The Millennium Semiconductor Survival Guide.

Chapter 311 Pricing
Although Xinxing Investment is not listed and does not need to publish financial reports to the outside world, the massive funds controlled by Xinxing Investment and the funds raised from various capitals as an investment company have made him one of the famous players on Wall Street.

Although emerging investment is not as good as leading investment banks with long histories such as Goldman Sachs and Morgan, it can definitely be regarded as a second-tier leading investment institution.

Thanks to Zhou Xin, every investment made by Xinxing Investment in Silicon Valley companies will attract the attention of the industry. Internet companies that have been invested by Xinxing will rise accordingly, and their valuations will rise significantly in the next round of financing.

Like Face Chat, the angel round valuation did not even exceed 30 million U.S. dollars. The second round valuation was already close to one billion U.S. dollars, led by emerging investments. By the third round, the valuation was close to [-] billion U.S. dollars, even though the valuation doubled. After so many times, there are still a large number of investment institutions competing for the investment share of Face Talk.

Similarly, when Xinxing Investment acquired Android, Baidu got the news almost immediately. The Baidu executives who proposed to refuse the acquisition of Android wanted to hide the news, but they were still exposed during internal struggles.

This incident resulted in the removal of an executive from Baidu. As Baidu made great strides in Baidu Pay and continued to devour the market share of other electronic payment software, Robin's status was not affected.

Back at the China press conference, Android was a completely unfamiliar term to the mobile phone companies present, and they had never heard of it before.

"Android? A mobile operating system developed by Xinxin? But it's normal. There have been no rumors that Mphone's operating system will be licensed to external parties.

After Matrix acquires Apple, it will further deepen their closed business philosophy, making it more difficult for MOS to open to the outside world. "

"I still don't quite understand. It has been proven in the previous personal operating system battles that openness has won, but the closed operating system market is limited. As the absolute leader, why does Mphone still choose the closed road."

"Isn't this the answer? For Newman, his capital is strong enough to bet on both closed and open roads at the same time. Mphone and Apple will build high-end brand images and take high-end product routes.

Open operating systems like Android are promoted by Xiaomi and are also open to domestic mobile phone brands. This opens up both paths. "

“I understand, launching integrated chips and operating systems for smartphones at the same time, and adapting them, to put it bluntly, everyone will work for Xinxin Technology.

Different mobile phones are just different carriers. In essence, they are still selling Xinxin chips and Xinxin operating systems.

This gameplay is really exciting. "

"To put it bluntly, Xinxin's strategy is to realize that mobile phone manufacturers in China have neither R&D capabilities nor willingness to do research. As long as they can make money, they do not have a long-term vision, so they will definitely choose Xinxin's solution.

Coupled with the open code of Android, their antipathy is further reduced.

What a good move. As expected of Newman, he is so skilled at grasping people's hearts. "

This is another bad news for foreign companies present, especially Samsung and Sony.

It's true that Sony is willing to use Honghu and Yanque, but Sony is not willing to use Xinxin's operating system. Sony itself still has certain strength in software. After cooperating with Ericsson, they have flexed their muscles in smartphone operating systems. The idea is that now that Android is released, this is embarrassing Sony.

This is especially true for Samsung. Previously, Samsung Kejian's use of Samsung's self-developed mobile phone integrated chips attracted a lot of internal criticism, because Samsung's integrated chips are not as cost-effective as Xinxin's chips, and their usability is even worse.

Within Samsung Kejian, there are many opinions from employees to Chinese executives to Chinese investors. Samsung believes that it will be difficult to resist the combination of new chips launched this time. If Samsung loses its market in Samsung Kejian , then their strategic layout will be more passive.

“The advantages of Android have just been introduced through the Xiaomi mobile phone sample machine, and the Android system will be provided to everyone for free.

At the same time, the source code will also be published in the Android open source community.

Every year Xinxin will conduct a major version update of Android.Xiaomi Mobile will hold a launch event next week for Xiaomi smartphones equipped with Yanque, Honghu and Android.

All friends and businessmen are very welcome to experience our Xiaomi mobile phones. "

Yanque and Honghu are sold to the outside world, and Android is provided to mobile phone manufacturers for free. This does not mean that Xiaomi has no advantages. Xiaomi has the first-mover advantage.

If foreign companies are afraid of Xinxin's chips and operating systems, then the Chinese mobile phone manufacturers are most afraid of Xiaomi.

After the launch of Xiaomi, the average price of domestic mobile phones has dropped from 699 to [-]. Now the price of some TV shopping mobile phones is only [-], in RMB.

This makes it difficult to sell PHS.The prices of foreign brands have also been falling. Motorola's latest Blade series sells for US$899 in America, but can only sell for more than 3000 in China. The price has even been reversed.

The biggest reason for the current extreme involution of the domestic mobile phone market is Xiaomi. Xiaomi's price war simply gives no way for its friends to survive.

When everyone heard that Xiaomi was going to launch a smartphone, almost everyone was stunned. Your price is too low, how can we survive?

Even 20 years later, Xiaomi is trying its best to get rid of the title of cost-effectiveness and leave the ultimate cost-effectiveness to Redmi, but there are still a large number of users buying Xiaomi for cost-effectiveness.

Not to mention the current level of national consumption and income capacity are far from adequate.

"If Xiaomi can lower the price of smartphones to less than 2000 yuan, it will be a sure success." The team leader understands very well. Xinxin gave him Mphone2. After receiving it, he fully understood the difference between smartphones and ordinary mobile phones. difference.

The team leader has a better understanding of the income level of Chinese people. Even in Shenhai, the most developed country at the moment, most people can afford the Mphone5000, which costs up to 2 yuan. Being able to afford it and buying it are two different things.

He is happy to see smartphones with low enough prices, which is crucial to China's mobile Internet. The current penetration rate of smartphones in Americen has exceeded 30%, while China does not even have 10%.

Zhou Xin smiled and said: "You guessed it right, the starting price of Xiaomi mobile phones is really around 2000 yuan."

Team leader: "Then I guess he will sell out, and even I will be tempted.

New cores are making big moves this year. I have a hunch that the mobile phone market in China will be very lively this year. "

For Shenhai, the better the development of Xinxin Technology, which is headquartered in Zhangjiang, they will also benefit a lot from it. The increase in land prices caused by the increase in housing prices around Xinxin alone is enough to make the Shenhai government a lot of money.

Not to mention the tax revenue, upstream and downstream industrial chain and employment opportunities brought by the new core.

In the past, more than half of the science and engineering graduates from Shenhai University moved to other places. In the past two years, the probability has dropped to one-third. This is obviously related to Xinxin.

Zhou Xin said: "Xiaomi is a chaser. Facing so many competitors, we must be ruthless, not only to our opponents, but also to ourselves."

Yu Dazui continued on the stage: "The next step is the selling price. Of course, I am talking about the selling price of the chip, not the selling price of Xiaomi mobile phones.

I still have to worry about the price of Xiaomi mobile phones. We hope to keep the price as low as possible, but the new president does not agree.

I also want to do the work of the new president. We will try our best to lower the starting price of Xiaomi smartphones to less than 1000 yuan. "

"Fuck!"

"How will we survive?" "Xiaomi will not give us a way to survive."

"Is such a price war allowed?"

"If Xiaomi really lowers the price of smartphones to less than 1000 yuan, then we will give them away for free and give away mobile phones when buying TVs, which will be just in time to package and sell the squeezed TVs."

Friends and businessmen were all frightened. No matter how much domestic mobile phone brands could reduce costs, they couldn't produce smartphones under a thousand yuan. There was an uproar in the venue.

Zhou Xin explained to the leader next to him: "This is his little trick to put psychological pressure on the friends and businessmen below.

If we reach this price, we will lose money, and the more we sell, the greater the loss will be.

Although for Internet companies, it often happens that they lose money and make a profit, but Xiaomi has not yet reached that point. Our current strategic plan is to ensure that profits and losses are balanced on the basis of ensuring that profits are given to users as much as possible. "

Zhou Xin explained in the audience, and Yu Dazui explained on the stage: "I was joking just now, it is impossible to get it within a thousand yuan.

But Xiaomi smartphones will definitely continue our line of ultimate cost-effectiveness.

Next, let me finally introduce the prices of the two chips, Yanque, 799 yuan, and Honghu, 1399 yuan.

You can contact our business department for official pricing. If the quantity reaches a certain level, there will be some preferential policies. "

The advantage of this kind of press conference with relatively few people is that business communication can be conducted directly after the conference, and everyone can reach a preliminary cooperation intention.

At least for now, only Xinxin can produce integrated smartphone chips. Everyone has to buy it even if they don't want to buy it. Even if they know that the price is high, they still have to hold their noses and buy it.

Not to mention that chaffinches and swans are not expensive.

There are all veterans here, and everyone knows the prices of mobile phone accessories clearly. The price of Yanque is not high, and each new core can earn about 200 yuan. The profit of Honghu is high, and the profit of each new core is at least 500 yuan. Yuan.

Even if you know that the premium of Honghu is more expensive, you still have to buy it, because if you don’t buy it, the mobile phone launched by a friend will be equipped with Honghu, and if you launch the bird, you will be stepped on by others as soon as you hear it.

Huang Zhang also came to the scene. With the help of Xinxin's mobile phone integrated chips, Meizu has successfully established a foothold in the mobile phone field and has a stable audience.

Meizu has launched a new phone every year for three consecutive years. Its total sales exceeded 50 units last year, making it a third-tier player.

Even because it is in Zhuhai, it has received strong local support, at least there is no shortage of funds.

The “no shortage of funds” here means that as an assembly plant, there is no shortage of money for small innovations and marketing promotions. It is still far from enough to develop chips and operating systems by yourself.

He was different from others. After hearing the price of Yanque, Huang Zhang linked it to Yu Dazui’s price of less than 1000 yuan. Is it possible to build a smartphone priced at 999 yuan.

If it could, the price would definitely explode.

But the unit price of Yanque is 799 yuan, and he still needs to get a series of accessories such as battery, casing, screen, packaging, charger, etc. These accessories need to reduce the cost to 200 yuan.

Because considering Meizu’s past brand image, these materials cannot be too cheap and cannot give consumers a feeling of inferior quality.

Especially on the outer casing, it must have industrial design and texture.

This was too difficult, he found it difficult just thinking about it.

But he didn't want to give up. The mobile phone market was too big. If he wanted to rise quickly, he had to do things that others couldn't do.

Xinxin's business personnel are limited, and almost every three manufacturers can match one business person.

As a little-known small company, Meizu could only wait until the people in front finished chatting before Huang Zhang had the opportunity to chat with Xinxin staff.

"Hello, Manager Zhang, I am the CEO of Meizu, and my name is Huang Zhang." After speaking, Huang Zhang handed his business card to the business manager named Zhang Yi opposite.

"Oh, hello, if you have anything you want to know, let's add WeChat first.

If I know, I can reply to you now. If I don’t know, I will ask you clearly and then reply to you via WeChat. "Zhang Yi took out his Mphone2 and showed the QR code to the other party.

In order to facilitate communication with customers, Xinxin's business personnel are equipped with Mphone2 as standard.

Huang Zhang was a little embarrassed: "Sorry, I am using our own Meizu mobile phone, which does not yet support the Internet function, but I believe that with the technical support of Xinxin, we will soon launch a smartphone.

Let's do this, Manager Zhang, send me your WeChat ID, and I'll add you through the computer when I get back. "

Zhang Yi has developed a good impression of Huang Zhang. As a businessman at Xinxin, he has met many people working in the mobile phone industry, from senior executives to middle managers. Many of them boast about how good their brands are, and they can all learn from their pockets at this stage. Take out a mobile phone.

This is like the spokespersons of other mobile phone brands in later generations, but they themselves use iPhones.

Zhang Yi said: "Okay, no problem, I will send it to you right away."

After exchanging contact information, Huang Zhang asked the question he was most concerned about: "I want to know the discount that Mr. Yu just mentioned on the stage. What conditions must be met to get the discount?

We are a small factory, so we are mainly more interested in chaffinches. "

Honghu is too expensive. Meizu's brand image is all about cost-effectiveness and industrial design. It is not as cost-effective as Xiaomi, so it plays the cost-effectiveness card. But it is not just cost-effectiveness. The other card is industrial design, and there are some micro-innovations at the user level.

Zhang Yi said: "For the Yanque smartphone chip, depending on the quantity you purchase, there will be different discounts for 50 pieces, 100 million pieces, 200 million pieces and 500 million pieces."

Huang Zhang was overjoyed after hearing this. If he can lower the price of Meizu smartphones to less than 1000 yuan, then he is really sure to sell 500 million units: "What is the discount for 500 million units?"

Zhang Yi was frightened by Huang Zhang's tone: "Are you sure it's 500 million pieces?"

Huang Zhang nodded: "Yes, if I want to order 500 million pieces."

Zhang Yi said: "If it is 500 million pieces, the price of Yanque will be 599 yuan per piece." After finishing speaking, Zhang Yi handed the quotation in his hand to the other party.

(End of this chapter)