ebonymovies Chapter 184 Earthquake Chain Reaction
Chapter 184 Earthquake Chain Reaction
"There's absolutely no problem with our inventory," said Wang Shangzhong, head of the Black Technology Dismantling Center, with a confident expression.
For others, this major earthquake was an absolute crisis, but for Transsion, it was a double celebration of soaring profits and sales.
Upstream manufacturers are reaping profits worldwide, so why shouldn't Transsion be allowed to do the same?
"Currently, we still have 1.8 million recycled chips of various types, and the screen factory will soon be put into production."
With these hidden supply chains, we're almost like Sansheng—unaffected by the market and can even make a fortune from it.
A wicked smile crept across Wang Shangzhong's face...
This isn't opportunistic profiteering; it's standard industry practice.
A production capacity crisis means higher prices; this has been the case since ancient times.
"The latest contracts signed by Sony and Sharp last year stipulate that delivery will be made a quarter ahead of schedule."
"We currently have approximately 3000 million units in inventory, and this production capacity is sufficient for our technology to be implemented," Liu Fang reported.
At this moment, everyone finally breathed a sigh of relief; they were truly satisfied...
Then we could go all out. Half an hour later, it was confirmed that the T86 and T3 series for the African market would be mass-produced as planned.
It's still more for the same price.
…………
That evening, news began to arrive.
Sony's official statement: The Miyagi factory suffered severe damage, and the recovery status is unknown. Due to force majeure, compensation cannot be provided for related orders. Thank you for your understanding.
Following closely behind were Toshiba, Renesas, Fujitsu... Japan's semiconductor industry almost completely came to a standstill.
The next morning, a chain reaction began to occur.
Sansang issued an announcement: "Due to the interruption of upstream material supply, the memory manufacturer has reduced its production capacity by 30%."
The sensor factory suffered even greater losses and is currently undergoing technological upgrades, with an expected production halt of six months.
Micron follows suit: Memory chip production capacity reduced by 30%
Elpida: Production capacity reduced by 25%
In less than a week, DRAM prices surged by 30%, and NARD flash memory prices surged by 25%.
The price of LPDDR2 RAM and eMMC 4.3 storage has skyrocketed by 35%, leading to a cutthroat competition in the mobile phone market.
The price of a large version of RAM plus ROM has exceeded the price of the chip itself, which is unheard of in the industry.
Large companies in the fruit industry still have some bargaining power, but for small companies, this is a devastating blow.
…………
Kyoto, rice company.
Lei Jun stared at the latest price list on the screen, his brow furrowed for half an hour, unable to relax for a long time.
Lin Bin, standing to the side, was also getting a little anxious.
The price increase is too fast, too drastic.
It was faster than any of them could have imagined.
「1GB的LPDR2，地震前是3.6美元，现在4.9美元。涨了3.5成。」
Lei Jun remained silent; this was truly a sudden and devastating blow.
Lin Bin continued, "The BOM cost of our first-generation rice and rice 1s alone is $50 more for memory alone."
At an extra $3 per unit, 1000 million units would amount to $3000 million.
After watching for a long time, Lei Jun finally sighed:
"What did the supplier say?"
"Everyone's scrambling. HTC, Lenovo, ZTE, they're all buying up stock. We're still the smallest supplier, we can't even get in the queue right now."
Lei Jun closed his eyes.
The Dami 1S was released last December, with a planned shipment of 6 million units by April this year. However, due to supply chain issues, only 2 million units were actually shipped.
Now, due to rising costs...
The end of life? This goal is completely hopeless.
As for the planned Redmi series, which aims to disrupt the low-end market with a price of around 100 yuan, given the current market conditions... let's put it on hold for now!
Forget about disrupting the market now; rice will only die faster.
Why not position Redmi as a premium brand? After all, Redmi is red, which naturally aligns with premium attributes.
Will rice continue to prioritize cost-effectiveness?
But he soon returned to reality, and the cost weighed on him like a huge wall.
After all, rising supply chain costs are a problem he has to face.
If phone prices rise, users definitely won't buy them. But if they don't raise prices, they'll be selling at a loss. Right now, they can only sell off the chips in their inventory. As for the rest, they'll just have to wait and see.
"Brother Lin, how much is left in the warehouse?"
Lin Bin gave a wry smile: "It's only enough for a little over a month right now."
To minimize costs, the rice company signs all contracts for one month only, with no long-term orders.
Regardless of the type of part, the inventory is extremely limited.
Originally intended to reduce costs, the cost has now skyrocketed, resulting in a significant loss for the company.
…………
On the other side, in South Korea, there's Samson Electronics.
Several people are looking at reports in the conference room.
"President, the prices of memory chips such as DRAM and LPDDR2 have all increased by 30%, and the prices of mid-to-high-end lenses have officially increased by 40%."
We've made a killing!
"It was thanks to the chairman's effective leadership that the technology upgrade was announced immediately, and the production capacity cuts further increased market anxiety, directly driving up prices."
This is truly a feast for the eyes and the palate.
"What are you talking about? This is clearly a technical adjustment forced upon us by the constraints imposed by upstream suppliers. We must strengthen our independent research and development in the future."
Without a complete industrial chain, one will be subject to checks and balances from others.
Upon hearing Li Yihai's words, everyone else gave him a thumbs up.
No wonder he's in R&D; he's got real culture.
Li Jianxi nodded, but as he looked at the report in his hand, he discovered a blind spot.
Everyone is placing more orders, but the one who caused him to suffer losses in Africa is nowhere to be seen.
"What about the other end of the communication channel?"
"There's still no news. Their partner, Huawei, hasn't placed any additional orders either."
That's strange.
Li Jianxi frowned as well. Neither of the two largest companies in China had placed additional orders.
He looked at two more companies; their previous orders were indeed very large, but their corresponding inventory had all been used up...
Especially for those low-end lenses, storage, screens... it's time to increase orders.
But why?
"Their inventory probably won't last much longer."
They ship 200 million smartphones per month in the African market, requiring at least 300 million image sensors and 500 million storage units.
"Mr. Li, don't worry, they won't last long."
"Wait. Wait for them to come begging to us," Li Jianxi said.
The person next to him laughed and chimed in, "At that point, the price won't just be a matter of 30%."
Li Jianxi did not smile. Before the contract was finalized, all of this was just wishful thinking on their part. He always felt that there was something strange about this company, as the parts they ordered did not match their sales volume at all.
They must have other aliases.
But no matter what, such a large order must be able to find its source.
At that point, the advantage will be in San Sang's hands, and seizing that advantage means...
"It's not just the price, there are other conditions as well."
Lee Kun-hee turned around: "It's a very shameful thing that the great Samsan lost in the African market."
We must also wash away this shame with blood.
…………
Guangzhou, Transsion headquarters.
Huang Tianya pushed open the door and came in, his expression a little strange.
"Mr. Shen, if we really donate according to this amount, wouldn't it be a bit inappropriate under these circumstances...?"
After hesitating for a long time, Huang Tianya finally said, "Isn't this a bit inappropriate?"