Rebirth 99 to become a car giant

Videos of various DJI drones attacking tanks and armored vehicles in Syria are constantly circulating on the Chinese Internet, and it is no exception in places outside China.

In addition to letting more people know about DJI, a Chinese company, this has also allowed many countries to see the special applications of small drones on modern battlefields.

In the past, most people thought that only large drones such as the Predator, Reaper, Global Hawk, and Twin-Tailed Scorpion had practical significance on the battlefield.

Small consumer drones like DJI drones don’t seem to have anything to do with war.

However, various videos from Syria have obviously broken everyone's understanding.

General Atomics, as the most professional drone company in the United States, supplies many of its products to various teams in the United States.

They have always regarded Daystar Technology as their biggest competitor. After all, both Scorpion drones and Golden Eagle unmanned helicopters can be used in the military.

But they didn't expect that a DJI would appear now, catching them off guard.

"John, does the Pentagon have plans to purchase small drones in large quantities?"

Print, who was promoted from vice president to president of General Atomics last month, is preparing to flex his muscles and make the company the world's largest drone company.

However, this ambition has not yet been implemented, but it was hit hard by DJI Drone, a Chinese company that suddenly appeared.

“We are assessing the impact of small drones on modern combat models.”

"But you must have seen those videos in the past few days. Small drones have special uses in some special battlefields."

"So there will definitely be large-scale purchases in the future."

John and Print are also old acquaintances.

As soon as the other party spoke, he could guess the purpose.

"Small UAVs are playing an increasingly important role on modern battlefields. They can perform a variety of tasks and provide important support and guarantee for military operations."

"Our company specializes in developing a new type of small drone. We hope the Pentagon can provide more support."

When it comes time to ask for funds, Printer will never be polite.

Anyway, if these funds are not given to ourselves, they will be given to other enterprises and will not save taxpayers.

"Although small UAVs have limited payloads, they can still carry some small arms or explosives for air support and strike missions."

“This is a feature we didn’t pay much attention to before.”

"Now that the problem has been discovered, we definitely hope to equip it as soon as possible."

"You are starting research and development now. How long will it take to produce the product?"

General Atomics is the largest drone company in the United States. John knew that if the Pentagon wanted to purchase drones, it would definitely not avoid them.

In addition, everyone is an old acquaintance, so there is definitely no need to beat around the bush at this time.

"This is very fast. Related products will be available next year."

In Print's view, consumer-grade small drones are obviously not difficult to build.

But John's view is a little different from his.

"What is the estimated cost of your small drone?"

Although John did not pay for it, if the purchase price can be kept down, it must be his credit.

"There is no way to confirm this yet, but I think it can be within $100,000."

Print thought for a moment and gave an answer.

In his view, products such as Predator drones can easily cost tens of millions of dollars. Now, building a small drone worth $100,000 should be attractive enough.

But John doesn’t see it that way.

"Print, I went to find out specifically. The prices of DJI drone products on the market are generally between US$1,000 and US$10,000. There are no products as expensive as US$100,000."

"For example, the drones used in Syria are said to be purchased by dealers for only around US$1,000."

"In this case, if you have to bury $100,000 for your drone, I'm afraid it will be very difficult."

After listening to Print's words, some special thoughts suddenly emerged in John's mind.

Of course, he would definitely not tell Printer this idea.

He planned to go find a few friends to discuss his thoughts later.

"John, what we are studying are small drones for military use. They cannot be compared with DJI's consumer drones."

"We need to consider that in complex environments, such as cities or mountains, drones need to have high-precision positioning and navigation capabilities."

"Improving the navigation system, sensors and positioning algorithms of drones is a very important technical challenge and requires a lot of manpower and material resources."

"To hold this position, the drone needs to maintain good communication and data exchange with the ground command center or other aircraft in long distances and complex environments."

"In order to ensure the stability, security and reliability of communication and data links, we also have to invest a lot of resources."

"$100,000 is already our calculated cost based on large purchases."

What Printer said was obviously reasonable, and there was no way to easily refute it.

If it were someone who didn't understand the situation, he would probably think that the price of US$100,000 for a small drone is really a bargain.

But no one’s DJI products are right there. No matter how much you talk about other products, it won’t be convincing.

John, who had other thoughts in mind, was too lazy to argue with Print this time. After a few more words, the exchange ended.

Then he immediately found a very close friend.

"Frank, I have an idea. Let's see if it's feasible."

Over the years, John has collaborated with Frank on many private projects. It can be said that Frank is nominally his friend and old classmate, but it is more accurate to say that Frank is John's white glove.

"Do you have any new ideas?"

Frank looked at John expectantly.

Every time John spoke to him like this, it meant something great was coming.

"Have you seen the videos of drones attacking tanks and armored vehicles that have been circulated in Syria during this period?"

"Of course! This is already the most popular content on the video website, I must have seen it too."

"According to the information I have learned, this small UAV is of great significance to local battlefields. Relevant departments have realized this and are preparing to purchase large quantities of them."

"John, but our company does not produce drones."

Frank said regretfully.

For relevant departments in the United States, military product procurement is definitely a huge piece of fat.

A large part of the hundreds of billions of dollars in military spending every year is related to military product procurement.

John only needs to pluck some hair from it, and he can eat a lot.

Over the years, the two of them have basically been making money around this thing.

“Just because we didn’t produce before, doesn’t mean we won’t produce in the future.”

Obviously, John is preparing to make a fortune from drones this time.

However, Frank was a little stressed and said: "The production requirements for military drones should be relatively high. Currently, General Atomics and Boeing are doing better in this regard. If we want to surpass these two competitors, I'm afraid It’s very difficult.”

A person must be self-aware, this is Frank's principle of life.

But it was precisely because Frank was more honest that John dared to let him be his white glove.

Otherwise, I will be sold accidentally.

"The drones produced by Boeing and General Atomics are large drones, costing millions or even tens of millions of dollars each."

"This is nothing like the small drones we saw in the video attacking tanks and armored vehicles."

"UAVs like the ones we're seeing, they're selling for less than $10,000, and that's definitely not something that Boeing and General Atomics can do."

"So in this business, they are not our biggest competitors."

John gave his own interpretation in a unique way.

This gave Frank renewed hope.

Being able to do military products business would be the best thing.

High-tech businesses like drones often have higher profits, so he is even more interested.

"Then do we really need to introduce a production line, recruit drone R\u0026D personnel, and develop a small drone ourselves?"

"Although this kind of drone seems to be much simpler than the products developed by Boeing and General Atomics, the technical threshold is not that high."

"But if you want to win the favor of relevant departments, the performance must not be bad, right?"

"We are starting from scratch, and we don't know when we will be able to produce qualified products."

Seeing a piece of fat seeming to slip away from his eyes, Frank felt a little pity.

But he really doesn't have any confidence to come up with their own drone product in a short time.

“We don’t directly develop drones ourselves, or even produce drones, but that doesn’t mean we can’t sell drones.”

John smiled rather mysteriously, obviously having some thoughts in his mind.

"Then...then what do we do?"

At this time, Frank was really a little dizzy.

If the company doesn’t produce drones, then what business is there in the drone business?

Is it possible to become a second-hand dealer?

Boeing and General Atomics will not give up their profits.

"The drone shown in the video in Syria is a product from China's DJI drone."

"The selling price of such drones is generally between US$1,000 and US$10,000. We can definitely purchase a batch of drones from DJI and have them remove the LOGO."

“Then we re-paste our LOGO in our drone company and sell it to relevant departments.”

"A DJI drone that costs US$1,000 will be sold to the relevant departments for US$20,000 after resale. This price will definitely satisfy many people."

"After all, compared to the quotes offered by companies like Boeing and General Atomics, $20,000 may be a fraction of them."

When John said this, Frank's eyes immediately lit up.

He knew that if John dared to do this, he must have his own method to deal with a series of people.

Otherwise, such a vigorous operation would definitely not be possible.

But he thought of something else and said, "This selling price is directly 20 times the purchase price. Isn't it too exaggerated?"

Although the profit of military products is very high, the profit of 20 times is still beyond the normal level.

Frank definitely knew this.

"Do you think the $19,000 difference is our profit?"

"We can keep three achievements, and the rest needs to be given to other people."

"Otherwise, how could it be possible to sell drones using such a simple and crude method?"

When John said this, Frank immediately understood everything.

But he will definitely not ask any more questions on this issue.

This was not part of his business scope, he just had to follow John's instructions to get the company started.

But he quickly thought of another question and said: "Will they have any objections to our OEM products for DJI drones?"

"This batch of products is sold to relevant departments in the United States. If it were not for our OEM, DJI would not have been able to obtain this batch of orders."

"Besides, we will not become their competitors after OEM. As long as the other party is smart enough, they will turn a blind eye."

John gave his reply quite firmly.

However, Frank raised a new question, saying: "Since DJI drones can be used in large numbers on the battlefield, if companies like Boeing and General Atomics push for sanctions against DJI behind the scenes, they will not be allowed to do so. If relevant departments use DJI products, won’t our business be abandoned?”

Frank's worry is definitely not unreasonable.

Sanctioning other arms companies is what the relevant departments of the United States like to do most.

The military industry is the pillar industry of the United States.

The interests involved here are very deep.

Anyone who dares to compete with American arms companies in this regard will definitely be dealt with by the other side.

Frank has seen too many similar cases.

"Although DJI drones can be used in the military, they are indeed consumer-grade drones. Most consumers buy them for aerial photography and other purposes."

"Even Boeing and General Atomics know this."

"So even if we want to push for sanctions against DJI, I think it should be to restrict the purchase of relevant departments and not directly ban ordinary consumers from purchasing."

"Otherwise, many consumers will stand up and protest."

I have to say that John’s analysis is quite reasonable.

The United States also needs to consider public opinion.

After all, public opinion sometimes means votes.

If you go too far, you will be affected in various ways.

"As long as relevant departments are restricted from using DJI drone products, our business will probably not be able to continue."

"After all, as long as Boeing and the others push our approach outward, it will be very difficult to handle this matter."

When Frank said this, John couldn't help but frown.

This statement still makes sense.

And Boeing is definitely capable of doing such a thing.

After all, the relevant departments have banned the purchase, so you can simply change the label and continue selling.

Do you think you are stupid?

However, it is not just once or twice that John collects funds, and his experience is still very rich.

"When they push relevant departments to ban the purchase of DJI drone products, it may give us another new opportunity."

"Huh? New opportunity?"

Frank was completely confused.

It's already this time, but there is still a new opportunity?

"That's right, new opportunities!"

"Boeing and others will most likely push relevant departments to ban the purchase of DJI drone products, but ordinary consumers can still purchase them, and ordinary companies can also purchase them."

"We can purchase a large number of DJI drones ourselves and then lease them to relevant departments."

"For example, the rental price of a drone is US$3,000 per year, and if it is damaged, the compensation for one drone is US$30,000. Maybe we will make more money in the end."

John smiled, very satisfied with his idea.

Having been in this field for so many years, he has a clear understanding of the development context of many things.

There is definitely a huge room for maneuver here.

Of course, it would be impossible for him to eat all the fat at that time.

He can set up a company to purchase DJI drones and lease them to relevant departments for use, and others can certainly do the same.

At that time, everyone will communicate and share this piece of cake together.

…

Just when John was planning how to make money from the drone business, Boeing was not idle either.

They are internally purchasing a batch of DJI drones of various models for analysis.

Several tanks and armored vehicles that were about to be scrapped were even placed in the test site for testing.

With this test, they have a clearer understanding of the power of small drones.

"Absen, can you produce micro-missiles suitable for use by small drones?"

"If we can combine micro-missiles with small drones, the lethality should still be very high."

"I remember that Daystar Technology previously demonstrated the swarm tactics of drones and specially developed micro-missiles."

"Although in the videos from Syria, drones are all using bombs, it is undoubtedly more appropriate to use micro-missiles."

David was just promoted to Vice President of Boeing last year, so he naturally hopes to achieve something.

Although drones are not Boeing's core business, everyone is very optimistic about this market, and David also wants to work hard.

"There is naturally no problem in producing micro missiles, but to make missiles miniaturized and lightweight, we need to use a large amount of lightweight materials, preferably high-end carbon fiber materials."

"As a result, the production cost of this micro-missile may be higher than the selling price of DJI drones."

As the head of Boeing's ballistics business, Absen's judgment is relatively accurate.

The price of DJI drones in China starts at only $1,000. In this case, paired with a bomb worth several hundred dollars each, the cost of use is absolutely very low.

Even if two planes set off at the same time, one of them is shot down, and the other one can be effective, it is still very cost-effective.

But for Boeing, the cost of a micro missile may be 20,000 to 30,000 U.S. dollars, and the cost of its own drones will be around 100,000 U.S. dollars. The final cost of use is many times higher than that of DJI. .

It would be nothing if there was no comparison in this situation.

But I am afraid of comparison in everything.

"It is impossible for relevant departments to use civilian products such as DJI drones, and it is normal for similar drones to be upgraded to military products at a higher price."

"Besides, after using micro missiles, the attack accuracy is definitely much higher than that of ordinary bombs, and the attack effect is also much better."

"To pay for this technological advancement, it is normal for the price to be a little higher."

"Besides, even if the cost is high, it is actually only hundreds of thousands of dollars, which is nothing compared to the price of the Reaper drone."

When David said this, Absen didn't know how to refute.

After all, this is indeed the truth.

"What if other companies launch very cheap solutions like DJI?"

"Then we won't be competitive at all."

Although the U.S. arms market is mainly monopolized by a few companies.

But when it comes to some new products, the situation will be slightly special.

As long as they are competitive enough, some new companies can still get a sip of soup.

Obviously, as long as the small drone is a brand-new product that works well, it will be a special case.

"You mean General Atomics?"

"They can't produce very cheap drones."

“If this is really the case, then how can they continue to promote high-end products like ‘Predator Drones’ and ‘Reaper Drones’ in the future?”

David gave his judgment quite confidently.

However, before he finished speaking, Printer from General Atomics called her.

"David, are you preparing to develop small drones?"

The other party did not beat around the bush and went directly to the topic.

The question was asked so suddenly, which made David feel a little weird.

We are all in the same circle, and although there is competition, our personal relationships are actually pretty good.

Print asked himself this, obviously there was something going on.

Besides, Boeing wants to develop small drones, and there is nothing special about this matter that deserves to be kept secret.

After all, I am just telling you whether I am working on this thing, not showing you all my skills.

"Yes, we have already started a project to develop small drones."

After thinking for a few seconds, David gave his reply.

"General Atomics won't let this market go, right?"

Then, David immediately asked again.

Reciprocity is a courtesy.

You can't let the other party always take the initiative. After all, you represent Boeing.

"You are right, we are also preparing to develop small drones."

"But this time I'm afraid we are all miscalculating."

"The purchase orders for small drones from relevant departments will begin delivery within three months at the latest. It is impossible for us to produce mass products in such a short period of time."

When Print said this, David immediately felt the strangeness in it.

The two of them are the largest drone companies in the United States. Without sufficient communication with them, the relevant departments decided to deliver a large number of drones in three months.

This is obviously abnormal.

Unless the relevant departments already have other options, we are sure that large-volume delivery can be completed in 3 months.