If Sharp were to be ignorant of the bigger picture, throttling supply or raising prices using the opportunity, Wang Yi would replace them immediately!
There are many screen suppliers these days!
Wang Yi originally chose to give the orders for screens, storage, and lenses to Sharp, Toshiba, and Sony respectively, precisely to create a system of checks and balances among the three.
Once Sharp cuts off supply, Xingyi Technology can immediately switch to Toshiba screens!
Of course, last November, Sony, Toshiba, and Hitachi integrated their three screen businesses to form a new joint venture, the famous JDI.
Don't put all your eggs in one basket; JDI will also be one of Xingyi Technology's main screen suppliers in the future.
Apple has its own Apple supply chain, and Wang Yi will also build his own Xingyi supply chain!
These days, whether it's BOE or CSOT, they are still developing.
Low-end screens are fine, but mid-to-high-end ones are still far from adequate.
In the next few years, all low-end brands of thousand-yuan phones will use domestic screens to support the domestic supply chain, while high-end phones will still use Sharp and JDI.
As for Samsung, a company that often throttles supply and acts superior, Wang Yi doesn't consider them at all.
Sharp headquarters.
Cui Hao's expression was somewhat displeased:
"Is your chairman really that busy? No time to see me?"
He had been at Sharp for an hour and still hadn't met Sharp's chairman, Asano Koji.
He hadn't even met Sharp's president or vice president, just a small manager arranged to meet him.
Such a perfunctory attitude made Cui Hao's expression extremely ugly:
"Very good, Sharp doesn't even care about us Apple, very good, truly impressive! Does Mr. Cook, our chairman, have to come in person to see Asano Koji?"
"Excuse me!"
Tanaka Shin apologized:
"President Cui, you've really come at an inconvenient time. Our chairman had an urgent matter and just left... It's truly not a slight."
"Then when will he be back?"
Cui Hao couldn't help but ask.
This matter was too big to discuss without seeing Asano Koji.
"Sorry, we don't know either."
"You don't know? Can't you call and ask?"
"We already called, but it didn't connect. He's probably busy, or the signal is bad."
Cui Hao fell silent: "..."
He completely understood that Sharp and Toshiba were of the same ilk, both choosing to abandon Apple and defect to Xingyi Technology!
This filled Cui Hao with shock and anger.
He was angry that Sharp and Toshiba had both abandoned Apple!
He was shocked that Xingyi Technology, a small company in China, had grown to be comparable to Apple, even causing suppliers to abandon Apple!
This was incredible!
"You are very good!"
Cui Hao snorted coldly and left with a somber face.
Tanaka Shin quickly followed:
"President Cui, we have prepared a dinner. Please grace us with your presence."
After all, it was Apple.
Even if they didn't cooperate, they had to save face.
"Eat? I'm already full, full of anger! Hmph!"
Cui Hao snorted coldly and left Sharp, his expression growing even more gloomy.
Behind him, Tanaka Shin sneered repeatedly, muttering to himself:
"Apple people are just overbearing, do they think the whole world has to cater to them?"
"But unfortunately, none of you use Sharp screens, and you're still putting on airs here?"
"On the contrary, Xingyi Technology has already given Sharp a large order for thirty million screens. Do we even need to say how we choose?"
"If we hesitated even for a moment, it would mean we're not thinking straight."
"Still fantasizing about forcing us to cut off supply to our sugar daddy? That's ridiculous!"
"Pah!"
Tanaka Shin spat and turned to leave.
This thought was not just his; all of Sharp felt the same way.
He who has milk is mother.
Apple had milk, but it gave it to LG.
Sharp couldn't get a bite, so how could they listen to them?
Outside Sharp headquarters, Cui Hao's expression was extremely gloomy.
Soon he received a call from Chairman Cook:
"What did Sharp say?"
Cui Hao sighed:
"Didn't even see Sharp's chairman. It's clear they've abandoned Apple and are supporting Xingyi Technology."
Cook's mouth twitched, his expression extremely complex: "..."
"Chairman, we miscalculated!"
Cui Hao was very helpless:
"Xingyi Technology is one of BYD's major shareholders, so we expected BYD wouldn't cut off supply to Xingyi Technology."
"Qualcomm's current dual-core chips, over seventy percent of their sales rely on Xingyi Technology, so they won't cut off supply either."
"But I didn't expect Toshiba and Sharp to be so loyal, supporting Xingyi Technology like this!"
"This is incredible!"
"Xingyi Technology has grown to be able to contend with Apple!"
Cook took a deep breath, feeling a sense of loss:
"Xingyi Technology's strength and reputation naturally can't compare to Apple. But their sales are terrifying. The xphone 1 sold over ten million units in two months after launch, they placed an order for twenty million with the supply chain, and now they've added another ten million, a full thirty million!"
"Facing such temptation, suppliers can't refuse. For this, abandoning Apple and firmly following Xingyi Technology is normal."
Cui Hao nodded:
"Yes, but in that case, our plan to cut off supply to Xingyi Technology has fallen through, and curbing the hot sales of the xphone 1 has become a pipe dream. The sales of iPhone 4s in China will be severely impacted!"
Cook also had a headache.
If the xphone 1 hadn't severely impacted the iPhone 4s, causing iPhone 4s sales in China to plummet, Cook wouldn't have been so desperate, frantically trying to encircle Xingyi Technology and thinking of cutting off their supply!
"Alright, President Cui, since you're already in Japan, and have been to Sharp and Toshiba, why not visit Sony too. As long as Sony agrees to cut off supply to Xingyi Technology, all subsequent iPhone 4s orders will use Sony lenses, including the next generation iPhone 5, which will entirely use Sony lenses!"
"Okay, I'll go right away!"
Cui Hao responded.
Whether it works or not, it's worth a try!
Subsequently, Cui Hao headed straight for Sony headquarters.
However, before Cui Hao even arrived, the chairman of Sony called Wang Yi:
"Chairman Wang, Sony absolutely and firmly supports Xingyi Technology and will never succumb to Apple's domineering actions to cut off supply to Xingyi Technology. Please rest assured, the latest batch of Sony lenses will be shipped a week in advance! In the future, Sony products will prioritize supply to Xingyi Technology!"
Wang Yi smiled.
Sony was eager to show loyalty.
There was nothing they could do; Toshiba and Sharp had both received new large orders worth tens of millions, and Sony couldn't stay calm either.
Of course, they had to state their position first, otherwise, if Wang Yi transferred the order for tens of millions of lens modules to suppliers like Samsung, Sony would have nowhere to cry.
Currently, Sony is indeed number one in mobile phone lens modules, but Samsung isn't particularly bad.
To put it bluntly, if Sony is a 90, Samsung can also be an 85, perfectly usable, and even cheaper.
They couldn't let such a large order for tens of millions fly away.
Wang Yi smiled slightly:
"We have an old saying in China: 'Distance tests a horse's strength; time reveals a person's heart.' Sony, like Toshiba and Sharp, is a long-term strategic partner of Xingyi Technology. I won't say any more polite words; we'll add another order for ten million sets of lens modules!"
"Thank you, Chairman Wang, thank you. I won't be polite either; we'll lower the price by another 20%! And you don't need to pay in advance; you can settle the payment upon delivery."
"Thank you for your support, happy cooperation!"
"It's all deserved, happy cooperation!"
The call ended, and Sony's chairman was in a great mood.
An order for five million sets of lens modules, Wang Yi was Sony's honored guest, to be prioritized for reception!
An order for ten million sets of lens modules, Wang Yi was Sony's sugar daddy, the chairman personally waited on him.
An order for twenty million, or even thirty million, Wang Yi was Sony's sugar grandpa, all kinds of preferential terms were given in full.
You know, the global sales of the iPhone 4 were only forty million!
Such a large order from Wang Yi naturally had to be treated seriously: active price reductions based on the product cycle, cancellation of advance payments, prioritized shipping...
These were basic operations for a sugar grandpa!
There was nothing they could do; if Sony was unwilling, Samsung would immediately step in!
At this moment, Sony's chairman received a report from his subordinate:
"Chairman, Apple China President Cui Hao wants to see you, saying there's an important matter to discuss!"
"See me? Heh, just say I'm not free and tell him to find the vice president!"
"Yes!"
Subsequently, Qualcomm and Nvidia also called, stating their position: they would absolutely not listen to Apple to cut off supply to Xingyi Technology, but would support them to the end...
In response, Wang Yi reciprocated by adding five million Qualcomm dual-core orders to produce the xphone 1.
He also added five million Nvidia quad-core chips to produce the xphone 1 pro!
Of course, Qualcomm and Nvidia also proactively lowered their prices.
Basically, the prices of these products will gradually decrease over time as costs go down.
The main sales will still be the xphone 1, but mass production of the xphone 1 pro must begin in March, with a launch in April!
What if so many chips can't be used? That's not a problem either.
Xingyi Tablet and Xingyi Tablet Pro are both about to be launched.
Unused Qualcomm dual-core processors will all go to the Xingyi Tablet.
Unused Nvidia quad-core processors will all go to the Xingyi Tablet Pro.
The extra Qualcomm basebands can be arranged for the xphone 1 pro, which doesn't have a baseband.
Wang Yi had everything clearly arranged, not worried at all.
Moreover, tablets are also volume-driven products.
Domestic tablet sales are not high, at most ten million units a year, but global tablet sales are high.
In 2011, global tablet sales exceeded 60 million, with iPad sales reaching 41 million, accounting for over 66%!
This year, it's expected to increase by another half!
If Xingyi Tablet can beat the iPad and capture twenty million of the tablet market, it won't be a problem.
After all, a tablet is not a phone; it doesn't involve as many communication patents.
Zhu Changlin and his team tried their best to circumvent patents that could be avoided during research and development design.
The remaining un-avoidable ones are only a small portion, not a big issue.
After all, Xingyi Technology also holds certain patents.
In a real patent war, the impact of these patents is enough to cope; they can just counterclaim at that time!
However, Apple's repeated attempts to encircle Xingyi Technology and cut off its supply were truly disgusting.
A counterattack was necessary!
Wang Yi had a plan in mind and immediately dialed a number...
That evening, Cui Hao, who had hit walls everywhere, left Japan with a somber face.
He was like a frost-bitten eggplant, completely wilted.
This trip to Japan not only yielded nothing but also shattered his lofty Apple dream!
As a result, Cui Hao was sleepless all night long.
Cook also tossed and turned, unable to sleep.
This trip to China had dealt Cook a heavy blow.
First, the iPhone 4s was severely impacted by the Xingyi xphone 1, with sales in China plummeting by 30%, giving Cook a massive headache.
Then, he personally attended the Apple fan meeting, but all the fans ran off to the Xingyi Technology press conference.
This made Cook's face turn ashen.
His subsequent trip to Japan, he thought he could use Apple's influence and allure with benefits to persuade Japanese suppliers to become Apple suppliers and cut off supply to Xingyi Technology, leaving the xphone 1 with no goods to sell.
But unexpectedly, Toshiba directly refused, Sharp's chairman didn't even show up, and Sony was even more ruthless, directly approaching Xingyi Technology to declare loyalty...
All three major suppliers abandoned Apple and firmly sided with Xingyi Technology, which made Cook extremely distressed.
"Alas! I never thought Apple's influence would diminish to this extent!"
"Even more unexpectedly, Xingyi Technology's development speed is so fast!"
"Incredible, truly incredible!"
Cook's mouth twitched, feeling that Apple's situation was becoming increasingly difficult.
This time, encircling Xingyi Technology not only failed but also strengthened the relationship between Xingyi Technology and its supply chain, upgrading them to strategic allies!
Isn't this aiding the enemy?
Where can one reason with this?
And Apple's future would be even worse, especially the sales of the iPhone 4s in China.
Cook sighed repeatedly:
"After you left, Steve, Apple was already in a turbulent period. Samsung and HTC were eyeing us hungrily, and now Xingyi Technology has emerged, even fiercer!"
"My pressure is immense!"
"But fortunately, Xingyi phones are constrained by patents and cannot be sold globally, otherwise Apple's global sales would drop, alas!"
A sigh, full of helplessness.
It wasn't until dawn that Cook finally managed to fall asleep.
But unfortunately, Cook hadn't slept for long before being awakened by the urgent ringing of his phone.
Cook forced his eyes open and glanced at the caller ID:
"Cui Hao?"
"F*ck! Not sleeping this early in the morning, why are you calling? I finally just fell asleep!"
He immediately hung up and tossed the phone aside.
But not long after, the phone rang again; it was still Cui Hao.
"Fck! Fck! F*ck!"
Cook was furious.
Angrily, he answered the phone, just about to curse, but Cui Hao on the other end was even more anxious:
"Chairman, it's bad! Xingyi Technology has counterattacked, and all our Apple negative news is trending on hot searches!"
"???"
"Xingyi Technology counterattacked?"
"Negative news trending on hot searches?"
Cook was stunned, instantly sobered, realizing the seriousness of the problem: "President Cui, tell me, what exactly happened?"
"It's like this, Chairman. Last night, I returned from Japan and finally felt sleepy in the middle of the night, so I washed up and went to bed. Then, early this morning, I received a report from my subordinate saying that the news about Apple's freezing shutdown had hit the hot searches!"
Cui Hao recounted:
"I opened it up and sure enough. This morning, all the overwhelming hot searches were about the iPhone 4s freezing and shutting down! Now the whole country knows about our iPhone 4s shutting down when it gets cold!"
Cook's mouth twitched: "..."
He immediately opened his phone, his expression extremely ugly:
[Sina Weibo: The iPhone 4s bought for over 5000 yuan freezes and shuts down as soon as you go out. Is it a design flaw or a quality issue?]
[NetEase News: iPhone overheats severely in summer, shuts down when cold in winter, users are tormented.]
[Sohu Weibo: In winter outdoors, the iPhone 4s directly shuts down, unable to make calls, a big embarrassment!]
...
Looking at these reports, Cook's mouth twitched:
"Isn't this freezing shutdown issue a common industry problem? It's not just our iPhone 4s, is it? Samsung flagship phones, HTC flagship phones, in winter, in cold places, they'll also freeze and shut down!"
Cui Hao nodded:
"That's what they say, but the problem is the xphone 1 doesn't freeze and shut down, they're fine. No comparison, no harm. Before, everyone's phones froze and shut down, no one complained about anyone, and users also felt it didn't matter. But now that the xphone 1 is fine and Apple freezes and shuts down, it makes our Apple phones seem problematic."
"..."
"F*ck!"
"So that's how it is!"
Cook was furious, and sure enough, he saw another piece of news:
[Guangming Daily: The 3299 yuan xphone 1 operates normally at minus 15 degrees Celsius. The 4999 yuan iPhone 4s rapidly loses power at minus five degrees Celsius and directly freezes and shuts down at minus eight degrees Celsius. This is a gap in quality, and even more so, a gap in strength!]
[Xinhua News Agency: iPhone 4s freezes and shuts down when cold, but xphone 1 can withstand the severe cold of minus fifteen degrees Celsius. The gap is quite large!]
"F*ck!"
Cook cursed:
"These hot searches must be Xingyi Technology's doing! We want to cut off Xingyi Technology's supply chain and encircle them. They're using this freezing shutdown issue to make a fuss and retaliate against us!"
Cui Hao strongly agreed:
"Yes, it must be Xingyi Technology's doing. But what I'm truly worried about is that this matter is causing such a stir. Now the entire internet knows that the iPhone 4s battery has problems, freezing and shutting down when cold, and they even think the iPhone 4s has a design flaw, making it unusable in winter."
"But Xingyi Technology's xphone 1 can withstand the minus fifteen degrees Celsius winter! As a result, even many potential Apple users will abandon the iPhone 4s and choose to buy the xphone 1! Even many old Apple users will abandon Apple and switch to the xphone 1! This is a huge problem!"
Cook nodded:
"This is a big problem; start crisis public relations as soon as possible!"
Cui Hao sighed:
"It's useless, Chairman, the other party is Xingyi Technology, and they also have a lot of influence. Even if we remove the hot searches, they can bring them back up!"
"This... Alas!"
Cook was also at a loss and could only say:
"Immediately hold an emergency meeting to discuss countermeasures."
"Okay, Chairman, we're all here, just waiting for you!"
Cook's mouth twitched: "..."
"Okay, you all start brainstorming; I'll be right there."
"Okay, Chairman, no rush. Have some food first; breakfast is ready for you."
"Thanks!"
Cook quickly got up and rushed out of the room.
On the way, Cook's face was grim as he started looking at public opinion online.
"Why is there so much news slandering the iPhone 4s? Something's not right!"
"Slandering? Does Apple need slandering? The iPhone freezing and shutting down is a common occurrence, haven't you used an iPhone?"
"Exactly, all iPhone users know that if you're in the south or it's warm, it's fine, but in the colder north, it directly freezes and shuts down! The kind that doesn't consult you."
"What about Xingyi Technology's xphone 1? It really won't freeze and shut down?"
"Of course not, don't forget the test at the press conference. Thrown directly into a minus fifteen degrees Celsius refrigerator, the xphone 1 had no pressure at all."
"That's right, in the north, it still has to be Xingyi Technology. iPhones are too trashy, not cold-resistant!"
"Yes, precisely because it's not cold-resistant, I exchanged my iPhone 4s for an xphone 1!"
"In the south, you can use an iPhone 4s; in the north, you must use an xphone 1."
"I'm from the south, but if I want to go to Northeast China to see ice sculptures, I also have to buy an xphone 1."
"Yes, as long as you go north, the xphone 1 is more reliable."
"For the same five thousand yuan, you can only buy an iPhone 4s that freezes and shuts down. Why not switch to a cold-resistant xphone 1 and x buds?"
"I also canceled my iPhone 4s order and am now ordering an xphone 1!"
...
Watching this scene, Cook was furious but helpless:
"Big trouble! Striking at the Achilles' heel, Wang Yi attacking from the cold-resistant angle is precisely hitting our Achilles' heel!"
"This is not easy to handle!"
"We need to find a way to break this deadlock!"
But even after Cook arrived at Apple's China headquarters, he still hadn't thought of a solution to break the deadlock.
Cook looked at everyone and spoke gravely:
"Everyone knows the current situation. With the cold shutdown issue, the already not-so-optimistic market performance of the iPhone 4s will become even worse!"
Everyone nodded; this was an undeniable fact.
As the saying goes, if everyone is trash and freezes and shuts down, then it doesn't matter; no one complains about anyone.
But the fear is when there's an excellent student who is very cold-resistant, that makes Apple seem like a useless product.
And the xphone 1 was that excellent student!
"Speak up, what ideas do you all have?"
Cook sighed.
Yang Jianxin, eager to impress, spoke first again:
"Chairman, the important thing right now is emergency public relations. We can invite some bloggers to do some outdoor winter tests to prove that Apple doesn't freeze and shut down, and that it's all slander from competitors! As for how to make the test results look better, we can use other methods to warm up the phones beforehand!"
"This is a good idea; such proof can whitewash us to some extent. And it's already February, it will warm up soon."
"That's right, just muddle through this period, and it will be easier later."
But Cui Hao waved his hand:
"This method treats the symptoms, not the root cause. Even if we muddle through this winter, what about next winter? I suggest we start from the root and directly switch to cold-resistant batteries! Only then can we completely solve the problem of freezing shutdowns."
Hearing this, some senior executives nodded; this was indeed the most reliable method.
But Vice President Ye Ming sneered:
"President Cui, what you say is simple, but how difficult is it to implement? The iPhone 4s has only been on the market in China for a short time, with sales of just over a million. Even replacing all of them with cold-resistant batteries wouldn't be a problem; the loss is limited, but what about abroad? What about globally?"
"Exactly, since its launch in October last year, the iPhone 4s has sold over twenty million units globally. If the Chinese market recalls them and replaces them with cold-resistant batteries, what about Europe and America? Are we going to recall all twenty million units?"
"And what about the batteries Apple has already ordered, the non-cold-resistant battery orders? Should we breach the contract? Pay liquidated damages, or let them rot in the warehouse?"
"This..."
Cui Hao fell silent.
This was indeed a problem, a big problem.
The cost was there; a full recall was unrealistic.
A manager suddenly spoke:
"What if we only replace them with cold-resistant batteries in China, and don't process other regions..."
Cook: "..."
Cui Hao: "..."
For a moment, everyone looked at him as if he were an idiot.
Ye Ming smiled coldly:
"If we operate like that, Apple's reputation will be ruined, and we won't be able to sell well elsewhere in the future! You know, Apple users in other regions won't be as accommodating, supportive, or even tolerant of us as in China!"
(End of Chapter)