Tech startup: I really do make mobile phones!

Chapter 201 The Technical Direction of Orange 3

Orange Technology, Meeting Room 2.

The rectangular conference table gleamed with a cold luster, and Orange Technology's core executives sat on either side, the atmosphere serious and focused.

Chen Mo sat in the main seat, with Gong Yun, the logistics supervisor, on his left, who was elegant and capable; and Zhao Tiezhu, the marketing supervisor, on his right, who was unusually upright.

Continue in order:
The person on the far left is Jiang Yu, the head of the technical department, with a slightly furrowed brow and a notebook open in front of him.

The person on the far right is Lin Junfeng from the Ministry of Justice, with a calm expression.

The second from the left is Wang Kai from the market research department, preparing his report.

The second from the right is Zeng Baifang, the "prospective general manager" of Zhicheng Centralized Procurement Standard Company. As a representative of the Orange Group's supply chain, he attended the meeting as a supplementary attendee and appeared somewhat reserved.

Zhou Yumeng sat at the back of the conference table, turned on her voice recorder and laptop, and prepared to record the key points of the meeting.

"Everyone's here, let's start the meeting!" Chen Mo got straight to the point: "The R&D direction and BOM budget for Orange 3 are the main focus of our discussion today! Let's listen to Wang Kai's market research report first, and then decide on our direction after we understand the market!"

In this world, being half a step ahead of others is innovation; being a full step ahead is madness.

In later generations, magnetic accessories such as magnetic cameras and photo printers made from wheat must have been very popular!

In 2012, Nokia, in an attempt to finally secure a foothold in the smartphone market, aggressively developed a smartphone with over twenty magnetic accessories, including a camera.

Then they pounced as high as they could!
Many innovations can only be side dishes, added or subtracted as experiments, and cannot be served as the main course all at once!

Users often don't understand their actual needs. They may talk about pursuing innovation, but when you actually come up with a lot of new things, they may not necessarily pay for your innovation.

"Wang Kai, let's begin!"

Wang Kai stood up immediately and skillfully plugged the USB drive into the projector.

The screen lit up, revealing clear charts and data.

"Mr. Chen, colleagues!" Wang Kai cleared his throat: "According to the latest analysis from our market research team, the smartphone market in 2011 will see intensified competition and rapid iteration of hardware configurations. The core trends are mainly reflected in the following aspects!"

I. Processor and Performance:

Dual-core processors are rapidly gaining popularity, with the Gaotong Xiaolong S3 dual-core and Texas Instruments OMAP44 series becoming mainstream in the mid-to-high-end market, significantly improving multitasking capabilities.

Flagship models like the Sanjing Galaxy S2 already feature a 1.2GHz dual-core processor, while mid-range and low-end models generally use a 1GHz single-core processor, indicating a fierce performance arms race.

II. Screen Technology:
Larger screens are a clear trend, with the proportion of screens larger than 3.5 inches continuing to increase, and 4.0-inch models seeing a year-on-year increase of 10.1%.

In terms of materials, TFT-LCD still dominates (83%), but AMOLED and Super AMOLED have seen their application ratio rise to 5.2% due to their excellent power saving and display characteristics, and their future prospects are promising.

In terms of resolution, 480×320 and 800×480 are still the mainstream, but the proportion of models with higher resolutions has increased significantly.

Capacitive touchscreens supporting multi-touch have become the absolute mainstream (64.4%), while resistive touchscreens have been largely phased out.

III. System and Storage:

At the operating system level, Android 4.0 and Apple iOS 5 are the two mainstream operating systems, while Symbian's market share continues to shrink.

In terms of storage configuration, 1GB RAM + 16GB ROM has become the basic requirement to ensure smooth system operation.

IV. Other Hardware:
In terms of cameras, 600 megapixels has become standard on mid-to-low-end models.

The batteries generally use 1200-1500mAh ternary lithium batteries, while gaseous lithium batteries account for about 5.2% of the market, and removable designs are common.

V. Market Structure:

In terms of system competition, Android holds a 49% market share, iOS holds a 19% market share, and Symbian is rapidly declining.

In terms of brand performance, Fantasy has captured 40% of the domestic smartphone market share with its five series of models: A, P, S, K, and L, demonstrating a fierce offensive.

Chrysanthemum and Zhongxing are fiercely competing in the offline market for mid-range smartphones priced around 1,000 yuan.

It is worth noting that Zhongxing's growth rate in the North American market reached as high as 300%, demonstrating a strong overseas expansion effort.

Furthermore, industrial design has become a new highlight, such as the glass body and power management of the Apple 4S, and the 7.1mm ultra-thin design of the Motorola XT910, all of which demonstrate breakthroughs in craftsmanship!

Wang Kai's report was well-organized and based on solid data, providing a strong basis for the meeting's decision-making.

Chen Mo nodded and said, "Everyone understands the situation."

"Based on this, let me explain the initial framework of Orange 3: the chip has been decided, and it will be the next-generation 4G Qilin chip that is being developed by Chrysanthemum Silk Road."

Upon hearing this, a look of surprise flashed in the eyes of the others, but they did not interrupt immediately.

Chen Mo continued: "Since the Apple 4S has popularized the glass body design, we will follow suit! The Orange 3 will develop its own glass body and front glass cover."

"As for Pingguo's power management system, it's a closed system and not suitable for our desktop computers. There's also no miniaturized power NTC hardware available right now, so we won't follow suit!"

"Alright, now we have a general direction!"

Chen Mo looked around at everyone.

"Let's brainstorm and think again, what unique and compelling core selling point does our Orange 3 need?"

He knew that with Orange Group's current R&D accumulation, it would be difficult to achieve mass production of the three major components—screen, chip, and memory—within the short term of one year. They had to find differentiated advantages in other areas.

As soon as he finished speaking, Zhao Tiezhu couldn't help but chime in, his face showing some embarrassment.

"Brother Chen, Mr. He from Hai Si has given me a heads-up that the engineering sample of their 4G Qilin chip might not be doing well!"

"Oh? What exactly happened?" Chen Mo raised an eyebrow.

Zhao Tiezhu flipped through his notes and explained in detail.

"The process technology is 40nm."

The CPU is a quad-core ARM Cortex-A9 architecture with a clock speed of 1.4GHz. It performs well in basic multitasking, and computing performance is one of the strengths of the Maritime Silk Road.

However, the integrated GPU is a 16-core Vivante GC4000, with a graphics performance of only about 80 FLOPS. Even Mr. He himself said that the image quality was "barely satisfactory".

The 4G baseband is an octa-band prototype integrated, supporting Cat.4 speeds (downlink 150Mbps), but the frequency band switching is very unstable, with a packet loss rate exceeding 10%.

The memory is LPDDR2, and the storage interface is eMMC 4.5.

"The most critical issues are power consumption and heat generation. The full-load power consumption exceeds 5W, which the 40nm process cannot withstand, and the chip temperature can soar to over 80°C!"

Even after we downclocked the chip to meet our requirements, the full-load power consumption was still greater than 3.5W, and the chip temperature still exceeded 60°C!

Furthermore, GPU driver optimization is insufficient, and the coordination between baseband and processor is still immature.

"President He said that this is actually the 4G version of K3V2, and Huawei itself has already abandoned this solution."

If Orange is willing to continue, they are willing to waive the licensing fee in the initial stage (up to 500 million units), and for any amount exceeding that, they will subsidize us 0.5-1.2 yuan per unit.

A low murmur rippled through the meeting room.

This chip problem sounds like a big deal, otherwise why would they be proactively subsidizing costs to incentivize Orange to increase its order volume!

Chen Mo pondered for a moment and analyzed, "I understand everyone's concerns, but the Orange 3 is still positioned for the lower-tier market and differentiated competition. GPU performance is not the top priority for now!"

"As for the network switching issue, 4G will only be in trial operation next year, and users will still mainly use 3G, so the impact is controllable. The biggest challenge is power consumption and heat generation. The downclocked version is still 60°C, which is outrageous!"

He paused, glanced at everyone, and then offered his idea.

"So, what do you think about making it an internal cooling system?"

"We are prepared for two scenarios: on the one hand, we will have Hai Si continue to optimize the 4G chip that is specially supplied to us with reduced frequency to reduce power consumption; on the other hand, we will develop our own efficient internal cooling system to turn this pain point into our selling point!"

Internal cooling system? The conference room fell silent for a moment, and several executives looked puzzled and confused.

This thing is invisible and intangible to users, so how can it be a major selling point?
Moreover, even Chrysanthemum itself has given up on 4G chips, so why is Orange still insisting on using them? Isn't that too risky?
Chen Mo saw everyone's doubts and knew that force wouldn't work; he had to reach a consensus: "Do you all think I'm being wishful, or that it's too risky?"

No one answered directly, but silence itself is an attitude.

Chen Mo continued to explain, his tone sincere.

I know there are risks involved!

But think about it, the Orange 3 will be one of the first 4G phones to be piloted in China next year, so we must use a 4G chip.

Given the close relationship between Fantasy and Gaotong, can a small factory like Orange easily secure a sufficient share of Gaotong's Xiaolong chip production capacity?

Even if orders are placed, Fantasy, Chrysanthemum, and Zhongxing will be given priority in production!

Everyone lowered their heads in deep thought.

Zhao Tiezhu muttered, "Isn't there still the TriStar Tiger 4G chip?"

Chen Mo smiled and said, "Sanjing also manufactures mobile phones. Will its production capacity prioritize its own needs or our Orange's?"

Having said all that, everyone understood that Chen Mo's choice was both a reluctant one and a strategic one: to align with the Maritime Silk Road, share risks, and in exchange for future supply chain bargaining power and the possibility of differentiation.

In comparison, Lei Jun's current research and development project, Wheat 2, is probably facing a bigger headache regarding chip supply.

Gaotong's number one partner in China is Fantasy, not Wheat!
Wheat! Right now, it's at best a backup plan for high-end products!

"Even with reduced clock speeds, the computing performance of the chips from the Chrysanthemum Silk Road is still quite strong!"

Chen Mo encouraged everyone.

"Our main focus is on the phone's cooling system. We'll also make the glass cover body look cooler, and have Orange Studio specifically adapt and optimize a few popular casual online games. We can then promote the concept of a 'gaming phone' – it's a path worth trying!"

The executives present seemed thoughtful, as if they were somewhat persuaded by this niche concept of "gaming phones".

At this moment, Jiang Yu from the technical department frowned and raised a very practical question: "President Chen, hardware appearance design has always been our weakness."

"Our design team is great at UI/UX, dynamic logos, and even game character design, but the hardware appearance..."
As you can see from Orange 2, it can only be said to continue the style of Orange 1, and is nothing special.

Users might not notice the cooling system much, but the phone's appearance is the first impression. If it's still unremarkable, then this gaming phone might not stand out.

That hits the nail on the head.

Chen Mo also admitted that the hardware design of the Orange phone, especially its appearance design, did indeed lack highlights.

At this moment, Gong Yun spoke up gracefully to help Chen Mo out of the predicament: "President Chen, do you remember the lead designer that Orange Treasure Games wanted to poach? They ended up going to the company next door to Orange Treasure!"

"Hmm, I vaguely remember!" Chen Mo nodded.

Gong Yun glanced at Zhao Tiezhu, a mocking smile playing on her lips: "That beautiful female design director who often sends Manager Zhao to 'exchange and learn' should know the situation better, right?"

In an instant, everyone's eyes were focused on Zhao Tiezhu.

Zhao Tiezhu blushed, coughed, and forced himself to report.

"Next to Orange Treasure upstairs is a company called 'Laifen' that makes small home appliances. They have some technology, but their hardware peripheral design has always been terrible, and they're barely surviving."

Last December, after Li Qiaoli took over as the lead designer for Laifen, she redesigned the appearance of their hair dryer. Now it has climbed to third place on Taobao's category chart, with monthly revenue of several million yuan, and the company has completely turned its fortunes around.

She also received a portion of Laifen's shares and became a co-founder.

It's said she previously worked at Motorola, and she knows a thing or two about UI and hardware design!

Chen Mo nodded. This was exactly the kind of character that Orange needed—one who could appeal to both soft and hard tactics!
He immediately looked at Gong Yun: "Sister Gong, how much direct cash flow does the company have right now?"

Gong Yun recited the poem almost without hesitation, fluently.

"Currently, Orange 2's production capacity is stable, and the cash pool holds 12.6 billion yuan. The safe limit is no more than 8 million yuan. If it exceeds 10 billion yuan, bridge financing will be needed, otherwise it will threaten the security of the supply chain!"

Chen Mo immediately turned to Lin Junfeng: "Manager Lin, immediately organize a team to prepare a valuation report on Laifen, and then go and talk to them!"

In his mind, how high could the valuation of a small company with monthly revenue of a few million be?
"Our bottom line is that Orange must obtain at least 66.7% absolute control. This is related to the company's future Orange Home smart strategy layout. We need to consolidate our shareholding and the entire Laifen team, especially Li Qiaoli's design team!"

"Understood, Mr. Chen!" Lin Junfeng quickly jotted down the key points, a glint of light flashing in his eyes.

Chen Mo smiled and looked at Jiang Yu, who had just raised the question: "Jiang Engineer, do you think there's any hope of resolving the exterior design issue?"

Jiang Yu was dumbfounded. He had only asked a question, and President Chen was about to acquire a company to solve it in a casual conversation.

He murmured subconsciously, "The solution is solved!"

Like other executives, Jiang Yu now truly realized that after a year of development, Orange Technology had grown to a size where it could use its financial resources to address its technological shortcomings.

This solved the most challenging issue of appearance design, and the development direction of the Orange 3 became clear: internal cooling system + glass body/cover design = focusing on the concept of "gaming phone"!
Chen Mo instructed all departments to begin refining the Bill of Materials (BOM) for the Orange 3, and specifically instructed Jiang Yu to ensure that the internal cooling system and chassis design had adequate space and structure.

He specifically looked at Zeng Baifang, who hadn't said much.

"Baifang, coordinate with Zhicheng's procurement department to get Yuancheng to develop a 1200mAh mobile phone battery based on second-generation gaseous lithium technology, with a larger capacity. The Orange 3 will need it."

"As for the motion-sensing operating system, we can just use the mature solution from Orange 2. You go and coordinate with Orange Technology!"

Zeng Baifang, also known as "Brother Million," who, like Zhao Tiezhu, started out as a demolition machine operator in North China and was known for his down-to-earth and hardworking nature, immediately nodded.

"Yes, Mr. Chen! I will definitely do it as soon as possible!"

At the end of the meeting, Chen Mo clapped his hands and gave a concluding speech to encourage everyone.

"Engineers in the technical department, you are now free to submit your glass body development plans and internal cooling system development plans!"

He decided to expand the scope to increase the probability of triggering the black technology system.

"This isn't just limited to Orange Technology; Liu Mingzhen's team at Far Orange and Zhou Mingzhe's team at Orange Technology—their engineers can all submit proposals!"

At the same time, Chen Mo displayed a very tempting "carrot".

"Let me tell you all, take this seriously! Last time, Zhou Mingzhe's proposal was selected, and he became the technical director of Orange Technology. I can't guarantee anything else for the next proposal selected, but I can at least get him to lead a project team on his own, with a position equivalent to a director!"

Jiang Yu and Zhou Yumeng took the note seriously and said they would convey it immediately.

"Time is of the essence, the market waits for no one!" Chen Mo stood up, his gaze sweeping over each of the executives: "Action!"

After the meeting ended, everyone left quickly, carrying their tasks and a touch of excitement.

The development campaign for Orange 3 has officially begun.

However, what Chen Mo didn't know was that with the continued spread of "Orange Companion," a problem was brewing in the shadows for Orange 2, which was selling very well for the company!
Orange 2's revolutionary motion-sensing interactive hardware, which it was so proud of, has become obsolete in less than three months since its launch?

Is it the unscrupulousness of the merchants, or the decline of industry ethics?

Please stay tuned for this episode of Quality Observation, to uncover the truth behind "Orange Companion".

That's right! The Orange 2 phone is in big trouble; it's been directly called out by "Quality Observation," a product quality supervision column of an official media outlet!

The good news is that it wasn't a quality issue with the Orange 2 phone; in fact, it turned out to be free publicity!
The bad news is that the Industry and Commerce Bureau called Orange, saying that the Orange 2 product registration notes do not include a massage function. They questioned whether Orange had arbitrarily changed the product function and was selling a substandard massager.

Even worse news is that more Orange 2 users are buying massage phone cases online, and the download volume of the "Orange Companion" app on App Store is skyrocketing!
Upon receiving the message, Chen Mo was filled with question marks!

Um... what's going on here?

(End of this chapter)