Chapter 437 Semiconductor strategy, expansion, and death!(1/3)
"Nvidia chips and Pterosaur basebands are bundled? Jointly fight against Qualcomm?"
Wang Yi instantly understood what Lao Huang was thinking.
In the current mobile chip field, there are only a few companies, and their situations are not all the same.
Texas Instruments, the previous chip overlord, is now half dead.
The new absolute king, Qualcomm, is at its peak and unstoppable.
MediaTek is focusing on the low-end, but right now it is exclusive to copycat phones and not worth mentioning.
As for the fact that Apple is only for personal use, it doesn't hurt either.
The rest are just some stragglers, and NVIDIA doesn't even notice.
The only ones that can have an impact on Qualcomm are Nvidia and the emerging Xingyi Semiconductor.
But it is obvious that neither Nvidia nor Xingyi Semiconductor, combined, multiplied by three, is no match for Qualcomm.
In this situation, both Xingyi Semiconductor and Nvidia have no chance of winning if they fight on their own.
After all, super overlords like Texas Instruments have been killed by Qualcomm, let alone Nvidia and Xingyi Semiconductor?
On the contrary, only if both parties cooperate can there be some chance of winning.
This is Lao Huang's plan.
Wang Yi would not refuse this either.
In the field of chips, Qualcomm must not be allowed to continue its monopoly and continue to grow.
It is precisely for this reason that Wang Yi would rather support Nvidia than antagonize Qualcomm.
After all, Nvidia is nothing to worry about, but Qualcomm makes Wang Yidu fearful.
Nowadays, Nvidia chips and Xingyi Semiconductor's Wing Loong baseband are bundled and sold together, which is also a good thing.
The enemy of my enemy is my friend.
As long as Qualcomm's strategy is followed, it is a good strategy for Wang Yi!
As for Nvidia?
Wang Yi didn't care that he was not a rival of Xingyi Semiconductor at all.
After all, how long NVIDIA's mobile chip business can survive is a question.
To put it bluntly, without Wang Yigan, Nvidia might be useless in a year or two.
Qualcomm is the enemy!
After reading this, Wang Yi said decisively: "This is a good suggestion, I think it will work!"
Lao Huang was overjoyed and his bet was right: "Director Wang, I will go to the customer to discuss it. The estimated delivery time is November. Is it feasible for you?"
"November? No problem at all! I will contact TSMC to OEM the Pterosaur 3000 baseband!" Wang Yi agreed decisively.
Xingyi wafer fab has limited production capacity and can only give priority to the production of Kunpeng 702. Kunpeng 700 may have to be found by TSMC.
As for the baseband, it requires OEM.
We will mass produce five million pieces every month and just sell them slowly.
Huawei needs it, and other domestic companies need it.
To put it bluntly, as long as you want to do mobile 3G or full Netcom, you can't do without Xingyi Technology's Wing Loong 3000 baseband.
Coupled with Nvidia's customers, the sales volume will be even more impressive.
Not only can you make money, but you can also seize Qualcomm's market, so why not do it.
"That couldn't be better." Lao Huang was in a good mood: "Dr. Wang, how do you calculate the price of our bundled sales?"
Wang Yi thought for a while: "Currently, the Qualcomm APQ 8064 is priced at US$20, the 3G baseband is US$15, a set is US$35, and the 4G version is US$37."
"If we want to compete with Qualcomm, we can only rely on cost-effectiveness."
"Qualcomm's 3G baseband does not support telecommunications and mobile 3G, and it sells for $15."
"The Wing Loong 3000 baseband is also 3G, but it supports mobile 3G and China Telecom 3G. It can be regarded as full Netcom 3G, and it also supports overseas 3G."
"So I plan to sell it for 13 US dollars, which is 2 US dollars cheaper than Qualcomm 3G baseband!"
13 US dollars, about 85 yuan.
The diluted cost of the Wing Loong 3000 baseband chip is about 17 yuan. Even if it is manufactured by TSMC, it will only be 20 yuan.
It costs 20 yuan and sells for 85, which is totally fine.
There is still room for price reduction.
"The price is reasonable. It's more powerful than Qualcomm 3G. It has full network connectivity and the price is $2 lower. It's very promising!" Lao Huang agreed very much:
"Qualcomm APQ 8064 sells for US$20, so our Tegra 3 chip has a slightly inferior manufacturing process and performance, so it should be sold for US$13!"
"In this bundled sale, Nvidia Tegra 3 + Xingyi Technology Wing Loong 3000 baseband only costs 26 US dollars, which is much lower than the 35 US dollars of Qualcomm APQ 8064 + 3G baseband."
"With a difference of only US$9, Qualcomm's solution is 36% more expensive than ours. I believe many users will be tempted and choose us."
Wang Yi spoke again: "9 US dollars is not enough, so if we buy them in a bundle, we will each give a discount of 0.5 US dollars, a set of 25 US dollars, which is 10 US dollars cheaper than Qualcomm, and Qualcomm's solution is 40% more expensive than ours!"
"Yes, the difference in cost of a mobile phone is 10 US dollars, and the difference in cost of 10 million mobile phones is 100 million US dollars. Those mobile phone manufacturers will consider this gap!" Lao Huang agreed very much.
Everyone knows that Qualcomm's APQ 8064 is better, but the difference is a full 10 US dollars, so it is not as good as NVIDIA + Pterosaur 3000.
Especially in Xia State, with lower costs, you can also enjoy Telecom 3G and Mobile 3G full Netcom!
This is a problem that cannot be solved by Qualcomm APQ 8064 solution.
In Xia State, there are the largest number of mobile users, and there are also many telecom users.
Any brand has to consider these two major user groups. This is the reason why the Wing Loong 3000 beats the Qualcomm baseband.
This was also the basis for Lao Huang to seek cooperation with Wang Yi.
More importantly, most domestic mobile phones currently sell for only 1500-1800, and the total cost is only about 1000. The difference is 10 US dollars, and the cost of 65 yuan is very high.
For the same four-core, full Netcom solution priced at US$25, and non-full Netcom solution priced at US$35, most manufacturers will choose the former.
Not only can it save 40% of costs, but it can also be fully networked and gain more customers!
All major manufacturers will consider the trade-offs here.
"I hope both the Pterosaur 3000 baseband and NVIDIA Tegra 3 will sell well!" Wang Yixiao said.
"Don't worry, Mr. Wang, I will definitely do it!" Old Huang said.
Although Qualcomm APQ 8064 is good, it was launched half a year late, and most users were won by Nvidia in advance.
Moreover, APQ 8064 is too expensive, and many manufacturers cannot afford it.
To put it bluntly, cost-effectiveness determines everything.
"By the way, Director Wang, are you going to stop purchasing NVIDIA Tegra 3 next?"
Lao Huang asked about his biggest worry.
The self-developed Kunpeng 702 is ready, its performance is not inferior to Tegra 3, and it is natural to completely replace Tegra 3.
Wang Yi smiled slightly: "Don't worry, Mr. Huang, we will continue to purchase some Tegra 3."
"Really?" Lao Huang said with joy: "If so, I will give you a lower price, only 10 US dollars, no, 8 US dollars!"
The cost of NVIDIA Tegra 3 is about US$5, and it was sold to Wang Yi for US$8, which is considered a super bargain price.
There is no other way, Wang Yi will give up on anything that is too expensive.
It is better to make small profits but quick turnover and earn more.
"Eight-Mei Knife!"
Cabbage price!
Wang Yi was very surprised.
The cost of Kunpeng 702 is nearly 5 US dollars, and Lao Huang sells it for 8 US dollars, which is indeed the lowest price.
You can continue to purchase some for Xingyi TV.
After all, Nvidia Tegra 3 is much cheaper than Qualcomm's APQ 8064.
Currently, the production capacity of Xingyi wafer fab is limited, and it can only produce 14.4 million Kunpeng 702 units in a month, which is simply not enough.
Originally, Wang Yi planned to use Kunpeng 702 to replace Nvidia's Tegra 3 in the xphone 1pro.
But now it seems that the only way to continue using Tegra 3 on xphone 1pro is to directly replace the Qualcomm APQ 8064 of xphone 2 with Kunpeng 702!
Without him, Nvidia would never be a big player. It’s not a big deal, and the price it offers is cheap, as low as $8.
At present, the Kunpeng 702 production capacity is insufficient, and the Xphone 1pro can continue to purchase Nvidia Tegra 3. The original external Qualcomm baseband can also be replaced by its own Pterosaur 3000.
Qualcomm is the biggest enemy and sells it more expensively.
The APQ 8064 processor costs 12 US dollars, and an external baseband costs 11 US dollars. A set is 23 US dollars, 150 yuan.
To be continued...