Reborn Entrepreneurial Giant

Chapter 150 Honor and Qualcomm's Opportunity

Qu Li and Chen Danlin lived a good life. Many people in the south were affected by the disaster, but he really had no choice. Jumei donated the convenience food they had stored, arranged uniform vests for the staff, and arranged for volunteers to assist It's almost enough for the staff to sort out the dense crowd flow at Yangcheng Railway Station.

Disaster relief cannot be done, but self-rescue is still possible. Some people went to Jiangsu and Zhejiang to contact OEM companies a few years ago in Jumei. The superiority of the information system was revealed at this time, which can save the person in charge of this work many trips.

Qu Li, as the big boss, of course doesn't do anything, at most he uses his mouth to command remotely. It's not that he doesn't want to go back, but there's news from Qualcomm that he wants to cooperate with Glory, how dare Qu Li not pay attention to such an important matter.

There was some news in China last year. For example, the Ministry of Industry and Information Technology intends to abandon 3G, and after Huawei and Chinastar have a certain patent advantage, they will directly use 4G, which has aroused a lot of discussion.

Nokia, Ericsson, etc., including ZTE Huawei, all went to the Ministry of Industry and Information Technology to inquire, and some crooked and semi-official organizations expressed close attention to this. Domestic news has changed that telecom companies have given up 2G and 3G licenses and are fully committed to developing 4G. At this time, China Mobile and China Unicom dare not. If this is the case, the telecom companies will not be burdened by old users and will go all out to develop 3G or 4G networks with superior performance. In terms of new user experience, it will far surpass China Mobile...

In the end, the Ministry of Industry and Information Technology could only come out to refute the rumors, saying that they had never had such a plan, and the matter ended in nothing.

At this time, Honor has successively reached patent authorizations with Motorola, Nokia, and Huawei, basically filling the patent barriers in overseas sales, and its sales and reputation are very good. With the blessing of Google, the exposure even exceeds that of Apple's iPhone. Seeing this, Qualcomm is even more optimistic about the future of Honor, and will naturally attach importance to cooperation with Google and Honor.

The senior vice president of Qualcomm who came to Beijin this time to discuss cooperation with them is mainly about patent issues and chip cooperation, so let’s stop worrying about it. Do you think WCDMA has Qualcomm patents? The answer is of course yes, but Honor does not produce CDMA/CDMA2000 mobile phones, and they don’t use them much. Even if Qualcomm tries its best, it is impossible for him to pay the 5% patent fee of the mobile phone price.

"For us, the best choice is to develop mobile phone chips independently. Once we use Qualcomm chips, we will lose our long-term competitive advantage..." Although Qu Li knows that Qualcomm cannot be avoided, he still wants to get the best for himself .

"Now that we have raised $300 million in cash, we can develop chips by ourselves. If it doesn't work, we will give up the CDMA line, unless Qualcomm can make us more money and leave us with a way out."

"What back way?"

"After our strategic cooperation agreement expires, if it is not renewed, Qualcomm will automatically grant us the right to design and produce CDMA/CDMA2000 baseband chips by ourselves or entrust other chip design companies..."

Texas Instruments and Nokia have been good friends for more than ten years. Now that they are in trouble, coupled with the help of Google, this is why Honor, a start-up mobile phone company, can get their latest mobile phone SOC chip in the first place.

But at this time, Texas Instruments is still extremely strong, and Honor lacks bargaining power, and cannot even guarantee the timeliness of chip supply, which makes him have to consider other chip companies.

But at this time, apart from Qualcomm, which can provide SOC chips for mobile phones in the world, only Samsung chips are selected by Apple iPhone. In this case, do you think Qu Li chooses Samsung or Qualcomm chips? At this time, there are other mobile phone SOC companies, so sorry, who cares about chip brands that are destined to disappear. MediaTek doesn't even have a fart now. They only joined Google's Open Handset Alliance in July 2010.

Qualcomm is strong here. Last year, they launched their SOC chip with integrated baseband, which is ahead of the development of the times and peers in promoting smart phones. It's a pity that it is going faster, and Texas Instruments, the most powerful company, is about to give up the mobile phone baseband chip business on the eve of the industry's outbreak. You are talking nonsense.

Qualcomm will not agree to Honor's request. If Honor licenses the CDMA patent to Texas Instruments, wouldn't that create an enemy out of thin air? Sitting on the CDMA patent, they sit firmly on the Diaoyutai. The only thing I was afraid of was someone flipping the table. Later, such a big man appeared in India, who gave up 2G and 3G networks and directly connected to 4G mobile phones, saving a lot of patent fees. Only low prices can bring about the rapid rise of mobile Internet in India.

And Qualcomm also knows that the Ministry of Industry and Information Technology seems to be discussing letting China Telecom be responsible for a pure TD network, which shows that everyone knows the impact of telecom technology progress on the industry. No matter how strong the 2G technology is, it will be replaced by 3G. This is a matter of time.

What Qualcomm doesn't know is how much influence Honor has in the domestic telecommunications industry. It seems that their investigation has nothing to do with it, but why can it affect the decision-making of the upper management?

Business cooperation is not limited to the cooperation itself, but involves various interests and strategic considerations. For example, Apple acquired the well-known headphone brand Beats for US$3 billion, but in the end it was to sacrifice it to achieve Apple's AirPods.

The negotiation between Honor and Qualcomm is: within a certain period of time, Honor will use Qualcomm chips as the only choice and develop together. Honor does not restrict Qualcomm to cooperate with other mobile phone brands, but in return, it will give him the most favorable patent licensing fees, as well as CDMA IP licensing. The authorization is limited to its own use, and additional patent fees will be paid if it is used by other brands.

The Honor mobile phone has basically succeeded. Signing such a contract with Qualcomm has huge risks and has lost the initiative. However, the interests of both parties are deeply bound, which can help Qualcomm open up the big track of smartphones.

The negotiation process was very complicated, and the pressure from the board of directors was very high. The Honor staff did not fully understand Qu Li's intentions. In a word, the risk was too great!

"Which mobile phone company in the world can avoid Qualcomm in the 3G era, who is most likely to create a full Netcom mobile phone, how much can a global mobile phone reduce our cost from design, production to sales? How many competitors can it beat?"

"But other companies can also buy Qualcomm chips..."

"Who is willing to make such a big sacrifice for us in exchange for an opportunity not to be restricted by Qualcomm in the future? This is the big killer I prepared for the glory in five or six years..."

"Isn't it worth doing this? If you can't last until then..."

"Are there many similarities between smartphones and PCs? If I had a choice, I would prefer to develop chips and operating systems myself, but this is temporarily impossible. We are a start-up company. It is not easy to have a good start, and it will take time to accumulate. more advantages..." Qu Li is very tired, and it is difficult to convince them on these issues without a professional technical background: "The SOC chip of Texas Instruments is good, but as the leader in the market, they don't take us seriously. Feedback, have they actively resolved it?"

"Qualcomm should cooperate with us before becoming the boss. The past few years are a critical period for Qualcomm and us. We can lay the foundation and establish brand influence in the early stage. Maybe we can achieve mutual success and become Texas Instruments and Nokia in the next decade. ..."

Under Qu Li's strong request, everyone was still persuaded, but it was easy to convince oneself, but it was difficult to convince Qualcomm. They sat firmly on the Diaoyutai and remained invincible. How to persuade them? Perhaps there is only one way, and that is sales, and sales of tens of millions can move people's hearts the most.

"Global sales of Honor smartphones surpasses that of Nokia as a prerequisite, and if this condition is reached within 10 years, the Qualcomm CDMA/CDMA2000 patent licensing agreement will be automatically activated..."

"It won't work in 10 years, it can only be in 5 years."

"5 years is too short, it is unrealistic, it must be 10 years!"

"Many patents are going to expire in 10 years..."

"We took Qualcomm's 2.3.4G patent 10 years later as the target."

"That's impossible, it's impossible."

The negotiations at the beginning were outrageous, and everyone was trying to test each other, but since they can be negotiated, it proves that Honor mobile phones have taken a big step forward in getting rid of the Qualcomm tax.

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