ERV’s actions.
The impact is not limited to the Epoch.
Huaxia coastal area.
Shen City.
Zhihua Technology headquarters.
Discussions are ongoing here about ERV’s global promotional efforts.
"As you all have seen, ERV is coming at us aggressively, an indiscriminate attack really. All major brands will feel the impact, and we’re no exception, so we must adhere to our corporate strategy."
"At the very least, we must hold our ground in the mid to low-end smartphones."
"Stable ground ans we can output."
"The fortunate thing is that all major phone manufacturers are competing with the Epoch in the high-end market, striving for those profit margins, which I find unrealistic. Therefore, our second generation of low-end smartphones is about to be launched."
"..."
Listening to the speech of the president on the stage.
Below the stage.
Ren Zhengfei occasionally nods.
Expressing recognition.
Huawei’s previous strategy was pricing, then constantly breaking through the high-end technology blockade of Europe and the United States. Now, in making mobile phones, we can apply this strategy: first capture the mid-to-low-end market to accumulate popularity.
Then seek breakthroughs in the high-end sector.
Difficult?
Of course, it’s difficult.
This path may take five, six years, or even a decade, but as long as we persist, he believes it’s a viable path. First, trust in Huawei’s technology; second, respect for the major shareholder of Zhihua Technology.
Indeed.
It’s respect.
Since the beginning of 4G equipnt, both sides have been working in close cooperation.
The results are gratifying.
Their 4G equipnt achieved the number one share globally, with rapid technological progress. Often, both parties research together, yet the other party always quickly achieves technological breakthroughs while Huawei has only completed half.
Ti after ti.
Broke their perspective.
Technologically.
Ren Zhengfei is impressed by this company.
Powerful technology is not frightening.
What’s frightening is rapid progress.
This has been the direct reason other communication giants have feared Huawei these years. Now, he also has that giant’s feeling. A strong ally can be nerve-wracking.
In fact.
Ren Zhengfei thinks.
Zhihua Technology is not frightening.
What’s frightening is its parent company---Myanmar Bank Group.
This super Jumbo.
Being near it accelerates your heartbeat. After prolonged contact, Ren Zhengfei always feels---it’s holding back so of its true power. You can tell from other things, such as the Myanmar Environntal Technology Company.
Filtering Solution.
Solid Locking Solution.
Oasis.
Apart from luck, these things require deep technical accumulation.
Plus Transcription Fluid.
God knows how many more trump cards this Jumbo has. Even if they announced the maturity of 5G technology tomorrow, he wouldn’t be too surprised, given the astonishing 5G collaborative research speed between Zhihua Technology and Huawei.
Most technological and structural breakthroughs.
Huawei is just observing.
"Everyone can take a look at this; it’s a prototype." The president’s words snapped Ren Zhengfei back to attention.
Once the words fell.
An employee handed over a mobile phone.
The appearance is quite good.
The feel is decent.
Power on.
Pretty fast.
Operations are also smooth.
Ren Zhengfei judged internally.
"This is our thousand-yuan smartphone series, with configurations slightly lower than mainstream models, but the chip inside is self-designed, which compensates for so performance limitations."
Self-designed chip.
Ren Zhengfei does believe this.
This is one of this company’s specialties.
Understanding its architecture.
Many companies can design chips; it’s not hard. The difficulty lies in production. Because of this, even though many communication chips are designed by Huawei, without production equipnt, they can only be outsourced to foreign firms for manufacturing.
And they are not picky.
So directly put their own logos on them.
"In basic operations, it’s relatively smooth. The only issue is that it can’t handle large gas. This chip is mainly for communications and audio-visual playback and simple mobile gas."
"In high-energy consumption mode, if used for a long ti, overheating and lag do occur. But after all, it’s a thousand-yuan smartphone, achieving this level at this price is unique, globally it’s just us."
Unique.
Ren Zhengfei played with it for a while and felt confident.
Watch videos.
No lag.
Open communication software.
No lag.
Played Happy Elimination for a while.
Pixelation.
Hmm, it’s a bit low.
That’s normal too.
Basically.
It already ets the general consur’s smartphone needs.
"How much?" Ren Zhengfei asked curiously.
"If mass-produced, we can keep the cost within a thousand yuan."
"As for the final selling price, I suggest maintaining a twenty percent sales profit margin, and after deducting various taxes and operating costs, our final profit is only seven percent."
Seven percent.
Ren Zhengfei took a deep breath.
This profit.
Is really slim, mature smartphones have been around for barely over a year, yet they’re entering the era of ager profits so soon? Tang Qing said before, the thousand-yuan phone era would arrive soon, didn’t expect it this fast.
Starting from here.
It’s alright.
Technological advancent.
Naturally brings about cost transformation.
"Alright, I agree with the company’s decision."
The tall figure charged ahead.
Ren Zhengfei felt good.
After the eting.
Back at the office, he carefully studied for a while, discovering it’s indeed relatively crude, but if used to capture the market, to make smartphones affordable to the general public, it’s sufficient; once accustod to smartphones.
It’s hard for people to return to the feature phone era.
...
United States.
Apple Headquarters.
Seeing ERV’s promotions, although part of the sa camp, Apple’s electronic products are also included, yet he doesn’t feel any bit delighted because many competitors and industry brands have joined in.
aning.
This is a promotion with almost no winners.
Everyone races.
Sales go up simultaneously, yet the market share remains unchanged, and after the massive promotion, the profit statent looks worrying. Steve Jobs is increasingly confused about what the future market holds.
Epoch.
Innovated smartphone branding with ’resource integration.’
Itself erging suddenly is one thing.
Also brought a detrintal trend, giving everyone a ’misconception’ --- I can make phones too.
It’s this ideology.
Since last year, hundreds of such startups have erged worldwide, under banners of ’resource integration’ and ’consumption innovation,’ storming into the smartphone market.
In no ti.
The market beca utterly chaotic, chaotic to the point of darkness.
Epoch.
Rendered Apple’s original advantage null and void.
Now on the sa starting line as everyone.
Frustrating.
Tang Qing’s heavy blow has left Steve Jobs in a sour mood for the year.
No.
Good for a while.
After curing his illness at the start of the year, he felt much relieved, yet has a hard ti seeing this world clearly.
"President, this ti we’re expecting our sales to increase by two million."
"Hmm."
"You don’t seem happy?"
"If all brands increase by two million, it’s market depletion, depleting what we could have strived for, used to surpass other brands in consur markets, what’s there to be happy about?"
"ERV has directly pushed our competition to the fiercest degree."
"..."
A huge bucket of cold water!
...
Like Steve Jobs.
Sales increase.
Yet global major smartphone manufacturers are not pleased.
Look.
What is all this.
Market share struggles to find springti, still need to pay ERV’s hefty ’promotion fee.’ They don’t care if your market share increases or decreases; if sales go up because of this, you’ve got to pay.
Otherwise...
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