Reborn Entrepreneurial Giant.

Chapter 157 Future-oriented Agreement

Jumei's development is good, and Honor is certainly not bad. Negotiations with Qualcomm are coming to an end. After Duolun's communication, everyone has basically reached an agreement:

In the next five years, Honor will only be able to purchase Qualcomm chips. Unless there are major quality and safety risks, or with Qualcomm's permission, it can use chips designed by other companies or itself in its mid- to low-end product lines.

Within the five-year period, Honor's annual sales of mobile phones using Qualcomm chips exceeded 5000 million units. All Honor mobile phone products will continue to purchase Qualcomm chips. The patent licensing fee is priced at a maximum of US$300. Even if the patent fee is charged at a rate of 5%, each Honor mobile phone will Only a $15 royalty fee is required.But if the sales volume of Honor mobile phones only reaches 3000 million units in a year, it will need to be priced according to the benchmark of up to US$500...

In addition, the IP licensing agreement for CDMA baseband chips can be automatically activated. This agreement can be extended for three years. The mobile phone sales requirement will increase by up to 1 million units, and the CDMA patent licensing fee will increase incrementally. If the standard is reached within 5 years, each mobile phone will need to pay $1, $6 in the 3th year, $7 in the 5th year, and $8 in the 7th year.

There are many other rules and restrictions. For example, the chip design company designated by Honor cannot be a large manufacturer such as Texas Instruments. In principle, it can only be used by Honor and Honor's sub-brands. If other mobile phone brands want to purchase, they need to follow Qualcomm's patents. The charging standards include additional payment of patent fees, etc.

The entire agreement seems very outrageous. Although Qualcomm does not think Honor can do it, even if it does, it will still be beneficial to Qualcomm.Qu Li is of course more satisfied. Even if Honor meets the conditions stipulated in the contract in the eighth year, based on the subsequent 5% Qualcomm tax calculation, the patent fee of 7 US dollars is quite cost-effective. 140% of 5 is 7.

I won’t go into the specific details. They also signed the principle of non-discrimination and most favored treatment to ensure that Honor’s patent licensing fee is the lowest in the industry. It’s okay if Honor can’t meet the standards within 5 years. Once it withstands the pressure from Apple and other companies, its future achievements will be limitless.Perhaps only the United States, the world's largest rogue, can threaten Glory by taking action personally!

Qu Li came to Beijin, and the head of Qualcomm flew to Beijin at the same time. Both parties held a press conference and signed this far-reaching strategic cooperation agreement under the witness of reporters, which basically opened up the markets of developed countries such as Europe, the United States, Japan and South Korea. .Of course, the details of the contract will not be announced, but it is said that Honor mobile phones will use Qualcomm chips.

The benefits of cooperation with Qualcomm are not seen, and the disadvantages appear first. This means that the progress of the research and development of Honor's first full touch screen mobile phone will be greatly delayed, and it is designated to be out of date in the first half of this year.

Domestic media are very concerned about the cooperation between Honor and Qualcomm. In 2007, Honor mobile phone sales were less than 10 units, but after large-scale supply began in 2008, global sales reached 50 units in the first quarter, with the convenience of both smartphones and touch screens. , and has a longer battery life than the iPhone, which is why many consumers choose Honor G1.It’s just that the business-style design doesn’t attract as many young people as the iPhone.

At this time, the international and domestic markets began to differentiate. The domestic demand for the 3G version was growing faster. Therefore, T-Mobile's procurement was concentrated on the 3G version. There was no 3G network in China, but in 2008, the mobile company increased its procurement of Honor G1. , the total number has exceeded 30, and it has also received an order for 1 TD network test mobile phones.

Domestic evaluation of Honor G1 is very high, and it is generally believed that this phone exceeds or reaches the level of top flagship phones of international brands.In March this year, Honor America’s official website released the first Android upgrade package, which improved the performance of Honor G3 in all aspects. This kind of service that exceeded consumer expectations attracted the first batch of loyal fans for Honor.

Domestic upgrade services have also been launched one after another. You need to download the upgrade package first and use special software to upgrade. Generally speaking, it is quite troublesome. However, there are many geeks in the first batch of purchasing users, and at least major domestic manufacturers have purchased them in large quantities. .

Honor G1 exceeded the expectations of domestic consumers, half a step ahead, and the iPhone was one step ahead. Therefore, consumers have much more praise for Honor than the industry.

Although Qu Li attended the signing ceremony between Honor and Qualcomm, he did not actively answer reporters' questions and left the scene to Zhou Shaoning.

"How long does it take for a company's revenue to go from zero to 20 billion? Honor's answer is one year."

"Honor's mobile phone sales in 2008 are expected to exceed 200 million units."

"With the rise of domestic high-end mobile phone brands, Honor's annual revenue may exceed 100 billion."

"Honor cooperates with Qualcomm to make the international market unimpeded..."

Various soft articles are flying all over the sky, and various media interpret the significance of this cooperation.

Well, the news announced by Honor and Qualcomm is very limited. The main thing is that Honor will purchase Qualcomm chips to provide mobile phones for operators of CDMA/CDMA2000 network standards.But because of the contract with T-Mobile, Honor G1 is obviously not available and can only be the next one.

T-Mobile quickly sent a letter of inquiry, and Qu Li’s reply was simple: Qualcomm is a nightmare that all mobile phone manufacturers cannot escape, and we have no choice.

Honor, which has no choice, is not in a hurry to expand its product line, but focuses on polishing high-quality mobile phones. This depends not only on mobile phone design capabilities, but also on supply chain companies. Unlike the previous one, which had to hang on to Google's name, the success of the iPhone and Honor G1. There is also almost unreserved support from operators, making smartphones the direction of transformation for many mobile phone companies. There are countless companies that have worked hard to become a smartphone supply chain...

Honor and Hutchison Whampoa have officially launched cooperation negotiations. They want to introduce Honor 3G mobile phones to increase user data usage and make more money from users.Not only Hutchison Whampoa, but also operators in major developed market markets around the world have proactively sent invitations for cooperation.

The entire Honor company is filled with a relaxed and happy atmosphere. The international marketing department is developing rapidly, and the domestic market is not bad either. Even China Telecom, which does not have a mobile phone license, has contacted Honor, let alone China Unicom. It is fun to make money.It's a pity that Qu Li, as the leader, is always calmer than them despite predicting the risks in advance.

"Global smartphone market outlook!" Qu Li held a meeting at Honor's Beijin headquarters, and the main heads of the international business department, Da Duo and Pawo, flew back to attend.

"Smart phones cannot eliminate feature phones, and operators should choose consumers' choices..." Qu Li outlined the future of smart phones in a few words, mainly talking about the challenges that Honor phones will encounter in the future.First of all, you must know that Honor is not Apple, and its global brand awareness is not high.

"Nokia, Motorola, HTC, especially Samsung, their supply chain integration capabilities are worse than ours. Honor only has the first-mover advantage. How long can this advantage last? How long will it take for HTC to release its Android smartphone..."

"Maybe in two or three years, all mobile phone brands will use Qualcomm chips and Google Android operating system. What is our advantage?"

“I don’t have many things that come to mind. The first thing is to improve product competitiveness. They launch ten products every six months, and we launch one product a year. We strive for excellence to ensure that Honor’s mobile phones are world-class in terms of product design and manufacturing, hardware performance and user experience. Take two or three years to establish brand influence, and then..."

"Then there is traditional advertising and marketing, providing consumers and operators with richer choices..."

"The above are all temporary solutions, not the root cause. We must have differentiated competitive advantages, including mobile phone processors, operating systems, LCD screens, and camera capabilities. The cooperation with Qualcomm is based on this consideration, but we need time..."

"While global operators need us, we will seize the market as quickly as possible while ensuring quality and production capacity!" Qu Li poured cold water on the enthusiastic founder team. What are their current achievements? Something to be proud of!