Chapter 26 MediaTek's Supply Negotiations
Chapter 26 MediaTek's Supply Negotiations
"Perhaps domestic manufacturers really should reflect on this."
While most manufacturers are competing on specifications, prices, and marketing, Transsion has earned respect in another domestic market.
Therefore, this phone is ultimately rated 8.5 out of 10.
The downsides are the small memory and rudimentary operating system, but considering the price and positioning, it's an excellent feature phone.
After saying that, he covered his mouth and whispered, "The most important thing is that the phone is not sold in China."
"Of course, if Transsion can bring this attitude towards product development back... I think the Chinese mobile phone market might be different."
The video ended, and the number of views had just surpassed 3000, but the fan engagement was not like it would be in later years, and the comment section was still very active.
"Xiaobai actually gave it an 8.5 out of 10. I remember the previous Apple 3G only got an 8 out of 10."
"Is this photo quality even real? How can a black person be photographed so clearly?"
"Hmm, I think I vaguely remember that."
"Upstairs, Transsion used to make knock-off phones; there were some around here. It seems they've changed their business model now."
"Can I buy this phone in China? I'd like to buy one as a collector's item."
Although he is just a small-time tech blogger, his influence continues to grow.
"Mr. Shen, should we also release the T1 in China? It's a pretty competitive phone under 500 yuan."
"No." Shen Fei shook his head. "The T1 is a product designed for the African market and is not suitable for the domestic market."
"We will definitely return to the domestic market, and when we do, we will become the top domestic brand. But for now, we need to lie low, accumulate our own technology, train our own researchers, and make good use of Africa, this excellent market."
Li Ziqi nodded thoughtfully; the boss was making a very big move.
Shen Fei heard a ding sound and immediately realized that he was safe.
Main quest: Press the attack to finish. Completed.
Market share in Africa: 5.03%
Rewards are distributed at the recycling and dismantling center (which can disassemble old mobile phones and repair parts).
New task being generated...
Shen Fei's lips curled up. With the recycling and dismantling center in hand, his new trump card was ready. He could go back and test it out. Those who wanted to strangle Transsion with their supply chain would soon witness a true dimensional reduction attack.
Your costs are low, but I don't need any costs! I wonder how you will respond.
[Main Quest Update: African Overlord]
[Task Description: Achieve a 20% market share in Africa. Reward: 10000 Industry Innovation Points (can be used to redeem technology, equipment, talent, and other resources in the system shop)]
[Mall Technology Preview: Graphene Mass Production Process (2000 points)]
[4G Communication Basic Patent Package (5000 patents)]
[Artificial Intelligence Algorithm: 7500 points]
Flexible OLED screen production line (6000 dots)
…………
Back at the Yangcheng Transsion headquarters, Shen Fei studied the system reward list again. He stared at the system interface that appeared in his mind, his breathing slightly rapid.
It's no longer just about waiting for tasks; it's a complete exchange system. This means that as long as he completes tasks and earns points, he can exchange them for technologies that were considered top-tier even in his previous life.
A 20% market share in Africa—though I don't know how the system calculates that, based on the current annual sales of 1.2 million units, that's 2400 million units.
Transsion's current monthly sales have just exceeded 80 units, and its annual sales are less than 1000 million. To more than double that within a year is a challenging goal.
But look at the technology available in the online store...
The mass production process for graphene was not expected to be fully mature until 2015, and its commercial application still had a long way to go...
The 4G patent package involves the competition for communication standards over the next 10 years, while flexible OLED is a barrier to entry for high-end mobile phones.
If the transmission of information can be planned in advance, it can rewrite everything.
"Mr. Shen! The MediaTek people have arrived." Secretary Li Ziqi knocked and entered. "They've been arranged to stay in the second conference room, but they're still a bit arrogant?"
Shen Fei closed the system interface and straightened his clothes: "Let's go. Arrogant, huh? You won't be able to show your arrogance in a moment."
In the second conference room, Liu Zhiwei, Vice President of Sales for MediaTek's China Region, had been waiting for 5 minutes.
He was in his early forties, with the typical demeanor of a Taiwanese company executive, a hint of arrogance in his eyes. Even though he made money here, he still looked down on this place.
Two months ago, Liu Fang, the purchasing director of Transsion, contacted him to discuss the supply of chips for new smartphones and the supply of low-end chips. He didn't even meet with her, and his subordinates replied that "production capacity is tight."
Does a small, unlicensed manufacturer deserve to use MediaTek's latest smartphone platform and negotiate prices?
Just buy it at whatever price they offer. Trying to haggle is a mistake. You shouldn't have given in!
But this morning, the boss, Zhang Zhongmou, personally called from Taipei: "Transsion's sales in Africa have exploded. Intelligence agencies predict that monthly sales will be between 100 million and 200 million units, showing signs of a resurgence."
They've just placed another purchase order. Go to Guangzhou right away, sign the contract, and maybe see if you can further develop the relationship.
But when he arrived, he didn't receive a warm welcome from the boss, and... it was completely different from the enthusiastic welcome he received from other manufacturers.
A hint of displeasure flashed through his mind; he was determined to teach them a lesson during the negotiations.
After all, the Chinese market has never lacked counterfeit phone manufacturers, which is the source of his confidence.
"Mr. Liu, I'm sorry to have kept you waiting."
Shen Fei pushed open the door and entered, followed by Purchasing Director Liu Fang and Technical Vice President Chen Hai.
"Mr. Shen, you're too kind." Liu Zhiwei stood up and shook hands, though he was displeased, he still put on a professional smile.
"I've heard that Transsion is doing very well in Africa. Today I finally met him in person. He is indeed young and promising."
After exchanging pleasantries, both parties took their seats.
Liu Zhiwei spoke first: "President Shen, our technical team has studied Transsion's T1 and Powermax. The design is very mature, especially the antenna system and power consumption control."
Your company has indeed optimized our chips very well. MediaTek is very willing to cooperate with such proactive and innovative new companies.
"Mr. Liu, there's no need for formalities. Let's get straight to the point."
Shen Fei pushed a document over: "This is Transsion's chip demand forecast for the next 12 months. Starting at 100 million per month for feature phone platforms."
Our conservative estimate is that the intelligent chip platform will begin production in the second quarter of 2009, with 10 units shipped in the first month and a 20% monthly increase thereafter. If all goes well, the data for the intelligent platform could double.
Liu Zhiwei took the document, and his eyes widened instantly when he saw the numbers on the first page.
Production starts at 1 million tablets per month, and is projected to reach 1.7 million tablets by December 2009.
But as he flipped through the pages, he saw dense market analyses: Nigeria's penetration rate had reached 29%, Ghana 5%, Tanzania 5%... and there were expansion plans for Ethiopia, Congo, South Africa, and more than a dozen other countries...
When did Transsion, this knock-off manufacturer, penetrate the African market so quickly?
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