Chapter 422 500 times return on investment? Lei Yijun's little idea!
May 28, 798 Art Center.
Before Chen Yansen reached the door of the conference hall, Lei Yijun and Li Wanqiang hurried to meet him.
"Mr. Chen, welcome. Thank you for your hard work."
Lei Yijun said with a smile on his face.
There was no way. Since Xiaomi had offended too many peers, only a few friendly competitors were willing to attend Xiaomi's new product launch conference. Only Chen Yansen and Yu Chendong showed up.
Friendly companies such as Meizu, OPPO, and ZTE did not even send a representative, and to companies like 360, he naturally did not even send an invitation letter.
Given Chen Yansen's status in the industry, being able to come here was a great honor for him. Lei Yijun felt warm in his heart and was full of gratitude.
"Mr. Zhou is in trouble this time. Once Redmi 1 is released, the sales of Qingcheng D2 will also be affected." Chen Yansen teased.
Lei Yijun will make money, but he will never lose money.
Make money from the OEM fee, make money from the price difference of electronic components, and make money from the humanitarian cause. You can win three times.
"360 has been suppressing Xiaomi for a year, right? I should be able to win once?" Lei Yijun said with a sneer.
Zhou Hongyi repeatedly blocked the door and cursed at Lei Yijun, who had long been eager to fight back. However, the sales of Xiaomi 1S and Xiaomi 2 were not good, so he wanted to curse back but did not have the confidence.
Chen Yansen suddenly found it funny.
Zhou Hongyi insisted on scolding the Redmi 1 so that it was released three months earlier, which shows how angry Lei Yijun was.
"Then put Redmi 1 into the product pool of Pinbei's 10 billion yuan subsidy. Since Mr. Lei wants to win, I will definitely help you."
Chen Yansen responded readily.
Redmi 1 is also equipped with the Aurora Future OS system, so of course it needs some extra support.
"Thank you, Mr. Chen, please come in." Lei Yijun grinned and raised his hand to signal.
He thought to himself: I made the right bet!
As the world's second smartphone to fully use the Aurora Future OS system, Redmi 1 is of great strategic value to Orange Technology.
Not only did Chen Yansen come to Yanjing in person, he also verbally promised to provide sales resources to Xiaomi.
Mr. Chen is reliable!
Lei Yijun smiled slightly and sighed silently in his heart.
Chen Yansen nodded, and accompanied by Lei Yijun and Li Wanqiang, went to sit in the first row.
"Hello, Mr. Chen, I am Roger Luo, the vice president of Qualcomm Dahua."
The middle-aged white man next to him took the initiative to greet him.
"Hello, Mr. Roger," Chen Yansen responded.
He has only met Wang Xiang, the president of Qualcomm Dahua region. Roger is a newcomer recently transferred from the headquarters in the Lighthouse Country.
Zuo Hongyu may have had contact with the other party, but Chen Yansen was not familiar with him.
"Mr. Chen, on behalf of Qualcomm, I would like to purchase the Orange Z1 instruction set architecture license from Orange Technology." Roger said straight to the point.
Half an hour ago, he received a call from the headquarters. The task was simple: to establish a cooperative relationship with Orange Technology.
At first, he scoffed at the headquarters' decision, but when he learned that Apple A7 used the Orange Z1 instruction set and abandoned the ARM architecture, he was shocked.
Although he had heard of the Orange Z1 instruction set, he knew very little about its performance and thought it was just a primary product.
But he has already realized by now that the instruction set patent that attracted Apple and Qualcomm must be good in terms of coding efficiency and performance ratio.
Although Qualcomm currently relies mainly on the ARM architecture, if it adopts a new instruction set, it will need to redesign the chip, which is extremely costly, but ARM's licensing fees are too high.
Therefore, purchasing the Orange Z1 instruction set can provide an additional option, while also putting pressure on ARM to reduce licensing fees.
As to whether Qualcomm will design chips based on the Orange Z1 instruction set, it is still unknown at this moment.
Maybe, maybe not.
"The one-time licensing fee is 3 million US dollars, plus a 1% royalty commission." Chen Yansen said without hesitation.
"Mr. Chen, I have no objection to the one-time licensing fee, but the 1% royalty is too high. ARM only charges 0.5%."
Roger said with a frown.
"If Qualcomm's chips designed using Orange Z1 instruction set can reach 50 million units per year, I can return 0.5% of the royalties."
Chen Yansen added.
What this means is that if Qualcomm only uses the Orange Z1 instruction set as a negotiation tool with ARM, the price cannot be lowered.
"0.6%?" Roger bargained as usual.
"Sorry, 0.5% is my bottom line." Chen Yansen smiled kindly but refused straightforwardly.
"Sorry, I have to excuse myself for a few minutes." Roger hesitated for more than ten seconds and then said.
"Please."
Chen Yansen said indifferently.
After all, there are several levels of superiors above Roger, so it is normal that he cannot make the decision.
After Roger left, Chen Yansen looked around and found that there were only a handful of friendly companies invited, basically all of them were media and fans.
At this moment, there was a sudden noise at the door.
Just as the reporters were about to step forward, they were stopped by the staff.
Lei Yijun, accompanied by a white-haired man in a leather jacket, was striding into the conference hall.
Huang Renxun?
Chen Yansen glanced at it, but didn't pay much attention to it.
Nvidia was not very popular in 2013. Although it had been working hard for more than 20 years, as its PC business continued to decline, Huang Renxun had to turn his attention to the mobile phone business.
However, the mobile phone industry is dominated by Qualcomm, MediaTek and Samsung, and Nvidia's Tegra processor has a market share of only 2%.
Huang Renxun’s purpose for coming to China this time was very clear: he was here to sell!
Orange Technology is his primary target, and Xiaomi is his secondary target.
China's mobile phone shipments exceeded 200 million last year and are expected to exceed 300 million this year.
Faced with a blue ocean market with a population of more than one billion, how could Huang Renxun miss it?
So, when he learned that Chen Yansen would attend Xiaomi's new product launch conference, he rushed to Yanjing as soon as possible.
"Mr. Chen, let me introduce you to a new friend, this is Huang Renxun, the founder of NVIDIA."
Lei Yijun led Huang Renxun slowly over and introduced them.
"Hello, Mr. Chen. To be honest, I am also a loyal user of Orange Mobile. It is a great product."
As Huang Renxun spoke, he took out a Yaocheng X1.
Chen Yansen burst out laughing. The X1 has not yet entered the overseas market and the application software has not yet been adapted. What Huang Renxun said is tantamount to lying with open eyes.
Lei Yijun was slightly stunned and spat inwardly: This fake foreigner is so bad.
Yesterday I said I was a 'rice fan', but today I became an 'orange fan'.
"Thank you Mr. Huang for your support of Orange Mobile."
Chen Yansen replied indifferently.
At that time, Huang Renxun's Chinese was very poor and his speech tone was extremely awkward. It was obviously the result of temporary cramming in order to enter the Chinese market.
It was very different from the way he talked freely more than a decade later.
For Chen Yansen, CPU and GPU are the main focus of Tiangong Technology, and one day they will have to face off against NVIDIA.
Therefore, his attitude was far from enthusiastic.
Huang Renxun couldn't help but feel a pang in his heart when he saw this. Compared with Xiaomi, Orange Technology was the most perfect customer in his mind.
But judging from the other party's performance, Chen Yansen seems to have no interest in NVIDIA.
Chen Yansen looked up at Lei Yijun, then at Huang Renxun, and suddenly realized: It seems that Lei Yijun feels that Orange Technology has made too much money and still wants to build its own supplier system.
"Mr. Chen, Mr. Huang, please take your time chatting."
After Lei Yijun finished speaking, he turned and walked out, ready to continue receiving important participants.
"Mr. Chen, in fact, Nvidia's Tegra 4 processor is not inferior to Qualcomm's Snapdragon 800. Why not try Tegra 4 for the Yaocheng X1?" Huang Renxun said tentatively.
"As far as I know, the baseband of Tegra 4 is external and cannot compare to the integrated version of Qualcomm."
Chen Yansen was bored and wanted to play with Huang Renxun.
Chen Yansen has no plans for long-term cooperation with either Qualcomm or Nvidia. Once the Tiangong A100 chip is completed, Orange Mobile will gradually transition to self-developed processors.
"Tegra 4 has an advantage in graphics processing and performs better in some complex 3D games or video editing tasks. Snapdragon 800 simply has lower power consumption."
Huang Renxun straightened his back and praised his own products.
Low power consumption means longer battery life and fewer heating issues, enabling thinner and lighter device designs.
Chen Yansen was too lazy to pay attention to Huang Renxun.
But the other party was extremely enthusiastic and talked to Chen Yansen about everything from mobile phone chips to smart speakers. Finally, he inadvertently said, "Amazon's Echo smart speaker will be launched soon."
"How did Mr. Huang know?" Chen Yansen asked.
Huang Renxun knew he had made a mistake and laughed dryly, "Amazon asked me to customize a special AI chip. Mr. Chen, I can't disclose other information."
Chen Yansen nodded to show his understanding.
Amazon has been announcing the launch of the Echo smart speaker for a year.
In other words, the market bonus period of Alexa smart speakers is over.
Next, no matter how well the Echo smart speaker performs, the sales of Alexa smart speakers will be affected to a certain extent.
"Mr. Huang wants to sell Tegra 4 to Orange Technology?" Chen Yansen asked immediately.
"Orange phones deserve better processors," Huang Renxun said with a smile.
You’re such a good braggart!
Chen Yansen cursed angrily in his heart.
He thought for a moment and then casually asked, "Does Nvidia accept investment?"
In 2013, Nvidia's market value was just over 8 billion U.S. dollars, less than one-third of Orange Technology's valuation, with a share price of 13.8 U.S. dollars. According to the normal development trajectory, it will carry out two stock splits in the future, one for four and one for ten.
The increase is more than 500 times!
Although Nvidia's market share will definitely be affected after Tiangong Technology enters the GPU and AI chip fields in the future, and its market value will be difficult to replicate its peak in the previous life, it will not be a problem for its market value to break through hundreds of billions of US dollars.
Because the world is not black and white. Even if Tiangong Technology becomes stronger in the future, it will not be able to swallow up the entire market.
Firstly, it is not allowed. Every country and region has policies to protect local enterprises, and the Lighthouse Country is no exception.
Secondly, Nvidia’s R&D capabilities in graphics processors and artificial intelligence computing are also strong.
"Is this an additional condition for Orange Technology to purchase NVIDIA chips?" Huang Renxun frowned slightly and asked subconsciously.
"You can think so." Chen Yansen shrugged and said without comment.
"How much does Mr. Chen want?" Huang Renxun asked again.
"How much can Mr. Huang give?" Chen Yansen asked back.
I only have 4.5% in my hand, how much can I give you?
Nvidia's real major shareholders are Vanguard and BlackRock. If it wants to go through private equity or strategic investment, it must first reach a consensus with the major shareholders.
In order to enter the Chinese market, do I have to give up some equity?
"At most 0.3%." Huang Renxun thought for a moment and replied.
If Orange Technology and Nvidia could be tied together, at least 100 million more chips could be sold a year.
0.3%?
Send away beggars?
Chen Yansen sneered, then looked straight ahead with a lack of interest, as if he didn't want to talk.
No, if you are not satisfied, you can bargain, right?
Huang Renxun was stunned.
(End of this chapter)
Continue read on readnovelmtl.com
