26: I made a decision that went against the wishes of my ancestors.

“da mi 2nd generation is confirmed to use the Qualcomm S4 chip! This time, Xiaomi is going to have the first launch again.”

“Starting the warm-up for the da mi 2nd generation so early? I just bought my mi 1 not long ago; I didn't expect it to become outdated as soon as I got it.”

“What do you know? This is Xiaomi being pushed to the brink by Red Star. Look at the sales of the mi 1 and then look at the sales of the red star 1. I feel like the two companies are about to square off!”

“Fight, fight quickly! It's best if they slash the price directly to 1599. We consumers will be the ones to benefit.”

“One price! 999! Drop the link!”

“999? You're dreaming.”

Dami Company's warm-up sparked heated discussions among netizens. Everyone was wondering if the da mi 2nd generation would stick to 1999 like the previous generation or if it would be even lower.

But this trending topic was soon suppressed by another piece of news.

That was Zou Hongyi, the head of 390, a domestic antivirus software company, also announcing that they would start making mobile phones.

“In today's society, every rich guy and beautiful girl has a Fruit phone. Do we 'losers' have to use cheap phones? Anyway, I don't agree with this view. We at 390 want to ensure that the vast majority of users can use high-quality, low-priced smartphones.”

“I, Zou Hongyi, had no choice but to make a decision that goes against my ancestors, and that is to enter the hardware market. We, 390, will collaborate with the well-known domestic manufacturer Coolpad to launch a 390 special edition phone for our 390 users—for only 1499!”

As soon as Zou Hongyi's post on the Social Media Platform was published, the internet instantly exploded.

“Wait, since when did making mobile phones become so easy? An antivirus software company can make phones too?”

“I feel like I've traveled through time. This time last year, if you wanted to buy a phone, you basically had no choice but those big foreign brands costing three or four thousand. It's been less than a year, and first, there was Xiaomi at 1999, then Red Star at 1998, and now a 390 special edition phone for 1499. This feels so surreal.”

“What time travel? Don't believe me? Ask me 'odd changes, even stays the same'? It's not like you see flying cars as soon as you step out. Foreign manufacturers have been harvesting profits in our China for so long; it's time for our own China manufacturers to rise up.”

“Why does everyone love price wars? I, Long Aotian, am not short on money. Do I care about those few pennies? Can't we just make a high-end domestic phone? Every day it's either Apple, Samsung, or HTC. I'm sick of it.”

“Looking forward to high-end domestic products!”

“Looking forward to high-end domestic products +1.”

“+10086.”

Yu Chengbei looked at these comments from netizens who weren't short on money and almost burst into tears.

Don't you want high-end domestic phones?

We at Huawei have them!

The P2 and P2S are both at high-end prices, yet I didn't see any of you buying them!

Long Aotian: I'm not short on money, but you didn't even promote those phones domestically. I have no idea if they're any good.

“Is the netizens' demand for high-end phones really that urgent right now?”

“Should we at Xiaomi also make a high-end phone? Otherwise, if we're always at 1999, I'm afraid consumers will think we can only make 1999-yuan phones.”

After hearing Lei Jun's words, Lin Bing frowned. What President Lei said was true; without a high-end phone, consumers would think Xiaomi couldn't make one.

“President Lei, I think we definitely need to make a high-end phone, but definitely not now. Xiaomi has just established a foothold in the mobile phone industry; it's absolutely not the time to move toward the high end. Have you forgotten last year's Red Star 903 Series and this year's Huawei P2 series?”

“Although those netizens shout about wanting high-end products, their wallets are more honest than their words; they still buy whichever phone is cheaper.”

After hearing Lin Bing's words, Lei Jun also pondered for a moment and then said:

“Since it's not the right time for high-end, how about we directly develop a low-end phone? Something under a thousand yuan, the 899-yuan price point seems quite appropriate.”

Lei Jun had always had the idea of making low-end phones, but because Xiaomi had only been established for a few years, it lacked the strength and capital to do so. Now, Xiaomi's revenue for half a year was close to ten billion. If they raised another round of funding, they could definitely tackle the low-end market.

High volume and satisfying demand—that is the low-end phone market. To enter this market, one must have sufficient funds. Otherwise, if you're just playing around with orders for tens or hundreds of thousands of components, you certainly won't get the best prices.

Moreover, in Lei Jun's view, while mid-range phones allowed them to establish a foothold, low-end phones were the foundation of shipment volume.

In his vision, they could use a low price to create a phone that didn't feel cheap, and then seize users. Once Xiaomi had enough users, they could proceed with the next step of the plan.

As for saying low-end phones don't make money, that's certainly true.

But how much money can you really make from low-end phones? Once the user base grows, pre-installing a few software programs and pushing a few Ads will be more profitable than just selling hardware.

Blue and Green Factories: Who says low-end doesn't make money? We make money precisely from the low-end.

“Look, many young people have just left school and entered society, and they don't have much money. These users might need several years of growth before they become Xiaomi users. But if we make a hundred-yuan phone, these people can become our users right now.”

“President Lei, since you have the idea of making low-end phones, then Xiaomi needs to prepare for a new round of financing. Also, this new project needs a suitable person in charge. I'm currently in charge of a project and don't have the energy to take on another new model.”

That made sense. Currently, Lin Bing was the president of Xiaomi's mobile phone business. One phone model already kept him incredibly busy; handing him the hundred-yuan phone series as well would indeed be too much.

Thinking of this, Lei Jun asked:

“Lin Bing, do you have anyone suitable to recommend? You've been in this industry longer than I have. Think about who could be in charge of this new series?”

Lin Bing pondered for a moment, his eyes soon lighting up as he said:

“I thought of someone, but you'll need to headhunt him. He's still employed elsewhere.”

“Who?”

“Lu Weiqi!”

“Lu Weiqi?”

“That's right, Lu Weiqi. He's still at Gionee, likely still in charge of Gionee's overseas business. This person has very strong business capabilities; I dealt with him a few times when I was in Europe.”

Lin Bing said excitedly.

“Since you, Lin Bing, say he's very capable, then he must have some talent. I'll look into his situation first and then see if I can get in touch with him.”

Lei Jun searched for Lu Weiqi's resume on his computer and called a few friends to ask. However, after looking through it, Lei Jun didn't think there was anything particularly special about this person.

But since Lin Bing said he was very capable, he would try to get in contact first.

But Lei Jun didn't know that not only had he set his sights on Lu Weiqi, but Chen Chen had also set his sights on this man who would take Redmi to its peak.