After previously securing multi-million orders from HTC and Sony, BYD has now landed a fifty-million-unit order from Apple.
Adding Xingyi Technology's forty-million-unit order, BYD's antifreeze battery orders have now exceeded 100 million units!
Meanwhile, all other battery suppliers suffered critical blows, their order volumes halved, and even their stock prices plummeted.
For example, Samsung had almost secured a multi-million battery order for Apple's next-generation iPhone 5, with talks finalized and ready for signing.
However, with the introduction of the antifreeze battery, Apple instantly changed its mind, switching to BYD's antifreeze batteries, causing Samsung's stock price to plunge.
LG faced the same fate.
Even more critically, the sharp decrease in ordinary battery orders led to a surge in inventory pressure for major battery manufacturers, forcing them to scramble for the few remaining orders, thus triggering a price war.
This caused the price of ordinary batteries to be halved!
Before BYD's antifreeze battery, everyone used ordinary batteries, made profits, and earned money.
After BYD's antifreeze battery appeared, ordinary battery prices plummeted.
Forget about making money, breaking even would be good, and even losing less is considered fortunate.
It can be said that the emergence of antifreeze batteries completely revolutionized the battery industry.
The dimensionality reduction strike brought by technological upgrades and replacements is this ruthless and cruel.
As a result, battery manufacturers like Samsung, LG, and Sony were left speechless, forced to invest heavily in R&D to develop their own low-cost antifreeze batteries.
In this round, BYD won on a strategic level!
After all, it would take several months for giants like Samsung and LG to develop low-cost antifreeze batteries, then several more months to procure raw materials, adjust production lines, and achieve mass production!
Even after mass production, capacity ramp-up would also take time.
It can be said that BYD's antifreeze batteries will be in an invincible state for the next six months.
Under various positive developments, BYD's stock price surged rapidly, reaching 70 Hong Kong dollars!
Wang Yi was in a great mood about this; he had been waiting for this very moment.
He decisively instructed people to start frantically selling off and reducing their holdings of BYD stock.
The following days were the same, with a portion of shares reduced daily.
Previously, Wang Yi had purchased 350 million shares of BYD stock.
150 million of these shares were held by Wang Yi, belonging to his personal investment.
Another 200 million shares were held by Xingyi Technology, belonging to the company's investment.
When purchased last year, at 10 Hong Kong dollars per share, a total of 3.5 billion was spent.
Wang Yi's personal shares cost 1.5 billion. Xingyi Technology's shares cost 2 billion Hong Kong dollars.
In just five days, Wang Yi reduced Xingyi Technology's BYD stock holdings by 50 million shares in the secondary market and transferred another 100 million shares to other institutions and shareholders, cashing out a total of 11 billion!
Coupled with the abundance of favorable policies at the moment, this did not cause significant stock price volatility.
With this partial reduction in holdings, Wang Yi not only recovered his investment costs but also made a huge profit of 7.5 billion!
Wang Yi still holds 200 million shares of BYD stock, which, at the current stock price, are still worth 15 billion Hong Kong dollars.
Of course, this is under the condition of BYD's healthy development.
However, Wang Yi knew that this period of immense glory was only temporary.
Once giants like Samsung and LG make breakthroughs in antifreeze batteries, BYD's stock price will be impacted.
Moreover, in his previous life, BYD experienced a black swan event in 2012, causing its stock price to plummet.
It might still happen in this life.
But no matter what, it's an opportunity for Wang Yi.
With these 11 billion Hong Kong dollars, Wang Yi can increase investments in semiconductors, food delivery, and ride-hailing, aggressively seizing market share and expanding his business empire...
And once BYD is impacted and faces a black swan event, causing its stock price to plummet, Wang Yi will bravely step in and heavily invest against the trend!
Using real money to pull up BYD's plunging stock price would make him a white knight.
This is Wang Yi's promise to Manager Wang, forever valid!
This wave, BYD won big, and Wang Yi also made a killing!
Everyone was happy.
However, giants like Apple and HTC suffered heavy losses.
Not only were sales of their current products dismal, but they also had to pay more to snatch up antifreeze batteries!
Due to BYD's limited production capacity and market demand outstripping supply, the price of antifreeze batteries was much higher than the 40 yuan charged to Wang Yi!
For example, Apple needed a large quantity, 50 million units, so the price only increased by 50%, making it 60 yuan per unit.
HTC and Sony also needed significant quantities, in the tens of millions, so their prices increased by 80%, making it 72 yuan per unit.
If fewer units were ordered, the price would directly double, and they would still have to queue!
Prices are determined by market supply and demand; there's nothing to be done.
Of course, BYD's antifreeze batteries supplied to Wang Yi still received priority supply, priority for additional orders, and remained at the original price of 40 yuan!
It can be said that for antifreeze batteries alone, Apple's and HTC's costs were 50% to 70% higher than Xingyi Technology's!
This left Apple and HTC feeling helpless.
It truly added insult to injury.
But Wang Yi earned even more; not only did xphone 1 sell better with even more astounding sales, but its profit margin also increased by almost half!
It has been over two months since xphone 1's launch, and apart from the antifreeze battery, market prices for most other components have dropped by about 30%!
Coupled with Wang Yi's large order volume, component prices have dropped by 40% compared to the first batch of orders!
Therefore, xphone 1's current material costs have also decreased by about 40%.
Originally, the 16GB xphone 1 had material costs + sales costs + diluted R&D costs of 1500 yuan, plus VAT, totaling 2000 yuan.
But now, material costs + sales costs + diluted R&D costs are only around 900 yuan, and with VAT, it's only 1400 yuan!
Yet the selling price is still 3299, and xphone 1's current profit has increased from the previous 1300 to 1900!
The profit margin has grown from the previous 39.39% to 57.59%!
Profits skyrocketed!
Human joys and sorrows are not interconnected.
While Xingyi Technology achieved a great victory, the situation at Xiaomi headquarters was quite different.
Lei Busi's smile had been gone for a very long time.
Qualcomm processors being prioritized for Xingyi Technology led to a shortage of processors for Xiaomi's first generation.
In desperation, Lei Busi, after much deliberation, adopted co-founder Lao Li's suggestion to abandon Qualcomm dual-core processors and switch to Nvidia dual-core!
With Nvidia quad-core processors about to launch, their unsold dual-core processor inventory was severely piling up, and now someone actually wanted them!
Naturally, Lao Huang welcomed this wholeheartedly and sent a team to help Xiaomi with integration and optimization.
Thus, after nearly two months of effort, the Xiaomi 1T, equipped with an Nvidia dual-core processor, finally took shape.
Lei Busi was in high spirits about this, decisively notifying the contract manufacturers to quickly mass-produce, preparing for a major push.
Although the Xiaomi 1T was inferior to the Xingyi xphone 1 in every aspect, it had the advantage of being cheap!
It was over a thousand yuan cheaper, and coupled with MIUI and Xiaomi's accumulated fanbase, it could still sell to some extent.
Worst case, they would abandon hunger marketing and just sell openly!
Furthermore, component costs had decreased somewhat during this period, and the cost of Xiaomi's first generation had also decreased.
In his previous life, Xiaomi's first generation had high volume and strong bargaining power, with total costs dropping from 1500 to around 1000 by February.
Unfortunately, this time Xiaomi didn't take off, and order volume remained at 500,000 units, leading to low bargaining power.
Consequently, total costs remained high, around 1300 yuan, but it was still profitable.
Selling for 1999 yuan and earning 700 yuan per unit was still quite considerable.
But just as Lei Busi was preparing to make a big move and rake in huge profits, the controversy of phones freezing and shutting down emerged!
Without any surprise, the Xiaomi first generation was also susceptible to freezing and shutting down.
This was awkward.
Affected by this controversy, all phone models that froze and shut down were unsalable, and only antifreeze phones like xphone 1 were hot sellers.
Northern users, in particular, considered the presence of an antifreeze battery and immunity to freezing shutdowns as the primary factor when purchasing a phone.
If it wasn't antifreeze, it was immediately vetoed!
This caused Lei Busi immense pain, and he could only convene another high-level meeting:
"The current situation is this: if Xiaomi 1T launches without an antifreeze battery, it will freeze and shut down, and definitely won't sell well. If it doesn't launch, we've ordered 500,000 sets of components and produced 200,000 units; if we don't sell them, it will all go down the drain!"
Lei Busi sighed,
"Everyone, tell me, what should we do about this?"
Lao Li was the first to speak:
"Launching is definitely necessary. If Xiaomi 1T doesn't launch, we're doomed. The material cost for 500,000 sets of components alone is over 500 million! Plus diluted R&D costs, operating costs, and sales costs—and of course, inventory costs if unsold—a total of 650 million! If this money goes down the drain, how much working capital will we have left?"
"Yes, it must be launched."
Everyone nodded in agreement.
"If Xiaomi 1T doesn't launch, it will surely die; if it launches, there's still a glimmer of hope."
"Makes sense."
"I support, launch sales as soon as possible!"
At this point, another vice president frowned slightly:
"Launching is definite, but we cannot fight a battle we're unsure of winning. Xiaomi doesn't have many opportunities left, perhaps only one! This one launch and sale."
Lei Busi strongly agreed:
"Once Xiaomi 1T is launched and sold, it's either success or martyrdom!"
"Exactly. So we must consider this carefully."
"For example, I suggest replacing the battery with an antifreeze battery. Even if the cost is a bit higher, as the world's second phone equipped with an antifreeze battery, sales would be much better!"
"Support, strongly support!"
"The extra money spent on antifreeze batteries can be fully recouped from other areas."
"Let's get antifreeze batteries as soon as possible, this is our only chance for Xiaomi 1T to turn things around!"
"No, I object. Antifreeze batteries are currently in short supply, and major brands are frantically buying them, even at inflated prices. We need a small quantity, where would we find an opportunity?"
"Exactly, BYD's antifreeze batteries supplied to Xingyi Technology were initially close to cost price at 40 yuan, and still are. But we need to buy them, only 500,000 units, such a small volume, how much would that cost? 80 yuan! Maybe even 85!"
"An ordinary battery is only 30 yuan; an antifreeze battery is 55 yuan more expensive per unit. If sales are high, that's not a small sum."
"That's right, I suggest we just go on sale directly, at worst, we'll reduce the price. If it doesn't sell at 1999, then 1799, we'll still make some profit!"
"I object, reducing by 200 yuan is worse than adding eighty yuan for an antifreeze battery."
"It's not just 80 yuan; buying an antifreeze battery costs 80, and the ordinary batteries we ordered previously cost 30 yuan and can't be returned, so factoring both, it's 110!"
"110 is fine, it's worth it. With antifreeze batteries, our sales will go up."
"Come on, you don't really think the only difference between Xiaomi 1 and Xingyi xphone 1 is just an antifreeze battery, do you? Of course not, there are many other aspects."
"Exactly, even with an antifreeze battery, Xiaomi 1 is far inferior to xphone 1. xphone 1 sells for 3299, and we sell for 1999, but it won't sell well. Better to drop the price!"
...
Listening to the arguments between the two factions, Lei Busi felt a headache coming on.
The outcome of this discussion was good; everyone agreed to launch Xiaomi 1T as soon as possible to recoup costs and make money quickly.
However, they were divided into two factions: one believed in launching directly to save costs, even offering price promotions.
The other faction believed in not rushing the launch, instead switching to antifreeze batteries and not lowering the price.
Seeing that continued argument would yield no results, Lei Busi cleared his throat:
"I've heard everyone's opinions. So, let's prepare with two approaches. Lao Li, you first contact BYD to see if they can supply us with a batch of antifreeze batteries. Not too many, 500,000 units would suffice."
"If we can get them quickly and at a suitable price, then we'll postpone the launch and directly use antifreeze batteries."
"If we can't get them, then we'll use ordinary batteries and launch as soon as possible."
"Good, Chairman is wise!"
"This strategy is the best!"
"Let's prepare for both, there might be a surprise!"
This resolution was successfully passed.
Soon, Lao Li contacted Manager Wang of BYD:
"Chairman Wang, hello, I'm Lao Li from Xiaomi Technology. Your antifreeze battery is truly amazing, so powerful, it can prevent freezing at minus fifteen degrees Celsius. Truly amazing!"
Manager Wang chuckled,
"We still have to thank Chairman Wang. If he hadn't made that request last year, our R&D staff wouldn't have been able to develop a low-cost antifreeze battery!"
"Chairman Wang..."
Lao Li's mouth twitched.
It was Chairman Wang who directly led Xiaomi, which was originally in an excellent position, to eternal damnation.
He really had to thank him!
"Ahem, Chairman Wang is indeed excellent."
Lao Li sighed.
Manager Wang chuckled,
"Mr. Li, are you contacting me today about antifreeze batteries?"
Lao Li nodded:
"To be honest, yes. BYD's antifreeze battery is too outstanding, and we at Xiaomi also need it very much. Could you allocate 500,000 units to us? Price is not an issue."
In this day and age, just being able to buy something is good enough, why ask for more?
Manager Wang sighed:
"Giving you 500,000 units is not a problem, and the price can be discussed, but the timeline is an issue. Currently, orders from Xingyi Technology, HTC, Sony, and Apple combined exceed 100 million units, and our factory's production capacity is booked until the second half of the year."
Lao Li's mouth twitched: "..."
Second half of the year? What good is that!
"Manager Wang, can't we really cut in line? Even if you just give us 300,000 units first!"
Lao Li thought clearly: with 300,000 units, they could launch an antifreeze upgraded version of Xiaomi 1T, as well as an ordinary battery Xiaomi 1T, with the former costing 200 more!
Manager Wang was very helpless:
"Mr. Li, it's not that I don't want to help you, but there's genuinely no way. All mobile phone manufacturers are contacting me now, all wanting to cut in line, but I truly cannot arrange it. Please understand."
Lao Li was silent: "..."
He understood in his heart.
Everyone wants to cut in line, and they are all important figures, all with some connection to Manager Wang.
Who should be allowed to cut in? And who shouldn't?
These are all problems; it's hard to treat everyone fairly.
Simply put, Xiaomi's old chairman Lei Busi, Manager Wang is familiar with him, so logically he should help.
Chairman Duan, the big boss behind OV, Manager Wang is also familiar with him, so logically he should also help.
And Chairman Ren of Huawei, that goes without saying!
But BYD's production capacity is limited, they can't mess around.
Helping some and not others is a problem; it's hard to treat everyone fairly.
It's better to just follow the queue as scheduled and offend no one.
"I understand, sorry to have bothered you."
Lao Li sadly hung up the phone, his expression extremely complex.
Although he had long anticipated such a result, he was still helpless.
Lei Busi didn't personally contact Manager Wang precisely because he feared this outcome and losing face.
Now that Lao Li had made the attempt, there was at least some room for maneuver.
In the future, when Lei Busi sees Manager Wang again, it won't be too awkward.
Lao Li looked sadly at Lei Busi:
"Chairman, it failed. Everyone wants to cut in line, and BYD can't arrange it."
"As expected."
Lei Busi nodded, a hint of melancholy flashing in his eyes, then he composed himself and looked at everyone:
"Alright now, antifreeze batteries are booked until the second half of the year. No need to consider that anymore. We only have one option left: price reduction and promotion!"
"Since 1999 isn't selling well, let's go straight to 1799 and sell the Xiaomi 1T!"
"To control costs, we won't hold a launch event; we'll go straight to in-stock sales."
"Official announcement tonight: the first batch of 200,000 mass-produced Xiaomi 1T units will go on sale in two days!"
"Okay!"
To this, everyone had no objections.
After all, the biggest controversy no longer existed.
The question now wasn't whether to use antifreeze batteries, but whether it was even possible.
The result was obvious: it wasn't possible!
They couldn't get them!
That night, Xiaomi's official Weibo posted a message:
[Long time no see, we've missed you very much. The Xiaomi 1T, powered by an Nvidia processor, will go on sale nationwide the day after tomorrow at 10 AM! To thank our Mi Fans for their support and patience, the Xiaomi 1T will have a direct price drop of 200 yuan, starting from 1799 yuan. See you there!]
As soon as this news broke, Lei Busi thought it would cause a huge stir and quickly climb the trending topics.
After all, Xiaomi was back!
After all, the price dropped by 200, hitting 1799!
But unfortunately, it was all for naught.
This news was like a drop in the ocean, barely making a ripple.
Currently, xphone 1 and the upcoming Xingyi Pad were the hot topics across the entire network, while few people paid attention to Xiaomi 1T.
This made Lei Busi very tired:
"Last year, when our Xiaomi 1 went on sale, which time wasn't the whole internet buzzing? Which time wasn't it a national sensation? Everyone was scrambling to get one!"
"But now, we've made a strong comeback, with a direct 200 yuan price drop, and still no one is watching!"
"This is outrageous!"
"This is a big problem."
"No, we have to work on it, buy trending topics, get it to the top!"
As soon as the money was in place, traffic followed.
Soon, this news climbed to third place on the trending topics list, attracting high attention:
"Xiaomi 1T? Nvidia processor? Interesting, it's not quad-core, is it?"
"Definitely not. Xiaomi couldn't possibly get the global first launch of an Nvidia quad-core processor."
"Xiaomi... hehe, still alive. I thought it was dead after being out of stock for so long."
"Putting everything else aside, the 1799 price is pretty good. Just don't know if it's antifreeze!"
"Definitely not antifreeze. At a price of 1799, what more do you expect?"
"At 1799, it might be worth a shot."
"I don't even like 1599. It doesn't even have a front camera, how am I supposed to take beautiful pictures?"
"Exactly, just pay more for xphone 1!"
"xphone 1 is too expensive; 1799 offers better value!"
...
Watching this scene, Lei Busi breathed a sigh of relief:
"There are still many users who like good value and like Xiaomi!"
"Yes, it's difficult for Xiaomi 1T to have massive sales, but breaking even and making a slight profit should be no problem."
"200,000 units, I estimate they'll sell out quickly. Once sold out, we can expand production capacity!"
However, just as Xiaomi's executives were in high spirits, a piece of news surged onto the trending topics:
"Meizu MX series directly drops 300 yuan, starting from 2099 yuan, nationwide in-stock sales begin!"
Lei Busi was stunned:
"This damn thing is here to cause trouble again!"
Originally, Lei Busi's plan was quite good: xphone 1 would target the high-end market at three to four thousand yuan, and Xiaomi at 1799 yuan would target the mid-to-low end.
They would not interfere with each other, dividing the market.
As a result, Meizu also joined the mid-to-low end market, even going as low as 2099 yuan.
This significantly reduced the advantage of Xiaomi 1T!
(End of chapter)