Chapter 322 Xiaomi’s new phone, Meizu’s killer!(1/3)
After previously winning large orders of tens of millions from HTC and Sony, BYD has also won orders of fifty million from Apple.
Coupled with Xingyi Technology's large order of 40 million, the number of BYD antifreeze battery orders has exceeded 100 million!
However, other battery suppliers have all suffered a critical blow, with orders cut in half and even stock prices plummeting.
For example, Samsung, which could have won Apple's tens of millions of battery orders for the next-generation iPhone 5, has already negotiated and is ready to sign the contract.
As soon as the anti-freeze battery came out, Apple immediately turned its back and replaced it with BYD's anti-freeze battery, causing Samsung's stock price to plummet.
The same thing happened to LG.
What's even more terrible is that the order volume of ordinary batteries has dropped sharply, causing inventory pressure on major battery manufacturers to surge, and they have to compete for a few orders, which has triggered a price war.
The price of ordinary batteries has been cut in half!
Before there were BYD antifreeze batteries, everyone used ordinary batteries, which were profitable and made money.
With the BYD antifreeze battery, the price of ordinary batteries has plummeted. Not to mention making money, it would be good to get back the original investment, or even lose less.
It can be said that the emergence of antifreeze batteries has directly revolutionized the battery field.
The upgrading of technology brings dimensionality reduction blows that are so ruthless and cruel.
As a result, many battery manufacturers such as Samsung, LG, and Sony were speechless and had to invest heavily in research and development to develop their own low-cost antifreeze batteries.
In this round, BYD won in the atmosphere!
After all, it will take several months for Samsung, LG and other giants to develop low-cost anti-freeze batteries, and it will take several more months to purchase raw materials, adjust the production lines, and achieve mass production!
After mass production, it also takes time to ramp up production capacity.
It can be said that in the next six months, BYD's antifreeze batteries will be in an invincible state.
Due to various favorable conditions, BYD's stock price skyrocketed, rising directly to HK$70!
Regarding this, Wang Yi was in a good mood and had been waiting for this opportunity.
Decisiveness caused people to start selling crazily and reduce their holdings of BYD shares.
This was the case for the next few days, with a portion of the holding being reduced every day.
Wang Yi previously bought 500 million BYD shares.
Among them, 500 million shares are in the hands of Wang Yi and belong to Wang Yi's personal investment.
There are still 200 million shares in the hands of Xingyi Technology, which belongs to the company's investment.
When I bought it last year, it cost HK$10 per share, which cost a total of 3.5 billion.
Among them, Wang Yi’s personal stocks were spent 1.5 billion, and Xingyi Technology’s stocks were spent 2 billion Hong Kong dollars.
In the past five days, Wang Yi reduced the BYD stock held by Xingyi Technology by 50 million shares in the secondary market, and transferred 100 million shares to other institutions and shareholders, cashing out a total of 11 billion!
In addition, there are too many favorable policies at the moment, which has not caused a huge shock in the stock price.
This time, Wang Yi partially reduced his holdings, not only recovered the investment cost, but also made a huge profit of 7.5 billion!
Wang Yi still holds 200 million BYD shares, which are still worth HK$15 billion based on the current stock price.
Of course, this is under the condition of BYD's healthy development.
But Wang Yi knew that this kind of infinite scenery was only temporary.
Once giants such as Samsung and LG break through anti-freeze batteries, BYD's stock price will be impacted.
What's more, in 2012 in the previous life, BYD had a black swan incident and its stock price plummeted.
Maybe it will still happen in this life.
But no matter what, this is Wang Yi's opportunity.
With this 11 billion Hong Kong dollars, Wang Yi can increase investment in semiconductors, food delivery, and taxi-hailing, madly seize the market, and expand business territory...
And once BYD is affected and encounters a black swan incident, and the stock price plummets, Wang Yi will take action and take heavy positions against the wind!
Using real money to boost BYD's plummeting stock price can be considered a white knight.
This is Wang Yi’s promise to Shopkeeper Wang, and it will always be valid!
In this wave, BYD has made a profit, and so has Wang Yi!
Everyone is happy.
But giants such as Apple and HTC have suffered heavy losses.
Not only are the sales of contemporary products bleak, but you also have to spend extra money to buy antifreeze batteries!
Since BYD's production capacity is limited and the market is in short supply, the price of the antifreeze battery is much more expensive than the 40 yuan given to Wang Yi!
For example, if Apple wants a large quantity, 50 million pieces, it only needs to go up by 50%, and it costs 60 yuan a piece.
HTC and Sony are demanding large amounts, both in the tens of millions, and the price has increased by 80%, to 72 yuan each.
If you want less, the price will be doubled and you will have to queue up!
Prices are determined by market supply and demand, there is nothing you can do about it.
Of course, BYD's antifreeze batteries for Wang Yi are still given priority in supply and order placement, and are priced at the original price of 40 yuan!
It can be said that the cost of anti-freeze batteries alone for Apple and HTC is 50% to 70% higher than that of Xingyi Technology!
This makes Apple and HTC very helpless.
It really makes things worse.
But Wang Yi made more money. Not only did the xphone 1 sell better, but the sales volume was even more terrifying. The profit margin also increased by less than half!
It has been more than two months since the launch of xphone 1. Except for the anti-freeze battery, the market prices of other components have mostly dropped by about 30%!
In addition to the large quantity Wang Yi requested, the price of components dropped by 40% compared to the first batch of orders!
Therefore, the current material cost of xphone 1 has also been reduced by about 40%.
The original 16G xphone 1 cost 1,500 yuan in material cost + sales cost + diluted R&D cost. Adding value-added tax, it costs 2,000 yuan.
But now, the material cost + sales cost + diluted R&D cost is only about 900, and with value-added tax, it is only 1,400!
The selling price is still 3299, but the current profit of xphone 1 has increased from 1300 before to 1900 now!
The profit margin increased from 39% before to 59%!
Profits explode!
People's joys and sorrows are not the same.
Xingyi Technology won a big victory here, but Xiaomi headquarters is a different story.
Rebus's smile has disappeared for a long time.
Qualcomm processors are given priority to Xingyi Technology, causing Xiaomi's first-generation processors to be out of stock.
In desperation, Rebus learned from the pain and took the advice of his co-founder Lao Li to abandon the Qualcomm dual-core processor and replace it with an NVIDIA dual-core processor!
NVIDIA's quad-core processors are about to be launched soon, and the inventory of unsold dual-core processors is seriously piling up. Now someone actually wants them!
Lao Huang naturally welcomed this and sent a team to help Xiaomi connect and optimize.
So, after nearly two months of hard work, the Xiaomi Mi 1T equipped with an Nvidia dual-core processor finally took shape.
Regarding this, Rebus was in a good mood and decisively notified the foundry to quickly mass produce and prepare for a big fight.
Although Xiaomi 1T is not as good as Xingyi xphone 1 in everything, it is still cheaper!
It’s more than a thousand dollars cheaper, and with the fans accumulated by MIUI and Xiaomi, it can still be sold at a reasonable price.
At worst, we should stop engaging in hunger marketing and just sell it directly!
In addition, during this period, the cost of components has dropped a bit, and the cost of Xiaomi's first generation has also dropped a bit.
In the previous life, Xiaomi's first generation had large quantities and strong bargaining power. The total cost in February had dropped from 1,500 to about 1,000.
Unfortunately, Xiaomi did not take off this time. The order volume is still 500,000, and the bargaining power is low. Therefore, the total cost remains high, staying at around 1,300, but it is still profitable.
Selling one for 1999 and earning 700 is quite impressive.
But just when Rebus was about to show off his skills and make a lot of money, there was a freeze and shutdown incident!
There is no surprise, the Xiaomi Mi 1 also freezes and shuts down.
This is embarrassing.
Due to this turmoil, all models that freeze and shut down are currently unsaleable. Only anti-freeze phones like the Xphone 1 are hot sellers.
Especially for northern users, whether there is an anti-freeze battery and whether it will shut down due to freezing are the primary factors when buying a mobile phone.
As long as it is not anti-freeze, it will be rejected with one vote!
This made Rebus so painful that he could only convene a high-level meeting again:
"The current situation is like this. Xiaomi 1T is on the market. It does not have an anti-freeze battery. It will freeze and shut down. It will definitely not sell well. If it is not on the market, we have ordered 500,000 sets of components and have produced 200,000 units.
If you sell it, it will all be wasted!”
Rebus sighed: "Everyone, tell me, what should we do about this?"
To be continued...