Chapter 482 Xingyi Semiconductor Highlights, Explosive Earnings of 16.74 Billion!
"Oh! That's right. Xingyi Technology really doesn't like our order." Rebus was a little helpless.
The order for 5 million Kunpeng 702, worth 1.2 billion, is the icing on the cake for Xingyi Technology.
Even if not, it doesn't matter.
If you sell hundreds of thousands more xphone 2 units, you will have it. Wang Yi doesn't care at all.
Lao Li changed the subject: "But they said that Kunpeng 700 SOC can be sold for 2,000."
Rebus's eyes lit up: "Kunpeng 700 SOC is also a system-level chip with integrated baseband. It has a lower price and can be sold in the 2000 range. It is completely in line with the positioning of our Xiaomi Mi 3!"
"More importantly, Kunpeng 700 is also a 64-bit processor, which is in line with the current consumer demand for 64-bit processors. You can also enjoy the bonus of 64-bit in the future!"
Lao Li nodded repeatedly: "Yes, and the performance of Kunpeng 700 is powerful enough. Not counting the 64-bit advantage, it can crush Nvidia Tegra 3, and it is only 18% behind Snapdragon 600! If it is equipped with XOS system, it will directly improve
60%, Kunpeng 700 can surpass Snapdragon 600 by 42%!”
"42%?" Rebus was startled: "Doesn't that mean that Kunpeng 700 can surpass Snapdragon 800 with the support of 64-bit XOS system? And lead by more than 10%?"
"That's right, Chairman, a 64-bit version can increase it by 40%. What's more, Xingyi Technology's XOS system is 20% more powerful than Android in 32-bit mode. There is no pressure to increase the overall performance by 60%."
Rebus was overjoyed: "With the money of Kunpeng 700, I can buy a performance that exceeds that of Snapdragon 800! So why are you hesitating? Buy it, you must buy it!"
"How much does Mr. Wang offer? Let's order 5 million units directly, and Xiaomi Mi 3 will be sold starting at 2,499!"
Lao Li breathed a sigh of relief, fearing that Rebus might get mad and follow Meizu to place an order for Kunpeng 702, a high-end model.
Fortunately, Rebus is still wise.
"The other party hasn't said the specific price yet, they just mentioned the Kunpeng 700."
"Then go and ask. Just say we want five million." Rebus said with a smile.
"good."
Soon, Jian Ziyan approached Wang Yi again: "Chairman, Xiaomi wants to place an order for 5 million Kunpeng 700s. What price should we give?"
Wang Yi is not surprised. Without the 64-bit controversy, Xiaomi would have competed with Snapdragon 800 and Nvidia Tegra 4.
But with the 64-bit bonus, even without the Kunpeng 702, Xingyi Technology's 2012 sub-flagship chip Kunpeng 700 can beat Qualcomm and Nvidia's 2013 flagship chips.
It was natural for Rebus to place an order for Kunpeng 700.
Wang Yi thought for a while, Qualcomm's Snapdragon 600 + 3G baseband costs about 250 yuan a set.
Kunpeng 702 SOC will be supplied in April. The volume of 5 million yuan is 235 yuan per set + 5 yuan technical training fee, and the set is 240 yuan.
Then Kunpeng 700 SOC will also be available in April, and the price can be slightly lower.
"For a volume of 5 million yuan, let's calculate it as 205 yuan per set, and the technical service will also be calculated as 5 yuan."
"Okay, Chairman." Jian Ziyan responded and quickly replied to Xiaomi.
"Dr. Lei, the other party replied, 205 yuan per set." Lao Li said with a smile.
"Not expensive, not expensive at all!" Rebus was overjoyed:
"That is to say, there is no 64-bit system at the moment, and the 64-bit bonus cannot be used for the time being. Otherwise, the Kunpeng 700 will have to be sold for 250, or even 280!"
"Yes, we got the Kunpeng 700 SOC for 205. Once it is installed on a 64-bit system, the performance is comparable to the Snapdragon 800. It is really a good deal. After all, the Snapdragon 600+ baseband costs 250! Nvidia Tegra 3+ Wing Loong 3000 baseband,
It’s also 170, and the performance lags far behind.”
"Yes, let Meizu MX3 use Kunpeng 702 SOC to reach the high-end of 4000, we don't care. We will use Kunpeng 700 to make a mid-range phone with 2000 range!"
Rebus said with a smile: "The price is 2,499, and the profit is considerable. As long as we can sell out 5 million units, we will make a lot of money!"
After experiencing the fiasco of Xiaomi 1 and Xiaomi 1T, Rebus thought clearly.
With the Xingyi mobile phone manufacturer, Xiaomi's sales cannot be higher, and if the sales are not higher, the cost cannot be lowered.
The original strategy of small profits but quick turnover simply didn’t work.
Instead of doing this, it is better to take advantage of the absolute advantages of 64-bit processors and rush forward.
Meizu MX3 uses Kunpeng 702 SOC to charge 3,000 to 4,000 yuan. Xiaomi uses Kunpeng 700 SOC to charge 2,499. Is that okay?
No problem at all.
Lao Li changed the subject: "In addition, Xingyi Technology also provides chip tuning services, but it costs 5 yuan each!"
"???" Rebus was stunned: "Do you also provide chip tuning services?"
"No wonder Meizu has turned to Xingyi Technology. Xingyi Technology's chip tuning service is very powerful. It is also Nvidia Tegra 3, and the performance of our Xiaomi 2 cannot reach 70% of the Xphone 1pro! 5 yuan is a good deal.
!”
Lao Li nodded: "Yes, and with the technical support of Xingyi Technology, our Xiaomi Mi 3 can quickly complete the training and be launched quickly!"
"Buy! It only costs 210 yuan in total, which is much more cost-effective than the 300 yuan Snapdragon 800."
Rebus made a decision immediately, and then began to sigh: "It would be better if we could use the 64-bit XOS system.
Lao Li sighed: "It's difficult. Although the XOS system is good, the ecosystem has just started and there are too few adapted software. If the XOS ecosystem really takes off, our Xiaomi Mi 3 will be equipped with the XOS system and directly explode into 64-bit processing.
Well, the Kunpeng 700 surpassed the Snapdragon 800 by two levels, and there was no problem at all.”
"Yes, the ecology of the XOS system is a big problem." Rebus said thoughtfully: "Expanding the XOS ecology will be good for Xingyi Technology and also good for us Xiaomi. Lao Li, please issue a notice and let Xiaomi
All software owned by Kingsoft and other related companies will be adapted to the XOS system, immediately, immediately!"
Lao Li's eyes lit up and he understood what Lei Dong meant.
This is a timely help for the XOS system!
It’s also a favor for Wang Yi!
In this way, when the XOS system becomes bigger in the future, Xiaomi will follow the example of the dragon and use the Kunpeng chip of Xingyi Technology.
By then, the XOS system will also be installed on Xiaomi phones.
In this way, Xiaomi Mi3's Kunpeng 700 can directly take advantage of the 64-bit advantage, directly kill the Snapdragon 800, and become a generation of miracle machine. It will not be a problem.
Lei Dong Gaoming!
Lao Li sighed secretly and quickly made arrangements.
Soon, a piece of news shocked the entire Internet:
[Extraordinary, Xiaomi Mi 3 will be equipped with a 64-bit Kunpeng 700 processor!]
[Xiaomi’s software, MiLiao, Xiaomi Mall and other software, will all be adapted to the XOS system! 】
[Kingsoft’s WPS, Kingsoft Internet Security, Kingsoft Battery, Kingsoft Dictionary and other software will all be adapted to the XOS system! 】
[Thunlei will be adapted to XOS system!]
【UC Browser will be adapted to XOS system!】
【Fanke APP will be adapted to XOS system!】
【YY will be adapted to XOS system!】
…
For a time, the entire Internet was in an uproar, and public opinion exploded:
"If HTC supports the XOS system in name, then Xiaomi supports the XOS system in practice!"
“Not only Xiaomi and Kingsoft support it, but also Thunder, UC, Fanke, and YY!”
"All Thunder series are Stud, all adapted to XOS system, Rebus is mighty."
"What's the matter? This is Rebus's business, and Xiaomi is just one of them."
"That's great, Mr. Lei. I didn't expect him to be a hidden boss."
"If Joyo.com had not been sold to Amazon, it might have become the second Taobao."
"Don't mention it, Mr. Lei always takes one step faster and then cools off."
"MiLiao appeared very early, right? But now, ChangLiao and WeChat are the dominant ones!"
“Just for this reason, support Xiaomi Sanyibao.”
"Xiaomi Mi 3 is equipped with Kunpeng 700 and the price should be lower. This is a good thing. We also need grounded 64-bit mobile phones."
“Yes, I’m looking forward to the launch of Xiaomi Mi 3.”
…
Looking at this scene, Rebus was in a good mood: "It's true that I'm trying to master the XOS system. Director Wang should have seen my sincerity, right? Hahaha!"
Sure enough, Wang Yi was a little shocked when he heard the news: "I didn't expect, I really didn't expect that the first person to fully support me would be Rebus!"
Previously, all systems that were adapted to XOS were Xingyi Technology and companies invested by Wang Yi.
The subsequent BAT is only for strategic needs, and some APPs are just adapted to the XOS system.
For example, we need to compete with Xingyi Technology and other friends to compete for the market, users, and software that can make money.
But like Rebus, ALL in XOS, it’s still the first one!
"Yes, this time, Director Lei was very impressive." Zhu Changlin was full of praise.
Wang Yi nodded: "Reciprocate the favor. In this way, the Kunpeng 700 SOC for Xiaomi will be shipped next month, so that they can be launched one month in advance!"
"Okay, Chairman."
Soon, Rebus received the news and was immediately overjoyed: "What? Kunpeng 700 SOC will be shipped one month in advance? Then Xiaomi Mi will be launched one month in advance!"
Lao Li smiled and nodded: "That's right, Chairman. The goods will arrive in March, production will start, it will be released and distributed in April, and it will be fully launched in early May!"
"Okay, great!" Rebus was in a good mood: "Director Wang has seen my sincerity. Meizu will ship the goods in April. Director Wang is very particular! Hahaha."
Lao Li was a little worried: "If Xiaomi Mi 3 is launched so early, will it have an impact on Xiaomi Mi 2, which we have just launched?"
Rebus waved his hand: "No, the processor of Xiaomi 2 and NVIDIA Tegra 3 has mediocre performance and mediocre sales. In other words, the pterosaur 3000 baseband full network communication is a selling point. And Xiaomi 2 1799, Xiaomi 3 2499, impact
Less than.”
Lao Li nodded: "You can get the samples of Kunpeng 700 after signing the contract. I will immediately arrange for people to adapt the Kunpeng 700! When we get it done, Xingyi Semiconductor will send the team to provide the final training!"
"Okay." Rebus responded.
The research and development of Xiaomi Mi 3 is almost complete, but the final chip is still undecided.
It's only the beginning of February now, Xiaomi will release the product in early April and go on sale in early May, so there's plenty of time.
As HTC, Meizu, and Xiaomi have joined the Xingyi Semiconductor camp and adopted Kunpeng chips, other brands cannot sit still.
Kunpeng 702 is 15 yuan cheaper than Snapdragon 600, but it is a 64-bit processor. Consumers prefer it. Once it is equipped with a 64-bit system, it can beat Snapdragon 800 and Snapdragon 805!
Even the cheaper Kunpeng 700, equipped with a 64-bit system, can outperform the Snapdragon 600 and Snapdragon 800!
Simply invincible!
More importantly, 64-bit processors are so popular now that consumers only recognize 64-bit processors, while 32-bit processor models are all unsaleable!
As a result, ZTE, Coolpad, Lenovo, OPPO, and VIVO all abandoned Qualcomm processors, NVIDIA, and MediaTek's 32-bit processors, and approached Xingyi Technology to purchase 64-bit Kunpeng SOCs.
Naturally, Wang Yi would not refuse this.
No matter how big Xingyi Mobile becomes, it cannot monopolize the domestic market.
Otherwise you will get hammered.
The solution is to sell Kunpeng processors to third parties and give up part of the market.
For example, the low-end thousand-yuan mobile phone market is dominated by Unbounded Technology.
In the high-end market priced above RMB 4,000, Xingyi mobile phone dominates.
So in the mid-range mobile phone market of 2000-4000 yuan, Xingyi Technology cannot be too greedy and must give it to other domestic mobile phones.
You can't eat all of Xingyi Technology. If you are too greedy, you will easily die.
We have to leave room for other domestic brands to survive.
For this reason, Kunpeng processor, Wing Loong 3000 baseband, fast charging chip C1, power management chip P1, even M1 hifi chip, and the upcoming fingerprint unlocking module can all be sold to third-party brands.
In this way, Xingyi Mobile will not monopolize the market, but it will still make a lot of money.
After all, Xingyi Technology, as a core component supplier, also makes a lot of money from its friends.
In addition, Apple, Samsung and other companies can also sell it to them if they need it.
After all, if Xingyi Technology doesn’t sell it, other supply chains will.
Instead of letting Europe, the United States, Japan and South Korea's supply chain grow bigger and let Europe, America, Japan and South Korea make a lot of money, it is better to let Xingyi Technology grow bigger and let Xingyi Technology make a lot of money!
The development of smartphones is cyclical.
Before 2018, smartphones were in a stage of insufficient performance, and the core was processor performance.
Hence the running score.
Nowadays, when everyone buys a mobile phone, they first look at the processor.
After all, these days, the performance of different processors is much different.
For example, the 2011 flagship processors are all dual-core and cannot support 1080P. Mobile phone screens are also 480P or 640P. The 720P of the xphone 1 is the ceiling.
However, in 2012, flagship processors have become popular with quad-core processors, and GPUs have been greatly improved. Hard decoding of 1080P is very smooth, but it cannot support 2K, and mobile phones are also popular with 720P and 1080P.
By the time the flagship processors in 2013 became more powerful, they could support 4K hardware processing, and 4K TVs and 2K mobile phones also appeared.
This remained the case in the following years, with each generation of processors seeing huge performance improvements.
Several major semiconductor giants are crazily stacking up performance, so there have been a lot of rollover incidents, such as Snapdragon 805, 810, 820...
It is precisely because of insufficient performance that the core of mobile phones in recent years is the processor, which is performance!
Until around 2018, mobile phone performance entered a comprehensive surplus, and a new era began where experience was king.
The most significant thing is that games that could only be played on high-end flagships in the past can run smoothly on thousand-yuan phones 18 years later...
A thousand-yuan phone can last for several years!
A few years ago, this kind of thing would have been unthinkable.
There is an overall surplus of processor performance, major semiconductor giants are beginning to squeeze out toothpaste, and major mobile phone manufacturers are also beginning to look for new selling points.
Start competing for screen quality, eye protection, fall resistance, DC dimming...
Compete with optical lenses, compete with high refresh rate, compete with one or two hundred watts of fast charging, compete with 60 or 70 watts of wireless fast charging, compete with motor vibration...
People will pursue spiritual enjoyment only when they are hungry.
Similarly, only when the performance of the mobile phone meets the standard, will other products be pursued.
Therefore, when performance is insufficient, the most important thing is processor performance!
Even if there are selling points such as fingerprint unlocking, Hifi, and 2K screen, they are just gimmicks.
If the performance is not enough, it will lag when playing games, and it is meaningless no matter how good it is in other aspects.
It is precisely because of this that the 64-bit Kunpeng 700 and Kunpeng 702 processors are being snatched up by major brands such as Meizu, Xiaomi, O, and V.
As for Xingyi Technology, it also makes mobile phones, processors, and systems. It is equivalent to being a referee and a player at the same time. Other brands did not buy it and rejected it one after another.
This is not a big problem.
Nothing is absolute!
Just like BYD, it is the absolute dominant player in new energy vehicles, TOP1!
BYD also makes three electrical appliances and various automotive components, and other friends still purchase them.
BYD also serves as both a player and a referee.
But Tesla, Mercedes-Benz, BMW, Toyota, Honda, Xiaomi, FAW, Ford, etc., almost all car brands have cooperation with BYD.
There is also the Samsung A screen, which is also used as an athlete and a referee. These days, it is still being snapped up by major brands.
Even if Samsung has a history of cutting off supply more than once, it will still not be affected.
It wasn't until many years later that domestically produced screens made a comprehensive breakthrough and caught up with the best, then not many people talked about Samsung screens.
Nothing is absolute.
If you want to refuse, you also need to have the strength to say no.
The same is true for Xingyi Technology.
Giants like Apple and Huawei, which can build their own system ecosystem and develop their own processors, will naturally reject Kunpeng processors and refuse to join the XOS system.
But companies like Meizu, Xiaomi, O, V, Coolpad, and Lenovo can’t make their own systems or processors right now, so it doesn’t matter.
Anyone can use it.
What's more, most of the domestic mobile phone brands these days are assembly brands.
All I care about is cost and profit, and whether I can survive.
Who cares about being a referee or an athlete!
It depends on whether the performance is strong enough, whether the price/performance ratio is high enough, and whether consumers like it.
Is it possible that in order to refuse Xingyi Technology to be both a referee and an athlete, it gave up the Kunpeng 702 SOC, which is cheaper, launched earlier, and has 64-bit improvement. It has to choose the Snapdragon, which is more expensive, launched later, and does not have 64-bit improvement.
Dragon 800?
Then he was scolded by fans and abandoned by users. In the end, sales were bleak and he was completely bankrupt...
This is unrealistic.
Rebus wouldn't do that!
On the contrary, Rebus is honest and realistic.
In the previous life, Xiaomi 1 and Xiaomi 2 chose Qualcomm because Qualcomm's processors were powerful and it was a shareholder of Xiaomi.
Later, Xiaomi Mi 3 introduced NVIDIA in order to get rid of its over-reliance on Qualcomm and introduce NVIDIA to check and balance Qualcomm.
Xiaomi Mi IV fully returned to Qualcomm because Nvidia chips were stretched and it gave up the mobile phone chip business. It failed to check and balance Qualcomm and had to fully return to Qualcomm...
Similarly, this time, in order to achieve the best sales of Xiaomi Mi 3, Rebus also resolutely gave up the Snapdragon 800 and Nvidia Tegra 4, and chose the 64-bit Kunpeng 700, which is lower in cost, not weak in performance, and launched earlier!
It is entirely for the development of Xiaomi and choosing the strategy that is most beneficial to Xiaomi.
Because Xingyi Technology is both a referee and a player, it will not have to force itself to compete with the more expensive and later-to-market 32-bit Snapdragon 800 or Nvidia Tegra 4.
After all, the large-scale supply of Snapdragon 800 and Nvidia Tegra 4 will not be until August, and the mass launch of mobile phones will not be until October, and the price will be around 300.
Far inferior to the 235 Kunpeng 702 and the 205 Kunpeng 700!
Other brands have the same idea.
Faced with orders from major domestic brands, Wang Yi accepted them all.
But the special agreement also makes it clear that Kunpeng 700 cannot be used for prices below 2,000, and Kunpeng 702 cannot be used for prices below 3,000.
This price limit is valid for one year and can be broken after one year.
After all, it will have been updated a year later, and price reductions and promotions are normal.
In this regard, all major brands have made their own choices.
ZTE, for example, directly placed an order for 5 million Kunpeng 702 units, targeting the high-end market of 3,000 to 4,000 units.
Another order for 5 million Kunpeng 700 was placed, dominating the mid-range 2,000 range.
Lenovo has the same strategy, with 5 million units each.
A few years later, Lenovo mobile phones failed to recover, but now, they are still the absolute leader, with annual sales in the tens of millions.
It’s just that the subsequent year is not as good as the previous year…
However, Oppo and VIVO placed orders for 13 million and 17 million Kunpeng 700 SOCs respectively!
For them, Kunpeng 700 is already too powerful. After all, they used MediaTek before...
There is no need to eat too much all at once.
Coolpad also placed an order for 5 million Kunpeng 700 and 5 million Kunpeng 702!
These days, Coolpad is still one of the four giants of the Chinese Cool Alliance, with annual sales of 20 million.
As for the selling price?
ZTE, Lenovo, and Coolpad want to be high-end brands and fully support Wang Yi's price-limiting strategy.
As for O and V, not to mention, Wang Yi doesn’t need to limit the price to 2,000+, they themselves have to sell Kunpeng 700 for 3,000+, or even 4,000+!
After all, the Snapdragon 600 used in the previous VIVO Xplay was sold starting at 3,998!
On the contrary, with Wang Yi's price limit, these brands feel more at ease.
It can be said that Wang Yi’s price limit is to prevent Xiaomi!
Other brands are strongly welcomed.
Xingyi Technology Headquarters.
Jian Ziyan approached Wang Yi: "Chairman, here are all the chip orders for the past two days."
Wang Yi took a quick look and was shocked.
Including the previous purchases from HTC, Xiaomi, and Meizu brands, a total of 26 million Kunpeng 702 units were sold. Including the chip tuning technical support service fee of 5 yuan, the total unit price is 240 yuan.
Even HTC learned about this service and quickly added it.
With 26 million Kunpeng 702, Xingyi Technology achieved revenue of 6.24 billion and gross profit of over 5 billion!
After all, with the additional order of 26 million units, coupled with Xingyi Technology's own large order, the cost of Kunpeng 702 is getting lower and lower. Even if it is found by TSMC, the cost will only be 30 yuan.
The more chips we make, the lower the cost.
And the 40nm process is inherently cheap!
Kunpeng 700 has higher sales, with a total of 50 million units sold. Including chip tuning technical support service fees, the total unit price is 210 yuan.
Another 10.5 billion was recorded.
As for gross profit, it is even higher.
With another large order of 50 million yuan, the cost of finding TSMC to manufacture Kunpeng 700 has been reduced from 27 yuan to less than 25 yuan.
Kunpeng 700's 50 million orders, gross profit will exceed 9 billion!
Coupled with the orders for Kunpeng 702, the gross profit will exceed 14 billion!
All I can say is it's very impressive.
Wang Yi was very satisfied: "Very good, we have to ask TSMC to place additional orders."
Currently, Xphone 2, Xingyi Tablet X1 Ultra, Xingyi TV X55 and X60 are all equipped with Kunpeng 702.
Xingyi Technology's two wafer fabs have reached full capacity and are used to produce Kunpeng 702, which has just met its own needs.
The Kunpeng 702 and Kunpeng 700 sold to friends, as well as the Kunpeng 700, Kunpeng 506 and Kunpeng 500 used by Xingyi Technology, can only be handed over to TSMC for manufacturing.
"How much is the additional order? Will it all be handed over to TSMC?" Jian Ziyan couldn't help but ask.
Wang Yi nodded: "Let's hand over 50 million Kunpeng 700 SOC and 30 million Kunpeng 702 SOC to TSMC."
The expanded production capacity of Xingyi B1 wafer fab will not be put into production until the second half of the year.
Water from afar cannot quench thirst that is near.
Chapter completed!