certainly not treat Hisense unfairly. Both Xingyi Video and Galaxy Video will give Hisense 10% of the profits!"
"Thank you, Mr. Wang, thank you!"
Jia Sixie was in a good mood, thinking: "If I had known that I didn't have to pay and could share the profits, I would have directly connected to Xingyi Video."
These days, the status of hardware manufacturers is still very low.
Like Xiaomi TV in its previous life, in order to provide video services, it spent a lot of money to invest in iQiyi and introduce iQiyi resources.
Now, Hisense has introduced Xingyi Video, and Wang Yi not only does not charge any money, but also gives him a 10% share of the profits.
There is no way, Wang Yi knows very well that whoever wins the users wins the world, whoever wins the terminals wins the world.
In 2012, video platforms did take a high-profile approach and provided customized video services to TV manufacturers, charging for them, but this was of little significance.
Just like navigation, if a mobile phone wants to have navigation, the mobile phone manufacturer has to pay for the navigation APP.
But later, navigation APP vendors spent money to beg mobile phone manufacturers to integrate navigation APP into their products in order to attract customers.
The same is true for the relationship between video platforms and TV manufacturers.
It is not worthwhile to offend or even lose a brand just to earn a temporary service fee.
It would be better to directly provide free services, offer technical support, snatch up major TV brands, share 10% of the profits, and lock in the cooperation between the two parties!
In this way, even if iQiyi, Youku and Tencent Video also follow up on Xingyi Video, even free services will be useless, as TV manufacturers such as Hisense have already firmly reached cooperation with Xingyi Technology.
Of course, just in case, Wang Yi still kept a trick up his sleeve:
"Mr. Jia, regarding the cooperation between Xingyi Video and Hisense, as long as Hisense signs an exclusive long-term cooperation agreement, we will not only waive the technical service fee, but also provide a 10% membership share."
"I see!" Jia Siyi was not surprised, but felt it was very reasonable:
"Mr. Wang, to be honest, I would find it unusual if you didn't make any demands for such a good policy. Now that Hisense needs to sign an exclusive long-term cooperation agreement, I feel relieved. There is no problem with this, it's all right."
This is true for all businessmen; mutual benefit is the basis.
If someone gave her something for nothing, Jia Siyi would feel uneasy.
Now he understood Wang Yi's operation. This was to compete with iQiyi, Youku and Tencent for TV manufacturers and users.
This is free of service fees + commissions.
In addition, the conditions were too favorable and there was no better choice, so I just accepted it.
On the same day, the two parties signed a strategic cooperation agreement.
At noon, we even had lunch together.
"Mr. Wang, I toast to you. I wish Hisense and Xingyi Technology will join forces and become bigger and stronger!"
"No problem, cheers!" Wang Yi drank it all in one gulp.
Hisense’s current market value is very low, with its A-share market value being only 45 billion, and its Hong Kong stocks being even worse, with only a few billion Hong Kong dollars.
Even after many years, its market value is only 30 to 40 billion RMB, which is about one-seventh of Haier.
The reason is that Hisense does not know how to tell stories or paint a rosy picture for investors, so investors are naturally unwilling to invest.
So much so that ten years later, Hisense had a revenue of more than 80 billion yuan, but a market value of only more than 30 billion yuan.
It can be said that, whether now or in the future, Hisense's scale is far smaller than Haier, but the advantage is that it is easier to control.
Even if you invest billions in Haier, you still can't own much shares.
But having invested more than one billion yuan in Hisense, he is now the largest shareholder.
And Hisense also makes televisions and other home appliances.
Once Wang Yi invests, the first and second in the entire TV market will be owned by his family, and all the profits will be rotten in the pot.
In the fields of TV chips, screens, etc., we can also cooperate deeply and conduct joint research and development.
Hisense's TV chip technology and screen technology are both good.
The reason why the market value was not high in the previous life was not only because it didn’t know how to tell a story, but also because it added the wrong points.
TCL has CSOT, which is developing well.
However, Hisense did not invest in upstream screen suppliers, but instead focused on laser TVs, which was somewhat a misstep.
Before 2020, a -inch giant screen TV cost tens of thousands of yuan. With its price advantage, laser TV allows users to enjoy a -inch giant screen for more than yuan, and there is still room for survival.
Later, the price of a 100-inch giant-screen TV dropped to around 10,000 yuan, so there was not much room for laser TV to survive.
After all, in terms of display effect and ease of use, laser TV is far inferior to 100-inch giant-screen TV.
If Wang Yi invests in Hisense, the two parties can jointly invest in screen suppliers such as BOE.
The first and second giants in the television field work together to support BOE, so there is no need to worry about BOE's failure.
However, it is hard to say whether this will succeed. After all, Hisense, like Haier and Tsingtao Beer, is a state-owned enterprise, backed by the island city’s State-owned Assets Supervision and Administration Commission.
When it comes to the State-owned Assets Supervision and Administration Commission, investing is not so easy, and controlling the company is even more difficult.
Moreover, Hisense is a listed company, and there is a conflict between the main business of Xingyi Technology and Hisense. These have to be weighed comprehensively.
But it doesn’t matter. If you can invest, then invest. If you can’t invest, then you can cooperate.
It would be perfect if we could get Hisense, or even the State-owned Assets Supervision and Administration Commission of the island city, to invest in BOE, and let BOE build a TV screen factory in the island city to specifically serve Xingyi TV and Hisense!
Wang Yi simply said: "I am still very optimistic about Hisense. If Hisense needs it and if conditions permit, Xingyi Technology can consider investing!"
Jia Siyi was delighted, and completely understood what Wang Yi meant. He immediately raised his glass and said, "Mr. Wang, I toast you again!"
It's all in the wine.
Jia Sixie made up his mind and immediately convened a board meeting to discuss the matter!
We also need to sound out the State-owned Assets Supervision and Administration Commission of the island city.
Hope it works.
Seeing Mr. Jia's serious attitude, Wang Yi said with a smile:
"Don't feel pressured. Even if the investment fails, we can still have strategic cooperation. We can have in-depth cooperation in the fields of TV chips and TV screens. Now the screens are all imported, but in the future, domestically produced screens will rise and all screens will be made in China!"
“All the screens are made in China!” Jia Sixie was shocked. This was something that was unthinkable in 2012!
Not to mention 2012, even five years later it would be unbelievable.
Otherwise, Lei Jun would not have flown to South Korea to apologize and drink wine for Samsung screens...
Once domestic screens have achieved comprehensive breakthroughs and become first-tier screens, all flagship screens will be domestically produced. By then, Samsung's top executives will have to come to China and drink three cups of wine to punish themselves, begging for purchases.
The essence of attack and defense still depends on whether self-research and self-production can make breakthroughs.
"Mr. Wang, will there be such a day?" Jia Siyi couldn't help but ask.
Wang Yi nodded: "Of course there will be."
"So when will that day be?"
"It depends on our support. If we don't like domestic screens and are too lazy to buy them, it may take ten years. If we actively support domestic screens and purchase a large number of domestic screens for low-end and mid-range TVs, it may take six or seven years. If we not only purchase domestic screens, but also actively invest in domestic screen manufacturers, it may take three to five years to achieve that day."
"I understand!" Jia Siyi nodded: "Don't worry, Mr. Wang, Hisense will give priority to purchasing domestic screen manufacturers for its low-end series TVs in the future."
Wang Yi picked up his glass and said, "Let's work together to improve domestic screen quality. In the future, we will no longer be afraid of being strangled by Europe, America, Japan and South Korea and being overpriced."
"Okay!" Jia Siyi drank it all in one gulp: "Director Wang, do you have any targets? Or companies you would like to recommend?"
"To be honest, I am more optimistic about BOE."
Wang Yi stopped here, but Mr. Jia understood everything and thought: "Mr. Wang might invest in BOE, and Hisense can also be contacted." Previously, Wang Yi asked Zhu Changlin to inspect several screen factories in the mainland, and finally Wang Yi chose BOE.
The two parties are currently negotiating. Once the deal is reached, Wang Yi will go there to invest and sign the contract.
The borderless mobile phone that will be launched next year will be equipped with BOE's LCD screen.
These days, LCD screens dominate the market.
As for OLED screens, they are not mature yet. Even Samsung's Super AMOLED screens are rubbish.
Not to mention it's rubbish now, it will also be rubbish in three or four years, far inferior to the top LCD screens.
The reason why everyone praised Samsung's A screen in the past was simply because Samsung had good marketing.
Just like Japan’s spirit of craftsmanship, it’s all boasting, but in fact it’s nothing more than the spirit of hard work!
The simplest thing is that the Pentile sub-pixel row of the Samsung A screen is destined to have serious graininess at 1080P and its clarity is far inferior to that of the LCD screen.
No 2K, no A-screen.
It was not until 2016 when Samsung S6 launched the 2K A screen that the clarity problem was corrected.
However, the clarity of the 2K A-screen is sufficient, but a series of problems such as power consumption, heat, GPU overload, mobile phone lag, and low game frame rate all appear!
The actual experience effect is not as good as 1080P.
It can be said that before the chip technology reaches a certain level, 2K screens are just gimmicks and flashy.
As long as the 2K screen is not mature, the OLED screen is garbage. Not only is the graininess serious, it is also harmful to the eyes.
Therefore, in the next few years, Xingyi mobile phones will focus on LCD screens.
Wang Yi will only consider OLED many years later when the mobile phone chip manufacturing process is improved, performance is enhanced, power consumption is optimized, and 2K screens are fully mature.
Before that, all series will be 1080P LCD.
Putting practicality and fluency first, Wang Yi will not force 2K just for the sake of publicity.
After all, the previous Meizu mx4pro was forced to go up to 2K, the experience was as bad as it could be, the battery life was as bad as it could be, and it had to be charged several times a day. After using countless kerosene, I became a passerby...
That night, the strategic cooperation between Hisense and Xingyi Technology had not yet been made public, but friendly competitors in the industry all knew the news first.
There are no secrets in the circle.
All of a sudden, other TV manufacturers also began to consider this matter.
TCL headquarters.
"Chairman, Hisense has reached a cooperation with Xingyi Technology, connected to Xingyi Smart Home, and introduced Xingyi Video. What should we do? Introduce iQiyi? Or Tencent Video?"
The chairman thought for a while and said: "Neither is a good choice. Hisense chose Xingyi Technology, so we should also choose Xingyi Technology."
"Why? Isn't Hisense our rival? Shouldn't we choose the opposite side?"
The chairman sighed, "Hisense is our rival, but Xingyi Technology is not. More importantly, with the help of Xingyi Technology, Hisense will definitely go further. If TCL wants to keep up with the times, it can only connect to Xingyi Video. Do you really think that the resources of iQiyi, Youku and Tencent Video can compare with Xingyi Video?"
"That's... true. Besides, Xingyi Video doesn't charge service fees and gives profit sharing to manufacturers and members. It's the most conscientious. Then should I contact Xingyi Technology?"
"Well, let's get in touch. And our cooperation with Xingyi Technology can also prove that it was not us who hired Internet trolls to discredit Xingyi TV. If we cooperate with Baidu, it will be hard to explain."
"I see, I've learned a lesson."
After some discussions, Skyworth and Konka came to the same conclusion.
After all, compared to iQiyi, Youku and Tencent Video, Xingyi Video is obviously more powerful, and it also has Xingyi Smart Home, free service fees and membership fee sharing, and there is also the promising Xingyi Technology behind it...
If there were only one or two advantages, major manufacturers might still hesitate.
But with so many advantages, there is nothing to hesitate about.
So the next day, senior executives from Skyworth, TCL and Konka came to Xingyi Technology to seek cooperation.
However, at this time, Wang Yi had already boarded the plane and flew directly to Shenzhen Stock Exchange.
As for the cooperation with several major manufacturers, Song Sining will handle it.
After landing in Shenzhen, BYD had already arranged to pick us up at the airport.
On the way, Wang Yi took out his mobile phone to check the sales volume.
Yesterday, Xingyi TV sold another 25 units, with sales of 65 units in two days, and basically all stocks were sold out.
Wang Yi was helpless; after all, Xingyi TV’s stockpiled goods did not last for three days.
However, after the hot sales in the first two days, subsequent sales will continue to slow down, and eventually maintain at 30,000 to 40,000 units per day for a single model, adding up to 60,000 to 70,000 units per day.
In this way, the Xingyi TV factory produces 30,000 units per day, and BYD also produces 30,000 units, which totals 60,000 units, basically meeting the demand.
If the subsequent sales volume remains terrifying, with more than 100,000 units sold per day, plus BYD, there is still a shortfall in production capacity of one million units per month, which will be a difficult problem.
The only solution is to change to a three-shift system and not stop the machines even if the workers are stopped.
The current monthly sales of 12 units are calculated based on the assumption that the machines run hours a day under normal circumstances.
After all, workers can’t stand working night shifts every day.
The equipment can no longer cope with the 007 operation every day.
Therefore, most TV factories now operate 12 hours a day.
But now that the orders have exploded, the Xingyi TV factory is working in three shifts, running 24 hours a day, and there is nothing we can do about it.
In this way, the production capacity will double to 60,000 units per day.
If the BYD factory also operates in three shifts, it can also produce 60,000 units per day.
Adding both sides together, the daily output is 12 units, which can meet the current market demand to the greatest extent.
When sales slow down, we can change to 12-hour operation later.
It is impossible to operate 24 hours a day unless it is a fully automated dark factory!
Otherwise, no one can stand working the night shift every two days.
However, it is not easy to make a fully automated production line, and Wang Yi has to invest money in research and development.
Afterwards, Wang Yi looked at the sales volume of routers.
However, to Wang Yi's surprise, the sales of Xingyi routers also exploded.
On the first day, sales of the two routers exceeded 500,000 units.
The next day, sales exceeded 300,000 units.
In two days, 800,000 routers were sold, 60% of which were sold offline.
After all, Xingyi + Meiyu + Zhenyu have more than 10,000 physical stores and more than 10,000 China Unicom business halls, and all of them are on sale.
China Unicom will not reject such a profitable product.
But such horrific sales volume still exceeded Wang Yi's expectations and was completely unreasonable.
After some searching, Wang Yi found the problem, which was still the sodium salt.
I tested the Xingyi TV on the first day and the Xingyi router on the second day.
Wang Yi turned on the sodium salt router for testing:
"Hello everyone, I'm Sodium Salt. Today, I'm testing the Xingyi router!"
"Our current internet speed is 20M, and when we plug in the network cable for testing, it can reach about 18M."
"Using the old wifi4 router, which only supports the 2.4g frequency band, the network speed can reach about 6M."
"This data is not ideal, but it is normal. The interference of 2.4G is serious. There is nothing we can do about it."
"Let's replace the Xingyi router A500, restart it, and test it again."
"In the 2.4G frequency band, the A500 ran at 12M, which is a relatively good level."
"In the 5G frequency band, A500 reached... Oh my god, 15M, 17M, 18M!"
"It can be seen that with the same internet speed, the wifi5 router can run three times faster than wifi4."
"As for the reason, it is precisely because the 5G frequency band of WiFi5 has strong anti-interference ability, wide bandwidth, and naturally fast transmission."
"Some people also say that 5G has poor wall penetration capabilities. Let's test it through a wall."
"The 5G frequency band is not good at penetrating walls, and the signal is one bar less, but it can still reach 7M."
"2.4G has a strong ability to penetrate walls, and the signal is intact, but the network speed is only 5M."
“The conclusion is that even if there is a wall between us and the 5G frequency band is severely depleted, it is still faster than 2.4G!”
“Isn’t this result incredible?”
"The reason is simple. 2.4G has poor anti-interference capabilities and a low upper limit. Even if there is a wall between them, the 5G network speed will still be higher than the upper limit of 2.4G."
"The conclusion is here. Xingyi router A500 supports wifi5 dual-band and can significantly improve the network speed. I recommend buying it!"
……
As soon as this review came out, users who were originally hesitant began to rush to buy it.
A999 sprints directly to 500!
Wang Yi laughed: "No wonder the routers are selling so well. It turns out that it was this guy Sodium Salt who reviewed them and made them popular!"
However, there is no pressure on routers. Xingyi Smart Home has many factories and production capacity, so we just need to continue to add production lines.
The only problem is, Xingyi TV!
It seems that I have to be a black-hearted capitalist for once, forcing employees to work in two shifts for 24 hours, no, or three shifts, so that they can have more rest.
Thinking of this, Wang Yi sent a message to Xu Mingyi: [Xingyi TV Factory, 24-hour three-shift operation, no stopping even if people are on standby.]
Only in this way can the daily output reach 6 units.
Looking at the situation, if there is no other option, we can only ask Hisense to do the OEM.
Wang Yi had a plan in mind and stopped the car in front of the BYD TV factory.
Shopkeeper Wang had already been waiting at the door: "Boss Wang, this is our BYD TV factory. We invested 1 billion and currently have an annual production capacity of 10 million."
Wang Yi took a look and was very satisfied: "The equipment and factory buildings are all new and first-class, very good!"
Moreover, there is a lot of vacant space, so we can continue to add production lines.
Space is like water in a sponge, it will always come out if you squeeze it.
"Director Wang, we have found the workers and brought the R&D personnel here. The components have arrived and we can start work anytime."
(End of this chapter)
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