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Chapter 415: Ten billion chip orders, killing Qualcomm(1/3)

Not only mobile phones need power management chips, but chargers also need power management chips.

Even some brands of original charging cables have chips.

Of course, this kind of charging cable is very expensive.

For example, there were more than 100 original Apple charging cables in the previous life.

Xiaomi’s original charging cable also costs dozens.

Charging cables without chips are much cheaper.

The current 10-watt charging cable does not have a big problem without a chip, but if the power becomes higher, the chip will be necessary.

A 3G mobile phone requires two power management chips P1, one for the mobile phone and one for the original charger.

A fast charging chip C1, used in mobile phones.

Therefore, Wang Yidu sells three chips together.

If all charging cables are forced to carry chips, that would be four.

But the cost of four is too high and most manufacturers cannot accept it, especially domestic brands.

For example, Xiaomi's flagship, the total cost including taxes and fees is only 1,500. If the four power chips cost 150, which is almost as fast as the mobile phone processor, then Xiaomi will be under pressure.

After much thought, Wang Yi gave up the strategy of forcing charging cables to have built-in chips.

Once it is forced, not only mobile phone manufacturers will have to buy one more chip, but also those upstream and downstream manufacturers that make charger and data cables will have to buy one more chip, which will inevitably lead to resistance.

After all, data cables are very cheap these days.

A power management chip only costs 40, so the charging cable has to cost 100. This is unrealistic and not conducive to the promotion of the x-charge fast charging standard.

In the end, Wang Yi gave up on the idea and gave up the strategy of forcing built-in chips in charging cables.

A mobile phone + charger and three chips are enough to make a profit.

Currently, the power management chips of Qualcomm, Texas Instruments, Broadcom and other friendly companies support up to 5 watts and do not support 10 watt fast charging.

It can be said that Xingyi Technology’s power management chip P1 and fast charging chip C1 are both in a monopoly position, and it is the only one in the world.

Not to mention selling for 30 or 40 yuan a piece, even if it sells for 50 or 60 yuan, it is twice as expensive as Qualcomm chips, and friends will have to buy them.

This is the advantage of a monopoly position.

After all, ordinary mobile phones do not need 10-watt fast charging, but if flagship mobile phones want to be sold at a high price, they must provide 10-watt fast charging, otherwise they will not be able to compete with other manufacturers.

Even if Wang Yi wants a high price, they have to bite the bullet and buy it.

But Wang Yi didn’t ask for a sky-high price. On the contrary, it was only about $1 more expensive than the 5-watt slow charging offered by Qualcomm and other competitors.

It's one generation ahead of the competition, but only about $1 more expensive. All major brands think Wang Yi has a good conscience.

Thanks to Wang Yi's conscientious pricing, even with his monopoly advantage, he did not ask for excessive prices, and major brands placed orders one after another.

There is no surprise. The sale of this wave of fast charging chip sets alone has made a lot of money.

Looking at the report of Xingyi Semiconductor Department, Wang Yi was in a good mood.

Customers with 3 million sets of orders: Meizu, Xiaomi, BlackBerry.

Customers with 5 million sets of orders: HTC, VIVO, Oppo, Coolpad, Motorola.

Customers with 10 million sets of orders: Huawei, ZTE, Samsung, Lenovo, Sony, Nokia, LG.

Looking at the order, Wang Yi looked a little complicated.

These days, many brands are still alive and well.

For example, Motorola is still one of the top ten sales giants these days and has not yet been acquired by Lenovo.

Another example is BlackBerry, which is also doing well and has not yet sold itself to TCL.

Just to Wang Yi's surprise, BlackBerry also wants to make fast charging?

Also, although BlackBerry has always retained its keyboard, it is also making smartphones, but the development path is different, and it seems to be resistant to touch screens.

So much so that the keyboard has become a highlight of BlackBerry.

Coupled with its unique security and global sales, BlackBerry's sales are still acceptable these days.

There is no pressure to sell millions of units of a flagship a year. After all, BlackBerry is also a major international brand.

The BlackBerry used by all the presidents of the United States!

There is also Coolpad, which also placed a one-time order of 5 million.

These days, the four giants of the Chinese Cool League are still young!

Xiaomi, Meizu and the like are emerging brands.

Wang Yi calculated that a dozen brands have ordered a total of 104 million sets of charging chips, a total of 312 million chips!

Even if calculated based on a set of 100 yuan, the total is 10.4 billion!

Gross profit exceeded 9.5 billion.

That’s a lot of money!

Wang Yi finally realized the joy of Qualcomm.

Of course, Wang Yi will basically make a lot of money from major mobile phone manufacturers in the next year.

Brands that can continue to add orders in the future include Samsung, LG and other brands.

Their flagship mobile phones are on sale globally, with multiple models released a year, and sales are expected to exceed 20 to 30 million.

I will definitely have to continue to place additional orders by then.

But the possibility of additional orders from other companies is slim.

For example, although Huawei and ZTE's sales are terrible, they mainly focus on low-end smartphones and feature phones.

On the contrary, the sales of flagship smartphones have been average.

Wang Yi does not expect all their low-end mobile phones to have 10W fast charging. This is unrealistic.

But it doesn’t matter, the mobile phone manufacturers have made money, and the accessories manufacturers will also have money behind them.

Although the 10-watt charging cable does not use the power management chip P1, the charger does.

No matter which brand wants to make a 10-watt charger, it must adopt Xingyi Technology's X-charge fast charging standard, use the X interface, and purchase the power management chip P1.

If not, ten-watt fast charging will not be possible and it will not be sold.

For those who sell power banks, if they want to follow up on 10-watt fast charging, they also need to purchase the power management chip P1 and the fast charging chip C1.

There is no way around Xingyi Technology.

This is the benefit of making standards. Once they are made, friends and suppliers will have to follow up on procurement, and the upstream and downstream industry chains will also have to follow up on procurement. There is no other choice.

Coupled with the monopoly advantage, the coming year will be smooth sailing.

Until this time next year, when Qualcomm Quick Charge comes out, there may be some changes, but the changes will be limited.

By then, the world will have X interface, X-charge fast charging standard, C1 fast charging chip, and P1 power management chip.

Wang Yi took the opportunity to cut prices again and start a price war. It will not be so easy to promote Qualcomm's fast charging protocol.

Wang Yi had planned all this long ago.

This is the first mover advantage and the battle for standards.

It is precisely in order to kill Qualcomm that Wang Yi did not set a high price, but chose the strategy of small profits but quick turnover, trading the market with a low price!

Later, Wang Yi dialed TSMC's Lao Zhang again.

Lao Zhang on the other side of the phone smiled and said: "Congratulations to Director Wang, the mobile phones are selling well, and the chips are also selling well. It's amazing, it's amazing!"

He was also very surprised. When Wang Yi made the fast-charging chip, Lao Zhang didn't think anything of it. He even thought that Wang Yi had something wrong with his brain.

Is it necessary to specially develop a power management chip and a fast charging chip?

Other brands directly purchase power management chips from Qualcomm, Texas Instruments, and MediaTek. How easy is it?

Until this moment, watching Wang Yi easily win a tens of billions of orders and make more than 9 billion, Lao Zhang suddenly realized.

High, really high!

This wave of Wang Yi is in the atmosphere!

"It's just a small fight, they are just small chips, not as good as Qualcomm and other giants." Wang Yi said modestly.

"Dr. Wang, you are so humble, even Qualcomm is gnashing its teeth in envy, haha." Lao Zhang said with a smile.

"Really?" Wang Yi was dumbfounded. This wave indeed grabbed a large number of orders from Qualcomm.

"Of course." Lao Zhang said, changing the subject: "Dr. Wang sold more than 300 million chips at once. Don't worry, TSMC has sufficient 40-nanometer production capacity and will give you priority to expedite production."

"Thank you." Wang Yixiao said: "In addition, we will add 200 million more power management chips P1 and 100 million more fast charging chips C1. The sooner the better, I'm waiting for delivery here."

"No problem, Director Wang, I'll make arrangements for you to jump in line, haha." Lao Zhang's eyes widened with laughter.

In this wave, Wang Yi has changed from a small customer of TSMC to a large customer of TSMC.
To be continued...
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