I Found A Planet

Qualcomm has had a tough time of late.

The company's market situation can already be described as "dangerous" and "dangerous".

It can be said that we are on the verge of "life and death".

From last year to this year, within one year, Qualcomm has laid off staff three times, and cut 80% of its R\u0026D personnel to save personnel expenses.

The company's main executives took the initiative to cut their salaries, and their salaries were only 20% of the previous ones.

And other various means of throttling, trying to save money and avoid expanding losses.

even so.

Although it tried its best, Qualcomm's net loss during the year was still as high as $3 billion!

Qualcomm, which has been profitable for many years, has suffered such a large loss for the first time.

How can this be?

You must know that Qualcomm holds tens of thousands of communication technology patents in its hands. It only charges patent fees, and it can make a lot of money every year. How can it lose money if it makes a lot of money lying down?

Just like Nokia, which has had ups and downs for more than 30 years, experienced many crises, was acquired and sold several times, but did not go bankrupt. Instead, it came back to life by collecting patent fees and occupied a place in the market.

So as long as people on this planet still need communication functions, the related communication companies will not go bankrupt, and it is very difficult to go bankrupt!

The same goes for Qualcomm.

But Qualcomm also has to make money!

Without enough profits, how can Qualcomm executives and employees enjoy material things?

Without enough profits, how will the follow-up research and development work be carried out... It must be known that any patent does not fall from the sky, but is made with money!

However, Qualcomm now not only has no money, but has suffered huge losses.

What is the reason?

In the office.

Zheng Junming, president of Qualcomm's Country Z, reported to President Christian Amonhui: "Mr. Amon, the company's revenue in Country Z this year has plummeted by 70% compared to last year, and it is estimated that it will be difficult to exceed 30 billion yuan."

"30000000000?"

Christian Amon was taken aback and frowned: "Why is our performance so bad?"

He slapped his forehead hard, and complained to Zheng Junming: "Peter, I listened to your suggestion and moved the company's headquarters to country Z, and 70% of the executives also came to country Z, trying to adapt to the environment here. I even learned a lot of Z words, but why? Why do consumers in country Z still not welcome us, or choose to abandon us?"

"What did we do wrong there to get treated like this?"

Christian Amon looked deeply shocked, extremely lost and frustrated. He valued the country Z market very much, and even left his hometown to come to this mysterious oriental country. achieve business success.

The results of it?

Reality poured cold water on him, Qualcomm lost ground in the country Z market, and its revenue plummeted by 70% compared to last year.

This filled him with frustration.

A hint of the idea of ​​withdrawing from the country Z market came up, but it was immediately dismissed.

Qualcomm cannot afford to leave the country Z market.

Especially after entering the 5G era, only in country Z can Qualcomm's 5G chips achieve better sales and charge more patent fees.

The reason is that the only country that has truly entered the 5G era is country Z! Only country Z has invested several trillion yuan, and has deployed more than 10 million 5G base stations nationwide, covering all cities.

In other countries, due to reasons such as cost, population density, and technical strength, the density of 5G base stations is not only lower than that of country Z, but the usage fee for 5G services is also higher. As a result, only a small area of ​​coverage can be achieved, and it is difficult to fully roll out .

One of the most intuitive data is: Except for country Z, the number of 5G base stations in other countries and regions in the world adds up to less than 8 million.

As a result, except for Z countries, Qualcomm's 5G chips are not easy to sell at all, and it is difficult for most users to experience the speed and convenience brought by 5G.

Of course, another reason is that Qualcomm’s patent fee ratio is too high. For traditional 4G mobile phones, Qualcomm charges 3.5% of the patent fee, while for 5G mobile phones, it has to add 5%, for a total of 8.5% of the patent licensing fee.

It means that for a mobile phone priced at 3,000 yuan, Qualcomm will take 255 yuan (not including the price of Soc)... This extra part will naturally be borne by consumers.

However, due to the incomplete coverage of 5G signals, the user experience is similar to that of 4G mobile phones.

5G packages are more expensive.

So after thinking about it, it is better to continue to use 4G mobile phones.

Therefore, Qualcomm's 5G chips can only achieve a certain amount of sales in the country Z market.

In addition, the Snapdragon CPU has a good reputation in the country Z market and is welcomed by consumers. The revenue in country Z once accounted for 75% of Qualcomm's global revenue.

This is why after the "backdoor incident" of the Android system broke out, in order to win the trust of consumers in country Z, Qualcomm stared at severe criticism and was willing to move its headquarters to country Z.

But even if Qualcomm has done so much, in the face of a 70% plunge in revenue, the hearts of Qualcomm's executives can't help but feel helpless and frustrated.

"Mr. Amon, this is not a problem with our market strategy."

Zheng Junming said consolingly, and analyzed: "The main reason for the company's revenue decline is that the performance and price of the company's products have not been favored and recognized by consumers, which has led hardware manufacturers to choose to cooperate with Huayao or Xinghai Technology. "

"Our latest 5nm process Snapdragon 8550 has a running score of only 610,000, which is not as good as the SX-2000's 780,000 and Huayao's Kirin 1220's 650,000 running points. The performance of high-end SoCs is not as good as them."

"There is a gap in performance, as long as the gap is not too big, consumers can accept it, but because it is an OEM of Moss Semiconductors, our chip manufacturing costs are higher, so the price is also higher."

"In addition to the Soc, we also charge 5% of the communication patent fee for each mobile phone (3.5% discount compared to other countries). Just add another 100 yuan or so."

The sharp drop in mobile phone prices is also one of the reasons for Qualcomm's revenue decline.

"However, Huayao only charges 3.5% of the 5G patent licensing fee, and does not charge additional patent fees for the 5G baseband it sells. This means that the cost of each mobile phone equipped with Qualcomm chips is about 100 to 200 yuan higher. Hardware manufacturers Of course they would abandon us."

"Mr. Amon, our business strategy must be adjusted! If this continues, our remaining market share will be snatched away by Huayao Company and Xinghai Technology, and we will completely lose the country Z market."

Zheng Junming expressed the thoughts that had been hidden in his heart for a long time.

Christian Amon shook his head, adjusted, how to adjust? Qualcomm is just a specialized communication technology company, and the only ways to make money are selling Socs and collecting patent fees. It is not comparable to Huayao, which makes both software and hardware, and Xinghai Technology, which has countless core technologies.

Only by being a patent hooligan can Qualcomm survive like this.

Of course Zheng Junming also understood this, so he made another suggestion, which made the eyes of the president Christian Amon brighten.

"Yes, Xinghai Technology has advanced technologies such as work assistants, virtual factories, etc., but the communication field is limited by Huayao Corporation, and there are few communication patents at hand. If we cooperate with Xinghai Technology and join forces, we will definitely be able to improve Qualcomm's current situation. status quo!"

Christian Amon immediately asked Zheng Junming to contact Ling Jundong of Xinghai Technology, and sent a signal of eagerness for cooperation.

...

Xinghai Building.

meeting room.

After hearing what Ling Jundong said, Chen Jin was taken aback for a moment, then smiled and said, "You're talking about the Qualcomm who is known as 'Emperor Z's Conscience, Yide Fruit'?"