aircannonsinc Chapter 31: Prices Rise Across the Board in the Used Mobile Phone Market
Chapter 31: Prices Rise Across the Board in the Used Mobile Phone Market
"What is the yield rate of this chip? Have there been any other major problems?"
"The enhanced overclocked version has a yield rate of 99.7%."
Overall, the yield is 99.6%, higher than any previous batch of MediaTek chips. MediaTek has been reliable this time.
Chen Hai very shrewdly said that although he knew about the existence of the black technology, it was all MediaTek's technology and had nothing to do with Transsion.
At most, they overclocked it by a tiny bit.
"In addition, Mr. Shen, we found that the enhanced chips in this batch have higher reliability. The failure rate during a continuous 72-hour full-load test was even lower than that of the un-optimized chips."
Shen Fei quickly calculated in his mind: 128 million old mobile phones, each with one chip; some high-end models even had dual chips, so he could probably extract about 150 million chips!
The repair cost is about 0.3 yuan, and the total cost is about 45 yuan.
A chip with the same new performance would cost at least 6 yuan, and the more common MTK6225 would cost 2.5 US dollars, or about 17.5 yuan.
After being enhanced by the enhancement center, most of these chips have the same performance as the MTK 6225, and these 150 million chips are equivalent to 2625 million.
In other words, Transsion bought 128 million junk units for less than 2000 million, but the value of the chips extracted from them exceeded 2600 million.
In addition, there are other repairable parts such as the screen, battery, camera, RAM, and ROM...
This is no longer a matter of cost; it's about building a closed-loop industrial ecosystem.
Transsion sells mobile phones – recycles old mobile phones – repairs and disassembles them – uses parts in new mobile phones – then sells the phones.
As long as the sales network is large enough, this cycle can continue to operate and grow bigger and bigger.
"Notify the production department that the T1 enhanced version will be mass-produced next month, using all of our own repair chips," Shen Fei ordered.
"In addition, we will set up a special parts trading company to sell the surplus parts to other counterfeit manufacturers at 10% lower than the market price, but require cash settlement. I believe they will agree."
"President Shen, won't this create competitors?" Chen Hai asked with some concern, after all, the performance of these chips was indeed quite powerful.
"No," Shen Fei shook his head. "If they buy our parts, they'll become dependent on our supply chain. And once that dependence reaches a certain point..."
He didn't finish his sentence, but Chen Hai understood.
This is an open conspiracy.
By attracting the entire counterfeit phone industry to Transsion with low-priced, high-quality parts, Transsion will control the entire mid-to-low-end mobile phone market once it controls the supply chain.
"Also, your R&D department needs to speed things up." Another good idea flashed through Shen Fei's mind. "Based on the performance data of this batch of chips, redesign a T1 enhanced gaming version."
Since the chip is overclocked, let's create a gaming mode so that African consumers can experience fun beyond just making phone calls.
"Understood. It's just adding a few classic mini-games and increasing the RAM and storage. I'll go right now."
After Chen Hai left, Shen Fei brought up the system interface.
[Recycling and Dismantling Center Operation Data]
The cumulative processing volume is 242 million units.
275 million repair chips were produced.
产出其他零件:约1700万件（具体数据如下:1G、2G、4G……综合利用率96.3%】
[Industry Innovation Points: 0 (Task in progress)]
The mission progress has not been updated, but Shenfei knows that with the establishment of the recycling system and the realization of chip self-sufficiency, Transsion's cost advantage in Africa will expand to a terrifying level.
Is Bird trying to start a price war?
Let's fight then!
Let's see who gives up first.
The phone beeped again with a text message from Li Qing.
"Mr. Chen, Li Xiangdong has made another move."
He contacted several recyclers and raised the price of used mobile phones by 5 yuan. Now the recycling price in Huaqiangbei has risen to 28 yuan, which is 4 yuan higher than ours.
Shen Fei smiled.
As expected, Li Xiangdong thought he was just being stubborn, trying to outdo Chuanyin in wealth. He wanted to hoard goods, drive up the price of used phones, and then sell them to Chuanyin at a higher price.
But it seems his plan backfired again.
"Li Qing, contact the purchasing department. We'll also raise the price by 3 yuan, and then suspend public procurement for another week in two days."
"Let the price rise properly," Shen Fei replied.
"Huh? Recycling is suspended? Then what about the recycling channels...?"
"Don't worry, once the price rises to a certain level, those recyclers won't be able to sell their goods, so the price will naturally drop."
We'll make our move then, buying them at an even lower price. If these recyclers are being shameless, then let's just go back to how things were before.
Especially for Bird, disposing of these discarded mobile phones costs a lot of money; otherwise, they would face a huge fine.
Li Qing instantly understood: "You're going to... short the used mobile phone market."
"I suppose so." Shen Fei put down the documents in his hand, picked up the teacup on the table, and looked at the building with waveguide distribution in the distance. That building, which was built two years ago, was indeed a bit more luxurious than the Transsion Building.
"Isn't Li Xiangdong rich? Let him take them. When he's stuck with millions of old, unusable phones..."
He didn't finish speaking, but Li Qing could already feel the chill in his words.
On the surface, this recycling war is a battle between Transsion and Bird for discarded mobile phone resources, but in reality, Shenyang Aircraft Corporation is setting a trap for Li Xiangdong.
It's a bottomless pit built with real money, since Transsion can utilize these old phones, but Bird's phones are truly garbage.
Moreover, it's garbage that eats people.
I just don't know if Li Xiangdong will be able to find out.
……
Guangzhou, SW Compound, Building 8. Shen Guohua and Zhang Shiqing sat facing each other in the small reception room, a steaming teapot in front of them.
Two men approaching fifty, one in an executive jacket and the other in casual clothes, with different temperaments, yet inexplicably harmonious.
"Guoming, you really need to take good care of your health." Zhang Shiqing poured a cup of tea and pushed it towards him. "I asked the doctor, and he said I need at least another six months of rest. Let the younger generation handle the company's affairs."
"I'm at ease leaving it to Xiaofei." Shen Guoming took the teacup, a wry smile on his face. "It's just that this kid is too cunning, and his methods are quite ruthless. During his time in the hospital, he managed to get all of Zhang Mingyuan's old buddies imprisoned."
All the older generation of executives have been purged, and the company has undergone a complete overhaul. Although they deserved it, I still feel uneasy about it…
"A kind heart cannot command an army, and righteousness cannot manage finances," Zhang Shiqing said calmly. "After I arrived, I also did some research. If your old colleagues still cared about the past, they wouldn't have thought of selling the company when you fell ill."
Xiaofei handled it correctly; it had to be cut off when necessary.
Shen Guoming sighed; he felt quite defeated. He had almost ruined his family business, so he changed the subject.
"Old Zhang, you've been transferred to the Discipline Inspection Commission this time, so the responsibility is quite heavy."