Top of the big era

As Zhou Buqi had expected, the explosion at the Hynix factory some time ago indeed caused a sharp increase in prices in the semiconductor and memory chip markets, with the increase reaching about 30%.

Speaking of which, it's not too much.

It’s just that each piece of flash memory is sixty or seventy yuan more expensive.

However, it is a big challenge for Xiaomi's mobile phone market strategy of low price. Shipping 10 million yuan is equivalent to an additional cost of 600 to 700 million yuan.

Lei Jun wants to ask Zhou Buqi for help.

Zhou Buqi was helpless, "How can I help? I told you before that when discussing cooperation with Hynix, you must seize the opportunity to buy the bottom."

Lei Jun sighed, "Who says it's not the case!"

Zhou Buqi said: "Why didn't you sign the big order in advance? I said the same thing to Zhou Shaoning. The opportunity to buy the bottom is a once-in-a-lifetime opportunity, so you must not miss it. He remembered it and signed a big order with Hynix , it will be available until at least February next year, and by that time, the price of the memory market is expected to have returned to stability.”

Lei Jun explained with a wry smile: "How to compare? Asda is an international giant and can challenge Apple in the mobile phone industry. Xiaomi is just a small start-up company. We are not able to sign large orders and the risks are too high."

Zhou Buqi was a little surprised, "What's the risk? Aren't the supply chains of Android phones becoming standardized? Even if Xiaomi can't digest so much memory, won't it still be able to handle it flexibly in the future? I've been busy reporting to the leaders these two days. How about our advantages of popularizing open source ideas and standardized supply of large, medium and large platforms, but they are no longer available to you? "

Even if Xiaomi phones are unsaleable and this big order is no longer needed, it actually doesn’t matter.

If you pay less for liquidated damages, it will be settled.

Mobile phone flash memory is universal. Xiaomi does not need it. Other mobile phone manufacturers also need it. At least Asda can definitely use it. Just transfer it directly. There is no long-term inventory pressure of spare parts. .

Lei Jun said: "If it's okay in China, Hynix is ​​not an outsider. It's our first time to cooperate. I'm worried that they won't be accommodating."

"Why are you an outsider?" Zhou Buqi shook his head, "I have now joined the board of directors of Hynix, holding 12 points of shares. If Xiaomi has any business disputes with Hynix in the future, I will come forward and say something. How hard can it be?”

"Ah? It's done?" Lei Jun was surprised and pleasantly surprised, "Didn't you say we haven't reached an agreement?"

Zhou Buqi said: "There are some differences on the share plan, but it has been negotiated. Hynix has officially settled in Liangxi. With this relationship, Xiaomi can be bolder in future cooperation with Hynix. ”

"Then this time the price of flash memory increases..."

"I can't help with this. Everything is done according to the contract. Others are also thinking of taking advantage of the price increase to make a profit."

"Well..." Lei Jun didn't have much fantasy at first. What he wanted to say was another thing, "Where's Qualcomm? What do you think of Qualcomm?"

Zhou Buqi was a little confused, "What's wrong with Qualcomm? Doesn't it make processor chips?"

Lei Jun said: "Qualcomm's life is not easy either."

"No way? Hasn't Qualcomm already taken over the smartphone industry?"

Zhou Buqi understands this better.

In the past few years, there have been many companies making mobile phone processor chips, less than a dozen, but in the past two years, Qualcomm has quickly stood out with their Snapdragon series. The Snapdragon series has strong performance, stable operation, and good compatibility... Compatibility is so important. This is the open source idea of ​​​​components. One set of components can provide everything. A chip can be used on ZTE mobile phones, Huawei mobile phones, and Xiaomi mobile phones. This greatly reduces the difficulty of supply chain management for mobile phone manufacturers.

Prior to this, Samsung’s smartphones all used self-developed processor chips.

Very good too.

However, starting from the second half of last year, Samsung has adjusted its strategy and most of its models have begun to use Qualcomm chips.

Mainly for compatibility reasons.

Samsung has too many mobile phone models, relying on its mobile phone strategy. It releases more than a dozen new products a year, covering every price range, and is promoted to the world. With so many models, supply chain management is difficult. Once a certain mobile phone becomes cold, it may cause the supply chain behind it to suppress orders.

At this time, flexible open source components are very important.

The components of this mobile phone are no longer needed. These components can be used on other models of mobile phones. It is very versatile and compatible.

This is the biggest advantage of Qualcomm chips.

Even the chips developed by Samsung are not as compatible with dozens of different models of its own chips as Qualcomm. Once the supply chain management is not good, it will lead to high costs, and then you can only choose Qualcomm.

For example, the cost of Samsung's self-developed chips is 100 yuan, while the price of purchasing Qualcomm's chips is 105 yuan.

At first glance, it seems more cost-effective to use self-developed products.

However, once there is a hoarding of inventory and the stock is reduced by 10%, the price will be 110 yuan. Taking into account the cost of stocking up, it is more cost-effective to buy Qualcomm chips. A major feature of open source thinking is the intensified Matthew Effect.

When everyone is using Qualcomm's chips, Qualcomm's orders will be more flexible and liquidated damages will be lower and lower. Some long-term partners will even cancel liquidated damages and can allocate them at will. This provides great convenience to mobile phone manufacturers, and more and more mobile phone manufacturers will choose Qualcomm.

In other words, the greater the shipment volume of Qualcomm chips, the more people will like to use Qualcomm chips.

The larger the shipment volume, the easier it will be to deploy when an order defaults, the lower the liquidated damages will be, and the more flexible supply chain management will be.

Just like Android system.

Once everyone chooses the Android system, works together and participates in the construction of the Android system, the Android system will become more stable and optimized, and eventually all mobile phone manufacturers will switch to Android. Even if a new open source mobile operating system appears in the future, it will be difficult to compete with Android.

Behind Android is the joint efforts of many mobile phone manufacturers and developers around the world, which has huge advantages in technology and compatibility.

The more involved, the stronger it becomes.

The stronger you are, the more you participate.

Unless more than half of the mobile phone manufacturers and developers stand up against Android and rely on a new open source framework... But this is unlikely. Android belongs to Google. Who else can be Google in this hard-core technology field? opponent?

So Zhou Buqi doesn't quite understand what Lei Jun said about the so-called Qualcomm crisis.

Under the intensified Matthew Effect, Qualcomm's market share will only get higher and higher. Standardized universal chip supply will allow them to take over the entire smartphone industry.

Lei Jun said: "Qualcomm's chips are still expensive."

"Huh? Is there any other alternative?" Zhou Buqi was a little amused, "Isn't it true that even Samsung has joined the Qualcomm camp? Samsung's mobile phone system relies on Android and its mobile phone chips rely on Qualcomm. They are essentially the same thing. Unless you have Apple’s strong brand power and artistic product design, it is more in line with the current market competition mechanism to rely on open source platforms.”

Lei Jun shook his head, "Now there really is an alternative."

"ah?"

Zhou Buqi was slightly startled.

Don't quite believe it.