In the mobile phone industry, stable settlement within two months can only be achieved by giants such as Xingyi Technology and Apple with considerable profits.

Most other brands have a settlement cycle of half a year, or even more than half a year!

Another year is even far away.

As for small businesses?

Small businesses have no guarantees and may go bankrupt at any time, and they are too small to be of much significance.

Therefore, for small businesses, suppliers will not sell on credit, and may even require cash in advance.

For example, Xiaomi today is small and requires prepayment.

In the previous life, Xiaomi became a giant, and as it became larger, it also started periodic settlement, and provided an ultra-short period of 45 days, which was regarded as the conscience of the industry.

But in contrast, Xiaomi will also keep suppliers' profits to a minimum.

In a word, the settlement cycle is the shortest, the settlement is stable, and you can definitely get the payment within 45 days, but the profit is also the lowest.

Even so, many suppliers are happy to do so.

As a supplier, you would rather make less money, have stable settlement, and have large orders.

Xiaomi's 45-day settlement cycle is shorter than Apple's, its volume is also larger, its settlement is stable, and its profits are low. It can make small profits but quick turnover, and it can still make a profit.

It is much better than other companies, with higher profits, but longer settlement cycle and unstable settlement.

No matter how high the profit is, you will lose money or even go bankrupt if you can't get the payment.

It is precisely because of this that Xiaomi has become the moonlight of many suppliers, and many companies that are about to go bankrupt have been revitalized because of Xiaomi's large orders.

Similarly, Xiaomi used the ultra-short settlement cycle of 45 days to obtain the lowest price, reduce costs, focus on cost-effectiveness, and achieve a virtuous cycle in sales.

But this time, due to the emergence of Xingyi mobile phone, Xiaomi failed to develop, and it lost that structure and treatment.

Fortunately, Rebus and several partners have money, and they can maintain the research and development and production of Xiaomi mobile phones with the advance capital.

But the cost is high, and the sales volume is low. In order to maintain profits, we can only sell at a high price.

For example, Xiaomi Mi 3 has gone from 1999 in its previous life to 2999!

Small profits and high sales will not work, so high profits and low sales will be the only option.

Apple is another path. It is conscientious about the 60-day settlement cycle of the supply chain. It will also give suppliers a good profit margin, allowing them to make money, and the quality requirements are much higher than Xiaomi.

If anything is not up to standard, Xiaomi will tolerate it because of the low price.

But apples can't hold any sand in their eyes, so they are directly expelled and no longer used.

In the previous life, Intel's 4G baseband was obviously cheaper, and cooperation with Intel was also in line with Apple's interests in breaking Qualcomm's monopoly.

But because the Intel baseband was stretched and the signal was poor, Apple eventually gave up on the Intel baseband, preferring to pay a huge protection fee to Qualcomm and switch to Qualcomm baseband.

Xingyi Technology’s attitude towards suppliers is similar to Apple.

There is also a 60-day settlement cycle, which ensures stable settlement and allows suppliers to make a certain profit, but the quality requirements are high.

After all, it is a flagship phone, so the quality is ambiguous.

Major suppliers are making money, and settlement is done within 60 days. It is super stable, so they are naturally rushing to cooperate with Xingyi Technology.

In order to win Xingyi Technology's huge order, they even took the initiative to lower prices and engage in price wars.

Therefore, the cost of Xingyi mobile phone is also very low, the profit has always been considerable, and there is no need to advance funds during the 60-day settlement cycle.

At this time, Zhu Changlin walked in with several mobile phones: "Chairman, the first batch of Unbounded 1st generation mass production machines have rolled off the production line. Take a look."

Wang Yi took over the mass-produced Unbounded 1st generation and experienced it, and was very satisfied:

"The configuration is not very high, but considering the price of 999, it is really delicious!"

Anyone who talks about quality and performance aside from price is just being a hooligan!

Zhu Changlin nodded: "Yes, the Unbounded 1st generation starts at 999. The price of a copycat phone is the configuration and experience of a smartphone. As soon as it is released, it will definitely sell out!"

"It will be launched next month, so it will definitely be a hit! The entire mobile phone market will be shocked!" Wang Yi said with a smile.

Different from the high-quality requirements of Xingyi mobile phones, Wujie mobile phones are positioned as mid-to-low-end mobile phones and focus on cost-effectiveness, so they will slightly relax quality restrictions and reduce costs.

If we all follow the quality requirements of Xingyi Mobile Phones and order from the supplier of Unbounded Mobile Phones, it will be over.

There are currently very few qualified domestic suppliers.

Even BOE's screen in 2013 could not meet the specifications required by Xingyi mobile phones.

But if all screens from Sharp and JDI are used, and all use top international supply chain quality, then the material cost of the Unbounded 1 generation will rise to 1,000, plus taxes, marketing expenses and other costs, it will be 1,200. If you sell one unit, you will lose 200.

.

Wang Yi is not a philanthropist.

With the use of a domestic supply chain, and the fact that the processor and power management chips are self-developed, the cost is ultra-low, so the material cost of the Unbounded 1st generation will be reduced to about 500 yuan.

Including taxes, marketing expenses, after-sales expenses, etc., the total cost is only about 600.

Selling for 999, there is still a profit of 400 yuan for one unit!

If you sell 100 million units a year, there's no pressure. If you make 40 billion units, it's not a big problem.

Of course, if a friend wants to make such a thousand-yuan machine, the material cost will not be 500 yuan, but more than 700.

Without him, an entry-level quad-core processor, even from MediaTek, costs 105+.

The Unbounded 1st generation processor Kunpeng 500 integrates the Wing Loong 3000 baseband. It is self-developed by Xingyi Technology and manufactured by TSMC. The volume is large enough, and the total diluted cost is only about 20 yuan.

There are also two power management chips, a wifi chip, and a Bluetooth chip. These chips cost more than ten yuan or more than twenty yuan each when purchased in bulk from friends.

As for Xingyi Technology’s self-developed products, plus OEM costs, the total cost is only one yuan per device.

Adding up the five chips, the cost of Xingyi Technology’s self-development + OEM is only about 25 yuan, while the cost of its competitors is more than 175 yuan.

Wang Yi makes Unbounded Generation, the material cost is 500 yuan, and the total cost including tax is about 600 yuan.

If a friend wants to do this, not only will five chips cost an additional 150 yuan, but other components will also cost a lot more.

Without him, the Unbounded mobile phone has a volume of hundreds of millions, so it can naturally get the lowest price for all components.

Friendly merchants do not have such a large scale and cannot get the lowest price for components, so the material cost will not be 650, but more than 700!

Adding in taxes, sales costs, after-sales and other costs, the total cost of the friendly business will be 850.

Selling for 999, the profit is only a little over 100 points, while the profit of Unbounded Generation is 400 yuan!

This is the difference.

Therefore, after the advent of the Unbounded mobile phone, Wang Yi was not worried about other companies following suit.

This thing is really not easy to follow if you want to, unless it is large enough like Xingyi Technology to keep the cost down!

But this is not easy.

Moreover, if a friend of mine dares to follow suit and make a thousand-yuan phone, Wang Yi dares to lower the price of the Unbounded 1 generation to 899, or even 799, and sell it at the same cost as the rival merchant!

At the price of 799, a friend of mine lost 50 yuan on one unit, while Wang Yi made 200 yuan on one unit!

Of course, the main reason why the Unbounded 1 generation is more expensive than the previous Redmi phone is that the processor performance is stronger and it supports full Netcom!

In the previous life, the 799 Redmi not only did not support telecommunications, but was also divided into China Unicom version and mobile version.

The China Unicom version of Redmi does not support mobile 3G, and the mobile version of Redmi does not support China Unicom 3G.

It can be said that the cost is reduced to the minimum!

Wang Yi, on the other hand, is more generous, and even has a thousand-yuan phone on Netcom.

In this way, the cost seems to be higher, but the profit is higher.

The profit of Unbounded Generation increased directly from 400 to 600!

Nothing else, operator subsidies!

For a TD 3G mobile phone, the mobile subsidy is 100 yuan.

For a Telecom 3G mobile phone, Telecom subsidy is 100 yuan.

The Unbounded Generation supports full network access, and you can get both subsidies, with a direct subsidy of 200.

So the profit of Unbounded Generation increased from 400 to 600!

In addition, software and Internet services can also generate profits of tens of yuan, and related accessories such as tempered films, mobile phone cases, headphones, and mobile power supplies can also generate income of tens to hundreds of dollars...

A 999 Unbounded 1st generation, the profit has exceeded 700!

This is why the red rice in the previous life cost 740-760 including tax, but it dared to sell for 799!

Mobile phones do not make money, but there is a mobile subsidy of 100 yuan, Internet income, advertising income, accessories income... 799 can be earned.

And as time goes by, the cost of components decreases, and the total cost including tax will gradually drop below 700, and the profit will be higher.

Of course, all Netcom models of Xingyi Mobile also have mobile subsidies and telecom subsidies, and they are even higher.

Mobile 3G’s subsidy for flagship phones is 200 yuan!

However, by the end of the year, 3G mobile phones will no longer be subsidized, and subsidies for 4G mobile phones will begin!
To be continued...