The reason why Zhang Zhanzhao gave up was partly because Xiao Qi was unwilling to cooperate, and partly because his think tank was unsure of himself.
But at this time, there are some other people who are starting to get busy.
In the smart electronics industry, the busiest people these days are not the staff of Fairy Company, nor the six major manufacturers busy preparing for R&D and production, but a group of OEM bosses.
The largest OEM kingdom in the world is China.
Although more than half of the companies are from Baodao, we are always one family.
In this life, the basic pattern of foundries has not changed. The largest one is still the Red Sea Factory, and the largest foundry group is still the Baodao Foundry.
But the details have changed a lot.
At least the second largest foundry has become Star Electronics.
Star Electronics first annexed Youyi United Holdings Company, which is responsible for the production of earphones, polyurethane protective shells, and charger components for Fairy Company's products.
Today's production scale is based on more than 600 million units per year. It seems that with this alone, it has reached a medium-to-large scale foundry.
Then they also received a 60 million Dream Sta order from Fairy Company and a 60 million Dream Sno order, becoming the second largest mobile phone foundry after the Red Sea Factory. In terms of output value, it also surpassed other computers and electronics.
As a foundry for products such as products, it ranks second among total foundries.
Also because of the prosperity of Star Electronics, Li Xiaochao ranked eighth among the top ten richest people in Hong Kong at the end of last year. He and his father, Li Chaoren, were ranked number one. They are a hero.
In the entire field of smart electronic products, thanks to Xiaoqi, four of the top ten are cooperating manufacturers of Fairy Company, including Yinhuang Electronics and Xindian Technology.
Now is the time when smart electronic products are developing rapidly. Everyone wants to rush in and get a piece of the pie.
Although the profit of the foundry will not be very high, looking at the experience of the Red Sea factory and Star Electronics, if they can achieve scale, the profit will be greatly improved. Making money will definitely be much more profitable than making buttons or lighters.
Of course, we must also consider the profits provided by these entrusting companies.
Fairy Company has always been generous and directly provides about 15%-20%, ranking first among all foundries in terms of profit margin.
So much so that the Red Sea Factory directly stopped some OEMs with low profit margins and devoted all kinds of resources to Xiao Qi's side to perfectly complete the OEM and assembly business assigned by Xiao Qi.
Even a stubborn company like Apple, after it was revealed that it treated its foundries harshly, gritted its teeth and pinched its nose to raise the level to 10%. This was a big loss for the stingy Gang Leader Qiao.
With the two giants Fairy Company and Apple making comparisons in the front, no matter how stingy the entrusting company is, it will not be less than about 13%.
It is unrealistic to be less than Apple. It is a big company with a big brand, and assembling its products is an honor. It can improve the reputation of the OEM factory, and this reputation can offset part of the profits.
There are more companies than Fairy Company, but they are even more unrealistic. There is no smart electronics company in the world with higher profits than Fairy Company, and no boss is as rich and generous as Xiao Qi.
Therefore, choosing a compromise point is a reality that they have no choice but to ask a medium-sized company to do OEM work. The requirements are many, the quality is high, and the money is small. Who will do it for you?
In fact, after inquiries by Guo Taiming and Li Xiaochao, basically Huawei, ZTE and Lenovo are prepared to give 13% of the 300 million smartphones prepared by the six major companies.
Originally, the three companies were not stupid and wanted to pay less, but Guo Taiming and Li Xiaochao jointly issued a notice letter. They sternly stated that if any OEM factory uses low prices to take orders, then it is their enemy and will definitely target them in the future.
They carry out various suppressions.
As soon as the two giants spoke, the Baodao OEMs that originally had several companies immediately shrank back.
They are not just afraid of Guo Taiming and Li Xiaochao, they are also concerned about Xiao Qi behind them, because Xiao Qi has said on many occasions that he hates sweatshops and those that exploit labor costs at low prices.
Guo Taiming and Li Xiaochao wanted to suppress them, but they could still hold on. If Xiao Qi took action directly, with Xiao Qi's influence in the smart electronics industry, they would not be able to resist any of his moves.
So the 15% OEM fee became an amount that everyone accepted by default, and everyone competed on this basis.
After Guo Taiming, Li Xiaochao, Yan Chenglong and others got the news from Fairy Company, they basically didn't wait for the contract to be signed. They went to Rongcheng to find the bosses of the six major companies to build relationships and prepare to make orders.
You said BBK, Gionee and Amoi have their own mobile phone production lines?
It doesn't matter.
Let's lay the foundation now. If they want to increase production in the future, and see that it's cheaper and worry-free here, maybe new orders will come in?
The three major companies that were the focus of research, on the other hand, tried their best to visit factories, introduce their concepts, make various preparations for their orders...etc.
Even these foundries directly said that as long as the three major companies are willing, they can place their factories wherever they want, so that production and sales can be made nearby.
To be honest, the smartphone OEM industry, which Xiao Qi has cultivated for so long, already has a very complete industrialized system. This is the first time for the three major companies to enter this industry, and they were immediately shocked by such complete and considerate services.
If they didn't still have some capital and wanted to wait and see what conditions other competitors offered, I'm afraid they would have signed contracts with Guo Taiming, Li Xiaochao and Yan Chenglong on the spot.
…
Before leaving Zhang Zhanzhao's office, there was a moment when Xiao Qi wanted to tell him that there was actually another foundry that could be established in Sichuan.
That is the OEM factory of Yu Lihong's Xiaomiao Electronics Company.
But Yu Lihong is not Xiao Qi's puppet. He also has his own ideas. Xiao Qi cannot rely on being the major shareholder to impose his own ideas on him, so Xiao Qi decided to let Yu Lihong handle this matter.
Decide for yourself.
Compared with the popularity of these companies, Yu Lihong's Xiaomiao Electronics Company is much more low-key.
In front of Xiao Qi, Yu Lihong drew a pie of producing 100 million smartphones a year. But even people who have not experienced this industry know that if you want to ship 100 million smartphones a year, it will take a long time.
What a difficult thing.
Because he felt the great responsibility and pressure, Yu Lihong had no time to be proud and flew directly to all parts of the country with the contract he signed with Xiao Qi.
He has worked for Motorola and Nokia for so many years and has many personal connections. He will find his own generals in several important electronics companies, and then work with them to develop what he considers to be the flagship mobile phone.
Yes.
Yu Lihong has great ambitions.
He does not think that the mobile phones of Fairy Company, Apple and Samsung are very good. They are never the best, only better.
Now that he has the powerful hardware and software departments of Fairy Company as his help, he does not believe that he is only worthy of making a supporting role in the eyes of others.
Who wants to play a supporting role?
Who doesn’t want to gallop around the world and be in all kinds of troubles?
To do this, we need to make the first move, occupy the smartphone market below 2,000 yuan, defeat other competitors of the same level, and then extend upwards to compete with major international giants.
If Xiao Qi could hear what he was thinking now, his first reaction would definitely be: Damn, isn't this the footsteps of Rebus? How come anyone who appears out of nowhere has the potential to become Rebus?
But even if he knew Yu Lihong's thoughts, Xiao Qi would not act displeased in any way.
He hopes that more and better people will enter this market, and everyone will work together to expand and improve the entire smart electronics market, so that China will at least have a commendable head start in future competition.
If Yu Lihong succeeds, more people will be inspired to work hard. Are there still few smart people in China?
Even if he fails, he will leave experience and lessons for those behind him, inspiring people with dreams to keep moving forward.
As for whether you are worried that your leading position will be replaced?
Frankly speaking, Xiao Qi thinks there will be no problem within at least 50 years.
Because Xiao Qi had grasped the app store, a major lifeblood of the entire smart electronics industry, in his hands in advance.
The relationship between app stores and smart electronics manufacturers is like the relationship between theater chains and movie companies.
No matter how good a movie company's movie is, if there are no theaters to show it to you, you are nothing.
The app store is even more powerful. The theater chains in the world are divided into countries and sizes, but the app store is the application store that dominates the world and controls the lifeline of more than 90% of the app programs in the world.
Other smartphones, various programs and games are not as rich and excellent as the app store. You don’t need to compare to know which one is better.
With such powerful resources, Fairy Company's smart electronic products are of course the most popular ones.
Since everyone uses Fairy Company’s products because of the app store, then the sales volume of Fairy Company’s products cannot be much worse.
If one day a more powerful company appears and replaces the Fairy Company's leading position, Xiao Qi won't think anything of it.
Every generation in the country has talented people, each of whom has been in charge for decades.
It is good that Fairy Company has been strong for so long. Even if it is not number one in the future, it will not be a bad thing for future generations to maintain the standard of a world-class company and make steady progress.
There are really too many people who only see the title of No. 1 in the world but fail to see the pressure that No. 1 in the world carries.
Removing this burden may be quite comfortable for the descendants of the Xiao family! (To be continued...)