Chapter 27 Finalizing the MediaTek Supply Contract
Chapter 27 Finalizing the MediaTek Supply Contract
What's even more impressive are the other order contracts in the appendix. The total purchasing intentions of the signed channel partners do indeed exceed 100 million per month.
"Mr. Shen, this amount..."
Liu Zhiwei put down the documents, his expression immediately changing. What emotions? Absolutely none.
What? His attitude was bad? That means his service wasn't up to par, and that was a test from Chuanyin. He needs to correct these flaws.
This isn't some nobody, this is clearly a sugar daddy. Those people at Bird are just ruining his future.
"Mr. Shen, to be honest, MediaTek's production capacity is indeed tight, especially for smartphone platforms. As you know, the sales of Apple's 3G phones exploded last year, and everyone is scrambling for production capacity and market share."
Our MTK6573 has just entered mass production, and many major manufacturers are queuing up.
"So we need to talk not only about price, but also about priority," Shen Fei interjected.
Liu Zhiwei frowned slightly. Priority was negotiable. But Transsion's sales volume wasn't enough. However, since the major investor wanted it, he would... communicate with headquarters and agree on his own.
"Transsion can sign a three-year long-term contract with a 30% prepayment for the goods."
But there are two conditions…
"You said..." Liu Zhiwei nodded subconsciously, his face full of anticipation. There was no need to ask headquarters for this; he could agree on his own.
"The price will be reduced by another 15% from the current level, and the second point is to guarantee a monthly supply quota of 50 units for the smartphone platform."
"15%? That's impossible!" Liu Zhiwei's expression changed again, and he subconsciously shook his head. Although the offer given via telepathy was indeed very attractive, this price reduction percentage... In order to seize the market, they had already squeezed their profits to the limit, and another 15%...
"MediaTek's best offer to major customers is only a 10% discount, and your company already enjoys a 2% discount."
"If it's a smart chip platform, I can agree to 15%, but I can't make that decision for a feature phone platform." Liu Zhiwei then looked troubled.
"That's the price for domestic customers," Shen Fei interrupted him, pressing his advantage.
"MediaTek currently holds over 80%, or even 90%, of the domestic market share, but its penetration rate in the African market is not high."
If MediaTek is willing to provide support, Transsion's sales in Africa could exceed 2000 million units next year, and MediaTek's market share could increase by at least 10%.
I'm confident Mr. Zhang will be satisfied with this market, and you will be a key contributor to its expansion, deserving a huge bonus.
Liu Zhihong fell silent. MediaTek had indeed always wanted to expand into other markets.
Africa is a key target, but Nokia's low-end platforms are constantly taking market share there. If Transsion can really achieve 2000 million steps, it would indeed be an irresistible temptation.
"The feature phone platform will see a maximum decrease of 12%, but production capacity will not be restricted." Liu Zhiwei gritted his teeth, as if he had made some difficult decision.
"The smartphone platform can offer a 16% discount, but the supply can only be guaranteed up to 30 units per month. That's the maximum I can give."
"Mr. Liu, is this the end of the game? No matter which proposal you offer, it doesn't satisfy me. You're just..." Shen Fei interrupted him. "Don't blame me for being stubborn. The African market has very low profit margins. Every penny has to be saved."
The other person nodded without saying a word.
"How about this, let's adjust the terms slightly: the price of the feature phone platform will be reduced to 13%, and 40 smartphones will be provided each month."
Shen Fei also made another concession, believing that the other party was a smart person and would agree. However, seeing the hesitation on the other party's face, he added insult to injury.
"Mr. Liu, I know that the yield rate of MTK6573 has exceeded 85%, and the actual cost is 25% lower than your quoted price. Transsion only wants a reasonable profit."
"This...you all know that too."
Liu Zhiwei frowned slightly again. The yield rate of MTK6573 is of paramount importance to the group, and only a few people know the specific yield rate.
And he was one of them.
But he never told anyone in the Chinese market. How did this person find out? Was he drunk...?
They're definitely idiots from the Bird group.
The meeting room fell silent.
Chen Hai also chimed in, "President Liu, our first smartphone from Transsion is already under development. We plan to use the MTK6573 for the high-end and the MTK6515 for the low-end."
If the collaboration goes smoothly, the MT6575 or even a dual-core platform may be used next year. Transsion's sales network in Africa can serve as the best testing ground for MediaTek's new platform.
Use both soft and hard tactics!
Looking at the young man across from him, who was not yet 30, Liu Zhiwei finally realized that this man was definitely not a rich second-generation who had risen to power through a crisis, but a shrewd businessman.
"I need to report to General Manager Zhang and discuss this matter in person; it involves too many aspects. If possible, we can sign a strategic partnership agreement," he finally said.
"Go ahead." Shen Fei gestured. "But I need a reply by 5 p.m. tomorrow."
Qualcomm representatives are scheduled to visit Guangzhou on Wednesday; they are also very interested in Chinese manufacturers entering the African market.
This is a blatant threat, but it's effective.
MediaTek's biggest goal is to break into the high-end market, but this is also their biggest crisis.
Qualcomm's patents in communications are practically a freebie for chip manufacturers. If they try to penetrate the high-end market, they'll be in serious trouble.
Furthermore, it is not as technologically advanced as Qualcomm.
"Understood." Liu Zhihong stood up: "I'll give you the answer tomorrow at noon."
After seeing the MediaTek team off, Chen Hai couldn't help but ask, "President Shen, do we really need to meet with Qualcomm?"
"Of course we should meet them," Shen Fei laughed. "How can we put pressure on MediaTek if we don't meet them? But Qualcomm's chips are too expensive; we can't afford them for now."
However, letting them know that there are options for transmitting messages is crucial for the negotiations to proceed smoothly, and that this is not the only option.
"Not the only option?" Chen Hai looked at him with a puzzled expression.
"Don't ask any more questions."
…………
On the other side, Bao'an.
The No. 3 factory building at Transsion's No. 2 production base has been dismantled, leaving only an empty factory building. The construction team is currently carrying out emergency upgrades.
At the same time, security capabilities and access control have been significantly enhanced.
Back in his office, Shen Fei brought up the system interface and continued studying the recycling and dismantling center.
The equipment occupies 500 square meters, operates fully automatically, and requires only 15 people to operate and maintain.
The core technology involves molecular-level disassembly and atomic-level repair, which disassembles old mobile phones into original parts and repairs microscopic damage, restoring their performance to the level of new products.
Most importantly, its production capacity is 2 units per hour, which is 48 units per day, and 1.75 million units per year!
This already exceeds the amount of discarded mobile phones that flow into Africa every year.
The King of Africa? Take him down easily.
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