Reborn Entrepreneurial Giant.

Chapter 483 Subsequent Impact

The fall of Qiaobusi has brought a lot of trouble to Honor, not because of the decline in sales, but mainly because the anti-monopoly investigation of Honor's acquisition of MOTO by the relevant US departments has become more stringent.

Although the market share of Honor and MOTO is lower than that of Nokia and Samsung, there are too many voices that are not optimistic about Nokia. What if Nokia collapses?

"Patent priority, we can take over the Tianjin factory, anything else is optional." Qu Li gave his opinion. Do you really think he wanted to acquire MOTO?

"What do we need the factory for?" Lei Jun and others were puzzled.

"In the future, we must produce according to orders and achieve zero inventory." Qu Li wants to achieve smart manufacturing, but it is very inconvenient not to have his own factory.

"What does King BYD think?" Lei Jun, BYD Electronics has given them a lot of help in recent years.

"Do we need to consider so much?" Qu Li remembered that the unit price paid by Honor to BYD Electronics was higher than that offered by Apple to Futukang. As can be seen from their market value, Honor cannot be allowed to continue to subsidize BYD Electronics.

"Not to mention the production capacity of the Tianjin factory, can we ensure the yield rate by ourselves? We must clearly distinguish between long-term and short-term interests. We do not owe anyone." Qu Li continued

"I'm not saying that Honor owes anyone, we run this factory ourselves, don't we need BYD's help?" Lei Jun originally thought that Honor was an asset-light company, but he didn't expect Qu Li to make Honor "heavy."

"How about we have a meeting to discuss how to achieve zero-inventory smart manufacturing?" Qu Li and the others all understand Apple's supply chain management model, and they don't think Honor is capable of doing it. At least they have chosen the machine-sea strategy now, so it will be difficult for them to compete with Apple. To fight for profit and efficiency, apart from smart manufacturing and flexible on-demand production lines, I really can’t think of a better way.

Honor held a meeting to discuss the acquisition: "The difficulties and resistance encountered are getting bigger and bigger. How much will it cost? Where is the bottom line? If this acquisition is abandoned, what will be left behind?" Lei Jun insisted. Meeting

"It's definitely patent priority."

"But the current price is definitely too high."

"The market potential is huge enough, and we have the demand."

Some people are raising the price and others are fighting for it. How can the price be cheap? If it is really cheap, the seller will definitely find someone to raise the price in order to get a good price, which will eventually lead to long delays.Both Google and Honor have deep pockets and are not prepared to drag things out and affect subsequent development.

We have determined the bottom line of the patent, and also discussed how much we are willing to pay to acquire MOTO. For example, we will launch a larger-scale public relations from now on, in case of failure?

No matter how much preparation work is done, there is a possibility of failure. The United States claims to be a free market economy, but the approvals are not very large at all, so there are basically no restrictions in the UK.

Meeting to discuss these things would have meant that Qu Li and the others had wavered. Otherwise, the board of directors had already given them authorization, and the contract with Google also stipulated that the acquisition failed. Now they still have to discuss it, and there must be more than these things.

"Qu Li wants to keep the MOTO Tianjin factory. The reason is that in order to achieve zero inventory, we are taking a different approach from Apple and are preparing to use smart manufacturing..." Lei Jun continued impartially.

What is smart manufacturing, of course, is not artificial intelligence control. There is no Internet of Things, no 5G, and no artificial intelligence.The reason why Qu Li said it was manufacturing, not production, is that there must be people who are willing.The manufacturing he is talking about involves product research and development, product design, process design and production processes.It also involves the management of the product production process, the delivery of the product, and the maintenance, repair and operation after delivery...

Intelligentization is divided into stages, and manufacturing upgrades are divided into four stages: standardization, automation, digitalization, and intelligence...

Qu Li's rich imagination drives Glory forward. Flexible manufacturing may really be possible in their hands. The question is how much is the factory worth? Is Google willing to cooperate?

"Of course I do." The profit margin of manufacturing factories is microblogged. Even the most efficient Futukang has a net profit margin of about 5%. Other factories are even less profitable. Even if Google acquires MOTO, it will eventually sell the factory.

So, Honor is actually picking up trash that others don’t want. The key price is easy to negotiate. Both parties have already made an agreement and have plans for various situations.What to do in the end depends on negotiation. If Google can overcome the resistance from relevant departments and Honor can acquire MOTO, the best option is still acquisition.

It is not easy to hold a meeting. After discussing the acquisition, we continue to talk about other topics. What should Spreadtrum do?Spreadtrum now continues to provide baseband chips to the outside world, and has obtained technology authorization from Qualcomm. For the time being, it can only provide full Netcom baseband to Honor, and it will be open to supply in two or three years.

The problem is the chip business. Honor completed the acquisition and the Honor chip business was merged into this company. The Qinglong No. 2 chip is a product of Spreadtrum. The chip used in Time MiPad and the reduced version of the HonorPad[-] chip have already passed product verification of performance.Domestic mobile phone manufacturers have already made inquiries, but Honor has not provided external quotations.

"Are our basebands and chips sold separately or packaged?"

"Other than Qualcomm, which has the ability to supply chips and basebands at the same time, the only ones on the market now are us and MediaTek."

There are many mobile phone chip suppliers, including Texas Instruments, Marvell Electronics, Nvidia, MediaTek, Broadcom, STMicroelectronics, etc., and there are even more baseband chips, but the ones with the right to speak in the market are Qualcomm, Infineon, Spreadtrum, MediaTek, etc.As Spreadtrum acquires Spansion Semiconductor to supply Honor, although MediaTek has integration capabilities, it is a scumbag in the low-end and mid-range.

But according to market share, excluding orders from Honor, Spreadtrum is not even the second largest player in the market, so it adopts a strategic follow-up strategy and does whatever the boss does.

“How to choose Qualcomm?”

"Their pricing strategy is to package baseband and chips at a more favorable price."

"Our chip integrates WIFI, power management, Bluetooth, GPS and other solutions to create a low-power smartphone solution..."

"We originally prepared it for ourselves, but if we sell it now, wouldn't it make it easier for other mobile phone companies to make smartphones?"

“What would we choose if we didn’t do Qualcomm or MediaTek?”

MediaTek is good at providing turnkey solutions, and they are partly responsible for the popularity of copycat phones.If they want to open up the market, they will definitely do integration, and low power consumption is an inevitable choice.

Spreadtrum's advantage is that the chip team can work together with the system development department to jointly solve problems encountered in mobile phone development.

But now, cross-ocean cooperation, different time zones, not only time-consuming and labor-intensive to solve a problem, but also communication barriers, the engineers of the chip team are sometimes unwilling to cooperate with the programmers of the system development team.Therefore, no matter what the choice is, Honor must cultivate a domestic chip development team.

If Spreadtrum provides chip products to other companies, it is basically impossible for them to get the same services. Besides, Spreadtrum will definitely not be able to sell flagship chips to competitors, so it will provide low-end and mid-range products that it does not use.

"If we can't acquire MOTO, will we provide chips to others?"

"Are there any other options, such as setting up a sub-brand?"

"Use Honor's sales channels?"

"It can be made into a customized mobile phone sub-brand for operators..."

"It's better to make it an Internet sub-brand!" Watching them discuss for a long time, Qu Li couldn't help but say, is the MiPhone destined to be born?