Chapter 725: Come Out, Pear Phone
"Wu Kai, add 20 mobile phone production lines to me."
"Team 20, I'll go, Mr. Chen, are you fighting chicken blood?"
"Senior brother, don't you have the guts?"
"It's not that I don't have the guts, but 20 sets of production lines are too risky."
After signing OEM contracts with major mobile phone manufacturers, Chen Yu called Wu Kai over.
He has always been in charge of the foundry business before.
It's just that Chen Yu said to add 20 production lines, but it scared Wu Kai enough.
"How can we build our foundry business without taking risks? How can we compete with Foxconn without taking risks."
Universal Technology has been in the foundry business before.
But most of the time, Universal Technology produces for itself.
As for the OEM, in fact, the volume is not particularly large.
For example, it was an OEM for Huawei at that time.
Except for Huawei, basically most companies produce and manufacture by themselves.
This model is called IDM internationally.
IDM is called an international integrated component business. To put it simply, it means to do everything by itself.
Design, manufacture, package, test, and ultimately sell downstream consumer products.
The advantages of this model are obvious.
Because everything is done by ourselves, the control of product quality is much better than that of OEM.
At the same time, it can also integrate and utilize resources and has technical advantages.
In addition, in terms of profits, the profits are relatively high because of the concurrent work.
Of course, the most important thing is that your own manufacturing will not be controlled by other manufacturers.
However, such a model also has disadvantages.
It makes the business huge,
Management and operating costs are very high. And because all aspects of entry require a lot of investment, the return on capital is also relatively low. Also because it seems that you can do everything yourself, but when you actually do it, you find that you don't say that you have done a bad job, but you do it very well.
In the market environment, electronic products must go through four links.
Design, manufacture, test, market.
The least profitable of these is manufacturing and testing.
The most profitable, that is design and marketing.
Another way of thinking, if you are only responsible for design and marketing alone, will undoubtedly save costs.
Conversely, the same is true for Huanyu Technology's electronic foundry business. Although it seems that Huanyu Technology is the least profitable among the four links, but because the foundry technology is the most advanced, it also greatly improves the efficiency of the entire mobile phone manufacturing. Small quantities may not be seen, but large quantities may not be seen in large quantities. There is a huge advantage in cost control.
Chen Yu took so many orders, and he wanted to maximize his entire scale as soon as possible.
As long as the scale of the entire foundry increases, the manufacturing cost of Huanyu Technology will be lower.
The lower the manufacturing cost of Huanyu Technology, the greater the dependence of other mobile phone manufacturers on Huanyu Technology.
In this way, even if the crisis of domestic mobile phone manufacturers has passed in the future, many mobile phone manufacturers may have to consider whether they really want to take it back and do it themselves.
Therefore, Chen Yu ordered Wu Kai to have 20 sets of production lines.
Just facing 20 sets of production lines, Wu Kai was also intimidated by Chen Yu's big move.
"Foxconn, you want to fight with Foxconn?"
"is it not OK?"
"We don't seem to have the strength."
"If it is not now, it may not be in the future. We must accumulate the ability to challenge Foxconn now."
Although Foxconn technology is far less than TSMC.
And the OEM business can be done by anyone.
However, when your foundry business achieves a certain amount and monopolizes more than 50% of the global market.
Well, you have a huge say in this.
A series of products that are OEMed by you often have to look at your eyes.
This is also a layout that Chen Yu is preparing to fight against European and American technology giants in the future.
"Okay, you're awesome, I'm not as good as you. But we don't have any money."
Wu Kai spread his hands and said that even if he wanted to build so many sets of production lines, there was nothing he could do.
For production lines like electronic products, each group is tens of millions.
Of course, there are also small workshop-style production lines, you can get it for hundreds of thousands.
But these hundreds of thousands of production lines can't produce a few mobile phones a day.
Adding up the 20 groups, Wu Kai estimated that at least 500 million must be invested.
This can be invested in real money.
"Money is really an issue."
In order to acquire two major home appliance supermarkets before, Chen Yu was hollowed out.
Although Chen Yu can't really afford hundreds of millions now, after all, Huanyu Technology has received a lot of money in the past.
But this kind of digging down is very detrimental to the company.
If the entire group is often in a situation of shortage of funds, if there is any problem, it will be completely over.
Having done such a thing once before, Chen Yu will not do it a second time.
It's just that although funds are tight, it's not impossible to solve.
"Wu Kai, don't worry, we are a little nervous, but some people are not nervous."
"Ask someone else to borrow it?"
"Which other people are willing to lend you hundreds of millions all at once, why don't you ask your father?"
"My dad can't make up 500 million cash flow even if he goes bankrupt."
"That's it."
"Mr. Chen, who else has money?"
"Stupid, we have no money, Wang Xuehong has money."
Chen Yu patted Wu Kai, and Wu Kai suddenly came to his senses.
Huanyu Electronics is not a company of Huanyu Technology. At that time, he also introduced HTC from Taiwan, which is Hongda Electronics.
It is also the addition of HTC that makes Universal Technology's foundry technology to a higher level.
Now the entire business is advancing by leaps and bounds, leaving many opponents behind.
Chen Yu may have no money, but for Wang Xuehong, the daughter of the god of management, she is a super rich woman.
However, Chen Yu thought that Wang Xuehong was not asking Wang Xuehong to contribute money.
Although it stands to reason that such business expansion is generally based on the proportion of shares.
If you don't make up, sorry, then dilute your shares.
Chen Yu thought of Wang Xuehong, but wanted her subsidiary Hongda Electronics to take over the entire account.
In other words, Chen Yu didn't plan to scrape together a penny.
As for if you don't make up, you have to dilute the shares?
how can that be.
As the controlling shareholder of Universal Electronics, who diluted Chen Yu's shares?
As for not wanting to raise money or sell shares, how could Wang Xuehong agree?
Then it depends on Chen Yu's flickering skills.
"Don't tell me, Wang Xuehong is really rich."
Wu Kai also showed a smile.
"That's it, I'll go to Taiwan tomorrow. By the way, how is our pear phone doing?"
Huanyu Technology has made low-end mobile phones and ultra-low-end mobile phones before.
Of course, also made low-end mobile phones.
But it has never done mid-to-high-end, or even high-end mobile phones.
It's not that I didn't want to do it before, it's just that the conditions were immature and the time was not allowed.
If you want to make your own mobile phone brand, mid-to-high-end and high-end mobile phones are the only way for any mobile phone brand.
It can even be said that no matter how well your mobile phone sells, if there is no mid-to-high-end, especially high-end mobile phone brand, then in the eyes of ordinary consumers, you are just an ordinary mobile phone brand. You can never compare to Nokia, Sony, Samsung...these giants.
Therefore, Huanyu Technology has also been silently researching and developing during this period of time.
The pear mobile phone is the most high-end mobile phone that Huanyu Technology will launch so far.