Rebirth 08: Rise from copycat phones

Chapter 382: Dominate the World: Trillion Dollar Market Value

Wanjin Technology, a subsidiary of Zhiyun Group, has long developed under-screen photoelectric fingerprint technology, but the first-generation technology was not mature enough so it was not used.

By last year, Wanjin Technology had developed the second-generation under-screen fingerprint technology, and then the Little Blue MAX8 Pro mobile phone under Weiku Electronics was the first to adopt it. It was the first in the world to adopt under-screen photoelectric fingerprint technology and was paired with a water drop-shaped screen, creating a new full-screen mobile phone model.

This technology is actually valued by many mobile phone manufacturers, because they find that the 3D face recognition technology used in Zhiyun Group's S series mobile phones is very difficult and cannot be developed in a short period of time. Even if it is developed, the cost of this technology is very expensive, which is simply unaffordable for a large number of mobile phones that cost only two or three thousand yuan.

So last year, a large number of mobile phone manufacturers launched full-screen mobile phones with rear fingerprint sensors and small notch screens.

However, the under-screen photoelectric fingerprint technology adopted by Weiku Electronics has changed this model.

Especially when other mobile phone manufacturers learned that another major fingerprint technology supplier in China, Qianding Technology, was also developing under-screen fingerprint technology, many mobile phone manufacturers placed their hopes on Qianding Technology.

I have to say that Qianding Technology's technology is indeed amazing. They are the third manufacturer in the world to develop press-type fingerprint technology. Their fingerprint products are widely used in almost all mobile phone manufacturers except Zhiyun, Weiku Electronics, and Apple.

Whether it is Samsung or LG, or domestic mobile phone manufacturers such as Xiaomi, Huawei, OV and Lianxiang, the fingerprint products they are currently using are actually supplied by Qianding Technology, which has a very high market share.

Now, they are working on under-screen optical fingerprint technology, which has given many mobile phone manufacturers an opportunity to catch up.

Against this backdrop, Zhiyun Group has also re-planned the product positioning of the A series of mobile phones...to ensure that the A series of mobile phones maintain a certain uniqueness and distinguish them from the S series of mobile phones.

Since the S series of mobile phones use 3D face recognition technology, Zhiyun Group uses under-screen photoelectric fingerprint technology for the A series of mobile phones, thus differentiating the two major product lines and covering more consumer groups.

In this case, the latest generation of A16 mobile phones uses the latest second-generation under-screen photoelectric fingerprint product with biometric capabilities to further enhance security.

After the release of this mobile phone, because it is positioned as a high-end mobile phone of Zhiyun and is very different from the S series, it attracted a lot of media coverage and a lot of consumers' attention after its official release.

Many users who wanted to use Zhiyun phones but thought the notch screen was too ugly, or simply hated the 3D face recognition mode, have found products that are more suitable for them.

This also led to an unprecedented wave of buying rush after the A16 was officially released. Although the buying rush lasted for a short time, it still made the mobile phone business department within Zhiyun Group very excited.

The smartphone business unit within Zhiyun Group has actually been concerned about the decline of the A series and the gradual decline of the C series for a long time.

Although the S series of mobile phones are popular all over the world, with annual sales of more than 200 million units, no one wants to walk on one leg.

This is also the reason why the mobile phone business department insists on continuing to develop A series and C series mobile phones.

This time, the A16 phone has the second-generation under-screen photoelectric fingerprint technology, which is their attempt...

Although the second-generation under-screen photoelectric fingerprint technology still has certain technical defects in security, in order to differentiate itself from the S series of mobile phones and increase the sales of the A series of mobile phones, the smartphone business department of Zhiyun Group still adopted the second-generation under-screen photoelectric fingerprint technology.

And judging by the rush to buy after the listing, they did the right thing this time.

Ji Chenghe was in a very good mood about this: "Mr. Xu, our A16 mobile phone is still selling well now. We expect that in the next year, the annual sales of this phone should be able to reach 15 million units. At the same time, if we add the old A14 and A series phones that are still on sale, the annual sales of the entire A series of mobile phones is expected to reach million units."

“Although the overall performance is still far from that of the S series, this is also a milestone in our dual high-end strategy!”

Xu Shenxue said: "Yes, it's not easy. After so many years of hard work, we finally have some breakthroughs. Keep it up. I hope the annual sales of the A series of mobile phones will exceed 30 million units soon!"

Ji Chenghe said: "The A16 series of mobile phones are doing well, but our C series of mobile phones continue to decline. The C10 mobile phone released this year did not meet our expectations after one week on the market!"

"The annual sales of the new C10 phone may not even reach 8 million, and some old C series phone models, such as the C phone, will be discontinued this spring in order to maintain the price system. In the end, the annual sales of our C series phones may not even reach million!"

"Today, our C series phones have entered an awkward dilemma. In order to maintain the difference with the A series, we cannot use too many advanced technologies. The under-screen optoelectronic technology originally planned to be used in this year's C10 phone has been cancelled and will not be used until next year. After all, we cannot let the C10 phone impact the market positioning of the A16 phone!"

"At the same time, in order to maintain hardware profits, we cannot use more advanced hardware in the C series phones. The SOC chip used in the C10 phone is still the S603, a castrated version of the S607 chip."

"The previous S603 chip was our first generation chip using 15-nanometer process technology and was previously used in the S mobile phone."

"Although the performance of the S607 chip is still strong enough to meet the daily needs of mobile phone users, it is still a little bit inferior. Compared with the chips used in mobile phones of the same price, it no longer has much advantage!"

"For example, the BlueTooth 8 series from our brother manufacturer, Vico Electronics, also uses the 906-nanometer chip W607, which has very strong performance, surpassing the S chip!"

"At the same time, many other competitors use the Snapdragon 820 chip with a four-star -nanometer process, and its performance is also good."

"So in terms of hardware performance, our C10 phone has lost its advantage among phones of the same price. The only thing that is better is the overall quality control!"

Xu Shenxue was naturally very clear that his own C series mobile phones had never been cost-effective phones, and had always been positioned in the mid-range. In order to control hardware costs, the various spare parts used were almost one or even two generations behind the S series.

However, in order to maintain the high-end image of Zhiyun products as a whole, they cannot be sold at a low price...they can only maintain the price at more than 3,000 yuan.

Taking all these factors into consideration, the C series phones lack cost-effectiveness... To be honest, apart from the Zhiyun logo, overall quality control, and the smoothness brought by the Yun OS system, there is really no advantage in other aspects.

But there is no way around it. Zhiyun Group cannot lower the price of the C series to below 3,000 yuan simply to expand its sales. This will have a certain impact on the entire Zhiyun's brand image.

In recent years, Zhiyun Group’s market positioning for smart terminal products, especially mobile phones, is to maintain sales while raising the average price as much as possible to increase revenue and gross profit.

It’s good enough that the price of this C series mobile phone has not increased, how can it be reduced in price?

Otherwise, the S series mobile phones have increased in price, and the top-end model of the A16 mobile phone has also increased in price, but the C10 mobile phone has decreased in price. How do you want consumers outside to see it?
Therefore, Zhiyun Group would rather discontinue the production of the old unsold C8 mobile phones and even some low-end C9 models than sell them at a price reduction!
Anyway, the price of 3,000 yuan is fixed and it is impossible to reduce the price no matter what!

Zhiyun Group must ensure that the prices of all three series of its mobile phone products in major mainstream markets are no less than 3,000 yuan.

Of course, Zhiyun Group also releases some so-called exclusive edition mobile phones in some emerging markets, such as India, Indonesia and other regions, such as S13X 8GB, S14X 8GB, and supplies them to these emerging markets at low prices... But you can see from the fact that Zhiyun Group would rather specially develop a so-called exclusive edition than reduce the price of the existing three major series of mobile phones.

The management of Zhiyun Group is still quite stubborn on the issue of refusing to lower prices.

The C series of mobile phones are in such an embarrassing situation: the price cannot be reduced, and the hardware cannot be made too good, resulting in a very low cost-performance ratio. Finally, the sales volume is getting worse every year.

In response, Xu Shenxue said: "The overall strategy of the group is more important, so it is right to continue to maintain the high-price strategy. No matter what time, we can't give people the feeling that our Zhiyun products are cheap!"

"As for the declining sales of C series phones, you should think more about marketing methods and try to migrate C series users to A and S series!"

"For example, can our SX series take on the tasks of the C series and take over the 3,000-yuan market on a large scale?"

Ji Chenghe said: "Mr. Xu is wise, and some colleagues in our marketing department also think that we should have a large-screen version in the SX series, such as the S15XL, to replace the entry-level models of the C series and the old flagship models, to take over the price range of more than yuan."

"In this way, we can continue to use mature and cheap hardware, such as 5.5-inch LCD screens. We have a very mature supply chain, and the price can be relatively cheap. We can also use old chips for various chips. We don't even need to castrate the previous generation of chips to avoid suspicion and specially make a castrated version of the chip to supply the C series!"

"For example, if we want to do it this year, we can directly use the S703 chip, instead of having to make a castrated version of the S706, which would increase the chip cost."

"At the same time, in terms of appearance, we adopt the more traditional integrated aluminum alloy body of the SX series, that is, the body of the S13 series. Not only can it be distinguished from the S series and A series, but the integrated metal body of our S13 and S12 mobile phones is actually highly recognized in the market. It is more recognizable than the plastic body of the C series and the newly launched metal color body, and consumers are more receptive to it!"

"In terms of appearance, it is similar to the old S12 and S13 series phones, and the metal body has been optimized, especially in terms of details and antenna processing. The price is around yuan. This will not only replace part of the C series phone market, but also allow a large number of people who want to buy second-hand S series phones to choose to buy our new SXL series phones!"

"After all, our S series phones are not cheap in the second-hand market!"

Xu Shenxue said: "This is a great idea. This SX small-screen flagship is just like this. It is a niche product for a specific consumer group. Although the sales volume is stable, the upper limit is also very low!"

"But if the SXL is made into a large screen and revives the S13 series of mobile phones to a certain extent, and our next-generation advanced chips are stuffed inside, I think there is still a lot of room for development."

"This can effectively avoid the decline in brand value caused by price cuts, while actually improving the cost-effectiveness and product competitiveness of mid-range models!"

"You guys should think about this SXL series carefully later, as a way to reduce inventory and also take on some of the mid-range market positioning!"

Ji Chenghe said: "I understand. I'll make a plan and submit it to you, Mr. Xu, for your review!" After talking about the two mobile phone models, Ji Chenghe also talked about the sales of tablets, smart watches, Bluetooth headsets, VR glasses, smart homes and other smart terminals.

Among the above-mentioned smart terminal products, smart home is the worst, with relatively low sales all year round... Although it seems to sell well compared with other manufacturers and has a large market share in the high-end market, the total sales volume is not large and the revenue is not much... At least not for manufacturers like Zhiyun Group.

All smart home products combined have less revenue and profit than Bluetooth headsets...

Therefore, developing these smart homes is not actually very profitable for Zhiyun Group. It is more for providing an ecosystem for its own mobile phones.

The situation of tablet computers is not optimistic either, with sales continuing to decline... There is nothing that can be done about it. Globally, the popularity of tablet computers has dropped significantly. No one thinks that buying a Zhiyun high-end tablet computer is pretentious anymore. If you don't want to show off, there is actually no use for ordinary people to hold a tablet... Watch TV and movies with a mobile phone. Today's mobile phones are all large-screen full-screen phones. The screen is big enough, and the phone is easier to use.

For mobile office, use the Zhiyun ultra-thin business notebook... Except for the service industry or some special industries where tablets are more convenient, who would be stupid enough to use a tablet for regular mobile office? Typing is extremely inconvenient.

After being fooled for several years, consumers have discovered that tablet computers are of extremely limited use... It's not that they haven't bought one, but after buying it, they just throw the tablet computer aside to collect dust, or simply let their children use it to play games and watch cartoons.

Therefore, it is difficult for several major manufacturers to maintain stable sales of high-end tablet computers, let alone growth, and each one is worse than the other.

Zhiyun Group is doing relatively well. Last year, the annual sales of Zhiyun Group's tablet computer, YunPAD, reached 15 million units, a year-on-year decrease of %. There was a decline, but not much, and it can be said that the sales volume has been stabilized.

However, this is still not a good sign. Zhiyun Group's tablet computer business unit is trying to find ways to open up new markets and avoid a downward trend. Even if it doesn't expect a huge explosion in the future, it must at least stabilize the market!
Zhiyun's high-end tablets are not selling well, but mid- and low-end tablets, especially low-end Android tablets priced around 1,000 yuan, are selling very well. The tablets from Weiku Electronics are student tablets, aiming to get parents to buy them for their children to study. They are marketed together with their own student smart watches, promoting the Little Blue student smart watch and student tablets as two must-haves for primary and secondary school students!
With this operation, the annual sales volume of the Little Blue student tablet computer has exceeded 10 million units, and it is selling very well... However, their tablet computers are also low in price, and the profit margin of the hardware is also low.

The increase in sales of mid- and low-end tablet computers is the business of Weiku Electronics and other domestic mobile phone manufacturers, and has nothing to do with manufacturers like Zhiyun that specialize in high-end products.

The sales of Zhiyun Group's Bluetooth headset products continue to grow. This product seems to have many competitors, such as Fruit, Sixin and some other domestic manufacturers. Even Huaqiangnan has launched a large number of Bluetooth headset products using Bluetooth 5.0.

But in fact, Bluetooth headsets are a very special ecological chain product, and the Bluetooth headsets of various mobile phone manufacturers are purchased by their own mobile phone users.

Therefore, to some extent, Zhiyun Bluetooth headsets have no competitors... It does not need to compete with other manufacturers' Bluetooth headsets. It is enough to attract Zhiyun mobile phone users.

Therefore, the sales volume of Bluetooth headsets continued to grow, and the sales volume was quite good, reaching 40 million units. Zhiyun's Bluetooth headsets have always been expensive, and the price has hardly been reduced, so while the revenue was quite good, the gross profit was very high.

Because Zhiyun Bluetooth headsets seem to have launched three generations... but in fact, the hardware technology has not changed much between the first, second and third generations, and it is still the same old thing. This means that the hardware cost has already dropped significantly, but the selling price has hardly changed.

This results in a very exaggerated gross profit margin for Bluetooth headset products...far exceeding that of Zhiyun Group's other types of smart terminal products.

Bluetooth headset products, a mere headset accessory product can become an important smart terminal product in Zhiyun Group, because it is really profitable.

Of the annual sales of more than 6 billion US dollars, 4 to 5 billion US dollars are profits.

The smart watch business is relatively stable, without too much fluctuation, with annual sales of approximately 20 million units.

Finally, there is a pair of VR glasses that were released separately last winter. Although the technology of this VR glasses is very good and it caused some heated discussions at the time, it soon died down...mainly due to the lack of support from ecological applications.

In fact, this kind of VR glasses is best used in conjunction with drones... Unfortunately, people also think that Zhiyun's VR glasses are too expensive. There are a lot of cheap ones on the market, so it's not worth spending tens of thousands of dollars on Zhiyun VR glasses.

Therefore, the sales volume was only 200,000 units, with sales revenue of only about 2 billion US dollars, and due to the high hardware and development costs, the profit was not high.

This kind of product is an attempt at future technology, and Zhiyun Group is also taking the approach of trying it out if possible, in order to seize an early opportunity in the VR field and then see how the situation develops.

Therefore, we should be mentally prepared for the average revenue and low profits.

Finally, let’s talk about the PC business. Zhiyun Group’s PC business has been relatively stable in the past two years, without any major disturbances.

Looking at Zhiyun Group's various smart terminal businesses, there were good ones, average ones, and even poor ones last year, but when you add them all up, the revenue figures are huge.

In the past 16 years, Zhiyun Group has achieved a revenue of more than billion US dollars in the smart terminal business alone, which is quite an impressive revenue figure.

In addition, there are income from semiconductor manufacturing, semiconductor design business, software and Internet services, spare parts business, and financial investment.

In 16 years, Zhiyun Group has achieved a total revenue of more than US$ billion, exceeding external expectations.

In terms of net profit, although Zhiyun Group burned too much money, semiconductor manufacturing continued to burn money, and various R&D projects also burned money, but when the annual report was released, the net profit attributable to shareholders was still US$68 billion, a significant increase compared with last year. With the profits in the smart terminal field relatively fixed, Zhiyun Group's profit increase came in part from software and Internet businesses, mainly from the profit increase of cloud computing business, and the profit of Zhiyun Mall increased significantly.

In addition, the profits of the semiconductor business have increased significantly, including the higher profits from advanced process foundry. Of course, the most important thing is the increase in sales of various types of chips of the company, and at the same time, the profits have increased, including a significant increase in sales of CPUs, storage chips, and most importantly, AI chips.

The AI ​​chips, including APO graphics cards, EYQ series computing chips, PX series computing chips and other computing chips are priced extremely high, and the profits are even more exaggerated.

The substantial growth in profits from these businesses has enabled Zhiyun Group to take on part of the task of increasing the company's profits at a time when the sharp growth trend in revenue and profits from its smart terminal business has slowed down.

This has made Zhiyun Group's net profit much higher than in 15.

This made Zhiyun Group once again the most profitable company in the world, and it has left the apple industry with a gap of several hundred billion dollars.

In terms of revenue, it is second only to Walmart... However, Walmart is a special company. As a supermarket company, it counts the turnover of goods sold in the supermarket as revenue. The actual profit is relatively low, only more than 10 billion US dollars.

In terms of market value, Zhiyun Group’s market value has increased significantly by more than 100 billion US dollars at the beginning of the year due to the favorable impact of the release of robots. Currently, with a market value of more than 920 billion US dollars, it continues to be the world’s highest-valued company!
And there is hope that it will hit a market value of over one trillion US dollars at any time, becoming the world's first company with a market value of one trillion US dollars!

After the spring launch conference, the A16 mobile phone also gained market recognition... At the same time, Zhiyun Group also released a number of announcements on its robotics business, announcing that its own robotics business sales continued to increase and its production capacity would be further expanded.

Investors in the capital market also responded positively!

March 28th is destined to be a day worth remembering.

Because on this day, Zhiyun Group’s market value officially reached one trillion US dollars!

As the news came out, countless news stories spread all over the place, especially in China, where it sparked a heated discussion.

This is not only the first trillion-dollar company in human history, but also the first trillion-dollar company in Chinese history!

Most importantly, it doesn’t sell alcohol, doesn’t lend money, and doesn’t engage in real estate!
It is a top high-tech enterprise engaged in smart terminals, software and Internet services, semiconductor business, and artificial intelligence business!

It is a top high-tech enterprise that can trample on a large number of companies controlled by European and American consortiums, such as Apple, Samsung, Google, Qualcomm, and TSMC!

It is a top high-tech enterprise that has single-handedly driven the development of the entire domestic semiconductor industry chain and the consumer electronics industry, promoted the upgrading of the industrial chain, rushed into high-end fields, obtained more added value, and enabled tens of millions of people to make a living.

It is China's most obvious high-tech business card to the world, one that does not even need to be explained!

Such a Zhiyun Group has always attracted a lot of attention, and when its market value reached one trillion US dollars, it caused even more discussion.

Ordinary people, technology practitioners, financial practitioners and even experts and scholars in the economic field.

Everyone is discussing and analyzing Zhiyun Group!
Some netizens said that Zhiyun has already dominated the world and has completely established its absolute dominance in the high-tech field.

Of course, more people are analyzing the reasons for Zhiyun's success.

In particular, a group of experts conducted various analyses to try to find out the reasons for Zhiyun Group's success, and then sorted and summarized them to see if they could replicate and promote Zhiyun Group's successful model.

But what a pity!
So far, no other company has been able to emulate Zhiyun and succeed.

There are a lot of companies that forcibly imitated Zhiyun and went bankrupt...

(End of this chapter)