51: test

"Is there any news on why Qualcomm is raising prices specifically for our Red Star?"

Chen Chen was not fully prepared for this matter.

In his plan, Red Star should currently maintain a peaceful coexistence with giants like Qualcomm and Fruit. The time to confront Qualcomm would only come a few years later, when Red Star had established sufficient strength in areas like chips, communications, and basebands.

Even if they didn't confront them, it might not be up to them. Chen Chen knew exactly how Huawei was sanctioned in his previous life.

"CEO Chen, Yu Chengbei of Huawei posted that Qualcomm's actions constitute patent blackmail. It seems we are not the only ones; Huawei also received a price increase notice."

At this moment, Shen Rou walked over, holding a laptop.

"Huawei also received a price increase notice. I think I understand what's going on."

Currently, the only domestic manufacturers in China using their own designed and developed chips are Huawei and Red Star. Low-end phones use MediaTek and have not adopted Qualcomm's comprehensive solution.

Since other manufacturers, whether Xiaomi or ov, have adopted Qualcomm's solution, the target of this action becomes clear.

MediaTek's chips do not have a performance advantage, nor is their communication technology as strong as Qualcomm's. Fruit's A-series chips are not sold externally, and Samsung's Exynos is beginning to lag behind Qualcomm in performance. Furthermore, few domestic manufacturers aside from used colloquially use it.

"This is a probe by Qualcomm. They want to force us to abandon our chip business and adopt their comprehensive solution. I believe they intend to dominate the China mobile phone market."

"Hmph, they have quite an appetite. Aren't they afraid of breaking their teeth?"

"CEO Lu, are there any updates from Dr. Lu? What is the progress of our soc? And our Kaitian Baseband?"

Kaitian (Heaven Opener)—Chen Chen chose this name, hoping that starting with this baseband, they could reopen the heavens for China.

Shen Rou flipped through her memo pad and answered for Lu Weiqi:

"Dr. Lu is currently conducting simulation tests on the soc. There is no news yet, but Kaitian has begun mass production."

"Everyone, share your views on this matter. Xiao Shen, go notify Dr. Zhou to come over as well."

Lu Weibing immediately stood up in opposition. "I disagree. This price increase is absolutely just a probe. 'If today you yield five cities, tomorrow they will demand ten, and then you will have a night of peace. When you look up the next morning, the Qin Army will be upon you again.' If they raise the price by $1 today, and by $100 tomorrow, are we supposed to grit our teeth and accept it?"

"If that's the case, we might as well close down. Why even make phones?"

"Manager Lu is right. If we agree easily, Qualcomm will definitely escalate their demands until we can no longer bear it."

After some thought, Lu Weiqi also opposed immediate acceptance.

"Hmm, agreeing so easily is impossible, but we definitely need a solution. Some of Qualcomm's patents are unavoidable. This is simply unsolvable."

After Chen Chen finished speaking, everyone fell silent. If they wanted to make phones, they couldn't bypass Qualcomm's patents. If they cheerfully accepted this price increase, the next one might come tomorrow.

Just then, Dr. Zhou rushed over, shouting loudly before even entering the room:

"CEO Chen, don't worry. We can contact Huawei to obtain some of their patent authorizations. At the same time, our Kaitian Baseband can solve part of the problem. If all else fails, we can use solutions from MediaTek or Texas."

Since Chen Chen and the others weren't very knowledgeable about this area, they could only worry anxiously. Now that the professional had arrived, they immediately felt reassured.

"Dr. Zhou, what do you suggest?"

Dr. Zhou, who had just arrived in the office, took the water poured by Shen Rou, paused, and continued, "I have just checked the technical data. It is not absolutely necessary to use Qualcomm's patents. Huawei also has deep expertise in this area. We can contact Huawei and use their solutions and patents."

"Exactly, I would rather give this money to Huawei than to Qualcomm!"

"Moreover, the technology of our Kaitian Baseband has already bypassed existing patents. Dr. Lu and I originally planned to inform CEO Chen after mass production began, so that all our existing models could use the Kaitian Baseband. Although external mounting consumes a bit more power, our models have large batteries and fast charging capabilities, so this impact is negligible."

Hearing Dr. Zhou's explanation, everyone was relieved. As long as there was an alternative solution, Qualcomm wouldn't dare to be so aggressive... USA.

Qualcomm Headquarters.

"Jack, do you think Red Star will accept our small price increase this time?"

"Boss, our person in charge in China said that Red Star will definitely agree to this price. They have no reason to refuse us, especially since it's not a $100 increase, and this time it's just a warning."

After Jack Wells finished speaking, both men laughed.

Currently, there are still mobile phone manufacturers in China making high-end phones without adopting Qualcomm's solution. This displeased the rising hegemon. Why would you ignore the readily available cheap solution and instead try to develop your own chips? In Smith's eyes, China making chips was a joke.

So what if you can design the chip? A chip isn't finished just by producing a processor. You still need complementary components like RF Baseband, DSP, and ISP from other manufacturers.

chip development is becoming increasingly integrated. Aren't you worried about power consumption with all those external components?

Qualcomm's probing purpose was exactly this: if Red Star easily accepts the price increase, they will gradually force them to halt their chip development. If Red Star disagrees, that's even better—they can stop making phones, as some things are unavoidable.

"It is said that Red Star also wants to unify China's mobile phone interfaces and charging protocols. Currently, three China manufacturers have started supporting their Star Flash Protocol."

"What about our QC Protocol? When will it be completed?"

Speaking of this, Smith was somewhat dissatisfied. Qualcomm's QC Protocol failed to bypass Red Star's Star Flash Fast Charging. This means that to promote the QC Protocol, they need authorization from Red Star. Also, regarding the type interface, how could a company like Qualcomm not recognize the benefits of this interface?

"Boss, I'm afraid I have to disappoint you. Our protocol currently only supports up to 10 watts, which is worse than even Dami Company in China. Our Engineers say that to develop faster charging speeds, we genuinely cannot bypass the type-c interface, but this interface requires authorization from Red Star."

"What The F*ck!" Smith cursed, clearly indicating he was in a terrible mood.

The thought of needing authorization from this small China company made him utterly unwilling.

"Continue to pressure Red Star. If they don't agree, we will terminate our cooperation. Let's see how they react."

"Understood, Boss. As you wish."