Shockingly, a counterfeit factory has produced a 3-nanometer chip.

Chapter 125 Supply Chain Negotiation: The Dragon-Slaying Saber

"With 2800 billion yuan invested, 3G tariffs will drop from tens of yuan per month to around 20 yuan. How many more people do you think will be able to afford it?"

This estimate of 100 million is conservative.

No one is arguing.

Shen Fei looked at the people present.

Last year, Huawei's Mate series and Honor Play series alone achieved sales of 950 million units in China.

Transsion's total overseas sales reached 3200 million units, including 740 million smartphones. Our goal for next year is to achieve a cumulative global shipment of 7000 million units.

Does everyone have confidence?

"have!"

Although the target quantity is large, 2009 is just a year of preparation, and 2010 is the year to reap the rewards. Achieving this sales volume is absolutely no problem.

After a brief discussion, Shen Fei began assigning tasks.

"Finalizing next year's procurement plan is the last task before the end of the year. Liu Fang, you're under a lot of pressure."

If you do a good job, your bonuses at the annual meeting will be substantial.

Liu Fang stood up, revealing a sharp look in her eyes.

After learning her lesson about batteries, she immediately changed her approach. She started cutting corners on every component, earning her a new nickname in the industry: "Liu the One-Cut."

"According to the sales plan you set out, boss, the total procurement budget for mobile phone components this year is approximately 150 billion."

The screen and camera account for about 40%.

Shen Fei looked at him and said, "What you need to do is cut this 40% cost down by another 10%."

Liu Fang replied without hesitation, "Understood."

How to cut it is the question.

Liu Fang walked to the projector and pulled up a form:

"Last year, our sporadic purchases totaled orders worth tens of millions of yuan. Although prices were lowered later, the overall prices were just at the industry average, and there was no special treatment."

"This year is different."

The target of 70 million smartphones means we need to purchase at least 100 million cameras and 70 million screens.

We can design our own chips, but production capacity or the number of models won't increase in the short term, so we still need to purchase a large quantity. The current price has already prompted suppliers to proactively lower their prices.

Shen Fei nodded: "So, what's your first stop?"

"Neon, Sony."

After we finish talking, let's go to Sharp to kill some hay and get some free stuff...

…………

January 20th, Tokyo, Sony headquarters.

With the help of Sony staff, Liu Fang arrived at Sony headquarters 20 minutes ahead of schedule.

Through the car window, you can see the huge logo on the technology building and the enthusiastic reception staff at the entrance.

After all, we had already communicated beforehand, and this year's procurement target is based on a total sales volume of 7000 million units.

Although Transsion prefers to work with partners they know well, everything still depends on the price... After all, Liu Fang has changed suppliers before.

After getting off the bus, she was greeted by the same Japanese section chief from last year, surnamed Tanaka, in his forties, with a slightly swaggering chin, but this time he didn't seem arrogant at all.

"Mr. Liu, we meet again." Hideaki Tanaka extended his hand gently, as if afraid of offending this important client.

Liu Fang shook hands with him, feeling a little surprised.

This wasn't her first time at Sony. Last year, she came three times to purchase camera modules, initially being refused entry to the meeting room and humbly begging for supplies, before eventually negotiating prices in the meeting room…

However, this time the initiative was different; they had no chance whatsoever and could only agree to her request.

"Section Chief Tanaka, thank you for your help this time."

Tanaka led her to a conference room that was larger and more luxurious than the last one.

The coffee on the table has been replaced with freshly ground coffee... the level of importance attached to it has clearly increased.

"Mr. Liu, please wait a moment."

Today's negotiations are not my responsibility. Mr. Kumagai, Senior Vice President of Sony Group and Head of Core Components Development, is personally discussing these matters with you.

This includes, but is not limited to, price, delivery time, product specifications... everything is negotiable. You are Sony's most important customer today.

Liu Fang nodded. Changing the person was just right; she didn't really like this one either…

A snobbish guy.

In less than 5 minutes, Osamu Kumagai arrived at the conference room.

"Sir Liu, you've been waiting for a long time."

I will definitely apologize to you later.

When the other party extended a handshake, Liu Fang did not get up. Instead, she took a document out of her bag and handed it over.

Transsion 2010 Camera Procurement Plan.

Kumagai Osamu took it, turned to the first page, and his expression changed from politeness to surprise, which quickly turned into regret.

He shouldn't have gone to receive Lei Jun first because of personal relationships; now he's completely lost the initiative.

500万像素1500万颗；800万像素2500万颗；200万像素4000万颗；100万像素6000万颗。

There are also 3000 million 50-pixel lenses underneath.

A total of 1.7 million units.

"So many?" Kumagai Osamu's eyes were filled with shock. This huge order was enough to make them their biggest customer this year. Without realizing it, his voice rose considerably.

Liu Fang nodded.

"170 million units, totaling approximately 400 million US dollars."

Kumagai forced a smile. So many sensors would normally cost at least $6.5 million, which is about 40 billion yuan in Chinese currency. And this is before we've even started.

One-third was cut off directly.

Liu Yidao truly lived up to his reputation.

Kumagai Osamu closed the file, then opened it again and looked at it once more. He looked up, his attitude clearly changed.

We must not get too close to the rice company; we cannot afford to lose sight of the bigger picture for the sake of small gains.

He took the coffee cup that a staff member had handed him and placed it in front of Liu Fang: "Ms. Liu, please have some."

…………

Formal negotiations began at 2 p.m. and continued until 7 p.m.

Osamu Kumagai initially tried to maintain Sony's dignity.

"Mr. Liu, Sony's camera modules are the best in the world. Our prices have always been very stable: $12 for a 500-megapixel lens module and $22 for an 800-megapixel module."

This is within the normal range for the industry.

Liu Fang didn't say anything, and took out another document from her bag.

"This is a quotation that Sansang gave to a client in China last year."

Kumagai Osamu took it and glanced at it, his expression changing slightly: "We cannot comment on the price of Sansang."

All I can say is that you get what you pay for; cheaper products will ultimately suffer in terms of compatibility.

"Then I'll take another one." Liu Fang took out another document. "This is OmniVision's quotation for Huawei."

500 megapixels for $6.5, and that's not even the super-large customer price.

Kumagai Osamu fell silent...

But Liu Fang's prices were truly outrageous; she cut the price of a 500-megapixel lens to $4.5 and an 8-megapixel lens to $800... more than halved.

This price is very close to their cost line.

"Mr. Kumagai," Liu Fang's voice showed no urgency, "Sony's technology is indeed good, but good technology comes with a good price."

Last year we bought your 500-megapixel lenses for $13 each, which was 8.3% more expensive than the average price, but I accepted it because our volume was small at the time and we weren't in a position to negotiate the price.

She leaned back.

"This year is different. 1.7 million units—yes, that's a massive order for any other company. Can Sony handle it?"