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Chapter 722 The gap with Samsung

As long as it is an IT company, who doesn’t have a system dream?

Just look at Microsoft dominating the world with one system.

You know the importance of the system.

The concept of system is so deeply rooted in people's hearts, but China has never had a system of its own.

This also became a worry for later generations of Chinese people.

So much so that in a certain novel, the system flow is rampant.

With the system in hand, I have the best situation in the world.

Mr. Ren certainly knows that it is easy to develop a system, but difficult to build a system.

Every operating system has its operating environment.

Ren always saw the Android system of Huafeng mobile phones that was demonstrated at the press conference. Their system is basically perfect, and there are corresponding Huafeng Video, Huafeng Music, Huafeng Browser, and Wanxiang Search

, mobile QQ and other supporting software. The system of Huafeng Mobile has the upper hand.

Now it is free and open to everyone. As time goes by, more and more software is supported by this system.

Until, like the Microsoft Windows system, it has formed a situation of dominating the world.

By the time Huawei's mobile phone system is developed, no one will probably use it.

For example: Huawei has developed a system, but companies such as video, music, browsers, search, QQ, etc. do not develop software suitable for Huawei systems. Then Huawei systems will face a situation where there is no software to download.

At this time, Huawei's system is equivalent to an abandoned system.

Therefore, Mr. Ren wanted to take advantage of the Huafeng mobile phone system.

The Android system is originally free and open source for everyone to use. Of course Zeng Liqing and Ye Feng are happy for Huawei to join the Android camp.

The cooperation between the two parties is a matter of course.

Ye Feng immediately decided to fly directly to Shenzhen.



On December 10, 2005, Zeng Liqing contacted Mr. Guo of Foxconn and Mr. Ren of Huawei at the same time, inviting heroes from all over the world to gather at Hualong Industrial Park in Shenzhen.

In China's electronics industry, all manufacturing companies of some scale are more or less related to Foxconn and Huawei.

The industrial chain surrounding Foxconn and Huawei products creates an annual GDP worth hundreds of billions.

On this day, they all came.

Mr. Zhang, Chairman of Jingquanhua Company, an electromagnetic component supplier that has established long-term and stable cooperative relationships with Schneider Group, ABB Group, Eaton Group, Gree Group, GE Group, Panasonic Group, Honeywell Group and other Fortune 500 companies;

Mr. Wan of Tongxingda Company, a supplier of display panel equipment; Mr. Wu of Walter Co., Ltd., a supplier of cables and other materials; Meiyingsen, Chaohua Technology, Jiangfen Magnetic Materials, Xinya Process, Yutong Technology, Shenghong Technology, and Hongxin Electronics

, Lanhai Huateng, Oscon...

As well as more than 20 well-known suppliers including Goertek, NavInfo, Xinwei Communications, Lite-On, Sanyo, Star Technology, etc. who attended the press conference, a total of 7,749 supplier CEOs, all came.

This group of supplier CEOs traveled together and attracted a lot of people's attention.

Financial reporters and electronics industry media were moved by the news and came to Shenzhen from all over the world.

This is the first time the media has set foot in the city within a city in Longhua:

High walls enclose layers of factories, restaurants, banks, Internet cafes and grocery stores. More than 500 TVs are playing aerobics, safety production videos and news from Foxconn TV. Even the manhole covers of the sewers are printed with "Foxconn".

The 10th of every month is the busiest day in Longhua. This is the day when Foxconn pays wages.

There are long lines at ATMs, and Internet cafes, lottery betting stations and mobile phone stores are crowded.

Newly launched mobile phones and computers always attract the most attention. Every part is assembled by workers themselves, and comes with a prohibitive price.

As the lanterns came on, blue and white uniforms filed out of Foxconn Castle.

People know that there is an isolated factory, a group of workers who yearn for dignity, and it is the epitome of "made in china".

Soon, everyone met the real owner at the venue prepared by Foxconn.

President Ren of Huawei and President Guo of Fuji.

The two of them have a lot in common. For example, they both served in the army. The former joined the army in 1974 and was a "model soldier" in the army; the latter joined the army in 1971 and was stationed in Kinmen and Matsu.

Later, one of them became famous for their wolf-like culture management, and the other was stigmatized as a "sweatshop", but they were both beneficiaries of China's demographic dividend.

at this time.

Mr. Ren and Mr. Guo rarely share the same stage.

Looking at the 49 suppliers and more than 100 people in the audience, they smiled and said:

"Everyone who is here today should be grateful to one person. It was he who set the ambitious goal of producing 100 million smartphones and gave everyone a big cake worth hundreds of billions of procurement projects."

Everyone present immediately burst into laughter.

Didn't Mr. Ren and Mr. Guo invite them?

Who else can these two big guys seriously recommend?

Youxin soon understood.

Mr. Ren and Mr. Guo smiled and said: "He is Mr. Ye Feng, the chairman of Qingfeng Group and the investor in Huafeng Smartphone."

"It turns out to be him!"

Everyone suddenly realized that most of them had seen the Huafeng mobile phone launch conference.

Ye Feng still has fresh memories of his amazing performance at the press conference.

At this time, they were shocked to realize what Mr. Ren and Mr. Guo had just said, "Produce 100 million smartphones."

"My dear? Based on the lowest selling price of Huafeng mobile phone, which is 3,599 yuan, 100 million units equals sales of 360 billion yuan."

"Dong Ye is too radical."

“I’ve never seen such a big order.”

"Yes, even if our factory receives one thousandth of the order, it will still be a turnover of hundreds of millions."

Everyone was very excited.

At this time, the young and handsome Ye Feng walked gently to the front desk.

Taking over the words of Mr. Ren and Mr. Guo, he faced everyone with a confident smile and said loudly:

"Hello everyone, I am Ye Feng..."

It was a very ordinary opening statement, but with the aura around it, everyone felt that it was a return to nature, and it became unpredictable.

"I just heard someone say, do you want an order? Haha, of course there are orders, but there are no orders for core components."

Ye Feng introduced himself for a while and suddenly asked: "Ever since I decided to make a smartphone, I suddenly discovered that our country's electronics industry still has many core areas that are choked by others. This made me have a question, Reform and Opening 20 After many years and the electronics industry ushered in a golden decade, how far has my country's electronics industry come?"

Those present here are all leaders in China's electronics industry, which can be said to account for half of the country's electronics production.

Suddenly hearing what Ye Feng said, they all asked themselves, "Yes, how far has our country's electronics industry come?"

Ye Feng did not wait for their answer, and smiled at everyone: "To answer this question, we may have to trace the division of the electronics industry structure, and first find two benchmarks, Foxconn, which is engaged in assembly, and Samsung, which is engaged in R&D."

At this point, Ye Feng said sorry to Mr. Guo, and Mr. Guo motioned for Ye Feng to continue.

Ye Fengdao: "Foxconn has one million employees, with sky-high revenue and low profits. The company's annual revenue is approximately US$20 billion, which is equivalent to twice Apple's revenue, but its market value is only equivalent to 30% of Apple's.

The fundamental reason lies in the weak position of the industrial chain: for many years, Foxconn’s net profit has remained around 3-5%.”

"Samsung, which has cutting-edge technology, is completely different. Samsung Electronics' revenue in 2005 exceeded US$30 billion. It seems to be on the same level as Foxconn, but it crushes it in terms of profits. Samsung's gross profit margin is as high as 40%.

After deducting R&D, marketing and other expenses, the net profit is still as high as 10 billion US dollars, more than 10 times that of Foxconn."

"Those who work hard govern others, and those who work hard govern others. Foxconn, which sells labor, is always at the end of the industrial chain, and Samsung, which has technical barriers, will not be completely stuck even if it faces trade disputes between Japan and South Korea."

Ye Feng concluded, leaving everyone in the audience with deep thoughts.

At this time, Ye Feng took out a Huafeng mobile phone for demonstration, pointed at the mobile phone in his hand and said:

"If you want to know how far our country's electronics manufacturing company Foxconn has gone on its way to becoming Samsung Electronics, let us start from the Huafeng mobile phone in our hands and take a step-by-step look at the large parts of the Huafeng mobile phone such as sound, light and electronics.
Chapter completed!
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