The toy factory is transforming, are you transforming into a military factory?

Chapter 16: Bargain price, bring down the price of mobile phones!

It’s self-evident what the chip price increase means.

When chip suppliers increase prices, mobile phone prices will naturally increase, otherwise mobile phone manufacturers will not make money.

Because this is included in the cost.

Just talking about the latest Xiaolong 8Gen3, which is built using TSMC’s N4P process, the cost is higher than the previous generation. The purchase cost is US$160, which is equivalent to RMB 1165.

Now the purchase cost of 8Gen3 has increased to 2500. This huge increase is simply unacceptable.

Immediately, Rebus made a speech at the high-level emergency meeting: "Now that the price of chips has increased, our new rice machine may not be able to guarantee the cost performance."

Everyone present looked unhappy, which put a lot of pressure on the upcoming release of the Mi 15.

You must know that as a cost-effective flagship, rice has always made a trade-off between maintaining hardware configuration and cost control, but now this trade-off is too big.

Lei Jun now has two options before him, either downgrade the configuration or increase the price accordingly.

A senior executive suggested: "I think our newly released rice 15 should continue to use Xiaolong 8Gen3 to increase the price of the phone."

"I don't agree. I think we should downgrade the specifications. Mr. Jianyun, don't you know what it means to continue to use Xiaolong 8 Gen3?" Someone complained, "If the mobile phone is expected to be sold starting at 3999, if we continue to use Xiaolong 8 Gen3, Users need to spend 5134 yuan!”

"This is still the most basic version of 8+128."

Why doesn't Lei Jun have a headache? Rice has always adhered to the line of hardware integrity, and it is difficult to make too many compromises in terms of configuration. But if there is no compromise on the "cost-effectiveness" and "cheapness" that rice is famous for, it will disappear.

Mr. Jianyun chuckled and said: "Then what are you going to do? I tell you this is the best solution. Qualcomm's price increase is not just for rice. Other friends will also increase it. Everyone has increased it, and we can still do it." On this basis, costs are reduced so that our price/performance ratio remains."

Rebus doesn't agree with this concept of sneak exchange.

But what if we don’t?
  Xiaolong 8Gen3 can be said to be the best chip at the moment, and it is a standard chip for high-end flagships. If the mobile phones of other manufacturers use it, but you don't use it, you will not be competitive.

However, cheap prices are actually a form of competitiveness, and many flagship phones now have excessive performance.

Because compared to most people, their daily use simply does not use that much performance.

After some consideration, Rebus finally decided not to give up on the Xiaolong 8 Gen3, but they will further optimize the production process on this basis and reduce costs through management innovation, supply chain collaboration and other measures.

Improving production capacity and reducing errors can effectively control manufacturing costs.

If the price increase is controlled reasonably, users may be able to understand it.

But at this time, the Internet was already noisy.

"I'm sorry, this Qualcomm girl is crazy. The starting price is so high. Now it will cost more than 12 yuan to buy a mobile phone. If you want to buy 256+, it will probably cost more than yuan!"

"Hate it, this is the disadvantage of semiconductors being constrained. If we can produce our own chips, how dare they raise the price? If we raise the price, we will use our own. But having said that, if we had good chips, we would not cooperate with Qualcomm. "

"I didn't know how good Rice was when I was young. Think about it when I was young and could use Rice's flagship phone in 1999. He has done so much for us. Think about it, this will become a thing of the past. I am very grateful to Rice, but I will never use it in the future. used."

"Do you think you lived ten years ago? Moreover, when the price of chips has increased, it will not only increase the price of rice, but also friends. We have to stop this phenomenon from the source, that is, we will never buy new machines in the future, and we will stick to the old machines. .”

At this time, on the other side of the ocean, Qualcomm is also paying attention to every move of the big country.

Although this price increase was decided by Qualcomm, the driving force behind it was actually the federal Department of Commerce.

In fact, this price increase is inseparable from Inuda Hiroshimura's investment in building a factory.

The promise made to Qualcomm is that even if the price of chips is increased, there is no need to worry about whether those mobile phone manufacturers will continue to purchase Qualcomm chips.

Because they will increase costs from raw materials to foundry, even chips from other domestic brands will also rise accordingly.

Since prices have increased, mobile phone manufacturers will think they might as well continue to choose better Xiaolong chips.

Just as they thought at the beginning, three manufacturers including Rice have already placed purchase orders for the first batch of 8Gen3 chips with them.

It’s just that Qualcomm’s head, Dams, is worried now that there has been no movement from Warwick.

"What is Mr. Ren thinking about?" Dams held his chin in thought.

The secretary next to him speculated: "Perhaps Warwick is considering the comprehensive gains and losses of this price increase? But I'm worried... what if they don't continue to cooperate with us."

Dams suddenly laughed: "Your worries are completely unnecessary. They have no other way. If they still want to enter the high-end mobile phone market, their only choice is to continue to cooperate with us." It has always been like this. Although mete50 uses a self-developed Kirin chip, in the final analysis it is still far behind Xiaolong's latest 60Gen8 chip.

Moreover, the so-called self-developed chips are still manufactured by others. Now that the manufacturing costs have increased, Huawei has to consider whether to continue to stick to Kirin chips or choose to compromise with Xiaolong.

After all, without the Xiaolong chip, the mete70 would not be able to compete with Apple’s new phones equipped with the A17 chip.

He can't even compete with his own friends.

For users, you have increased the price of a mobile phone and sold it for 7,000 to 8,000 yuan. Isn’t it good for me to buy an Apple with this money?

Cook also felt that he was inexplicably hit by this unprecedented wealth.

OK, OK.

You fight slowly, and I will be the one who takes advantage in the end.

Unfortunately, the price of domestic mobile phones is close to that of Apple. Ordinary people are not fools, so they naturally choose better products.

Of course, it is not ruled out that some people will boycott and support domestic production, but how many such people are there?
  At that time, the fruit’s market share will only be higher.

This cake in the domestic mobile phone market will all be cannibalized by fruits.

But it can't be said that Guozi's family is the only one, because Sansang, who has retired from the world, will definitely re-enter the scene.

But in the future, the era will definitely come when everyone will have a fruit phone.

The only benefit of Qualcomm's price increase is that the stocks of semiconductor companies have risen a lot.

The semiconductor sector is rising day by day.

Some companies engaged in low-end semiconductors have also taken advantage.

But they didn't gloat either.

After all, they are all from a big country. Why don't these domestic semiconductor bosses want to break the situation?

But they are really powerless.

The chips made by these small semiconductor companies in the middle and lower reaches are all made with large-scale industrial processes. Purely domestically produced chips can only produce 80nm, and only with external help can they produce 7nm.

The chip process nodes that can currently be produced are mainly between 14 nanometers and 90 nanometers.

Although Center International can currently achieve mass production of 14nm, it is not enough compared to the current mainstream chips that start at 4nm.

As for 14nm chips, mobile phone manufacturers will not be willing to use them, and users will not agree.

On the Warwick side, the secretary in the corridor rushed into the office holding a piece of information: "Mr. Yu, Qualcomm is already urging us. They said that if we don't make a decision, they will never work with us again. We work together."

Yu Chengdong was writing something with his head down, without raising his head, and said calmly: "Is there any other news?"

The secretary was stunned for a moment and continued: "Except for us at Warwick, several mainstream friends have already started the first batch of cooperation with Qualcomm. Except for some small mid-stream and downstream manufacturers, they have chosen to downgrade their products."

"Then Apple announced in advance that the price of the new phone is 5999 yuan. It is 1500 yuan lower than the domestic flagship. They probably want to take advantage of this opportunity to quickly annex the domestic mobile phone market."

The price of domestic flagships has increased to almost the same price as Apple. At this time, Cook specifically cut prices to make Apple phones cheaper than domestic phones.

At this time, users will be more determined to choose Apple, and there will even be a large group of people who ridicule domestic mobile phones for being shameless and selling them more expensively than Apple.

Yu Chengdong didn't know their wishful thinking, but there was no panic on his face from beginning to end.

And the secretary quickly noticed it. Today she was busy handing over various documents and running around, and also contacted many leaders, but she found that these people were not in a hurry at all.

At this time, Yu Chengdong put down his pen, put his hands on the table and hugged each other, and said very seriously: "Since they want to lower the price, then we have to lower the price, directly to 2999. What do you think?"

The secretary was stunned: "This... this is too cheap."

Yu Chengdong smiled and said: "It just needs to be cheap. This time, we are going to bring down the price of domestic mobile phones! Let users use flagship phones with more powerful performance, cheaper prices and the highest cost performance!"

(End of this chapter)