Chapter 220 Lei Yijun refused, Chen Yansen: You don’t want to be fooled by others, do you?
It was a February evening in Yanjing, with dusk falling and a cold wind blowing.
In the lobby on the first floor of Xiaomi headquarters, Lei Yijun, Lin Bing, Li Wanqiang and others kept looking outside.
Unlike the last time Chen Yansen visited, this time almost all of Xiaomi’s senior management came out to wait downstairs to greet him.
In just one year, Chen Yansen has transformed himself from a leader in shopping guide e-commerce to a leader in Internet mobile phone brands.
His weight in Lei Yijun's heart suddenly increased several times.
Lei Yijun looked at the unmelted snow on the street and couldn't help falling into deep thought. In his original idea, the sales performance of Xiaomi mobile phone after it was launched should be the same as that of Orange mobile phone.
But now Orange phones are far ahead, while Xiaomi cannot even beat OPPO, Meizu and Coolpad. The total sales of 2 million units seems impressive, but with the launch of Orange D1 and Orange C2, Xiaomi's mobile phone sales are also becoming increasingly weak.
According to the market and data department's forecast, the upper limit of the potential of Xiaomi's first-generation mobile phone is about 3 million units.
Simply put, before the autumn new product launches of major mobile phone manufacturers, Xiaomi can sell at most another 1 million units.
To this end, Lei Yijun had to speed up the launch of new products.
"Mr. Lei, Mr. Chen is here." Li Wanqiang reminded in a low voice.
Lei Yijun came to his senses and looked in the direction Li Wanqiang pointed. Sure enough, he saw Chen Yansen walking towards him with big strides, followed by Gao Weilin, CFO of Senlian Capital, and Song Yuncheng, key account director of Pinbei.
He quickly adjusted his attitude and greeted him with a smile: "Sorry, Mr. Chen, I really couldn't leave last night. I will make arrangements tonight."
"Mr. Lei, you are too polite. Don't make such a big scene next time, otherwise I won't dare to come again."
Chen Yansen joked and nodded to Lin Bing, Li Wanqiang and others as a greeting.
"Mr. Chen is Xiaomi's honored guest. I dare not neglect him."
Lei Yijun said with a smile.
The swelling on his right face is less than yesterday, but there are still obvious signs of redness and swelling.
Chen Yansen saw it as soon as they met, and although he found it funny, he did not show it.
After a few greetings, the group took the elevator to Lei Yijun's office.
Chen Yansen sat down and asked, "When will Xiaomi M2 be launched?"
On the first working day after the new year, Xiaomi's marketing department released the concept map of M2, but except for the 5-megapixel front camera and 12-megapixel rear camera, no other information was disclosed.
Lei Yijun looked at Chen Yansen and saw that he looked calm. He sighed and said, "The appearance of Xiaomi M2 has not been finalized yet. In fact, I didn't plan to launch a new product so soon."
What this means is that they were forced by Orange Technology.
"It's a good thing to launch it early. Smartphones are the mainstream in the future. One more product can capture more market share."
Chen Yansen naturally heard the subtext in Lei Yijun's words and said with a smile.
"The cooperation Mr. Chen mentioned yesterday, does it mean the memory cleaning algorithm installed in the Aurora OS 1.3 system?"
Seeing that Chen Yansen was reluctant to get to the point, Lei Yijun went straight to the point and asked.
"We can also discuss the licensing of this patent, but the main reason I came to see Mr. Lei today is to get the OEM order for Xiaomi mobile phones."
Chen Yansen said frankly.
Once the No. 3 Shenzhen Factory and the No. 4 Luzhou Factory go into production, the production capacity will be far greater than the current sales volume of Orange Mobile Phones.
In order to ensure the stability of workers' income and the utilization rate of production lines, looking for OEM orders is the best option.
Lei Yijun was stunned. He had imagined many possibilities, but he never expected that Chen Yansen would want him to ask for Xiaomi's OEM order.
He frowned subconsciously, looking embarrassed.
Xiaomi's current foundry is Inventec, which, like Foxconn, is an electronics manufacturer from Taiwan. The yield rate and foundry price are within Lei Yijun's acceptable range.
According to data from the fourth quarter of last year, Xiaomi's factory return rate was only 1.5%, which is enough to show that Inventec has stable production quality and excellent product delivery capabilities in the foundry field.
But even if Lei Yijun has a big heart, he would not dare to take the risk of asking him to hand over Xiaomi's OEM orders to its competitors.
If by that time, the Orange mobile phone factory stabs Xiaomi in the back at a critical moment, Xiaomi will suffer great losses.
Thinking of this, Lei Yijun shook his head and said, "Mr. Chen, it's not that I don't trust you, but Xiaomi's OEM price is not high. Including the cost of SMT patch, testing, assembly and packaging, each unit is only 32 yuan. After deducting equipment depreciation and labor cost, each unit only has a profit of 4-5 yuan."
What he wanted to express was very clear. With the sales volume of Xiaomi mobile phones, even if the Orange mobile phone factory took all the orders, it would only make more than 20 million a year.
In order to reject Chen Yansen, Lei Yijun even went so far as to reveal Innolux's OEM charging standards.
"I don't mind."
Chen Yansen said lightly.
But I do mind! Lei Yijun laughed dumbly. He wanted to say loudly: "We are competitors!"
Handing over the production and manufacturing of Xiaomi mobile phones to the Orange Factory is tantamount to standing naked in front of competitors.
By then, Xiaomi’s core industrial and hardware design solutions will be completely exposed.
"Mr. Chen, this cooperation cannot be discussed." Lei Yijun said in a firm tone.
"If Mr. Lei agrees, I can license a better memory cleaning algorithm patent to Xiaomi, thereby alleviating the problem of Xiaomi phones freezing and overheating."
Chen Yansen showed his chips and said with a smile.
After hearing this, Lei Yijun's face flashed with embarrassment. He knew that what Chen Yansen said was true, but the truth is often the most heartbreaking.
To be honest, he had long been drooling over Aurora OS's memory cleaning algorithm.
He has tried both Orange C2 and Orange D1 mobile phones, especially Orange D1, which is equipped with MediaTek MT6573 processor and 512MB of RAM. Although it will heat up and have system freezes after six hours of heavy use, its performance is slightly better than that of Xiaomi mobile phone.
You know, whether it is the processor or memory configuration, Xiaomi can easily beat Orange D1.
This shows that the Aurora OS system's management and allocation of hardware resources, memory and battery management are far superior to Xiaomi's MIUI system.
"Mr. Chen, although we have a good personal relationship, I really can't agree to this when it comes to the core interests of the company. It's like we both sell steamed buns, and you ask me to hand over the filling formula, and you will be in charge of all the production in the future, and I will only be responsible for selling. Is this reasonable?"
Lei Yijun resisted the temptation and replied with a wry smile.
"Where is the filling recipe for Xiaomi?"
Chen Yansen was slightly stunned and couldn't help but complain in his heart.
Perhaps in a dozen years, Xiaomi will have some patents in 5G, WiFi, Bluetooth, NFC, camera hardware design, image signal processing and photo-taking algorithms.
But it was 2012, and Xiaomi was just starting out. What was there for him to covet? "In that case, forget it." Chen Yansen smiled. After all, there were other mobile phone manufacturers such as Meizu, OPPO, Coolpad and Newman as alternatives.
Lei Yijun breathed a sigh of relief and quickly changed the subject, saying, "Nokia's era seems to be coming to an end. Last year, it ranked second in domestic smartphone shipments, but this month it fell to seventh."
"Every era has its king. The next one may be Apple, Huawei, or Xiaomi."
Chen Yansen shrugged and said lightly.
"Has Orange Technology never thought about becoming the king?" Lei Yijun was stunned for a moment, then asked with a smile.
"Orange Technology's goal is to cultivate more trend-setting king brands like Nokia."
Chen Yansen raised his eyelids and answered in a flat tone.
Lei Yijun smiled awkwardly, thinking: Why is this guy talking so angrily? Chen Yansen's words reminded him of last year's Internet Open Conference, when Ali's Ma Liyun said on the spot: "Ali's mission is to cultivate more investors."
Lin Bing and Li Wanqiang looked at each other and understood what Chen Yansen meant.
Orange Technology does not consider Xiaomi as a competitor! Isn't this looking down on others?
Although Orange’s mobile phone sales exceeded 10 million units last year, Xiaomi also had 2 million units.
To put it bluntly, your Orange phone has not formed a crushing advantage!
Lei Yijun felt that the atmosphere was a little stagnant, so he deliberately raised his hand to check the time. It was exactly half past five, so he hurriedly said, "Mr. Chen, let's go eat first."
"No, I have an appointment tonight, maybe next time."
After saying this, Chen Yansen stood up and prepared to leave.
Lei Yijun's face froze. He tried hard to force a smile, suppressed his anger, and politely escorted Chen Yansen out of the building.
Only after the car drove away did Lei Yijun turn around and walk towards the company with a sullen face.
"Ali, what do you think?" Returning to the office again, Lei Yijun looked at Li Wanqiang and asked with a frown.
"Mr. Lei, I think we can agree to it. To be honest, Orange Technology's technology is far superior to Xiaomi's in terms of hardware and software. So, I don't think Chen Yansen has any deep thoughts." Li Wanqiang said tactfully.
"Is there really such a pure businessman?" Lei Yijun asked back, obviously not believing it.
"The Orange Mobile Phone Factory in Shenzhen offers a base salary of 2,640 yuan to general workers, and overtime pay is paid in full compliance with the Labor Law. The average monthly income of workers can reach more than 7,000 yuan. He is a young man, and it is indeed easy for him to idealize."
Li Wanqiang explained with a smile.
"It is impossible for someone who is too idealistic to earn hundreds of billions of wealth." Lei Yijun sneered.
He started out in the software field and then entered the mobile phone industry. He knows the background of the domestic electronics factory owners better than anyone else.
"Although I don't know why Chen Yansen didn't hand over the production process to the OEM factory, I understand that Orange Mobile's No. 3 factory is about to start production, and he wants to win Xiaomi's OEM order, so the logic behind this makes sense."
"So, I agree with Ali's opinion that we can choose to trust Chen Yansen and Orange Technology."
Lin Bing, who had been silent, suddenly interrupted.
Lei Yijun raised his head and looked at the expressions of the two people carefully. After getting a positive response, he couldn't help but think seriously.
He knew clearly that Lin Bing and Li Wanqiang had not said one more thing: If Xiaomi did not agree, Chen Yansen might turn around and seek cooperation with 360, Meizu and OPPO. As one party gained while the other lost, the sales of Xiaomi mobile phones would inevitably be affected.
After all, the materials piled up don’t contain much technical content, and Xiaomi’s biggest advantage today is the MIUI system.
If it is true as Chen Yansen said, he does not care about software technical patents and will license the Aurora OS operating system, memory cleaning algorithm and battery management technology to other mobile phone manufacturers.
Then Xiaomi’s situation will become even more difficult!
Lei Yijun fell into deep thought. He was not a manager who would not listen to suggestions. The persuasion of Lin Bing and Li Wanqiang made his heart waver.
The other side.
After Chen Yansen left Xiaomi headquarters, he immediately dialed an unfamiliar number: "Six-thirty, Jingzhao Yin, you don't want to be fooled around, do you?"
(End of this chapter)
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