Perfection of Rebirth

Chapter 827

As a smartphone, in Jiang Hui's eyes, the six components of the chip, motherboard, storage, screen, battery and camera are considered the most important.

In terms of screens, O-Film, invested by Guanghui Group, has already begun to get involved. If we invest enough funds for development in the future, not to mention becoming a global leader, at least it should be no problem to slowly maintain the mainstream level.

After all, smart phones are not the mainstream in the world now, the penetration rate of touch screens is not high, and the technology accumulation of various manufacturers in this area is not too different.

Although the overall strength of OFILM cannot be compared with manufacturers such as Samsung, LG, and Sharp, there is no problem in being invincible if you do mental calculations or not.

Not to mention the battery, which is the only core component that is 100% supplied by its own group company among all components of Guanghui mobile phones.

ATL was originally a battery supplier for Apple, Sony and other foreign-funded computers, MP3 and mobile phones. After being acquired by Guanghui Group, Jiang Hui made them invest a lot of money and energy in lithium batteries. Every generation of Gphone Batteries are improving, which is the result of ATL's efforts.

In terms of cameras, Brilliant Investment has invested in some high-tech companies such as Hikvision before. These companies cooperate with each other and basically occupy the same camera share as Brilliant mobile phones.

With the progress of technology, it is expected that all the cameras of Guanghui's mobile phones will be produced by the group's subsidiaries in the future.

However, in addition to the screen, battery and camera, the more important chip, motherboard and storage, the glorious mobile phone is not enough.

Not only can't produce any related parts, but looking at the entire Guanghui Group, no company has technology involved in this area.

If Brilliance Mobile wants to truly become a great enterprise, it is basically an inevitable choice to independently develop these three core components.

Although Apple in later generations does not have its own processing plant or its own component production plant, the core chip is designed by Apple itself, but it is only found by Samsung.

Samsung is Apple's main competitor, that is, South Korea and the United States have a special relationship. Otherwise, Apple would have been cheated by Samsung. How can it make full use of Samsung's component technology?
However, if Apple is replaced by Brilliant Mobile in this life, the ending will definitely be completely different. Sooner or later, Brilliant Mobile will be killed or reduced to an assembly factory, earning meager profits.

This is obviously not what Jiang Hui wants to see.

"Yes, chips, motherboards, and storage are indispensable. At the beginning, if our technology is not as good as that of international advanced brands, we can use it on low-end products now, and gradually expand to all products, even ours. It can also be sold to outsiders," Jiang Hui said affirmatively, seeing Zhu Zhengfeng's surprised expression.

"Sell it to the outside world?" Jiang Hui's idea was obviously never thought of by Zhu Zhengfeng before, so he was inevitably surprised.

"Yes, you see, currently smartphones basically use either Qualcomm or Samsung chips, such as OPOO and WIWO. Qualcomm sells chips to them, and the price will definitely not be cheap. If we have chips with suitable performance, we can sell them at a lower price. The price is sold to other mobile phone manufacturers, so that the development of chip factories can be supported."

Although Jiang Hui has made preparations for the chip factory to lose money for ten years, there is a difference between loss and loss.

Production at full capacity, no profit or a small loss, this is the most ideal state.

Of course, you can say that making money is the ideal, but...

Do not think too much.

If the chips produced by the chip factory of Guanghui Mobile are not used by anyone, it will be difficult to continue to produce them.

So sometimes, even if it is a loss, we must insist on production in order to make the product survive.

Even sometimes, losing money is a strategy.

At the beginning of this year, the semiconductor chip product DRAM (commercialized dynamic random access memory) market was in a hurry!
Due to overcapacity, at present, DRAM products have fallen sharply for seven consecutive quarters. An industry insider revealed: "The decline has reached about 7%, and it has fallen below the cost price." This has dragged down the entire semiconductor industry chain.

According to iSuppli, a global authoritative survey organization, due to worsening earnings and reduced cash flow, global DRAM manufacturers may reduce equipment investment by 2008% in 50 compared to the previous year. The balance of supply and demand in the second half of 2008 can stabilize market prices.

At the same time, it also issued a warning that if the DRAM chip market continues to decline, DRAM buyers may face the danger of supply chain rupture, because some DRAM chip manufacturers have encountered serious financial problems and may withdraw from this market.

At this time, Samsung Electronics, the largest manufacturer accounting for 30.2% of the global DRAM market share, believes that this is a good opportunity to detonate the industry reshuffle. Weak and small enterprises are driven out of the competitive sequence.

Even Samsung Electronics is facing the fact that product prices have fallen by 64%, but Samsung executive vice president Zhu Yongxi said: "We just value the opportunities in difficult times, and hope to strengthen our competitiveness through large-scale investment and capacity expansion. Opponents widen the gap."

Samsung wants to take this opportunity to change the situation of the five giants competing for hegemony and complete the industry reshuffle.

When the industry was sluggish, overcapacity was overcapacity, and prices were falling, Samsung invested all of its profits in 2007 in capacity expansion, spending more than US$70 billion.

Samsung's actions made the entire industry worse, the price of DRAM collapsed rapidly, and the selling price was far below the cost price.

Not only Samsung itself, almost none of the top few in the industry make money.

Samsung Electronics, which sits in the top spot, has a market share of 30.2%. Because the financial report includes LCD and mobile phone manufacturing businesses, it seems to be still profitable, but DRAM is definitely a mess of losses.

South Korea's Hynix Semiconductor Co., Ltd., which ranks second in the world, lost $6.774 million, accounting for 18.6% of the market.

The third largest island country, Elpida Memory Co., Ltd., will have a loss nearly double the market estimate; the fourth-ranked Micron Technology Co., Ltd. of the United States has a loss of 7.77 million US dollars; the fifth-largest German Qimonda The company suffered a huge loss of 7.673 million US dollars, which has been a huge loss for two consecutive quarters.

Under Samsung's strategy of killing one thousand enemies and hurting eight hundred, the cost has reshuffled the industry, eliminated a number of suppliers, and greatly increased its market share.

So from this point of view, sometimes, losing money is also a strategy, not necessarily a bad thing.

The key is that you have the ability and vision to turn bad things into good things.

Jiang Hui, who has the golden finger of rebirth, obviously needs this kind of ability and vision the most.

(End of this chapter)