26: Chapter 26 MediaTek's Supply Negotiations

"Perhaps domestic manufacturers really should do some soul-searching."

"While most manufacturers are competing on specs, price, and marketing, Transsion has earned respect in another country."

"So, for this phone, the final score is 8.5."

"The points deducted are for the small memory and crude system, but considering the price and positioning, this is an excellent Feature phone."

After finishing, he covered his mouth and whispered, "The most important thing is that this phone isn't sold domestically."

"Of course, if Transsion could bring this product-making attitude back... I think the Chinese mobile phone market might be different."

The video ended, with view counts just breaking 3,000. However, fan engagement nowadays isn't like in later generations; the comment section was still quite lively.

"Xiaobai actually gave it an 8.5? I remember the previous iphone 3g only got an 8."

"Is this photo quality real? Even Black people can be photographed so clearly."

"Hey, I think I have some impression of this."

"To the person above, Transsion used to make copycat phones; there's one near us, but it seems they've transformed now."

"Can you buy this phone domestically? I want to buy one for my collection."

Although he was just a small tech blogger, his influence was continuing to spread.

"Mr. Shen, should we release the T1 domestically as well? This phone is quite competitive under 500 yuan."

"No." Shen Fei shook his head. "The T1 is a product aimed at the Africa market and isn't suitable for the domestic market."

"We must return to the domestic market, and when we do, we must become the Top 1 domestic brand. But for now, we need to lay low, accumulate our own technology, cultivate our own researchers, and make good use of Africa as an excellent cash cow."

Li Ziqi nodded thoughtfully; the boss was playing a very big game.

A "ding" sound rang in Shen Fei's ears, and he immediately realized he had succeeded.

[Main Mission: Strike While the Iron is Hot, Completed.]

Africa market share: 5.03%

Reward distributed: Recycling and Dismantling Center: (Can dismantle waste mobile phones and repair parts)

New mission generating...]

The corners of Shen Fei's mouth curled up. He had obtained the Recycling and Dismantling Center, and his new trump card was in place. He could go back and test it out. Soon, those who wanted to strangle Transsion using the supply chain would see a true dimensionality-reduction strike.

"Your costs are very low, but I don't need costs at all! I wonder how you will handle that."

[Main Mission Updated: Overlord of Africa]

[Mission Description: Achieve 20% market share in Africa, Reward: 10,000 Industrial Innovation Points (can be used to exchange for technology, equipment, talent, and other resources in the system store)]

[Store Technology Preview: Graphene Mass Production Process (2,000 points)]

[4G Communication Basic Patent Package (5,000 points)]

[Artificial Intelligence Algorithm: 7,500 points]

[Flexible OLED Screen production line (6,000 points)]

...

Returning to Transsion headquarters in Guangzhou, Shen Fei studied the system rewards again. He stared at the system interface appearing in his mind, his breathing slightly quickened.

It was no longer just waiting for missions; it was a complete exchange system. This meant that as long as he completed missions and earned points, he could exchange them as needed for technologies that were considered top-tier in his previous life.

20% Africa market share—although he didn't know how the system calculated it, based on the current annual sales volume of 120 million units, that would be 24 million units.

Transsion's current monthly sales had just broken 800,000 units, with annual sales still under 10 million. To more than double that within a year was a somewhat difficult goal.

But looking at those technologies in the store...

Graphene mass production process; this thing wouldn't be initially mature until 2015, and as for real commercial use, there was still a long way to go...

The 4G patent package involved the battle for communication standards for the next 10 years, and as for flexible OLED, that was a barrier for high-end mobile phones.

If Transsion could lay the groundwork in advance, it could rewrite everything.

"Mr. Shen! The people from MediaTek have arrived." Secretary Li Ziqi knocked and walked in. "They have been arranged in the second conference room, but they still seem a bit arrogant?"

Shen Fei closed the system interface and straightened his clothes. "Let's go. Arrogant, are they? They won't be able to be arrogant in a moment."

In the second conference room, Liu Zhiwei, Vice President of Sales for MediaTek's China region, had already been waiting for 5 minutes.

He was in his early 40s, with the typical style of a Taiwanese enterprise executive, and his eyes carried a hint of imperceptible arrogance. Even though he was making money here, he still looked down on this place.

Two months ago, Transsion's Procurement Director Liu Fang had contacted him, wanting to discuss the supply of new Smartphone chips and the supply of low-end chips, but he didn't even meet her, only having his subordinates reply with, "Production capacity is tight."

A small copycat factory wanting to use MediaTek's latest Smartphone platform and negotiate prices? Did they deserve it?

Whatever price was given, they should just honestly buy it. They wanted to bargain? If he had known, he shouldn't have made concessions!

But this morning, his boss, Zhang Zhongmou, personally called from Taipei: "Transsion's sales in Africa have exploded. The intelligence department predicts monthly sales will be between 1 million and 2 million units; they have the posture of a rising power."

"Since they have applied for purchase orders again, go to Guangzhou immediately to sign the contract, and by the way, see if you can further develop the relationship."

But when he arrived, he wasn't received by the boss, and in fact... it was completely different from the enthusiastic treatment of other manufacturers.

A flicker of displeasure crossed his mind; he would definitely teach them a lesson during the negotiation later.

After all, the Chinese market was never short of copycat phone manufacturers; this was the source of his confidence.

"Mr. Liu, sorry to keep you waiting."

Shen Fei pushed the door open and entered, followed by Procurement Director Liu Fang and Technical Vice President Chen Hai.

"Mr. Shen, you are too polite." Liu Zhiwei stood up to shake hands. Although he was displeased inside, he still put on a professional smile.

"I've long heard that Transsion is doing very well in Africa. Today I finally get to meet you in person; you are indeed young and promising."

After the pleasantries were over, both sides began to take their seats.

Liu Zhiwei spoke first: "Mr. Shen, our technical team has studied Transsion's T1 and Power Max. The design is very mature, especially the antenna system and power consumption control."

"Your company has indeed optimized our chips quite well. MediaTek is very willing to cooperate with such proactive and innovative new enterprises."

"Mr. Liu, no need for pleasantries. Let's get straight to the point."

Shen Fei pushed a document over: "This is Transsion's chip demand forecast for the next 12 months. Feature phone platform, 1 million units per month to start."

"For the Smartphone chip platform, starting from the second quarter of 2009, 100,000 units for the first month, followed by a 20% increase each month. This is our conservative estimate. If all goes well, the figures for the Smartphone platform might double."

Liu Zhiwei took the document, and upon seeing the numbers on the first page, his eyes widened instantly.

Starting at 1 million units per month, with an estimated 1.7 million units in December 2009.

But flipping further, he saw dense market analysis: Nigeria penetration rate had reached 29%, Ghana 5%, Tanzania 5%... along with expansion plans for Ethiopia, Congo, South Africa, and a dozen other countries...

Transsion, this copycat factory, when did its market penetration in Africa become so fast?