I have a flow system

Chapter 403 'The Rapid Rise of Factory V'

As we enter 2024, Aiying has become a leader among China's private enterprises!

With the comprehensive improvement of the localization of Aiying’s mobile phone supply chain!

In the second half of 23, under Wu Zhou's strong persuasion, Mr. Shen of V Factory once again started "self-research" within the company.

There was no way out. Seeing the global sales of nexa mobile phones, Mr. Shen almost regretted it to death. If he could have persisted at that time, then nexa mobile phones would now be high-end products under V Factory, and V Factory would become the world's second largest mobile phone manufacturer after Apple.

Based on this item alone, Factory V’s revenue, profit, and company valuation are far from what they are now!
The success of Aiying’s domestically produced mobile phones made Mr. Shen from V Factory realize that it is also feasible to produce domestically produced mobile phones!
So at the beginning of 24, V Factory announced again that all its mobile phones will be connected to V Factory's customized "Tatung Operating System"! Users can choose whether to upgrade to the Tatung Operating System!
Even during this process, a certain big shot living overseas asked Mr. Shen to calm down and think carefully, but Mr. Shen still insisted on embracing Aiying and embracing domestic products.
Finally, by January 2024, more than 1 million mobile phone users of V factory had upgraded to Tatung operating system.

In early February, Factory V was included in the sanctions list. All foreign parts suppliers that had previously cooperated with Factory V are no longer allowed to cooperate with Factory V!
Contains a certain area!

The means were used to the fullest extent, and I thought that this time V Factory would give in, but the reality is.
Inside Factory V, the domestically produced mobile phones have already been released, and they are working overtime to complete the final tests.
The hot sales of Aiying Nexa and Ju Factory mobile phones have proved that the quality of Chinese domestic "mature mobile phone supply chain" manufacturers is very reliable! Not inferior to those foreign brands at all!
Even after more than a year of development, these mobile phone accessory companies have made some new breakthroughs in technology, and the actual test data results of many component manufacturers have reached the international leading level.
Therefore, the actual cost of mobile phones produced by V Factory is much lower than that of Aiying and Ju Factory because they do not require a large amount of "R&D cost support" in the early stage!

Of course there are differences!

One is the integrated solution concept of the mobile phones of Aiying and Ju factories. Many components are even specially customized and specially developed and produced to achieve certain functions!
Although this direct use method can save a lot of R&D expenses, the product's "integration" will still be a little worse!
The second point is the chip differentiation! Aiying and Ju have spent a lot of manpower, material resources and financial resources on chip design and production, and the mobile phone system itself is also Aiying and Ju's own! The final chip design can also be matched with its own system for targeted optimization, so that 1+1 is greater than 2.
V Factory had some technical foundation in this mobile phone chip, and Aiying could provide some direct help! Their own chip design finally made a breakthrough!

Therefore, for the current Factory V, it is no longer the Factory V of previous years. China now has a complete backup plan, and these sanctions are not as severe as imagined.

Juhua and Aiying have helped them to get through the relationship.
After being announced on the list, V Factory immediately announced a new product launch!

"Domestic mobile phones, domestic operating systems, self-developed chips" is the main selling point of this conference! And it is widely publicized!
Fight face to face.
As the third Chinese mobile phone manufacturer forced to produce its own products!
It is also the first domestically produced mobile phone of V Factory!
The price is 1999-2999 yuan. Available simultaneously on all channels!
In addition to the existing channels of V Factory, this omni-channel also includes a quality manufacturing platform and Aiying’s offline stores!

Domestic sales in the first month reached over 300 million, and there is almost no sign of slowing down in the sales channels!
Countless review videos have been released! The title of "the best domestic flagship alternative!" quickly fell on its head!
In April, V Factory continued to work hard and announced its second domestically produced mobile phone, priced at 4-2999 yuan.

In the same month, a cost-effective brand under V Factory announced the launch of domestically produced mobile phones priced between 1599 and 1999 yuan.

The two phones were launched almost one after the other.

Everyone knows that this is V Factory striking while the iron is hot!

The actual sales volume also proves that V Factory is right! The two newly released mobile phones were sold out on the first day of listing!
The sales of the two mobile phones exceeded one million on that day.
“How much you produce determines how much you sell.”

After seeing this situation, other domestic mobile phone manufacturers became very nervous!

The high-end mobile phone market is firmly controlled by Nexa, Juchang and Apple. These brands cannot intervene at all! Most of their sales are mid-to-high-end and mid-to-low-end mobile phones!

Now that V Factory is conquering this market and its sales are booming, it also means that their sales and market share are shrinking rapidly!!!
In a hurry to respond, seeing the continued hot sales of V factory, at the end of April, these domestic mobile phone brands simultaneously began to release their own "benchmark models", with Android operating systems and Qualcomm chips.
The price, of course, must be discussed with Qualcomm before this. "The high-end market of Ju Factory and Aiying has been established, and the market share of V Factory in the mid-range mobile phone market is also expanding. If Qualcomm continues to maintain the previous price, then we will have no chance to compete with them! If you still want our Chinese chip market, your price must be lowered."

In a free market, if there are no competitors, it is impossible to negotiate prices, and the prices cannot be low!
Just like when domestic cars were not popular, Santana could sell for 200,000 or 300,000 yuan.
When the Ju factory chips were not sanctioned, Qualcomm chips did not increase in price for four or five consecutive years! But after the Ju factory chips were sanctioned, the price of Qualcomm chips doubled in just one or two years! The profit hit a new high because of this
Technological Colonization
However, Qualcomm is certainly not willing to lower the price since it has raised it with great difficulty!
So we offer a “buy one get one free” promotion, where you get a high-end chip for free and a mid-range chip for free, which is a disguised price reduction!

Later, on April 4, Culiang and Factory O announced almost at the same time the release of competing mobile phones at the same price!

价格2999-3999，1999-2999，1599-1999三款手机！

"Enjoy the phone and get better configuration at a lower price!" However.
They used a PPT at the press conference to show that their chips are more powerful than those of V factory in the same price range.
But the first day sales and first week sales were far less than those of V factory phones.
5月6日，2999-3999的那款手机售价，全系直接降价300。

1999-2999的奖金200，1599-1999的，降价150
Another month has passed, and on the JD sales list, only one of these phones is at the tail end of the top five! But the authenticity of this sales is unknown.
In contrast, the price of V factory mobile phones is still as strong as ever. Even though various evaluation videos say that the performance of V factory mobile phones is as good as some high-end chips overseas, "V factory mobile phones are still selling well."

"The quality of a car is not just determined by its engine!"

“Whether a mobile phone is good or not depends mainly on how it is used!”

In May, V Factory topped the list, with monthly mobile phone shipments further increasing to 5 million units.
In the same month, the CEO of a US chip company announced in the US media that the sanctions against Factory V were unreasonable and they firmly opposed them! Less than three days later, their CEO flew all the way to the headquarters of Factory V in China to negotiate!

"Dear Shen, long time no see!"

"Our company has always attached great importance to cooperation with you! This time, V Factory was included in the sanctions list because those damn politicians wanted to win votes."

"They don't understand business at all, all this is just for votes!"

"I don't want this matter to affect the cooperation between our two companies!"

"We have been lobbying those people for cooperation with V Factory, and I believe there will be results soon! I hope that we can continue to cooperate well in the future!"

After this friendly meeting, at the end of June, Factory V was removed from the sanctions list!
At the same time, Factory V gets the lowest price, and on top of the "buy one get one free" offer from other manufacturers, the price can be further reduced by 15%!

Factory V and Qualcomm started "secondary cooperation".

V Factory's high-end flagship mobile phone uses Qualcomm's latest generation of "flagship" chips! Stronger performance! Lower price! And V Factory's profit is higher!

At the same time, under the request of V Factory and the operation of Qualcomm, V Factory's overseas business started again! The US market! V Factory is here.
However, in just half a year, the cooperation with Aiying has made V Factory reborn. Whether it is market share, revenue, or profit, all have reached new highs.
In July, Mr. Shen from Factory V came to Aiying with a group of senior executives from Factory O.

(End of this chapter)