12: Chapter 12: Funding Secured, T1 Trial Production Successful

During this period, Huang Tianya continuously reported good news to him.

On September 15th, Lehman Brothers filed for bankruptcy protection.

The CDS short position yielded a 320% profit; the $5 million cost directly turned into $320 million...

On September 16th, shorting AIG yielded a 210% profit.

On September 29th, the Dow Jones Index dropped 777 points in a single day, and shorting stock index futures yielded a 180% profit.

Although there were some minor missteps, by early October, thanks to the financial crisis, the $5 million principal had grown to $1.8 billion.

The bulk of the funds remained in the United States, but $200 million had also arrived in his personal account through relevant channels.

Meanwhile, Transsion's domestic trade-in program achieved unexpected success.

The model of discounting new phones in exchange for old ones hit the mark for the upgrade needs of a large number of Feature phone users.

Although the profit per phone became thin, sales skyrocketed.

In the first month alone, 260,000 units were sold, which was three times the sales volume of the same period last year, clearing out most of the inventory.

What was even more remarkable was that some of these users went directly to Transsion specialty stores to purchase, while others went to those two re-signed distributors...

As for that aloof Mr. Wang, he was feeling some regret at this moment.

But other mobile phone manufacturers weren't stupid either.

For instance, Bird immediately chose to follow suit and started the same routine.

And their subsidies were even more aggressive; if Transsion subsidized 10 yuan, they would subsidize 20, and some even directly copied Transsion's promotional slogans.

In order to move stock, everyone was dragged into an arms race of trade-ins, resulting in a fierce, bloody battle.

However, Shen Fei did not choose to follow up.

After all, doing this was just to clear inventory, and now their own inventory was almost cleared.

The rest could be cleared slowly; there was no need to get caught up in the rat race.

...

On October 8th, just as Shen Fei sat down in his office, Chen Hai called.

"Mr. Shen! It's a success."

The voice on the other end of the line was somewhat excited due to the project breakthrough, and there was even some electronic distortion in the call.

"The T80 and T1, the first mass production batch, all passed quality inspection with a 92% yield rate."

Shen Fei was equally excited: "I'm heading to the factory immediately."

...

Bao'an Industrial Zone, Transsion Factory No. 1.

The production line was still running, and brand-new mobile phones were being assembled, tested, and packaged on the assembly line.

Unlike the previous T100, the new models had a simpler design, with the eye-catching "TECNO" logo printed on the back.

Shen Fei picked up a T1 prototype; it had a dark grey matte shell and felt solid in the hand.

After opening the back cover, four SIM card slots were arranged side by side.

The battery occupied almost half the space of the body, containing a specially made, ultra-large 1600mAh battery.

Switching it on, the system interface was simple... Feature phones these days didn't have much playability anyway.

He opened the camera, aimed it at a nearby worker with a darker complexion, and pressed the shutter.

The photo generated instantly on the screen.

The worker's facial details were clear, and the skin tone was natural.

Even under the factory's incandescent lights, there was no overexposure.

"The results are even better than the prototype. We optimized the LSP firmware for the mass production batch, and the processing speed has improved quite a bit."

Shen Fei also tested the T80; this phone was thinner and lighter, with only dual SIM slots and a 1000mAh battery.

At the same time, this phone was divided into the T80 and T80A.

The A version added a 100,000-pixel camera, and with the support of some algorithms, its photo quality crushed the Nokia models in the same category.

A look of pride appeared on Chen Hai's face, but he soon sighed helplessly.

They had tried their best, but they still hadn't achieved the lowest possible cost...

"What about the cost accounting?"

The Financial Director, Wang Shanghua, who was standing nearby, immediately reported: "Boss, the unit cost of the T80 is $19.8, and the unit cost of the T80A is $20.8.

The unit cost of the T1 is $34.7. If the mass production scale reaches 100,000 units, it can be reduced by another 5%. If it reaches one million, it can be reduced by another 6%."

The T1's cost increase is mainly due to the battery.

The chip used is the same MT6225 as the T100, but with the support of the algorithms, the photo experience between the two is worlds apart...

Shen Fei did a quick calculation in his mind.

According to the plan, the selling price of the T80 in Africa is $30, the T80A is $35, and the T1 is $100.

Even counting transportation, tariffs, and marketing expenses, the gross profit can reach 30-40%.

If they can sell over 500,000 units per month... all problems will be solved.

Compared to the domestic market, Africa is quite profitable, provided that the problem of taking photos in Africa is solved.

"What's the stock situation?"

"Currently, there are 30,000 units of the two T80 series in stock, with more of the low-end model. The T1 stock is only 10,000 units.

If the production line is fully operational, we can produce about 40,000 more units per week."

Shen Fei nodded: "That's enough. We can recruit another batch of people and open another two production lines.

I have a feeling these three phones will be a huge hit in Africa, so we must prepare sufficient inventory.

Also, the Marketing Department should prepare for the press conference in Nigeria; let's set the date for October 28th."

"Yes!"

Walking out of the factory, the sky was already gradually darkening.

The autumn weather in Guangzhou was refreshingly cool.

As a breeze blew past, Shen Fei stood in front of the entrance, watching the four large characters of Transsion Technology glistening in the sunlight.

A month ago, this place had been lifeless, on the verge of bankruptcy at any moment, and the workers had been worried about losing their jobs.

A month later, two product lines and three mobile phones were ready to go, preparing for an expedition to Africa, and the production lines that were originally about to close had started working in three shifts!

...

On October 27th, Shen Fei arrived in Lagos, Nigeria, once again.

This time, Mr. Adebayo and his group of underlings were there to pick him up at the airport.

These men were dressed in the same uniforms, standing straight with very strict discipline.

Mr. Adebayo, who was leading them, was wearing a neat suit, looking every bit like a successful businessman, completely different from the small stall owner he was last time.

"Hello, Boss!"

Following his lead, the group behind him shouted in unison: "Welcome, Boss, for your inspection of our work."

It demonstrated their discipline.

After the welcome ceremony, on the way to the flagship store, Mr. Adebayo said in not-so-fluent Chinese:

"Sir, 20 stores have been renovated, the store managers have finished their training, and the 50,000 units of T100 inventory have been sold out, with $2.2 million in returns.

But most of the funds were used for hiring personnel and purchasing the shops; now there is still $2 million on the books.

In addition, the mobile phone dealers in Lagos are all asking when there will be new stock; they also want to be agents or join us."

Mr. Adebayo believed that his achievements over this period would certainly satisfy his boss.

In fact, his ability to achieve this was not as straightforward as it sounded.

Just the targeted incidents caused by Wang Jianguo were no fewer than five times, not to mention other gangs...

But with the help of professionals and the power of money, these thugs were eventually all beaten into submission, and this became the best advertisement for Transsion...