Rebirth 99 to become a car giant

For China's automobile industry, February 2010 is considered the off-season.

After all, the Spring Festival is just this month, all OEMs are on holiday, and 4S stores also have some time off.

In the few days before the Spring Festival, most people who buy cars cannot catch up with them to take them home for the New Year, so the sales volume is not that exaggerated.

After the New Year, although the market recovered quickly.

Especially driven by the Jaguar F-TYPE, the topic of domestic sports cars became popular first.

This has also raised many people's attention to cars to a new level.

Although the automotive industry does not have many stories this month, for the mobile phone industry, the situation is completely different.

In this era, most people buy mobile phones in digital malls or mobile phone stores.

Except for closing a few hours early on New Year's Day, these shopping malls are basically open throughout the Spring Festival.

Even during the Spring Festival, it is the peak time for shopping malls.

Therefore, although February is shorter than other months, more mobile phones are sold than in other months.

"Mr. Cao, our monthly sales of HONOR 3G have exceeded 500,000 units for the first time."

"BYD's OEM production capacity has also begun to increase this month. It will be delivered at full production next month. By then, sales are expected to exceed 800,000 units, and then we can start to hit the monthly sales of 1 million units. Target."

Xia Qingqing is in a very good mood now.

Just a few days ago, Cao Yang had officially appointed her as the general manager of Honor Mobile, fully responsible for the mobile phone business of Nanshan Group.

Deputy General Manager Zhang Jing's main focus is on Nanshan Semiconductor, and Xia Qingqing has the final say on basically everything.

This made her so full of energy that she didn't even go home to celebrate the New Year.

And her efforts have not been in vain. The sales of Honor mobile phones in February have been rising all the way.

Otherwise, she would not have the confidence to tell Cao Yang that she could challenge the high goal of monthly sales of one million in the future.

You know, HONOR 3G is a high-end phone starting at 3,999 yuan, and there are no discounts on the market yet.

If one million units can be sold under this situation, that will be a turnover of at least 3.999 billion yuan.

The entire mobile phone industry, that is, only a few giants such as Nokia can achieve this figure in monthly turnover.

"Is the measurement done so quickly?"

"Do Nokia manufacturers have any special measures against us?"

Although Nokia's mobile phone business is about to collapse, it is still a well-deserved giant.

If you snipe Honor mobile phones from all directions, it will still bring a lot of pressure.

After all, many consumers still have a relatively high degree of recognition of the Nokia brand.

Especially some elderly people think that Nokia mobile phones are the best mobile phones.

This concept cannot be reversed in a day or two.

"There is no special news yet. Nokia's scale is so large that it will take a certain amount of time to react."

"And compared with their monthly sales of 500,000 yuan and their monthly sales of tens of millions, the gap is still quite big."

"But I estimate that in a few months, Nokia will make some moves."

Xia Qingqing doesn’t expect Nokia to ignore Honor phones all the time.

In 2009, global sales of smartphones were 174.2 million units, a year-on-year increase of 15.1%.

Among them, Nokia maintained its first position in the world with 67.7 million units shipped and a market share of 38.9%.

Of course, this is the global sales of Nokia's smartphones. If feature phones are included, it will reach more than 400 million.

However, specifically in China, Nokia's smartphone sales are only about 1 million per month.

Once Honor Mobile's smartphone sales exceed Nokia's, the other party will take action no matter how slow it responds.

Xia Qingqing is relatively certain of this.

After all, monthly sales of one million is definitely a milestone.

That means sales can exceed 10 million units a year.

Converted into sales of more than 40 billion yuan.

No matter which country it is placed in, this turnover is not low.

"Pay attention to the news from our peers. After we start increasing volume in February, quantitative changes will definitely lead to qualitative changes, which will lead to many situations that we have not encountered before."

"At the same time, we can be a little bolder in terms of capacity construction."

"It is not enough to have a monthly production capacity of 1 million units in the first half of this year. After our second-generation smartphones are launched in the second half of the year, the monthly production capacity will be more than 2 million units, and even the monthly production capacity of 4 million units will be formed in the year after that. .”

When Cao Yang said this, Xia Qingqing couldn't help but swallow her saliva.

The monthly production capacity is 4 million units, which is almost 50 million units a year.

That influence is definitely not comparable to what it is now.

Can Honor mobile phones really achieve that scale?

Or is it really possible to achieve this level in 2012?

Xia Qingqing herself was a little unsure.

"Mr. Cao, our mobile phone production lines are all highly automated production lines, and the investment is relatively large."

"If we want to have a monthly production capacity of 4 million, we will need more than 50 production lines. By then, BYD may not dare to listen to our request and invest, right?"

Xia Qingqing has been busy with Honor mobile phones during this period, and has also been to BYD's foundry many times.

I also have a relatively good understanding of the situation of the mobile phone production line.

However, the more she learned, the more pressure she felt.

There are more than 50 automated mobile phone production lines, what is the scale?

Is it too exaggerated?

If the production line has too much excess capacity, the amortized production costs will actually rise significantly.

Although Honor mobile phones take a high-end route and are relatively able to withstand cost increases, they are not wasted like this.

After all, when there is a big difference between your planned production capacity and actual sales, it will not only cause your own production capacity to be idle, but will also cause the production capacity of other parts manufacturers in the supply chain to be idle, and even cause a business crisis.

The chain reaction will be huge.

"Mr. Xia, the development speed of smartphones will exceed all of our expectations."

"Anyone who has used a smartphone will never go back to a traditional feature phone."

"The impact these people have on the people around them is also changing exponentially."

"By then, we may be able to sell more than 4 million units a month."

Cao Yang couldn't say much to Xia Qingqing, so he could only explain briefly.

Otherwise, he couldn't have said that Nokia will die in a few years and smartphones will completely replace traditional feature phones?

Others can say these things, but Cao Yang feels that it is better for him to say less.

Just do it!

"I am naturally very confident about the prospects of smartphones, but for BYD to be so determined to invest, unless we can first pay for the investment in the production line or convince their boss Wang."

"After all, their annual profits are more than 10 to 20 billion. They just invested in a wafer factory with us this year, and they have already borrowed a large amount of money from the bank together."

"The investment in the construction of so many mobile phone production lines has exceeded one billion."

"I'm worried they don't have the strength."

Xia Qingqing said a little worriedly.

No matter which supplier it is, it is no small matter to advance more than one billion yuan to customers.

This is one billion in 2010, not 2023.

"This is easy. I'll go to Shencheng with you, have a good chat with Mr. Wang, and visit the production line by the way."

It's not that Cao Yang can't afford the money to pay for the investment in the production line in advance.

Let alone one billion, there is no problem in adding zero.

But this time he didn't want to take it!

Honor Mobile hands over all OEM business to BYD, which can be regarded as an in-depth cooperation between the two parties.

He wanted to see BYD's determination and sincerity.

There is an interesting phenomenon when chasing girls, no matter whether the girl is beautiful or not, or what the conditions are.

If she has paid a lot for the boy, then there is a high probability that she will not be the first to break up with him.

Even if the boy's performance is not very good and the girl is very dissatisfied, she will not break up easily.

Because for her, she has paid so much, and the cost of silence if they break up like this is too high.

On the contrary, those men are like licking dogs. They are good to girls in everything and take good care of them. They are moved by themselves, as if they are her prince charming.

In this case, unless the guy is particularly outstanding, handsome and rich, there is a high probability that the girl will kick you out easily after encountering a better choice.

This is an unfair thing. However, many things in this world are like this.

Although the relationship between Honor mobile phones and BYD cannot be completely compared with this relationship, the meaning is similar.

If BYD is willing to shoulder the investment pressure to meet the production capacity needs of Honor mobile phones, then it can naturally continue to maintain this cooperation in the future.

But if the other party hesitates and can only do part of it, then BYD should have nothing to say if Honor Mobile continues to find a foundry to spread the risk.

In the future, when Honor mobile phones are very popular, it will be impossible for BYD to continue to be alone.

Others may not have that much confidence in Honor phones, but can Cao Yang still have it?

It’s just one product now, there will be others later!

True to his word, taking advantage of the fact that he was relatively less busy during this period, Cao Yang took Xia Qingqing, Mi Ying and others, and after making an appointment with BYD, they went directly to kill them.

"Mr. Cao, congratulations to you guys, Nanshan Group has another flagship product in the future."

The monthly sales volume of HONOR 3G, which costs several thousand yuan more, has reached 500,000 units, and is still increasing.

This business is no longer a small business for any company.

So when Wang Fu heard that Cao Yang was coming to visit the OEM production line of Honor mobile phones, he naturally congratulated him upon meeting him.

The foundry business is one of BYD's key businesses in recent years and has made a considerable contribution to their financial reports.

Wang Fu naturally hopes that Honor mobile phones can become bigger and stronger, so that BYD can follow suit.

"With your good words, I hope that our joint mobile phone business will get better and better in the future, and we will become the largest independent brand mobile phone company in China."

Cao Yang placed a satellite as soon as he came up.

The target of Honor Mobile is China’s largest independent brand mobile phone company, or even the largest mobile phone company in China.

What is this concept?

Industry leader Nokia sold more than 400 million mobile phones globally last year, and more than 100 million units in China.

And Honor mobile phones have just exceeded monthly sales of 500,000 units.

It is still thousands of miles away from its annual production and sales of 100 million units.

"I am currently using HONOR 3G. After using it, I really can't get used to other phones."

"I believe that the future development of Honor mobile phones will be faster and faster."

Wang Fu took out a mobile phone from his pocket and shook it to show that he was really using an Honor mobile phone.

He also did similar actions when people from Nokia came to inspect.

However, what he is saying now is actually true.

After using HONOR 3G, he no longer wants to use his previous Nokia.

Even Nokia's mobile phone OEM business is BYD's most important OEM business now.

"In today's mobile phone production lines, are most of the equipment purchased from outside or is BYD developed by itself?"

After the two of them chatted for a while, they walked into the workshop under the leadership of the person in charge of the factory and started touring the tour passage.

Although the mobile phone production line does not have ultra-high requirements like the chip production line, it does have high requirements for cleanliness and other aspects.

The entire production workshop looks very orderly.

Although the automation of the equipment has been improved as much as possible, there are still many people on the production line.

After all, some processes need to be handled by humans, which still needs to be more flexible and convenient.

So if you look around, you can see a lot of female workers.

I guess the male employees who work here don't have to worry about finding a wife.

"Most of them are researched and developed by BYD ourselves, and some are purchased from outside."

BYD now regards mobile phone OEM business as its main OEM business, so it naturally has to make some efforts in processing equipment.

Otherwise, it will be difficult to form a competitive advantage with other foundry manufacturers.

After all, if everyone competes with labor costs, BYD has no advantage.

"Nanshan Equipment is also developing a variety of equipment now. If some equipment still needs to be imported, you can communicate with Nanshan Equipment to see if it can be made domestically."

"I hope that all production line equipment for mobile phone factories can be purchased domestically."

Cao Yang is not simply promoting business for Nanshan Equipment.

Instead, we consider some potential problems that Honor mobile phones will face as they develop and grow in the future.

He does not hope that one day in the future, Honor mobile phones will be unable to be produced because the foundry equipment uses equipment imported from the United States.

That's a trap.

Looking at this kind of thing now, it may be difficult to understand.

But in a few years, strange things may happen.

"No problem, please note this matter and arrange to go to Nanshan Equipment tomorrow so that we can communicate."

Wang Fu warned the subordinates next to him, and then continued to visit with Cao Yang.

"Mr. Wang, how long will the construction cycle of your new production line take?"

Cao Yang slowly changed the topic to the point he wanted to focus on.

Investments in production lines like this are cyclical.

It can be as short as a few months, as long as one or two years, or even two or three years.

Therefore, when talking about expanding production, we must first determine the investment cycle of the production line.

"If we only add a part of the production line, we can just add additional equipment in our existing factory. That way, it can be completed in half a year at the fastest. If there is not enough time for certain bottleneck equipment, it may take about 9 months, and it will not exceed at most. 1 year."

"But if it involves the construction of a new factory building, the cycle will be longer. It basically takes a year, or even a year and a half."

Wang Fu responded without any hesitation.

Obviously, he had encountered similar problems many times before.

For him, this is not a problem.

"We will launch the next generation of HONOR 3G in the middle of the year, and new tablet products will also be launched."

"The demand for production capacity will definitely be higher by then. Is BYD considering this now?"

When Cao Yang asked this question, Wang Fu probably knew where the other party's focus was.

After all, we are all smart people.

Wang Fu himself has a technical background and is very familiar with factory conditions. Naturally, he also knows the significance of production capacity to products.

"For this year's replacement products, we have built production lines according to the previous plans given by Honor Mobile. The production lines will be completed in June."

"After the construction is completed, our mobile phone production capacity can reach more than 1.2 million units per month, and our tablet production capacity can reach more than 300,000 units per month."

The cooperation between Nanshan Group and BYD is getting closer and closer, and Wang Fu is also more concerned about related cooperation projects.

Therefore, he is familiar with some major time nodes and information.

"If we need to reach a monthly production capacity of 2 million mobile phones and 500,000 tablets starting from January next year, do you have any issues?"

After Cao Yang finished speaking, he looked at Wang Fu with burning eyes.

Obviously, the current BYD foundry certainly does not have this kind of production capacity.

To meet this requirement in January next year, it means that a new production line construction plan needs to be started.

This means additional new investment.

If it was just an additional line, then Wang Fu would definitely have agreed without any hesitation.

The key is to go from 1.2 million to 2 million. This cannot be done by one line. It requires at least 10 production lines.

In this case, the investment is not small.

The key is that the production process of Honor mobile phones has relatively high requirements for various equipment. The investment in the same production line is almost double that of Nokia's OEM production line next door.

In this way, the impact will be even greater.

However, when I think about Nanshan Group's past achievements, I think about Cao Yang's past layouts that have never failed.

Wang Fu hesitated and replied: "No problem. I will organize a meeting with relevant personnel within the company tomorrow to officially launch the investment project with a monthly production capacity of 2 million."

When other BYD executives heard what Wang Fu said, they couldn't help but feel worried.

A monthly production capacity of 2 million is not a small amount.

There are only a few domestic mobile phone manufacturers that can reach this level of quantity.

As a newcomer in the mobile phone industry, can Honor Mobile really reach this scale so quickly?

Originally, the purpose of the OEM business was to earn some hard-earned money, so as not to lose all the investment in the production line.

"Thank you, Mr. Wang, for your trust in our Honor mobile phone. I believe that Honor Mobile's products will live up to your trust."

BYD successfully passed the first assessment.

This was not beyond Cao Yang's expectation.

After all, everyone knows the hot sales of HONOR 3G now.

As a major OEM, BYD naturally arranged for people to conduct investigations.

"Mr. Cao, the development of smartphones is very fast. I heard that Huawei is also promoting a smartphone project."

"Giants such as Nokia and Samsung also have smartphone products themselves."

"If everyone finds that smartphones using the Android system are very popular in the market, it is estimated that related products will be launched quickly."

"The competitive pressure faced by Honor mobile phones may then be much greater than it is now."

Wang Fu felt that he also needed to remind Cao Yang to pay attention to the movements of his competitors.

Don't let the market competition become too fierce and affect the sales of Honor mobile phones.

Then BYD must also be in trouble.

"Nokia's smartphone sales ranked first last year. That was because the sales of Android-based smartphones grew rapidly, and they will not transform easily."

"The bigger the giant, the more stubborn it is and will not easily accept new things."

"Mr. Wang, I heard that you are Nokia's largest OEM. If Nokia's sales change significantly by then, the impact on you should be quite large."

"I suggest you properly balance all aspects of your business, wait and see the development of Nokia, and try not to add new related production lines."

Cao Yang was not afraid that Wang Fu would misunderstand him, so he persuaded him firmly.

After all, Nokia's mobile phone business will be scrapped in a few years, and BYD will also suffer heavy losses.

Cao Yang is naturally happy to see Nokia collapse, otherwise how could Honor mobile phones rise?

But he doesn't want BYD to be too affected.

Of course, what has been said, whether Wang Fu can listen to it or not depends on him.

"I will definitely consider Mr. Cao's suggestion carefully!"

Wang Fu would definitely not give a specific answer directly on such an occasion.

After all, strictly speaking, Honor mobile phones and Nokia are competitors.

If Nokia changes its strategy after hearing what Cao Yang said, it is estimated that future cooperation between the two parties will also be affected.

"In 2012, we hope that BYD can arrange production lines with a monthly production capacity of 4 million mobile phones. Will this require re-building the factory?"

Suddenly, Cao Yang threw out an even more exaggerated number.

This surprised many BYD people nearby.

4 million per month!

How dare you think about Honor mobile phones!

This time, Wang Fu did not dare to agree directly.

Instead, he asked a question and said, "Mr. Cao, if we want to build a production line with a monthly production capacity of 4 million, we can't just add new production lines."

"At that time, Honor mobile phones will need to communicate with various component manufacturers, such as those who make panels, screens, and cameras. Everyone will have to expand production capacity."

"Otherwise it wouldn't have any special meaning."

Wang Fu knew what he said, and Cao Yang must have understood it.

But he has to buy himself some time to think, otherwise he can't just sit there in silence, right?

He also knew that his answer today would have a greater impact on the future cooperative relationship between the two parties.

Even a bad one will affect other businesses besides the mobile phone OEM business.

This is definitely not the scene Wang Fu wants to see.

He is also very optimistic about the future of smartphones.