31: Chapter 31: Prices Rise Across the Board in the Used Mobile Phone Market

"How is the yield rate of these chips? Are there any other major issues?"

"The yield rate for the enhanced overclocked version is 99.7%."

"Overall, it is 99.6%, which is higher than any batch of MediaTek chips we have had before. MediaTek is actually quite reliable this time."

Chen Hai said very understandingly. Although he knew about the existence of 'black technology,' these were all MediaTek's technologies and had nothing to do with Transsion.

At most, they just overclocked it a little bit.

"Also, Mr. Shen, we found that the reliability of these enhanced chips is even higher. The failure rate during a 72-hour continuous full-load test is even lower than that of the unoptimized chips."

Shen Fei quickly calculated in his mind: 1.28 million old mobile phones, with one chip per phone, and some high-end models even having dual cores, he could probably extract 1.5 million chips!

The repair cost is about 0.3 yuan, and the total cost is approximately 450,000 yuan.

However, a brand-new chip with the same performance costs at least 6 yuan, and common ones like the MTK6225 cost 2.5 USD each, which is about 17.5 yuan.

After being enhanced by the enhancement center, most of these chips have performance consistent with the MTK 6225, so these 1.5 million chips are worth 26.25 million.

In other words, Transsion bought 1.28 million pieces of junk for less than 20 million, but the value of the chips extracted from them already exceeds 26 million.

Plus other repairable parts like screens, batteries, cameras, RAM, ROM, etc...

This is no longer a matter of cost; it is about building a closed-loop industrial ecosystem.

Transsion sells phones — recovers old phones — repairs and disassembles — parts used for new phones — sells phones again.

As long as the sales network is large enough, this cycle can continue to run and grow larger and larger.

"Notify the production department that the T1 Enhanced Edition will go into mass production next month, and we will use our own repaired chips for all of them," Shen Fei ordered.

"Also, establish a dedicated parts trading division to sell the surplus parts to other knock-off manufacturers at a price 10% lower than the market, but require cash settlement. I believe they will agree."

"Mr. Shen, won't this nurture competitors?" Chen Hai was a bit worried, as the performance of these chips was indeed quite powerful.

"No," Shen Fei shook his head. "If they buy our parts, they will become dependent on our supply chain. Once that dependency reaches a certain level..."

He didn't continue, but Chen Hai understood.

This is an open plot.

Using low-priced, high-quality parts to attract the entire knock-off phone industry to turn to Transsion; once Transsion controls the supply chain, it will control the discourse power of the entire low-to-mid-range mobile phone market.

"Also, accelerate your R&D department," another good idea flashed through Shen Fei's mind. "Based on the performance data of this batch of chips, redesign a T1 Enhanced Gaming Edition."

"Since the chips are overclocked, let's create a gaming mode so that consumers in Africa can also experience fun beyond just making calls."

"Understood. We'll just add a few classic mini-games, increase the RAM and storage, and I'll get right on it."

After Chen Hai left, Shen Fei brought up the system interface.

[Recycling and Disassembly Center Operation Data

Cumulative processing volume: 2.42 million units.

Repaired chips produced: 2.75 million.

Other parts produced: approximately 17 million pieces (specific data is as follows: 1G, 2G, 4G... comprehensive utilization rate 96.3%]

[Industrial Innovation Points: 0 (Task in progress)]

The task progress had not updated yet, but Shen Fei knew that with the establishment of the recycling system and the realization of self-supplied chips, Transsion's cost advantage in Africa would expand to a terrifying degree.

Bird wants to start a price war?

Then let's fight!

Let's see who can't hold on first.

The mobile phone alert sounded again; it was a message from Li Qing.

"Mr. Shen, General Manager Li Xiangdong has made another move."

"He contacted several recyclers and raised the recycling price of waste mobile phones by 5 yuan. Now the recycling price in Huaqiangbei has risen to 28 yuan, which is 4 yuan higher than ours."

Shen Fei smiled.

As expected, General Manager Li Xiangdong thought he was acting out of spite and wanted to compete with Transsion to see who had more money. He wanted to hoard goods, drive up the price of second-hand phones, and then sell them to Transsion at a high price.

But it seemed his little scheme had misfired again.

"Li Qing, contact the procurement department. We will also raise the price by 3 yuan, and then suspend public acquisition for a week in two days."

"Let the price rise properly," Shen Fei replied.

"Huh? Suspend recycling? But the recycling channels..."

"Don't worry. When the price rises to a certain level, those recyclers won't be able to sell their stock, and they will naturally lower the price."

"Then we will make our move and buy them up at a lower price. If these recyclers don't appreciate kindness, then we'll just go back to the way things were."

"Especially Bird; it still has to spend a lot of money to process these waste mobile phones, otherwise it will face a huge fine."

Li Qing understood instantly: "You are trying to... short the waste mobile phone market."

"You could say that," Shen Fei put down the document in his hand, picked up the teacup on the table, and looked at the distant building where Bird was located. That building, built two years ago, was indeed a bit more luxurious than the Transsion Building.

"Doesn't General Manager Li Xiangdong have money? Let him collect them. When he has millions of waste mobile phones piled up in his hands and can't dispose of them..."

He didn't finish, but Li Qing already felt the chill in his words.

On the surface, this recycling war was Transsion and Bird fighting for waste mobile phone resources, but in reality, it was Shen Fei digging a pit for General Manager Li Xiangdong.

A bottomless pit built with real money; after all, Transsion could utilize these waste mobile phones, but for Bird, they were truly just trash.

And it was man-eating trash.

It's just a question of whether General Manager Li Xiangdong will be able to figure it out.

...

Yangcheng, Building 8, SW Compound. Shen Guoming and Zhang Shiqing sat opposite each other in a small reception room, with a steaming teapot in front of them.

Two men approaching fifty, one wearing an administrative jacket and the other in casual clothes—different temperaments, yet inexplicably harmonious.

"Shen Guoming, you still need to take good care of your health," Zhang Shiqing poured a cup of tea and pushed it over. "I asked the doctor, and he said you need at least another half a year of rest. Leave the company matters to the young people."

"I trust Shen Fei," Shen Guoming took the teacup and smiled bitterly. "It's just that this kid hides too much, and his methods are quite ruthless. During the time I was hospitalized, he sent Vice President Zhang Mingyuan and those old cronies straight in."

"The older generation of executives has all been purged, and Transsion has now completed a major overhaul. Although they deserved it, in my heart..."

"Benevolence does not command troops, and righteousness does not manage wealth," Zhang Shiqing said indifferently. "After I arrived, I also checked. If those old cronies of yours had any regard for old times, they wouldn't have thought about selling the company when you fell ill."

"Shen Fei handled it correctly; when it's time to cut, you must cut."

Shen Guoming sighed. He had also been quite a failure. He had almost ruined the family business, so he changed the subject.

"Old Zhang, your transfer to the Discipline Inspection Commission this time is quite a heavy burden."