When Chen Pingjiang woke up in the morning, he was in high spirits.
Today he was going to visit Huawei, so Chen Pingjiang also dressed a bit more formally.
The well-known Songshan Lake base would only begin construction in 2014.
Currently, Huawei was still operating in Bantian, Shenzhen, and had not moved to Dongguan.
The itinerary for visiting Huawei had been set early in the morning, so the reception by Huawei was of a high standard.
Mainly, the current Chen Pingjiang held a pivotal position in both the internet and industrial manufacturing, and Huawei dared not neglect him.
As soon as the motorcade arrived at Huawei's Bantian headquarters, Chen Pingjiang saw Yu Yaoyaolingxian as soon as he got out of the car.
Yu Chengdong enthusiastically came up to shake hands:
"Mr. Chen, welcome, welcome to visit Huawei. I will accompany you throughout today, and later we will go to meet Elder Ren."
As soon as Chen Pingjiang saw Yu Chengdong, his mind was filled with Yaoyaolingxian.
Huawei's arrangements were also very interesting.
Chen Pingjiang guessed that arranging Yu Chengdong to receive him was probably intentional.
For one, both were from the same hometown.
For another, Yu Chengdong understood communications.
After returning to China last year, he served as Huawei's CMO, President of Strategy & Marketing, and had just taken over Huawei's consumer business, serving as Chairman, President, and CEO of the terminal company.
Smartphones were the main business of the department Yu Chengdong was currently responsible for.
Such a position was just right to receive Chen Pingjiang.
In fact, Chen Pingjiang wanted to meet quite a few people during this visit to Huawei.
Yu Chengdong, He Tingbo, Sun Yafang, and of course, Elder Ren.
Each of these individuals was more formidable than the last.
Don't think that Huawei was weak in 2011.
In fact, Huawei's revenue that year had already reached 203.9 billion RMB, with sixty thousand employees worldwide, it's just that its reputation was far less significant than it would be in later years.
Chen Pingjiang chuckled and teased,
"Mr. Yu, we are all friends in business. We can't fight each other in the future and let Apple and Samsung benefit as the third party."
"Oh, not at all, there are still many opportunities for cooperation between us."
Yu Chengdong possessed a certain wolfishness, which Chen Pingjiang admired greatly.
Poaching him was impossible; it was estimated that both sides would inevitably compete in the terminal market in the future.
Yu Chengdong's name would only become widely known to the public next year, which was 2012.
Because of the vigorous "Anti-Yu Movement" within Huawei at that time.
In early 2012, Yu Chengdong cut a large number of white-label and non-smartphones, which led to a sharp drop in phone revenue and a reduction of 30 million units in shipments, leaving the company in a difficult internal and external situation.
The crisis of reform led to senior figures within Huawei's consumer business launching the "Anti-Yu Movement".
Ultimately, Elder Ren backed Yu Chengdong, and Yu Chengdong, with swift and decisive action, laid off quite a few people.
To silence others, Yu Chengdong preemptively announced to the media, "Huawei phones will become a world-leading mobile terminal manufacturer within three years," and a series of astonishing slogans such as "sales targets will triple in one year."
February 14, 2012: Yu Chengdong said on Weibo: We must strive for the day when Chinese people queue up to buy Huawei phones.
March 2012: Yu Chengdong, head of Huawei's consumer business, posted on Weibo: "Huawei phones will surpass Apple in the second year."
"Recently, I've been annoyed by those blindly following the trend. I will say this without modesty: by the end of this year or early next year, we will launch a flagship phone much more powerful than the iPhone 5."
Soon, this Weibo post was forwarded over 4,000 times and received 5,000 comments, and Yu Chengdong's nickname "Yu Dazui" was thus born.
In 2013: Yu Chengdong, when talking about his "Yu Dazui" moniker, said, "I really didn't brag; at most, I was just not modest."
Regarding Yu Chengdong and Huawei, Chen Pingjiang felt admiration deep down.
If possible, he also did not want internal friction between them.
Yu Chengdong looked at Chen Pingjiang with a gaze full of emotion.
When he had just taken office recently, he had proposed in a meeting to eliminate Orange Phones within two years, eliminate Apple in three years, and crush Samsung in five years.
Who knew that not long after, Chen Pingjiang came to Huawei, which made him feel somewhat apprehensive.
Accompanied by Yu Chengdong, Chen Pingjiang arrived at HiSilicon's headquarters building.
It was here that he met He Tingbo.
He Tingbo, who was born at Beijing University of Posts and Telecommunications, left the deepest impression on Chen Pingjiang with that internal company-wide letter.
Back then, Chen Pingjiang felt an indescribable feeling after reading that letter, and today, he finally stood among these people.
Although they were not the same company, they could still help each other.
"Mr. Chen, shall we go find Mr. Ren? Mr. Ren is already waiting for you."
"Okay, let's go."
Pushing open the door to Elder Ren's office, Chen Pingjiang finally met Elder Ren, who often appeared in videos.
Elder Ren, at present, was younger than imagined.
After seeing Chen Pingjiang, he smiled, walked around the desk, and came over to shake hands:
"Young talent, remarkable. Not only is your internet business doing well, but your phones are also much stronger than ours. I hear you're also involved in chips and wafer fabs."
"Not at all, not at all, Elder Ren, you're too kind."
Putting aside his wealth and achievements, just based on Elder Ren's 67 years of age, Chen Pingjiang had to be respectful.
Among those present, Chen Pingjiang also saw Sun Yafang.
She was currently the Chairman of Huawei.
It could be said that Sun Yafang was the woman behind Huawei.
Outsiders didn't know her; only insiders remembered her name.
She had saved Huawei from dire situations multiple times.
"Hello, Ms. Sun."
"Hello, Mr. Chen."
After everyone shook hands, Elder Ren cracked a joke:
"When us old folks sit with Mr. Chen, don't we look like grandparents and grandson? Haha, truly, every generation produces its talents, with new faces replacing the old."
"Elder Ren, you're making me blush by saying that. I merely got lucky and caught the pulse of the times."
Elder Ren smiled and said to Chen Pingjiang:
"Young man, you are neither arrogant nor impatient, very impressive. Actually, I've always wanted to meet you; both our sides can cooperate in many areas."
Chen Pingjiang nodded:
"Our Orange S3 wants to be launched overseas, but it faces many patent issues, including Huawei's patents. My visit this time is, first, to discuss patent cooperation between both sides; second, to discuss cooperation on chips."
Elder Ren waved his hand:
"Patent cooperation is a small matter, but I am very interested in the chip cooperation you mentioned."
When smart people talk to smart people, it's simple.
Everyone tacitly avoided discussing competition in the terminal market.
Phones and tablets were the core business of Orange Technology, and the same was true for Huawei's phones.
Neither side would make exchanges by harming each other's core interests.
From its inception, Orange Phone aimed to compete with Apple, following a high-end route.
As for the mid-to-low end market, it was all left to domestic manufacturers.
But if Huawei one day also wanted to make high-end phones, then both sides could only compete to see who was stronger.
"Before discussing chip cooperation, whether it's Elder Ren, Ms. Sun, or Mr. He, let's first make a hypothesis."
Everyone was drawn in by Chen Pingjiang's fresh opening and asked with a smile,
"What hypothesis?"
"This is an extreme survival hypothesis. If one day, all advanced chips and technology from the United States become unobtainable, how will we survive?"
"Uh."
"..."
Everyone looked at each other, and for a moment, no one could speak.
Yu Chengdong smiled and said:
"Isn't your extreme survival hypothesis a bit too extreme? Will there really be such a day?"
HiSilicon Queen He Tingbo understood chips best.
She frowned deeply and said:
"That could be a catastrophic day. First, we wouldn't be able to use GMS services. Then, the EDA software for designing chips would also be unusable, it would be like a painter without a brush. And if the ARM architecture couldn't be used, we would have to find a workaround and develop our own architecture. These wouldn't be too bad. But if wafer fabs weren't allowed to manufacture our chips, then HiSilicon might have to close immediately."
The other Huawei executives were stunned, and their gazes grew solemn.
Chen Pingjiang smiled and said:
"Mr. He is right, but it's not just that. You wouldn't be able to use the Android system, nor a series of services like Google Maps. Not only that, you would lose the entire US market, though of course, Huawei hasn't shipped to the US yet.
Your communication equipment wouldn't sell, your membership in the SD Association and Wi-Fi Alliance would be revoked, your scientists wouldn't be able to review technical papers, your phone contract manufacturers like Flextronics or Foxconn might confiscate your phones, and you also wouldn't be able to obtain storage chips or display panels."
Looking at the astonished gazes of Elder Ren and the others, Chen Pingjiang smiled and said:
"The harshest part is that any domestic enterprise using US technology or equipment would also be unable to supply you, otherwise they too would face sanctions."
For a long while, no one spoke.
Everyone was pondering how to break the deadlock.
After a long time, Elder Ren still smiled and said:
"Mr. Chen, you're not here to scare us, are you? Americans wouldn't be that crazy, would they?"
Chen Pingjiang chuckled:
"I said it was a game, didn't I? As for whether they'll be crazy or not, who knows what the future holds?"
Chen Pingjiang could only allude to it up to this point.
He couldn't say any more.
After a while, everyone came to a conclusion.
"If the blockade truly reaches such a point, that would be the world's most powerful nation dealing with just one of our companies. With allies behind them, it would be very difficult for us to survive."
Finally, Elder Ren spoke up and asked:
"Mr. Chen, what do you think are the odds of such a scenario?"
Chen Pingjiang spread his hands:
"It's not a question of how high the probability is. Even if it's only 0.1%, when that day comes, it's 100%."
Elder Ren looked at Chen Pingjiang with admiration:
"Mr. Chen is very imaginative and possesses strategic thinking."
Chen Pingjiang smiled:
"It's purely out of necessity. Only after getting involved with wafer fabs do you realize how restricted you are everywhere. We can't even get a whiff of advanced lithography machines, let alone buy them. Of course, everyone doesn't need to be too burdened; you can go back and think about it slowly. Perhaps it's just my wild guess."
The more he spoke this way, the less everyone believed it was a wild guess.
Thinking about it carefully, it indeed made a lot of sense.
Because they were making rapid progress in the communication field, they had already taken a slice of many Americans' pie...
Yu Chengdong pursed his lips:
"I can't eat dinner tonight."
Elder Ren thought for a moment and continued to ask:
"Mr. Chen, does your company have a solution to this extreme hypothesis?"
"No!"
Chen Pingjiang replied very directly:
"But I am looking for a solution. Designing EDA myself, preparing for wafer fabs myself, and also recommending to senior leaders to support the development of chip-related industries. If they don't give me a mobile operating system, I'll make my own. If they don't give me an architecture, I'll research and develop my own. Everything is a race against time, kept as a backup. What if that day really comes? If that day never comes, then I'll challenge them in these fields."
Elder Ren looked at Chen Pingjiang with admiration:
"Yes, our Huawei also needs a backup plan; we can't let others choke us. And our two companies can advance and retreat together."
The speaker had no intention, but the listener took it to heart.
Chen Pingjiang's extreme hypothesis had frightened them.
No one could pretend not to have heard it.
After reaching some preliminary cooperation plans with Huawei, Chen Pingjiang arrived quickly and left just as quickly.
Elder Ren looked at his capable subordinates and said:
"We also need to prepare for a rainy day and not be outdone by a young man. If the situation in the extreme hypothesis truly occurs, we would have no means of resistance whatsoever. I hadn't realized it until Chen Pingjiang mentioned it; his suggestion made me instinctively feel that this day might come."
He Tingbo nodded:
"I will have HiSilicon employees list the US technologies that are needed, and then gradually begin research and development. But for the supply chain, there's nothing I can do; we can only wait for domestic manufacturers to grow."
Elder Ren said:
"If there are signs, stock up more; that can sustain us for a while."
Sun Chuanfang also expressed agreement, then his tone shifted:
"No wonder this young man could achieve such a scale in just a few years. This kind of intellect and foresight is not something an ordinary person can possess. If our Huawei makes high-end phones in the future, it will be troublesome to compete with him too."
Yu Chengdong also sighed:
"I'll go compete with Xiaomi and others for market share; I won't provoke him for now."
...
After leaving Huawei headquarters, Chen Pingjiang in the car slowly exhaled.
He had said a bit too much today, but he couldn't pretend that nothing had happened, so he ultimately had to present it in the form of an extreme hypothesis.
After all, hadn't they also discussed extreme hypotheses internally?
He hoped that today's visit to Huawei would encourage them to make more preparations.
Chen Pingjiang also obtained the desired patents on this trip.
This meant that Orange S3 could be released overseas.
For other patents, they would pay for them as required; minor infringements wouldn't be an issue, at worst, they'd go to court.
Just then, Chen Pingjiang's work phone rang.
Guan Yifeng, sitting in the passenger seat, glanced at the caller and turned to hand the phone to Chen Pingjiang:
"Chairman Chen, it's a call from Lin Bin, Mr. Lin."
"Hello, Old Lin, what's up?"
Lin Bin's voice came from the other end of the line:
"Chairman Chen, I just received an invitation from Lei Jun, inviting you, me, and Old Zhou, the three of us, to go to Beijing to attend Xiaomi's new product launch event on the 16th."
"Oh? Xiaomi M1 is about to be released?"
"Yeah, probably. Are you free on the 16th?"
"Yes, let's go check it out."
After hanging up the phone, Chen Pingjiang smiled and shook his head.
Xiaomi M1 was finally here, and Leibusi also stepped onto the stage of product launches from then on.
No one denied the Xiaomi M1's place in the history of Chinese smartphones.
This was likely a milestone that would change the domestic phone market.
It was then, and it is now.
Orange S2, Apple, Samsung—these all followed high-end routes.
Most ordinary people couldn't really afford them.
Most domestic brands could only exist as knock-off phones, and the market was chaotic.
However, Xiaomi phones completely changed this situation with their 1,999 RMB pricing, bringing a revolutionary impact to the Chinese smartphone market.
Chen Pingjiang had long anticipated Xiaomi's entry and was not worried in the slightest.
The ones who should really be worried were Huawei, ZTE, Lenovo, Meizu, and the like.
Of course, sales being affected by Xiaomi was certain.
But similarly, the market had already been carved up so much that Xiaomi launching the M1 at this time wouldn't have the same fervor as it would have in earlier years.
Chen Pingjiang chuckled softly:
"Leibusi is quite bold, inviting me to watch the product launch. Doesn't he fear I'll slash prices on the spot and crush the Xiaomi M1?"
The Xiaomi M1's main selling point was its cost-effectiveness at 2,000 RMB per unit.
The lowest version of the Orange S2 was 3,299 RMB.
The difference seems significant, right?
But what if the Orange S2 dropped to 2,999 RMB or even 2,800 RMB?
Anyway, even at 2,800 RMB, Chen Pingjiang would still make a profit.
With increased production, costs had already been driven down.
It's a question of whether Xiaomi can withstand it!
It was almost foreseeable that once the Orange S2 dropped its price, it would definitely be a punch to Xiaomi.
Its specifications were higher than yours.
Although its price was a few hundred RMB higher than yours, the S2 was already the second generation of Orange Phones.
Compared to Xiaomi's first-generation phone, it had already been tested by the market and received consumer recognition.
Absolutely a large number of people would prefer to add a few hundred RMB to buy an Orange S2 rather than buy a Xiaomi M1.
(End of Chapter)