Reborn in 2011, 985 missing from two copies

Chapter 515: The 999 borderless mobile phone has a profit of more than 700?

In the mobile phone industry, only giants with considerable profits such as Xingyi Technology and Apple can achieve stable settlement within two months.

Other brands usually have a settlement cycle of half a year, or even longer than half a year!
For some years, it may even be far away.

What about small businesses?

Not only do small businesses have no protection, they may go bankrupt at any time, and their small size makes them meaningless.

Therefore, for small businesses, suppliers will not sell on credit, and may even require cash advance payment.

Like Xiaomi at present, it is small in size and all payments must be made in advance.

In its previous life, Xiaomi became a giant with a large scale and started periodic settlement, and gave an ultra-short period of 45 days, which was considered the conscience of the industry.

But in return, Xiaomi will also minimize the profits of suppliers.

In a word, the settlement cycle is the shortest and the settlement is stable. You can definitely get the payment within 45 days, but the profit is also the lowest.

Even so, many suppliers are happy to do so.

As a supplier, we would rather make less money but have stable settlement and large orders.

Xiaomi's 45-day settlement cycle is shorter than Apple's, and its scale is also larger, settlement is stable, and its profit margin is low, so it can still make money by selling at a low profit margin and in large quantities.

It is much better than other companies, which have higher profits but longer settlement cycles and unstable settlements.

No matter how high the profit is, if you can’t get paid for the goods, you will lose money or even go bankrupt.

It is for this reason that Xiaomi has become the white moonlight of many suppliers, and many companies that were about to go bankrupt have been revived because of Xiaomi's large orders.

Similarly, Xiaomi uses its ultra-short settlement cycle of 45 days to get the lowest price, lower costs, focus on cost-effectiveness, and achieve a sales boom, thus realizing a virtuous cycle.

However, this time, due to the emergence of the Xingyi mobile phone, Xiaomi failed to develop and lost that kind of pattern and treatment.

Fortunately, Lei Jun and several partners are rich and can provide advance funding to maintain the research and development and production of Xiaomi mobile phones.

But the cost is high, and the sales volume is low, so in order to maintain profits, we have to sell at a high price.

For example, the price of Xiaomi 3 has increased directly from 1999 to 2999!

If small profits but quick turnover doesn't work, the only option is high profits but small turnover.

Apple takes another path. It is conscientious in its 60-day settlement cycle for the supply chain. It also gives suppliers a good profit margin so that they can make money. Moreover, its quality requirements are much higher than Xiaomi's.

If there is any defect, Xiaomi will tolerate it because of the low price.

But Apple cannot tolerate any grain of sand in its eyes, so it will just expel it and not use it anymore.

In the past, Intel's 4G baseband was obviously cheaper, and cooperating with Intel was also in line with Apple's interests in breaking Qualcomm's monopoly.

However, due to the poor performance of Intel's baseband and bad signal, Apple eventually gave up Intel's baseband and would rather pay a huge protection fee to Qualcomm and switch to Qualcomm baseband.

Xingyi Technology's attitude towards suppliers is similar to that of Apple.

It also has a 60-day settlement cycle and stable settlement, which allows suppliers to have a certain profit, but the quality requirements are high.

After all, it is a flagship phone, so the quality cannot be ambiguous.

All major suppliers can make money, and the settlement is made within 60 days. It is super stable, so they naturally rush to cooperate with Xingyi Technology.

In order to win the huge order from Xingyi Technology, it even took the initiative to lower prices and engage in a price war.

Therefore, the cost of Xingyi mobile phones is also very low, the profits have always been considerable, with a settlement cycle of 60 days, and no advance payment of funds is required.

At this time, Zhu Changlin came in with a few mobile phones: "Chairman, the first batch of Wujie 1 generation mass production machines have come off the production line, please take a look."

Wang Yi took over the mass-produced Unbounded 1 and was very satisfied with it after trying it out:

“The configuration is not very high, but considering the price of 999, it is really good!”

Anyone who talks about quality and performance without considering price is just being a hooligan!
Zhu Changlin nodded: "Yes, the first generation of the Unlimited starts at 1. It's the price of a knockoff phone, but it has the configuration and experience of a smart phone. Once it's released, it will definitely sell out!"

“It will be on the market next month. It will definitely be a huge hit! The entire mobile phone market will be shaken!” Wang Yi said with a smile.

Different from the high quality requirements of the Xingyi mobile phone, the Wujie mobile phone is positioned as a mid-to-low-end mobile phone, focusing on cost-effectiveness, so it will slightly relax the quality restrictions and lower the cost.

If we order all the suppliers of Unlimited mobile phones according to the quality requirements of Xingyi mobile phones, we will be finished.

There are few qualified domestic suppliers at present.

Even BOE's screen could not meet the specifications required by the Xingyi mobile phone in 2013.

But if all the screens are from Sharp and JDI, and all adopt the world's top supply chain quality, the material cost of the first generation of Borderless will rise to 1, plus taxes, marketing expenses and other costs will be 1000. Selling one unit will result in a loss of 1200.

Wang Yi is not a saintly philanthropist.

By adopting a domestic supply chain, and with the processor and power management chip being self-developed, the cost is super low, and the material cost of the first generation of Unbounded will be reduced to around 1 yuan.

Adding taxes, marketing costs, after-sales costs, etc., the total cost is only about 600.

Selling for 999, there is still a profit of 400 yuan per unit!

Selling 100 million units a year is not a big deal, and making 40 billion is no problem.

Of course, if competitors want to make such a thousand-yuan phone, the material cost will not be 500 yuan, but more than 700 yuan.

There is no other reason. An entry-level quad-core processor, even from MediaTek, needs to be 105+.

The first-generation processor of Unbounded, Kunpeng 1, is integrated with the Pterosaur 500 baseband, developed by Xingyi Technology and manufactured by TSMC. The quantity is large enough, and the total cost is only about 3000 yuan.

There are also two power management chips, a WiFi chip, and a Bluetooth chip. These chips cost more than ten to twenty yuan each when purchased in bulk by friendly companies.

Xingyi Technology's self-developed chips, plus the cost of OEM, have a total cost of only one yuan per chip.

The total cost of the five chips, including self-developed and outsourced products, is only about 25 yuan for Xingyi Technology, while that for competitors is more than 175 yuan.

Wang Yi made the first generation of Wujie, and the material cost was 500 yuan, and the total cost including tax was about 600 yuan.

If competitors want to do this, not only will they have to spend 150 yuan more for the five chips, but they will also have to spend a lot more on other components.

There is no other reason. With a scale of hundreds of millions, Unlimited Mobile can naturally get the lowest price for all components.

Our competitors don’t have such a large scale and cannot get the lowest price for components, so the material cost will not be 650, but more than 700!

Adding taxes, sales costs, after-sales and other costs, the total cost for competitors will be 850.

Selling it for 999, the profit is only a little over a hundred, while the profit of the first generation of Unbounded is 400 yuan!
This is the gap.

Therefore, after the launch of the borderless mobile phone, Wang Yi was not worried at all about competitors following suit.

This thing is not something you can follow just because you want to. Unless you are big enough like Xingyi Technology, you can lower the cost!

But this is not easy.

And since other competitors dared to follow suit and make thousand-yuan phones, Wang Yi dared to reduce the price of the first generation of Ultrawide to 1, or even 899, selling it at close to the cost of other competitors!
At the price of 799, competitors lose 200 yuan for each unit sold, while Wang Yi makes yuan!

Of course, the reason why the first generation of Ultrawide is more expensive than the previous Redmi phone is mainly because the processor performance is stronger and it supports all networks!

In the past, the Redmi priced at 799 yuan not only did not support China Telecom, but was also divided into China Unicom version and China Mobile version.

The China Unicom version of Redmi does not support China Mobile 3G, and the China Mobile version of Redmi does not support China Unicom 3G.

It can be said that the cost has been reduced to the lowest level!
Wang Yi is more generous and directly equipped his thousand-yuan phone with full network support.

In this way, the cost seems a little higher, but the profit is higher.

This caused the profit of the Unbounded Generation to increase directly from 400 to 600!

It’s nothing but operator subsidies!

A TD customized mobile phone with built-in mobile software and a mobile subsidy of 200 yuan.

A Telecom 3G customized mobile phone, with a Telecom subsidy of 200 yuan.

The first generation of Unbounded supports all networks, and you can choose either of the two customized models, with a direct subsidy of 200.

As a result, the profit of Wujie Yidai increased from 400 to 600!

In addition, software and Internet services also generate tens of yuan in profits, and related accessories such as tempered films, mobile phone cases, headphones, mobile power supplies, etc. can also generate tens to hundreds of yuan in revenue...

A 999-priced version of the Unlimited 1st generation has already brought in a profit of over 700!
This is why the previous Redmi, which had a tax-inclusive cost of 740-760, was sold for 799!

The mobile phone doesn’t make money, but there is a 100 yuan mobile subsidy, Internet income, advertising income, and accessories income... there is profit in all of 799.

Moreover, as time goes by, the cost of components will decrease, and the total cost including tax will gradually drop below 700, and the profit will be even higher.

Of course, all network models of Xingyi mobile phones also have mobile subsidies and telecom subsidies, and they are higher.

Mobile 3G’s subsidy for flagship phones is 200 yuan!
However, by the end of the year, 3G mobile phones will no longer be subsidized, and 4G mobile phones will be subsidized instead!

This is also the reason why Wang Yi wants to switch as soon as possible, stop the production of 3G mobile phones, and vigorously promote 4G mobile phones.

Although 4G mobile phones cost a little more, the subsidies are higher and sales are also higher!
Zhu Changlin changed the subject: "Recently, HTC, Meizu, and Xiaomi have all launched new Kunpeng phones, and they are all selling well. Especially HTC, which has placed an order for 200 million Kunpeng 702 SOCs."

"This is a good thing!" Wang Yi smiled.

At present, all major domestic mobile phone manufacturers have started to make moves. HTC's HTC NEW one equipped with Kunpeng 702 is sold for 5499. After its global launch in April, its overseas sales are very good.

With 300 million units sold in just one month, HTC decisively placed an order for another 200 million Kunpeng 702 processors and fast-charging chip sets.

Wang Hong plans to achieve 800 million sales for HTC new one in half a year!
Fortunately, HTC new one does not support 4G, otherwise it would not have sold 800 million units if it was sold globally.

The third generation of Xiaomi is equipped with Kunpeng 700 and is priced at 2999. It was also launched in early May and sold well.

A few days ago, the Meizu MX702 equipped with Kunpeng 3 was also released. It opened for full payment pre-order and will start shipping at the end of the month, starting at 3999. It caused a stir again, and many investors started buying it.

Wang Yi was very satisfied with this.

The better competitors sell, the greater the demand for Kunpeng 702.

Now HTC has increased its order by 200 million units. Next, maybe Meizu and Xiaomi will also be able to increase their orders.

Even if there are 50 of them, they are still meat.

Next year, China will enter the 4G era, and Kunpeng 702 will be outdated. The more it sells now, the more money it makes.

"By the way, do the hot sales of our competitors have a big impact on our old models?" Wang Yi asked. "Not much, not at all. The sales of Xiaomi 3 have little impact on Xphone 1 Pro. HTC New One (M7) and Meizu MX3 have not had much impact on Xphone 2 and Xphone 2 Pro." Zhu Changlin shook his head:

"I find it hard to believe that our Xingyi Technology brand has become so strong. Meizu and Xiaomi are 1000 yuan cheaper than our phones with the same processor, but they still can't affect the sales of our old phones."

"It's indeed not normal. It's not just the difference in brands. There must be other reasons." Wang Yi thought for a moment, then suddenly realized: "It's the terrifying improvement of the XOS system!"

"Yes, it should be the XOS system!" Zhu Changlin suddenly understood it.

Although both use the same Kunpeng 702 SOC, the same processor, both Meizu and HTC use 32-bit Android 4.2 systems without the 64-bit bonus.

The xphone 2 and xphone 2pro upgraded to 64-bit XOS system, which has a 60% improvement!
The same processor is 3% more powerful than Meizu MX60 and HTC new one!

有这60%的差距，大多数的用户都愿意放弃3999的魅族MX3，选择4999的xphone 2。

I will also give up the HTC new one priced at 5499 and choose the xphone 5499pro, which also costs 60 and has fingerprint recognition + fingerprint payment and a 2% performance improvement!

There is no doubt about that.

Even overseas, many people have given up on HTC new one and choose to pay more to buy the parallel imported xphone 2pro!
There is no way, the 60% performance improvement and fingerprint recognition of the XOS system are too good.

The same processor can have performance differences across generations.

Therefore, Meizu MX3 and HTC new one did not have much impact on xphone 2 and xphone 2pro.

The Xiaomi 2999 priced at 3 yuan did not have much impact on the Xphone 3999 Pro priced at 1 yuan.

There is no other reason. Also equipped with Kunpeng 700 SOC, xphone 1pro has a 60% improvement in XOS system and its performance far exceeds that of Xiaomi 3.

It can be said that the XOS system has become the moat of Xingyi mobile phone!
As long as competitors do not use the XOS system, Xingyi Technology's old mobile phones will still have good sales even if they are sold at a thousand yuan more expensive than Meizu and Xiaomi.

In this way, by the end of the year, the sub-flagship Kunpeng 706 SOC can also be sold to a number of friendly companies such as HTC, Meizu, and Xiaomi.

Even Kunpeng 902 SOC is available for sale!

After all, other competitors have bought the Kunpeng 902 SOC, and will launch new flagships such as the Meizu MX902 and HTC M4 equipped with the Kunpeng 8 SOC next year, but they do not have the terrifying improvements of the 64-bit system.

Xingyi Technology's xphone 3 still has a 60% performance lead.

甚至搭载鲲鹏702的xphone 2pro，都能性能碾压搭载鲲鹏902的魅族mx4，HTC M8!
It has no impact on the sales of xphone 3 at all.

The 60% improvement of the XOS system is the most powerful moat!

As for the 64-bit Android 5.0, it will not be released until the end of next year, and the large-scale popularization of 64-bit Android applications is even further away.

In the past, 64-bit applications on the Android system were popular, but it lagged behind Apple by many years, and even lagged behind the XOS system by many years.

This is the difference between open systems and closed systems.

For example, Apple's IOS system will no longer be compatible with 32-bit systems in two years, so all developers will actively adapt to the 64-bit IOS.

The XOS system is even more extreme, as it starts out as 64-bit, and developers cannot use it at all if they are not compatible with it.

But it is difficult to manage an open system like Android in an all-round way.

As for a one-size-fits-all approach? It will be over in a matter of minutes.

After all, how can we expect Android to adapt to 64-bit when they can’t even implement unified push?
It's so hard.

Wang Yi smiled and said, "The 64-bit upgrade of the XOS system has become the strongest moat of the Xingyi mobile phone. The subsequent Kunpeng 706 SOC and Kunpeng 902 SOC can be sold to friendly companies. Anyway, their upgrades are limited."

Zhu Changlin's eyes lit up: "Good idea. With the added benefit of the XOS system, even if our competitors use Kunpeng 902 next year, they won't be able to impact our new flagship."

"Yes, after the release of Xphone 3 in September, Kunpeng 902 will be available for sale."

"Ah? So fast?" Zhu Changlin was shocked. "In this case, although it won't impact our Xphone 3, it will impact Xphone 702 and Xphone 2 Pro equipped with Kunpeng 2, right?"

Wang Yi waved his hand and said, "No, the Kunpeng 902 processor will be sold in September and will be available in December. The earliest they will be available on the market is February or March next year. By then, the 3G Xphone 2 and Xphone 2 Pro will be discontinued, so they will not be affected."

"That's no problem." Zhu Changlin suddenly realized.

Wang Yi also has another consideration. Even if Xingyi Technology does not sell Kunpeng 902 to its competitors, Meizu, HTC, Xiaomi and other competitors will also buy Qualcomm's Snapdragon 800, Nvidia's Tegra 4 and Samsung's new flagship!
Rather than letting Qualcomm, Nvidia, and Samsung earn this money, it would be better for Xingyi Technology to earn it.

Anyway, Xingyi Technology has a 60% improvement in the XOS system, and its processors are also far ahead and will not be affected.

As for the Unbounded Note equipped with Kunpeng 700, its ultra-low price of 2999 cannot be challenged by other competitors.

Models equipped with Kunpeng 902 will have price controls, starting at 3999 yuan, so they naturally cannot impact the 2999 yuan Unbounded Note.

Moreover, by then, the Unbounded Note 2 will be released soon, equipped with Kunpeng 706 and a 60% improvement in the XOS system, its performance can crush the Kunpeng 902 of its competitors!

It can only be said that before the 64-bit system is popularized on Android and Android applications are not adapted to 64-bit in large quantities, the 60% improvement of the XOS system is like a BUG!

"By the way, the first generation prototype of the Unbounded Note has also been produced, equipped with BOE's 1080P flagship screen."

Zhu Changlin took out another mobile phone and handed it to Wang Yi.

After the prototype is out, it will be thoroughly tested for one or two months. Only if there are no problems will the engineering machine be made and tested for another month.

If there are no more problems, we can finalize the plan, place an order, and prepare for mass production and launch.

Wang Yi took it and tried it carefully: "BOE's flagship screen? It's OK, but it's still a lot worse than Sharp's flagship screen. In other words, it's several generations worse."

As he spoke, Wang Yi opened the drawer, took out an Xphone 1 Pro released in March last year and placed it together with the Ultrawide Note for comparison.

Even though the configuration of the 1 Note is much higher than that of the xphone 1 pro and its performance is much stronger, its screen quality and quality may not be as good as that of the xphone pro.

Like the Unbounded Note, Unbounded mobile phone and Unbounded TV, more than 80% of the components are domestically produced.

All I can say is you get what you pay for.

The screen of the simplest xphone 1pro is much better than that of the note.

Nowadays, domestic screens such as those produced by BOE are still far inferior to Sharp's flagship screens.

It will take a few more years to catch up, or even overtake.

Just like the domestic mobile phones ten years later, the Samsung screens, the Sharp screens, what are those?
Few domestic manufacturers use it.

On the contrary, they are all first-class domestic screens from BOE, CSOT, Visionox and others.

Whether it is quality or eye protection, it is top-notch, even surpassing Samsung's flagship screen.

There is no other reason. Samsung’s flagship screen may be brighter, but it is also more harmful to the eyes.

Another name for OLED screen is blinding screen. Its eye damage index has increased dramatically compared to LCD, so much so that major domestic manufacturers have begun to research various eye-protection black technologies.

However, Samsung's eye protection technology is very poor and will be abandoned by the times.

Wang Yi sighed: "The road ahead for domestic screens is long and arduous, and there is still a long way to go. I hope BOE can rise quickly, gradually narrow the gap, and catch up with Sharp and JDI."

"Catch up with Sharp and JDI!" Zhu Changlin was a little incredulous: "Is this possible?"

Wang Yi nodded: "Of course it's possible. In the future, the borderless mobile phones will be equipped with BOE screens as standard. The annual orders for BOE will exceed 1.5 million units. I hope to boost BOE as soon as possible."

"So that's how it is. What if the milk can't be produced?" Zhu Changlin couldn't help but ask.

Wang Yi smiled faintly: "If you can't make milk, don't blame me for being rude. The senior executives and even the chairman of BOE can be replaced!"

"If they can't do it, then replace them with a management team that can do it!"

Zhu Changlin was shocked, but had no doubts.

As BOE's largest shareholder and largest customer, Wang Yi has both the power and the ability to do so!

What Wang Yi is most worried about is that BOE will become the second SMIC. He has received enough support, but BOE is not working hard enough.

If this is true, Wang Yi doesn't mind changing BOE's leadership team.

“If changing the leadership team doesn’t work, then we can also turn around and support Visionox and allow both parties to compete in a healthy way!”

As for the self-developed screen?
That’s fine, Xingyi Technology can’t do everything.

At most, like Huawei, we can set up a screen R&D center to develop some black technologies such as eye protection and DC dimming.

But it is impossible to develop the screen completely by ourselves starting from the substrate.

With this money and energy, it would be better to invest in other important areas such as drones!
Why make drones?
First of all, drones are the mainstream of the future.

Let’s not talk about the role of drones in the military field.

Even in the civilian field, drones are YYDS.

After 2030, SF Express will use large drones for efficient and low-cost transportation.

Meituan Takeout’s drone delivery will also develop from a small-scale pilot in 2021 to large-scale popularization.

Don’t think it’s incredible. On the contrary, this era is likely to come.

The simplest thing is that the logistics warehousing centers in 2013 could not do without sorting workers. They all did semi-automatic sorting + manual sorting, and there were many sorting workers in each warehousing center.

But after 2017, many storage centers will use intelligent sorting machines to replace manual labor and realize fully automatic sorting!

By then, the entire warehouse will become an unmanned warehouse. From warehousing, storage to packaging and sorting, the entire process will be intelligent and unmanned, and all the sorting workers will be unemployed.

Capital is the most ruthless.

Even warehouse sorters can be replaced by intelligent sorting machines, and it is also very likely that Meituan’s deliverymen will be replaced by drones.

But Wang Yi would not be so ruthless, and would not let the Ele.me deliverymen lose their jobs just to reduce costs!
The opposite is a collaborative model.

Some of the Ele.me deliverymen will become pickup men, stationed in shopping malls, commercial streets, and large stores. They will be responsible for packing the takeout from one or several stores and loading the takeout into the delivery boxes of drones one by one.

Another part of the deliverymen are stationed in various communities, responsible for a large community or several adjacent small communities, becoming the last-mile deliverymen.

For consumers with open balconies, drones can deliver meals directly to the balcony.

But most balconies are enclosed and have screens on the outside, making it inconvenient to open the windows.

Drones can only deliver takeout to the community’s takeout storage center or square.

After picking up the food, the delivery guys stationed in the community will deliver it upstairs one by one to the user's home, thus solving the last mile problem!

In this way, the division of labor will be clearer, efficiency will be higher, and deliverymen will not lose their jobs.

(End of this chapter)