Rebirth, you call this an honest man?

Wang Heng spent 4.58 billion to buy two peninsulas. After being misunderstood by the relevant departments, he stopped and stayed at home to watch the Olympic Games. The Olympic Games were about to end at this time.

The 2008 Olympic Games opened in the Chinese capital at 8:00 pm on August 8, 2008, and ended on August 24.

The host city of the 2008 Olympic Games is the capital, Shanghai, Tianjin, Shenyang, QHD, Qingdao is the co-hosting city, and Xiangjiang hosts the equestrian events.

There were 204 participating countries and regions in the 2008 Olympic Games, with 11,438 participating athletes, 28 major events, and 302 minor events. A total of more than 60,000 athletes, coaches and officials participated.

A total of 43 new world records and 132 new Olympic records were created in the 2008 Olympic Games. A total of 87 countries and regions won medals in the event. China topped the gold medal list with 51 gold medals, becoming the first country in Olympic history to top the gold medal list. Asian countries.

The Olympic Games had just ended. Because Wang Heng reminded the secretary that smartphones such as OPPO and vivo were coming, Honor Mobile quickly held its second developer conference.

The host of this conference is no longer Wang Heng but General Manager Xu Wenhua, CEO of Honor Mobile.

In the management structure of Hengda Group, the CEOs of each subsidiary are equivalent to the CPU of the computer, and Wang Heng is the one who issues instructions.

Whenever he has a sudden idea, the CEO of the subsidiary is the processor that executes his idea.

Therefore, if Wang Heng were to do everything, Hengda Group would not be able to do it at all, and Wang Heng would not be able to do it at all.

If Wang Heng trusts his subordinates' abilities, it doesn't mean that he doesn't understand them either.

Xu Wenhua himself is a senior executive of Transform, who was sent by Transform's boss to help Wang Heng set up Honor Mobile. In the initial stage of Honor Mobile, both personnel and funds were provided by Transform.

Therefore, Wang Heng did not interfere at all and allowed the Honor mobile phone to be hosted by Huawei. It was not until the Li Yinan incident that the Honor mobile phone and Huawei became estranged.

Of course, this cannot be blamed on Xu Wenhua. As Li Yinan is the vice president of the Hua Group and is in charge of wireless communications, Xu Wenhua has no choice but to listen to him.

Besides, Xu Wenhua has worked hard in managing Honor for two years without making any mistakes, so Wang Heng didn't care about it. In addition, Mr. Ren of Huawei cut off the Honor mobile phone and Huawei, ensuring Wang Heng's control of the Honor mobile phone.

Of course, it is difficult to repair a broken mirror. Although the staff of Honor Mobile were born in Huawei, they all began to go to Huawei. Even the R&D department of Honor Mobile has moved out of Huawei Industrial Park.

Of course, no matter how we use Wenwei, Honor mobile phones are inseparable from Wenwei, mainly the system and chips. Of course, Wenwei chips are currently in short supply even for their own mobile phones.

There is no way to give Honor mobile phones, and the chips for Honor’s 180 million mobile phones are mainly from Qualcomm. It can be said that Honor mobile phones are currently Qualcomm’s largest purchaser.

Qualcomm executives recently held a meeting and wanted to increase chip prices...

Xu Wenhua is not Wang Heng. In Wang Heng's eyes, all the subsidiaries of Hengda Group can be used to cut leeks.

And Xu Wenhua wants to make Honor a real brand enterprise, so whether it is a chip or a system, he wants Honor without asking for help, that is, no one will pinch Honor's neck.

The first developer conference held by Wang Heng was the "SJDN" in 2007, based on the Android system.

And this second Honor Mobile Developer Conference uses the transformation system.

Normally, Honor mobile phones are not qualified to hold any developer conferences. They should be Android systems or Android systems.

However, as the absolute overlord of the smartphone market, Honor Mobile is equivalent to a big customer bullying a store, so it openly acts as the organizer.

Of course, we can’t really say that Honor mobile phones have no qualifications at all. Honor mobile phones also have their own systems, and SJDN is Honor’s system.

In Wang Heng’s previous life, all smartphones in the world, whether they were Huiwei, Xiaomi, Oppo, or Vivo, all used the Android system.

But their mobile phone systems are not called Android systems. For example, Huawei's system is called EMUI; Xiaomi's system is called MIUI; Oppo's system is called Coloros, and Vivo's system is called Funtouch OS.

These various systems are actually all Android systems. As for why they are not called Android systems?

To give a simple example, the Android system is a rough house. Huawei, Xiaomi, Oppo, and Vivo decorate this rough house in their own way.

The decoration styles are different, so they are called different styles, such as modern and simple, new Chinese style, Nordic style, etc.

The same is true for the system, whether it is EMUI system; Xiaomi's MIUI system; oppo's coloros system, vivo's Funtouch OS system,

They are all systems decorated based on the rough system of Android.

Then I decided to make my own Kirin system, so I threw away the EMUI that had taken more than ten years to be renovated bit by bit, and renovated it with Kirin blanks.

I have a great family and a great business, and I don’t care if I throw away the house that I spent more than ten years renovating carefully.

But Xiaomi, OPPO, and vivo dare not follow suit and start all over again.

In addition, foreign applications are all developed based on the Android system. If you abandon the Android system, you will abandon these applications.

This is equivalent to Wang Heng using apps to prevent Apple and Samsung from entering the domestic market.

Because there are no apps on a smartphone, how is it different from a feature phone? It’s even worse than a feature phone.

Of course, Honor has prevented Apple and Samsung from entering the country, and Honor cannot get out because the apps of Google, Amazon, Facebook, etc. are either based on Android systems or Apple systems, but they have not been developed into systems.

,

So in the world of Wang Heng's previous life, since Huawei discontinued the Android system, Huawei mobile phones can only be sold in China. Transformed mobile phones are no longer seen internationally, because foreigners cannot use transformed phones even if they buy them.

Unless they also use domestic applications, such as WeChat, QQ, Douyin Kuaishou, etc...

This is also the reason why the Kirin system has been out for so long, but Xiaomi, OPPO, and vivo are afraid to support it.

In addition to throwing away the high-quality system they spent more than ten years renovating, they also have to throw away all foreign markets.

None of the three mobile phone manufacturers can bear this loss.

In the one year since its launch, Honor mobile phones have sold 180 million units, creating a total revenue of 500 billion and a net profit of 22 billion.

99% of them belong to third-party developers, that is, the apps are all paid for. In addition to charging pre-installation fees, Honor phones also

The software treasure house also charges a download fee, which means that for applications that cannot afford to pay pre-installation fees, if you want to install them on an Honor phone, you will have to pay a download fee.

The profit here is much higher than selling hardware. No, Honor mobile phone hardware has no profit at all. It is equivalent to making money while lying down.

Honor mobile phones have a base of 180 million units. If this trend continues, it will reach a scale of one billion in a few years.

Just by collecting money from applications, annual net profits can create tens of billions of dollars. There are hundreds of billions of global companies, but by 2022 there will only be 50.

Among them, one company's profit exceeded 100 billion US dollars, 5 companies had profits between 50 and 100 billion US dollars, 27 companies had profits between 20 and 50 billion US dollars, and the remaining 17 companies had profits between 10 and 20 billion US dollars.

between,

For 50 companies with annual profits exceeding 10 billion US dollars, their net profits may be less than half.

In other words, as long as the Honor mobile phone stabilizes its basic market, it will be the 25th most profitable company in the world, with a conservative market value of more than 300 billion US dollars.

According to the exchange rate of USD to RMB in 2022, it is equivalent to a market value of 2 trillion, which is ten times the current valuation.

Of course, if it is a bull market like 2021, it will double and the market value will reach 4-5 trillion.

…

There is nothing much to talk about in this developer conference. The development of Honor 3 is no secret. The Honor 3.0 operating system was also released early.

This developer conference is actually Honor Mobile's announcement of its dominance. In addition, because Huawei holds 49% of the equity of Honor, Huawei's system has been fully authorized to Honor Mobile early, so Honor Mobile has also held a developer conference.

The mathematician is famous,

Because Wang Heng prevented Samsung and Apple mobile phones from entering the domestic market, for friends in the industry, they can only follow Honor and use the system.

As for others, they were not considered at all during their initial stage. Mr. Lei, Mr. Shen and other big bosses representing new domestic smartphone brands such as Xiaomi, vivo, OPPO, and Coolpad respectively came to the scene one after another.

Because the Hengda Group's FamilyMart is too powerful, and no one needs to develop systems and applications to make mobile phones, I can only come here to take a look at the situation.

Xiaomi's team is working hard now, because Mr. Lei has set a hard target to launch Xiaomi's first smartphone in 2009 next year.

As operating systems are all turned into systems, there is no choice. If the Android system is used in China, there is no application software.

Of course, they cannot initially target the international market and abandon the domestic market.

…

In the days that followed, friends and businessmen began to show their talents, and Mr. Lei’s team of secretaries began to build their supply chain system.

Like Wang Heng, he chose pure OEM and did not set up a processing factory. In addition, he also learned from Honor in sales, only doing online business and not offline.

Of course, the current Honor mobile phones are sold online and offline, but there are no agents for Honor mobile phones. There are direct stores in every city.

…

At the Honor Mobile Developer Conference, during the lunch break, the Xiaomi team found a room and were discussing. Mr. Lei said to the Xiaomi team sitting at the round table,

“Smartphone competition is too fierce. There are seven or eight manufacturers that have emerged now, and I don’t know how many more will appear next year. This also illustrates the general trend of smartphones.

The big wave of mobile Internet has become unstoppable and has turned into a high-end market. The remaining Honor family is so crazy that it sells 180 million units a year. For such a large market, even a tenth of it is 18 million units."

“How can Xiaomi stand out in such a fiercely competitive environment? Are we cost-effective?

I have calculated that the hardware of Honor mobile phones really does not make money. Currently, 99% of the profits of Honor mobile phones come from the application market.

With the current base of Honor’s 180 million mobile phones, it will be difficult for us to snatch the application profits from them.

Therefore, the main direction of the secret’s attack should be to turn it into a mobile phone.”

After Mr. Lei finished speaking, he took out an 8GB version of the mobile phone from his bag and placed it in front of everyone. Then he put the phone on the table and lifted it from the tool bag on the floor to the table.

Everyone looked at each other, wondering what Mr. Lei was going to do.

Mr. Lei didn't say anything anymore, and then dismantled the transformed mobile phone into pieces.

After dismantling, Mr. Lei stared at the scattered parts on the table and said,

"I did some calculations based on the major module components that I made. The innovation and R&D expenses were unevenly shared. The pure hardware manufacturing cost of this machine definitely does not exceed 2,350 yuan, and the foundry fee has also been included.

Therefore, according to the existing technology, Xiaomi can definitely make a smartphone in the 3,000 yuan range."

Mr. Lei has no choice. Honor dominates smartphones priced below 3,000 yuan and is now producing high-end phones priced above 4,000 yuan. The middle 3,000 yuan smartphone category is temporarily blank.

If Xiaomi wants to compete with Huawei and Glory, it is better to start a new blast furnace and create a blank market. After he has established a foothold, he can then consider competing with Glory or competing with Huawei.

Different personal visions will naturally lead to differentiation, and the two mobile phone manufacturers Honor and Huawei only have a few mobile phone shapes.

Compared with the variety of feature phones in the past, Mr. Lei believes that if Xiaomi adopts a differentiation strategy, it will definitely have a bowl of food of its own.

Wang Heng used the low-end and low-cost strategy of Mr. Lei’s parallel world,

Now Mr. Lei is forced to find another way.

After Mr. Lei briefly held an informal internal meeting, he left the hotel directly without waiting for the developer conference in the afternoon.

He took a plane to the beautiful country. The secretary wanted to benchmark Hui Wei mobile phones. The system and hardware can only be better than Honor. Everyone uses Hui Wei system. Whether it is good or not depends on Xiao Mi's development and application.

Although Xiaomi is not a processing factory, Xiaomi has to design the accessories himself. Xiaomi is better than Honor. The two most important points are the CPU and the chip of the whole machine.

The purpose of this trip is very simple. Mr. Lei hopes that Qualcomm will provide the latest chips for the secretary.

Beautiful country, Qualcomm headquarters, almost the afternoon of the next day, Mr. Lei arrived at Qualcomm and met with Qualcomm's CEO. At this moment, the two parties were in a reception room.

We have been chatting for a while now, and Mr. Lei also expressed the purpose of his visit.

"Mr. Lei, to be honest, Qualcomm's production capacity is simply unable to supply chips to external parties. Honor Mobile has contracted our company's production capacity for three years.

Let me tell you the truth, Honor mobile phones sold 180 million units last year, and Honor’s supply chain purchased chips for more than 200 million mobile phones from us.

At present, Qualcomm's first-generation chips have been discontinued, and we are fully committed to producing second-generation chips to match Honor 3rd generation, so there is no excess production capacity."

In fact, Honor not only purchases chips from Qualcomm, but also purchases them from Huayi. Huayi only buys them because its own mobile phones are out of stock for Honor.

So now only Lianfa and Qualcomm are left. For the current generation of chips, Honor mobile phones have not only ordered 200 million from Qualcomm, but Lianfa has also ordered 100 million.

The sales volume is 180 million, so Honor still has 120 million in stock. In addition, Honor 3 uses a second-generation chip, and 50 million have been purchased so far.

Although Honor mobile phones do not have a processing factory and use OEM, the spare parts are purchased by Honor mobile phones themselves. This is to ensure the quality of Honor mobile phones.

So those who do OEM work for Honor phones actually only earn labor costs.

Mr. Lei felt very uncomfortable after hearing what the CEO of Qualcomm said. This was simply showing off in front of friends and businessmen. What's the point of showing off?

Who doesn't know that Honor is selling like crazy, selling 180 million units a year...