"Mobile phones are consumer goods, and they are relatively expensive consumer goods. Each person can only buy one mobile phone per year at most. Generally speaking, the most common users replace their mobile phones every three years."

"Moreover, the domestic smartphone market is now close to saturation. It's a market with existing demand. If someone else sells one, your sales will decrease by one."

"That's why in recent years, OV, Huawei, and Xiaomi have all gone overseas to compete for overseas markets, because the incremental market in China has been exhausted."

“Unlike fast-moving consumer goods and food, mobile phones are not like Michelin three-star restaurants. After I have eaten at a Michelin three-star restaurant, it is okay for me to eat McDonald’s and KFC normally.”

"Once users have used a high-end phone, they almost never go back to use a lower-end phone."

"In other words, right now, the only high-end mobile phone in China is Apple. Once users have used Apple, they won't come back to use Xiaomi."

"In the first ten years, Dami solved the problems that users needed. In the next ten years, Dami will solve the problems that users want. How can Dami phones transform from phones that customers need to phones that customers want?"

"This is the direction we have been working towards, but we haven't found a good solution over the years."

Low-end products meet basic needs and are what we need; mid-to-high-end products are what we want.

Every company in the consumer goods industry wants to make the products that users want.

Regardless of the type of consumer enterprise, in industries like liquor that have existed for thousands of years, all liquor companies must benchmark their prices against Moutai.

Moutai is a product that people want, but who may not be able to afford at the moment and can only drink lower-end products. However, they still want to drink Moutai.

The advantage of the liquor industry over the mobile phone industry is that a single customer will not consume just one bottle of liquor; their annual consumption is enormous. Therefore, the valuation of the liquor industry is high. Rice can only enjoy a forward P/E ratio of around ten, while liquor companies can generally enjoy a forward P/E ratio of over fifty.

Zheng Li thought to himself, "Isn't a mobile phone just like a smart brain? If you have money, you can buy a customized smart brain produced by Fashen. If you don't have money, you can only buy a standard product that comes off the assembly line."

The Smart Brain is different from the Demon Brain. The Smart Brain is a tool to assist in calculation, similar to a computer, and can be connected to the Demon Network for information transmission.

"Senior, do you think brain-computer interfaces can help the Rice Phone solve the problem of going from needing to wanting?"

Lei Jun nodded: "Yes, with brain-computer interface technology, I am very confident in leading Xiaomi to a place in the high-end mobile phone market."

Zheng Li corrected, "I'm sorry, even if I develop brain-computer interface technology, I can't just grant the technology license to Dami Mobile. Dami is just one of the shareholders of Kechuang Biotechnology."

"Science and Technology Innovation Biotechnology is not deeply tied to rice, and I will definitely open up brain-computer interface technology to all mobile phone manufacturers."

In Zheng Li's view, he doesn't owe Lei Jun anything. The 50 million yuan venture capital he invested in Kechuang Bio in the early stages has already multiplied several times over. He can't possibly license the technology only to Da Mi just because of their relationship as fellow students.

Lei Jun is also a veteran in the industry and knows that profit comes above all else.

"I don't need the brain-computer interface of Kechuang Biotechnology to be licensed only to rice. Like endorphins, brain-computer interfaces will definitely have insufficient production capacity when they first come out."

"I only need to reserve the production capacity for the first six months, and that will be enough to take advantage of the time difference."

"Brain-computer interfaces will only be implemented on Mix, the high-end brand of rice. We will relaunch Mix."

"I only need to be six months ahead of other manufacturers."

Generally, new products are in short supply when they first come out. For example, with the iPhone 8, you had to pay extra to get your hands on one two weeks after the fall launch event.

"With this time difference, rice can gain a foothold in the high-end market."

"Furthermore, in our cooperation, we will pay the rice at the agreed price."

Lei Jun's reasons are not unreasonable, and given the trust between him and Lei Jun, the negotiation process for cooperating with Da Mi will be much simpler.

Zheng Li readily agreed: "Sure, if there are any practical applications for brain-computer interfaces in the future, and DaMi is willing, we can license the technology to DaMi for implementation."