Chapter 266 They have stood up

As soon as he finished speaking, a huge discussion immediately sounded in the entire reception room. Even Mr. Rebusley, who had been calm, couldn't help but tap the table with his fingers.

Everyone present knew in their hearts what it means to reduce the price of mobile phone chips and no longer charge additional patent fees!

For example, if you take a mobile phone that costs 2,999 yuan, Qualcomm currently charges about 5% of the chip price per mobile phone, which means that each mobile phone will charge an additional 150 yuan. Plus 1,300 yuan for Snapdragon 888, that means that the minimum amount of Qualcomm to sell a mobile phone is 1,450 yuan!

This is already 50% of the price of the entire phone, and this is the price after the price reduction of Qualcomm chips!

And now.

If you use the Phoenix "Starry 005" chip, you can directly reduce the cost of each mobile phone by 550 yuan!

For example, last year, Dami Group sold a total of 140 million mobile phones. Even if only 50% of the mobile phones use Phoenix chips, that is 70 million, which can save 38.5 billion!

38.5 billion!!

The annual profit of Rice Group in 2021 is only 19.5 billion!

Turtle, these profits contributed to Qualcomm by reducing costs, but they can do too many things!

Whether it is giving back to major shareholders, increasing corporate R&D investment, or even taking out a part of Dirun to reduce the price of mobile phones to give back to consumers, which is excellent. Which option is not better than being cut by Qualcomm?!

And, most importantly.

No matter who gets this "Star 005" chip in the first batch, you can use the high cost performance of this chip to create an affordable and popular mobile phone!

Thinking of this, everyone present was a little excited. As long as the quality of Phoenix’s “Starry 005” is verified, and its performance is indeed similar to that of Snapdragon 888, then you can decide on the procurement today!

In the blink of an eye, Liu Gang from Nubia's mobile phone asked urgently:

"Mr. Hu, we have already understood the price. We want to test the performance of the 'Xingyao 005'. If there is no problem, I can place an order immediately."

"I would like to ask another point. After we purchase the chip, will there be additional after-sales expenses for subsequent system upgrades of the chip?"

When he heard Liu Gang's question, the voice in the reception room suddenly became weaker. Obviously, the issues that Liu Gang cares about were also issues that everyone was concerned about.

Director Zhang took the call without waiting for Hu Lai and Hu Lai to answer.

"Mr. Liu, we are ready to provide the test chips of 'Xingyao 005' to you in a while. Our semiconductor department has professional chip performance testing tools, and of course everyone can also take them back to the factory for testing."

"We have free after-sales service and system upgrade services provided by Mr. Liu just mentioned."

"Okay, that's great!"

Everyone was completely relieved. For mobile phone companies, the after-sales service of chips and subsequent system upgrades are also crucial.

As we all know, the two mobile phone chip companies that are more famous in the world are Qualcomm and MediaTek. But why has MediaTek's chips been difficult to reach the high-end for so many years, and are more mixed in mid- and low-end mobile phones and counterfeit phones?

In addition to the fact that its own performance is indeed different from Qualcomm, it is also related to MediaTek's after-sales strategy.

Because MediaTek's chip price itself is cheaper than Qualcomm, in order to control costs, MediaTek did not adopt the same free upgrade or free after-sales strategy as Qualcomm in chip after-sales, but adopted the method of paying for upgrades.

To put it simply, buying MediaTek's chips is a one-time transaction. After selling the chips to you, you will provide you with the current Android version's underlying system and corresponding software. If you want to upgrade the system and upgrade the Android version, then pay for it.

This method is obviously not good for high-end mobile phones. Nowadays, flagship phones have to be used for two or three years. Can an Android system not be updated for two or three years?

This is obviously impossible.

But once it needs to be updated, there will be a steady stream of after-sales expenses.

Therefore, most manufacturers have chosen Qualcomm chips as the main chip of flagship mobile phones after considering performance, after-sales issues. MediaTek chips are mostly used in the mid- and low-end mobile phone markets.

Director Zhang naturally knew everyone’s worries and continued:

"In addition to the price and after-sales service, I can also make a promise to everyone here."

"'Starry 005' is the first mobile phone chip in our Starry 8 series. Next, we will continue to develop the Starry 8 series. Now the performance of the Starry 005 exceeds that of Snapdragon 888, and the performance of the next one of our Starry 8 series will exceed that of the current Snapdragon 8 GEN 1."

"And this chip performance upgrade will continue, and we will fully consider everyone's profits in terms of price."

Continue to develop the Star Glory series?!

The next model will directly surpass Snapdragon 8 GEN 1?!

I have to say that Director Zhang's promise completely dispels everyone's doubts, and the last sentence "We will also consider everyone's profits in terms of price" even mobilizes the emotions of all the big guys present.

Not to mention that Phoenix chips have brought too much profit after reducing costs. In fact, many mobile phone manufacturers have also complained about Qualcomm in the past two years.

The end of the reason is that Qualcomm has been too ruthless in cutting leeks in the past two years.

The Yanguo mobile phone market sold 560 million mobile phones in 2016, and by 2021, the annual sales volume was 329 million mobile phones.

Logically speaking, if the sales of mobile phones in the market decrease, everyone will have a hard time, but Qualcomm is just the opposite. Over the years, Qualcomm's annual profits have gradually increased.

Especially after HiSilicon was completely shut down in 2020, Qualcomm's profit in 2021 was as high as $9.1 billion, and this is the figure after deducting $7.1 billion in scientific research expenses. Any less research expenses, Qualcomm can easily exceed $10 billion in profits!

Compared with Qualcomm's profit in 2020, it was only $5.1 billion.

Why is Qualcomm able to increase profit by 98% in just one year? In fact, it is actually starting to cut leeks crazy.

Qualcomm is crazily increasing chip prices with its monopoly advantage. Domestic manufacturers without any bargaining power can only pass the price onto users. Speaking of which, Qualcomm is squeezing the profits of mobile phone manufacturers, but in the end, Qualcomm is crazily cutting off ordinary users' leeks.

but……

Qualcomm's price increase is understandable to mobile phone manufacturers. What has made major manufacturers have a lot of opinions about Qualcomm is that Qualcomm has been in a bad situation in the past two years.

It’s fine if the performance of Snapdragon 888 has not improved much, but it can be tolerated if it’s expensive. The problem is that the hot and hot problem cannot be solved at all.

Now all Android camps use Snapdragon 888. The flagship of Snapdragon 8 GEN is not enough to compete with Hongguo mobile phones!

Originally, many large manufacturers were working hard to occupy Huawei's share of high-end mobile phones, but due to the Snapdragon chip issue, most of Huawei's high-end markets were occupied by Hongguo. Now the entire high-end mobile phone market is Hongguo's dominant position!

Thinking of this, everyone is even more worth looking forward to the Phoenix "Star Glory 005" and the subsequent Star Glory series.

However, just as everyone was about to do a chip test, someone suddenly stood up behind the reception room and said loudly:

"Mr. Hu, Mr. Zhang, we don't need to test the Starry Chip. We want to sign a purchase agreement for 1 million chips directly!"

"But I just want to ask... We were the first to sign a purchase agreement with Phoenix Chip. Can we get this batch of chips first?!"

As soon as the words were finished, everyone was stunned for a moment.

Damn, there are manufacturers who are willing to place orders directly without even doing chip tests?

Phoenix Group is indeed very strong and has had experience in producing chips before. However, the Phoenix chip "Xingyao 005" is also a mobile phone chip that has never been launched. The specific compatibility, heating, and power consumption are not clear. Do you trust Phoenix chips too much?

Hu Lai was also stunned for a moment. He looked up and saw that the person who was speaking was Mr. Li from Meizu's mobile phone.

Director Zhang was about to speak, but unexpectedly, Mr. Li continued to speak:

"Mr. Hu, Mr. Zhang, you should also know that our Meizu mobile phone has been acquired by Geely recently."

"We urgently need to launch a very bright phone to revive its momentum, so I hope to be the first mobile phone manufacturer of the 'Star 005' chip."

"I believe in the credibility of our Phoenix Group very much, so we are willing to believe in your company's 'Star 005' chip performance data, and we are willing to use more Phoenix chips in the future."

Hu Lai was quite surprised, but it was understandable that Meizu's current situation could make such a decision.

He looked at Director Zhang without any trace, thought for a moment and nodded and said:

"Mr. Li, you actually trust us Phoenix chips so much, so naturally we will not let you down. The first batch of chips in Xingyao 005 can be supplied to you first."

"After the contract is signed, we will have a dedicated person to cooperate with you in system optimization and software development for Android."

???

Until Hu Lai's affirmative answer, everyone froze.

Originally, everyone's idea was to test it simply, and they could sign a contract after looking at the physical chip. Unexpectedly, they encountered Meizu mobile phones, which was even more ruthless!

Damn, seeing Meizu mobile phones take the lead, all manufacturers hesitated a little. Will you follow me?

While hesitating, several mobile phone manufacturers in poor situations also reacted.

"Mr. Hu, we are also willing to purchase a batch of Starry Chip directly. I'm so fed up with Fire Dragon 888. Not only is it so hot that it can't stand it, it's also very expensive!"

"Mr. Hu, we have also purchased a batch. Qualcomm is now completely ruined. I know that Samsung's OEM is not as good as Taiji Electric, so I have to let Samsung OEM. The most annoying thing is that Samsung OEM costs have been reduced so much, and Snapdragon 888 and Snapdragon 8GEN1 have increased so much, which is completely cutting us as leeks."

"Mr. Hu, I won't say anything anymore, let's buy some too..."

With a few words, the atmosphere in the reception room became even more lively, and many representatives of mobile phone manufacturers were stunned.

Damn, is it so much now that the purchase is sold?

...

On the other side of the sea, in the Qualcomm Group office.

"Boss, this is the latest information sent back from Yanguo. Phoenix Group launched their 5-nanometer mobile phone chip without surprise, which they named the 'Starry' series."

"From the data they released, their 'Star 005' performance is better than our Snapdragon 888, and their announcement specifically mentioned the problems of power consumption and heating. It seems that they should have solved it well."

Listening to the assistant's report, An Meng's face was gloomy, as if facing a great enemy.

To be honest, since Phoenix Group developed the 5-nanometer lithography machine, he knew that it would not take long for Phoenix’s 5-nanometer mobile phone chip to be launched.

However, he did not expect that Phoenix's first 5-nanometer chip would directly surpass Qualcomm's most awesome Snapdragon 888 chip and solve the problems of heat dissipation and power consumption.

"Boss, do you think Phoenix and their chips have any suspicion of exaggerating performance?"

"exaggerate?"

An Meng shook his head. The confrontation with Phoenix Group in the field of automotive chips gave him a deep understanding of Phoenix Group, and the possibility of this was slim.
To be continued...