Chapter 1056: Being Threatened

Yes, when Chen Changliu led the team to the United States to negotiate with Qualcomm, they negotiated a wafer supply betting contract after various games.

At that time, Qualcomm wafers had just been developed and no one was using them. In order to increase their popularity, Zhonghuajia Technology Co., Ltd., which ranked sixth in the world, took the initiative in bargaining power and signed a three-year wafer supply contract.

The price is basically 20% lower than others. Of course, there is also a certain increase every year according to the increase in market prices, but the increase cannot exceed 5%.

The reason for such favorable conditions is that Zhonghuajia Technology Co., Ltd. promises to purchase no less than 35 million mobile phone wafers every year, otherwise it will be a different price.

Obviously, Zhonghuajia did it, and Qualcomm wafers not only obtained nearly 9 billion in revenue through the use of Zhonghuajia, but also opened up their popularity.

The price of high-end wafers of two or three hundred yuan is not wrong. The price of wafers in this era is actually this price.

There is a reason why the price of Qualcomm wafers in the original time and space has risen to more than 1,400 yuan.

It's not just because of the process, but more importantly, it's because there are no competitors, which can be seen from the supply prices of Qualcomm chips over the years.

2016: Snapdragon 835 (10nm), about 300 yuan;

2017: Snapdragon 845 (10nm), about 480 yuan;

2018: Snapdragon 855 (7nm), about 550 yuan;

2019: Snapdragon 8,600 yuan;

2020: Snapdragon 888 (5nm), about 1,000 yuan;

2021: Snapdragon 8 Gen 1 (4nm), about 1,200 yuan;

2022: Snapdragon 8 Gen 2 (4nm), about 1,160 yuan;

2023: Snapdragon 8 Gen 3 (4nm), about 1,400 yuan.

Android flagship phones before 2016 generally did not exceed 4,000 yuan, because the price of chips was cheap at that time.

In the original time and space, the price of Qualcomm chips before 2019 did not increase much, which basically met the cost increase brought by the process improvement.

However, in 2020, a certain company was sanctioned, and Kirin chips could no longer be produced, and MediaTek was lagging behind in high-end chips.

So Qualcomm finally raised prices significantly every year without any scruples. Before Chen Changliu was reborn, there was news that Qualcomm's new generation of chips would reach 2,000 yuan.

This is why the price of a certain top 500 mobile phone that shouts about cost-effectiveness all day long has basically caught up with the price of a certain mobile phone.

There is no way, Qualcomm's chip price is too harsh, and it has to increase the selling price.

Under normal circumstances, the chip price accounts for at least 20% of the cost of a mobile phone.

This is also why a certain company that can design its own chips has a profit that is unique in the domestic Android camp, and why a certain company can invest so much money in research and development.

However, there is a cause and an effect. We can't just look at the high profits of a certain company, but not look at how much research and development funds a certain company has invested in developing chips.

After listening to Huang Zhang's report, Chen Changliu pondered for a moment and asked:

"Have you ever found out the reason?"

Huang Zhang nodded and said:

"According to their internal news, because of our success, more and more mobile phone manufacturers are now ordering chips from Qualcomm.

I don't know who spread the news that our prices are more than 20% lower than theirs, so other mobile phone manufacturers put pressure on Qualcomm.

That's why Qualcomm wanted to ask us to adjust the contract supply price, and also said that if we don't agree, it might be willing to pay a 1 billion contract penalty.

But I don't know if this news was deliberately leaked by them, or it's the real truth."

Huang Zhang's words made Chen Changliu and all the executives frown, because it was a bit unreasonable.

Feng Xiao was the first to express his doubts.

"Boss, there is a problem here. I have three questions.

First, although other mobile phone manufacturers have ordered chips from Qualcomm, although Texas Instruments, the former leader, has shown a decline, there are still many mobile phone manufacturers who are still using them. After all, many mobile phone users recognize it.

Second, let's not talk about the goodwill problem caused by Qualcomm's active cancellation of the contract.

From a numerical point of view, Qualcomm's payment of 1 billion yuan in liquidated damages seems to be more cost-effective than the loss of more than 3 billion yuan in the next two years by supplying at a price 20% lower than the market price.

But can Qualcomm be sure that we will purchase its chips again after it tears up the contract?

If we don't purchase more than 35 million chips every year, can Qualcomm be sure that the orders from other mobile phone manufacturers can make up for our gap?

Third, what if we take the 1 billion yuan in liquidated damages and then turn to MediaTek and Texas Instruments to purchase chips? This is equivalent to Qualcomm helping its competitors grow."

Feng Xiao's questions made everyone in the conference room nod in agreement. Everyone was more inclined to believe that Qualcomm was just putting pressure on the flower growers to gain some benefits and did not dare to really breach the contract.

Chen Changliu tapped the desk lightly, and everyone at the scene fell silent.

"This matter is indeed strange, so let's proceed in two steps.

First, they want me to go over, so I will go over there, so that I can know more clearly what they are up to.

Second, Huang Zhang, you should contact MediaTek immediately to discuss the supply of mid-range chips. Remember, disclose this matter.

Qualcomm wants to put pressure on us, and we can also put pressure on Qualcomm.

Consumers are not so obsessed with which company’s mobile phone chips are from. When we switched from MediaTek’s chips to Qualcomm’s chips, we adjusted them well and did not fail, so the transition was very smooth.

And it is not impossible for us to transition from Qualcomm to MediaTek.

We must let Qualcomm know that Qualcomm is not our only choice. "

Hearing Chen Changliu's words, everyone also had a murderous look on their faces. They were still very unhappy about being threatened by Qualcomm today. After all, Zhonghuajia Technology Co., Ltd. has been successful in the past few years. Only others want to cooperate with Zhonghuajia, and Zhonghuajia has never been threatened.

Even if it is MediaTek, if Zhonghuajia now reveals that it wants to use MediaTek's wafers again, MediaTek Chairman Cai Mingjian will definitely fly to Guangzhou as soon as possible.

All executives went out, only Wu Bo and Zhang Hao stayed.

"No, Brother Bo, Brother Hao, I don't have good tea to treat you!"

Wu Bo and Zhang Hao shook their heads with a smile, and finally Zhang Hao said firmly:

"Mr. Chen, according to your requirements, the smartphone wafers we develop are all developed towards 4G.

At the end of last year, three 3G licenses were approved in China, and several major telecom operators are now rushing to build 3G network base stations. It can be said that this year has officially entered the 3G network era.

The concept of 4G has also come out. Not only us, but other companies are also developing it, but I think it will take at least 5 years.

And our 4G mobile phone chips are actually not so urgent. Give me a year to make 3G mobile phone chips. By then, even if the performance is not as good as Qualcomm's at the beginning, it will be our confidence, and we will not be threatened by Qualcomm's bastards. "

Speaking of this, Zhang Hao, who has always been elegant, was also very angry.

This made Chen Changliu and Wu Bo almost laugh, but it can also be seen that the indoctrination of the corporate culture of the Flower Planting Family is still useful, even the executives have been assimilated to be aggressive.

PS: The typos will be corrected first and then corrected.