“No, is the demand for smartphones really that great?”
Li Dongsheng felt that the world was developing too fast and he was a little confused. He was almost shocked when he heard about 30 million LCD screens just now.
In fact, the annual sales volume of LCD TVs in the country is limited. Qingyun Group has money, and BOE has technology and production lines.
The two companies joined hands to enter the market, using Pinxixi's sales channels, plus the pressure from the "friend" who gifted the small manor, and all they had to do was solve some necessary technical problems.
In fact, lack of people and lack of technology are not a problem. As long as there are resources, other companies cannot stop you. Basic TV patents can be bought with money, and second-tier manufacturers have a large number of technical engineers.
Perhaps in a few years, they will face a powerful new competitor in the home appliance industry.
Behind Qingyun stands Shanghai, and behind BOE stands Yanjing. Together with their “friends” who can shake the earth and mountains just by stomping their feet on the land of eastern Guangdong, how can they be stopped?
With such a large-scale purchase volume, the TV market can be driven down to rock-bottom prices in a matter of minutes!
However, he was not a man who would surrender quietly. He had just made a plan with everyone. As soon as he left the house, he would immediately organize friendly companies to form an anti-dumping alliance and stop Qingyun and BOE's conspiracy from succeeding at all costs.
He looked like his heart was bleeding, and he lamented to the CEO of a friendly company next to him, asking why it was so difficult to start a business.
After finally making a breakthrough in foreign manufacturers' technology and defeating Changhong, the big devil who wanted to dominate the home appliance industry, before they had time to breathe a sigh of relief, they had to face Qingyun, the troublemaker...
Fortunately, it was just a misunderstanding!
They had no intention of getting involved at all, but instead used the production capacity of semiconductor displays to support the development of the domestic home appliance industry while completing their layout in the smartphone business.
Seeing Li Zehua was about to explain.
The heads of several other companies also came over to listen. After all, they could make the same thing, too. Isn't it just an LCD screen and some electronic board components?
Who wouldn't?
"As for the demand, I personally think it will only take a short time to replace traditional keypad phones or even surpass them."
Li Zehua cleared his throat and did not hide anything. After all, it was not new for the industry to cross over to make mobile phones, especially for televisions and smart phones.
Afraid of competition?
nonexistent!
Qingyun Group has its own core advantages to win, but these rival companies are making mobile phones with the same mindset as they do with home appliances. It can only be said that Tucson’s design is flawed and is doomed to fail.
He continued: "... based on several major factors, including but not limited to the core demand of the mobile phone market, the pursuit of spiritual entertainment beyond material culture, and other comprehensive considerations.
It is not difficult to conclude that now is the best time to enter the smartphone market, but let me be frank with you. If you only rely on this statement, you will not rush in.
I am not responsible for any loss."
Looking at his extremely confident expression, he seemed certain that other companies that followed him in making mobile phones would lose money. Everyone was speechless, thinking that he seemed like he was sure to win.
He said no, but also flattered himself with a few words, and the scene became lively for a while.
Li Zehua looked at the scene, smiled but said nothing, thinking that no matter how much persuasion he did, these people would choose to rush in after seeing how hot the smartphone market is, whether he was there or not.
This is a matter of course. The group has no new business growth points and cannot explain to the investors behind it!
But is it easy to develop across industries?
Do you really think they all have eyes that can see through the future?
Only a reborn person like Li Zehua, who specifically chooses new industries that no one has touched, can be the first to achieve success before everyone reacts.
Being one step ahead means a huge advantage, not to mention that this guy is using a cheater all the time. He avoids all the huge pitfalls hidden in the new track in advance, leaving his followers groping forward in the dark.
If you are not careful, you will fall into the pit and die. As time goes by, there will be few pursuers close behind you. Other players with ideas and strength will see this and think, let’s change the track.
We are not stupid. Instead of rushing in with billions, wasting time and energy, and fighting an unfair war with the Qingyun Group that is doomed to fail, it is better to change track and make money.
Of course, the most critical thing is the new track that Qingyun Group has intervened in. It seems that the payback period is a long way off. So far, the daily delivery volume of takeout has not exceeded 300 million orders, and the monthly revenue is less than 3 million.
When I did the math, oh my, I lost a lot.
As for running errands and delivering express packages, small value packages, and thousands or tens of thousands of people being lost in a city, you can just forget about it and go to bed. I have never heard of billionaires competing with beggars for food.
Pinxixi? I’m even less interested.
As mentioned above, if you don't even steal food from beggars, why should you snatch food from the beggars' gang?
Outsiders don't know how the huge Qingyun Group performs, but everyone knows that this guy can easily recruit hundreds of thousands of employees. If you want to fight against him, you must be adequately prepared.
At the very least, when two businesses are in conflict on the street and employees are called to prepare for war, we have to be able to stop them...
Li Zehua has never worried about any company in the country gaining a competitive advantage over Honor Electronics, not even Huaban, because its competitor is Panda, not the mid-to-low-end Honor.
Only Honor Electronics knows how long it has been preparing for today, how much it has paid, and how many backup plans it has in reserve. This track was destined to be full of blood and gore from the very beginning.
From making decisions to contacting relevant companies and then to technology licensing negotiations, many technical cooperation projects have not yet been negotiated, such as the core patents held by Apple, Samsung and Nokia.
Li Zehua is not worried about the fact that it is not sold or authorized to the outside world. He will just start the project first. At worst, he will have to compromise and pay fines in the future before he can develop the market.
Do these people have the courage and strength to do this?
For example, Meizu, which was about to be sanctioned by Apple, launched new products in early 09 and achieved amazing results in a little over half a year.
At one point, he even invited the head of Apple's China region and the founder of Coarse Grain to come and learn from him.
How is the result?
Just because there is no one to protect them in the country and they have not formed an unbreakable industrial interest alliance, they are sued and restricted at any minute, and then fall behind step by step and be eliminated.
Apple, do Nokia dare to do this to Honor Electronics?
Unless Apple phones don't install the scanning function and don't connect to QR codes in this life, it can only reach a patent sharing agreement with Honor in the country, and Qingyun is not unwilling to pay extra money.
The same goes for Nokia. It can earn tens of billions of profits in China every year through technology licensing. It doesn't matter who it collects money from.
Only Samsung may use patents to restrict the development of Honor Electronics, but fortunately, 16 years ago, it also had to consider its own market in China, and compromise was inevitable in the end.
However, these manufacturers are currently unable to see the pitfalls inherent in the industry, and their minds are filled with only the desire for huge profits in the emerging industry.
But it is impossible for them to immediately arrange to launch new projects based on what was said today. Big companies usually have a problem of making arrangements and surveys in advance before doing anything.
Once all potential risks have been eliminated, you can start the slow action, from talking with the board of directors and shareholders to negotiating recruitment. Half a year is considered fast, and it is normal to start after a year.
and then?
Sorry, they can't even find a suitable supplier. MediaTek hasn't come up with a comprehensive solution yet, the original old integrated chip motherboard.
It’s fine for making keypad feature phones, but touch screen smartphones?
Then just take a shower and go to bed.
What's more, in 10, Android was not the largest mobile software supplier other than Apple. At that time, the market was still flooded with many players such as Symbian and Blueberry.
It can be called a chaotic dance of demons.
They have too many choices of software vendors.
But as for hardware, hehe, Qualcomm will soon, with the full support of Squid, defeat Texas Instruments, Intel and other 2G era chip giants.
This market is destined to be dominated by a very small number of players, and Qualcomm has no production capacity for the s1, s2, or general-purpose 8250 chips released in the past two years.
Even Honor Electronics, a pioneer, cannot grab enough production capacity, leaving a bigger hole for latecomers, and even money cannot make up for the gap...
“Let’s not talk about smartphones for now. Different fields are like different mountains. Even if we set up a project today, it will take a year or two.
BOE's production capacity and expected capacity are probably the reason why Mr. Li invited us here today, right?"
Li Dongsheng is very pragmatic. After Li Zehua's explanation, he keenly perceived the key information in the other party's words, which is that Qingyun Group cannot buy enough high-performance chips with money.
He took note of this sentence and planned to find someone to check the truth. After all, TCL also noticed the future of full-touch screen mobile phones.
At Li Zehua's signal, BOE's Zhao Yanshun took the initiative to answer, "In front of Mr. Li, Mr. Huang and other professionals, I might as well speak directly.
Currently, BOE has put into production 14-60 inch LCD screen production capacity, and is suffering from malicious low-price competition from its Chinese, Korean, and Taiwanese competitors.
Especially in the 17 to 42-inch models, which are the mainstream models in the current market, prices have fallen by 55-65% compared with the same period last year. Everyone knows the specific reasons.
The economic crisis has certainly had an impact, but in the past two years, with domestic subsidies for home appliances, the promotion of home appliances to rural areas, and especially after Pinxixi joined the channel sales, your sales have increased by different proportions compared to the same period.
Under normal business logic, demand determines price, but it is impossible for the bad situation of price being cut in half as it is today to occur.”
"Mr. Zhao, I don't agree with what you said. Although BOE has put into production 42-inch mainstream screens, such a small production capacity is not enough to share the market. If I remember correctly, your company seems to have rejected most of our orders on the grounds of insufficient production capacity, substandard yield rate, and too high production costs."
Faced with the direct questioning from one of the CEOs, Zhao Yanshun did not evade the question, but chose to face it head-on, "Then I have to ask President Xia.
Taking model xx as an example, the purchase price reported to the chicken company is US$187 per piece.
Why is it that the price of a single piece of BOE's product, which has a more advanced production process and higher resolution, is $140?"
Mr. Xia of a certain company said with a smile: “You should ask yourself this question. 6000 pieces per month is not enough to fill the gaps between our teeth. I can’t open a new production line just for BOE’s small production capacity, right?
You can also judge for yourself. If you think I have done something wrong and am deliberately targeting domestic competitors, I will immediately arrange a new production line as long as BOE can guarantee me a sufficient supply. "
Faced with the manufacturer's blunt criticism, Zhao Yanshun did not back down, but before he could speak, Li Dongsheng interrupted:
"Mr. Zhao, we all know the specific situation. The seamless splicing screen technology is not mature enough and the cost cannot be reduced. As the crystallization of the company's technology and the flagship product, the large screen
You have not been able to come up with a practical solution. Although foreign screens are a bit more expensive, they can at least be matched with products of corresponding proportions over 60 inches.
This is because BOE lacks core competitiveness, not because we are worshipping foreign things.”
Li Zehua didn’t know much about technology, but for this cooperation, he made up for it by intensive study. “The seamless splicing screen technology is nothing more than a defect in the brightness of the light source.
If you all produce high-end machines that cost more than 10,000 yuan, you will naturally be more affected by the market. You get what you pay for, so it is normal for consumers to be picky.
But the integration of traditional light sources and laser light sources also has certain development prospects. It is currently widely used in mid- and low-end models. Why bother with the subtle differences? "
Li Zehua glanced around and said, "The feedback Pinxixi received in rural areas is even more real and comprehensive than the data you have obtained. There is no point in talking about some things publicly.
Today, in addition to discussing the issue of Pinxixi's supply chain, I have invited you all here to discuss BOE's production capacity allocation. If you think what I just said was a joke.
Then it’s okay to leave now.”
He was not in a hurry, and neither was Zhao Yanshun. Li Dongsheng did not even show any sign of getting up and leaving, as if he was not the one who was jumping up and down and cursing just now.
With tens of millions of smartphone screens produced every year, although they are a bit small, they have consumed all of BOE's excess low-end production capacity in one go.
This is why Wang Dongsheng accepted Qingyun’s cooperation application as soon as possible.
Abandon historical baggage and go into battle lightly!
For example, the bundling sales strategy of foreign manufacturers, where mainstream screens must be paired with low-end screens when purchasing large screens, has been criticized by domestic and foreign manufacturers, but unfortunately the market pricing power is not in the hands of downstream manufacturers.
There have been no similar products in China before, so if you want to make one, you can only accept a fixed price.
But now it is different. BOE's Yanjing Yizhuang production line has officially started operation, and can produce mainstream products within 60 inches.
The designed production capacity is 9 pieces of base glass per month, and the annual output reaches 1800 million cut screens.
The Feicheng project will be put into production within the year.
In addition to the two production lines that have been put into operation in Yanjing and Rongcheng, with the financial support of Qingyun Group, the 6.5-generation line (which has been changed to a high-penetration mobile phone screen production line, with increased investment) is expected to start construction within the year.
Together with the construction of the new 8.5-generation line, BOE will become the world's third largest semiconductor display manufacturer by the end of 2011.
Adequate production capacity will prompt BOE to look for suitable competitors at all costs to absorb the production capacity. The price they offer is 80% of the normal market price, in order to defeat overseas counterparts first.
If domestic home appliance manufacturers are unwilling to cooperate, then as Li Zehua guaranteed, the worst that can happen is that they can acquire a few second-tier manufacturers and start production and manufacturing themselves.
Everyone present here has understood that you can either spend money to buy high-quality and low-cost domestic products, or continue to buy foreign products at high prices.
Then wait for the Qingyun Group, which has absolute advantages in the upstream and downstream of the industry, to become angry.
Together with BOE, and with the common will of Yanjing, Shanghai, and eastern Guangdong, as well as the two biggest beneficiaries, Chengdu and Feicheng, they rushed into the market and launched a fierce price war.
By then, because they do not support domestic brands, they will no longer have the power to dominate the direction of public opinion.
Because we purchase high-priced core components from abroad, we do not have a price advantage.
In addition, Pinxixi is madly expanding its physical sales channels at a rate of more than ten experience stores every day. In the next two years, there will be no need to fight, and they will just surrender.
In this industry, the screen determines everything, and production capacity does not fall from the sky. Look at Sharp and Samsung, every one of them is a talker, and talking about expanding production capacity is bullshit.
When market trends change in the future, these people will have no choice but to watch their market share being snatched away by BOE, which has greater production capacity.
Then, these companies left the market in disgrace amid the nationwide calls for their destruction.
Everyone present figured it out. This was not an invitation to drink and eat meat, but a Hongmen Banquet, and an open conspiracy.
The production capacity is here, and you have to buy it whether you agree or not. If you don’t buy it, don’t blame others for coming in and dumping the stock, and then they will take all the blame.
"If you have something to say, please tell me."
Mr. Huang came out to join in the fun again, "We know BOE's products, they are always of good quality and low price, and I heard that the Feicheng project team has made new technological breakthroughs recently.
Mr. Zhao, please share the joy of success with us. "
As he said this, he winked at Li Dongsheng and pretended that this game was organized by just a few of you. One was a good-looking guy and the other was a bad-looking guy, as if no one could see clearly.
Li Dongsheng opened his eyes wide, looking very innocent!
Zhao Yanshun was so angry when he talked about this, "I did make a breakthrough, but I was deceived for several years. It's really depressing."
To put it simply, both companies, including Jiaobenjibangzi, are fooling the world on the surface, saying that we have mastered certain core technologies and can perfectly solve certain screen problems.
To put it bluntly, it is bullying others because they do not have the production line capacity, so they can brag as much as they want.
As a result, the Feicheng project team went to great lengths and pushed the technology to the extreme, but still failed to find a perfect solution.
There was really no other way, so huge amounts of money were spent to invite foreign experts in related fields to organize a technical breakthrough. However, the Korean engineers who came to participate were dumbfounded when they saw what the breakthrough was. What kind of breakthrough was this?
A chicken and a stick together can only get 7 points, and the remaining 3 points are all due to bragging. As a result, BOE only got 9.8 points. Does it still need to make further breakthroughs?
Finally, it was a Korean engineer who let the cat out of the bag in private that made everyone at BOE suddenly realize what this spirit of craftsmanship is all about.
Everyone else was laughing except Li Zehua, because this bunch of wicked people had been trying their best to lead us astray since the day they entered the country.
They are trying every possible means to stifle the country's spirit of innovation, even going so far as to constantly belittle it culturally in order to achieve their ulterior motives.
"In fact, we tried to cooperate with BOE in 06/07, but it was Sharp that ruined the plan."
Li Dongsheng came to the side at some point and said silently, "Who would allow their core lifeline to be strangled?
It is strange that a display panel accounts for 80% of the cost of a TV.
As soon as the production of 17-inch panels in Feicheng started, foreign countries started to reduce their prices in advance. Their wolfish ambitions are known to everyone.
In fact, even if you don't come forward to organize, the six of us will still have to contribute money this time. No matter how difficult it is, we will definitely carry out the Pengcheng BOE Optoelectronics Project!"
Li Zehua couldn't help but laugh and said, "I know that too. It's hard for Mr. Li to be so old and still be playing a duet with me here."
"I'm not old, I can work for another 20 years!"
Li Dongsheng glared at him, and happened to meet his determined gaze. The old man and the young man couldn't help but burst into laughter at the same time...
Unfortunately, happy days are always short-lived. A group of people got together to discuss the allocation of new production capacity for BOE and the investment ratio of the Pengcheng project.
Some bad news came.
"Sharp's negotiation team has arrived in Pengcheng and is in contact with the government?
Is the news accurate? What, a 10th generation line?
Fuck you, you bastard who's haunting me!" (End of this chapter)