Author: Banlou Yaofeng

The fall of Qiaobusi has brought a lot of trouble to Honor, not because of the decline in sales, but mainly because the anti-monopoly investigation of Honor's acquisition of MOTO by the relevant US departments has become more stringent.

Although the market share of Honor and MOTO is lower than that of Nokia and Samsung, there are too many voices that are not optimistic about Nokia. What if Nokia collapses?

"Patent priority, we can take over the Tianjin factory, anything else is optional." Qu Li gave his opinion. Do you really think he wanted to acquire MOTO?

"What do we need the factory for?" Lei Jun and others were puzzled.

"In the future, we must produce according to orders and achieve zero inventory." Qu Li wants to achieve smart manufacturing, but it is very inconvenient not to have his own factory.

"What does King BYD think?" Lei Jun, BYD Electronics has given them a lot of help in recent years.

"Do we need to consider so much?" Qu Li remembered that the unit price paid by Honor to BYD Electronics was higher than that paid by Apple to Futukang. From their market value, we can see that Honor cannot continue to subsidize BYD Electronics.

"Not to mention the production capacity of the Tianjin factory, are we able to ensure the yield rate by ourselves? Long-term and short-term interests must be clearly distinguished. We do not owe anyone anything." Qu Li continued.

"I'm not saying that Honor owes anyone, we run this factory ourselves, don't we need BYD's help?" Lei Jun originally thought that Honor was an asset-light company, but he didn't expect Qu Li to make Honor "heavy."

"How about we have a meeting to discuss how to achieve zero-inventory smart manufacturing?" Qu Li and the others all understand Apple's supply chain management model, and they don't think Honor is capable of doing it. At least they have chosen the machine-sea strategy now, so it will be difficult to compete with Apple.

To fight for profit and efficiency, apart from smart manufacturing and flexible on-demand production lines, I really can’t think of a better way.

Honor held a meeting to discuss the acquisition: "The difficulties and resistance we are encountering are getting bigger and bigger. How much will it cost? Where is the bottom line? If we give up this acquisition, what will be left behind?" Lei Jun insisted.

Meeting

"It's definitely patent priority."

"But the current price is definitely too high."

"The market potential is large enough, and we have the demand."

Some people raise the price and others compete for it. How can the price be cheap? If it really wants to be cheap, the seller will definitely find someone to raise the price in order to get a good price, which will eventually lead to a long delay. Whether it is Google or Honor, both have deep pockets and are not prepared to delay the matter.

If it goes on, it will affect subsequent development.

We have determined the bottom line of the patent, and also discussed how much we are willing to pay to acquire the MOTO company, such as launching a larger-scale public relations from now on, in case of failure?

No matter how much preparation work is done, there is always the possibility of failure. The United States claims to have a free market economy, but the approvals are not many at all, so there are basically no restrictions in England.

Meeting to discuss these matters originally meant that Qu Li and the others had wavered. Otherwise, the board of directors had already given them authorization, and the contract with Google also stipulated that the acquisition failed. Now they still have to discuss it, and there must be more than these things.

"Qu Li wants to keep the MOTO Tianjin factory. The reason is that in order to achieve zero inventory, we are taking a different approach from Apple and are preparing to use smart manufacturing..." Lei Jun continued impartially.

What is smart manufacturing? Of course it is not artificial intelligence control. There is no Internet of Things, no 5G, and no artificial intelligence. The reason why Qu Li said it is manufacturing, not production, is because there must be people willing to do so. The manufacturing he mentioned involves product research and development, product design,

Process design and production process. It also involves the management of the product production process, product delivery, and maintenance, repair and operation after delivery...

Intelligence comes in stages, and manufacturing upgrades are divided into four stages: standardization, automation, digitalization, and intelligence...

Qu Li's rich imagination drives Glory forward. Flexible manufacturing may really be possible in their hands. The question is how much is the factory worth, and is Google willing to cooperate?

"Of course I do." The profit margins of manufacturing factories are microblogged. Even the most efficient Futukang has a net profit margin of about 5%. Other factories are even less profitable. Even if Google acquires MOTO, it will eventually sell the factory.

So, Honor is actually picking up trash that others don’t want. The key price is easy to negotiate. Both parties have already agreed and have plans for various situations. How to do it in the end still depends on negotiation, in case Google can get it from

Despite resistance from relevant departments, if Honor can acquire MOTO, the best option is still acquisition.

It is not easy to hold a meeting. After discussing the acquisition, we continue to talk about other topics. What should Spreadtrum do? Spreadtrum continues to provide baseband chips to the outside world, and has obtained technology authorization from Qualcomm. For the time being, it can only provide full Netcom baseband to Honor. In two or three years, Spreadtrum will continue to provide baseband chips to the outside world.

Available for open supply.

The problem is the chip business. Honor completed the acquisition and the Honor chip business was merged into this company. The Qinglong No. 1 chip is a product of Spreadtrum. The chip used in Time MiPad and the reduced version of the Honor Pad2 chip have been verified through product performance. Domestic

Some mobile phone manufacturers have already made inquiries, but Honor has not provided external quotes.

"Are our basebands and chips sold separately or packaged?"

"Other than Qualcomm, which has the ability to supply chips and basebands at the same time, the only ones on the market now are us and MediaTek."

There are many mobile phone chip suppliers, including Texas Instruments, Marvell Electronics, Nvidia, MediaTek, Broadcom, STMicroelectronics, etc., and there are more baseband chips, but the ones with the right to speak in the market are Qualcomm, Infineon, Spreadtrum, MediaTek, etc.

After Spreadtrum acquired Spansion Semiconductor to supply Honor, although MediaTek has integration capabilities, it is a scumbag in the low-end and mid-range.

But according to market share, excluding orders from Honor, Spreadtrum is not even the second largest player in the market, so it adopts a strategic follow-up strategy and does whatever the boss does.

“How to choose Qualcomm?”

"Their pricing strategy is to package baseband and chips at a more favorable price."

"Our chip integrates WIFI, power management, Bluetooth, GPS and other solutions to create a low-power smartphone solution..."

"We originally prepared it for ourselves, but if we sell it now, wouldn't it make it easier for other mobile phone companies to make smartphones?"

“If we don’t do Qualcomm, what will MediaTek choose?”

MediaTek is good at providing turnkey solutions, and they are responsible for the popularity of copycat phones. If they want to open up the market, they will definitely do integration, and low power consumption is an inevitable choice.

Spreadtrum's advantage is that the chip team can work together with the system development department to jointly solve problems encountered in mobile phone development.

But this is the case now. Cross-ocean cooperation, different time zones, solving a problem is time-consuming and labor-intensive, and there are also communication barriers. The engineers of the chip team are sometimes unwilling to cooperate with the programmers of the system development team. So, no matter what the reason is,

Both Choice and Honor must cultivate domestic chip development teams.

If Spreadtrum provides chip products to other companies, it is basically impossible for them to get the same services. Besides, Spreadtrum will definitely not be able to sell flagship chips to competitors, so it will provide low-end and mid-range products that it does not use.

"If we can't acquire MOTO, will we provide chips to others?"

"Are there any other options, such as setting up a sub-brand?"

“Use Honor’s sales channels?”

"It can be made into a customized mobile phone sub-brand for operators..."

"It's better to make it an Internet sub-brand!" Watching them discuss for a long time, Qu Li couldn't help but say, is the MiPhone destined to be born?
Chapter completed!