sinovels Chapter 126 Supply Chain Triumphs
Chapter 126 Supply Chain Triumphs
Kumagai Hide hesitated for a few seconds.
"Sony's production capacity, indeed..."
"I know Sony's production capacity is tight. Apple and HTC are both waiting in line." Seeing that he was about to use the same old excuse, Liu Fang interrupted him directly, "But will Apple and Sony give you a 5-year contract? Will they promise to only increase their purchase volume every year?"
Your company's offer shows no sincerity whatsoever to Howe.
After saying that, she placed the price list that Howe had given to the Chrysanthemum Factory in front of him. She stared at Kumagai Hide and said, "Transmission is possible, and I can guarantee an increase of about 30% every year."
This will significantly increase your company's market share.
…………
After talking for another three hours, Kumagai Hide gradually lowered his bottom line.
200万像素的给到了五美刀的价格，500万像素给到了8美刀，800万像素13美刀。
The 1-megapixel camera costs $100 each, while the 50-megapixel camera is practically free, priced at $0.5 each.
Liu Fang shook her head again.
"Slash it again."
"5-megapixel camera up to $500, 8-megapixel camera $800."
Kumagai Hide's eyes widened: "Liu-san, Sony will lose money at this price."
"We can't explain this to the board of directors, you..."
"No." Liu Fang took another document out of her bag. "This is our BOM cost analysis. There might be some error, but not much."
When Kumagai Hide saw the document, he froze.
It's not that the data above is outrageous, but rather that they are actually quite similar.
Liu Fang pointed to one of the pages of the document: "A 500-megapixel module, consisting of a CMOS sensor, lens assembly, PCB, and packaging, has a total cost of approximately $3.8 with mass production."
Here's five dollars for you, with a gross profit margin of 24%.
Sony's global business has an average gross margin of only 25%.
She placed the document beside her: "Mr. Kumagai, a 24% gross profit margin is not low in the electronics industry."
Moreover, this is a quantity of 1.7 million units, enough to keep your production lines running at full capacity for a long time. Most importantly, it snatched a large piece of the market from Sanson and OmniVision. You should understand this principle.
Hideki Kumagai remained silent for a long time before asking a question.
"Mr. Liu, where did you get this BOM cost? There must have been internal collaboration involved, otherwise it wouldn't be so accurate."
Liu Fang smiled and said, "Mr. Kumagai, you're overthinking it."
Transsion doesn't just sell mobile phones; it also does recycling and dismantling.
Last year we disassembled more than 2000 million mobile phones, most of which were equipped with Sony cameras.
She looked at Hideki Kumagai: "We can calculate the cost of each one."
Furthermore, we can promise to pay 15% of the purchase price upfront for your production, then pay the remaining 20% once the goods are shipped, and finally pay the balance within three months of the goods arriving.
Mr. Kumagai, you can consider this proposal.
Liu Fang also made a gesture of invitation... indicating that they should go to another meeting room to discuss the matter.
This unexpected turn of events, instead of angering Kumagai Hide, actually made them nod silently in agreement.
…………
At 9 p.m. that evening, the contract was finally signed.
500 megapixels: $5.1
8 megapixels: $8
200 megapixels: $1.5
The 100-megapixel and 50-pixel lenses are practically free, priced at 0.6 and 0.3 respectively...
Both sides compromised and settled for a middle ground.
Liu Fang won a great victory in this battle, after all, she only retreated by 500 megapixels, while Sony made concessions on everything else.
When signing, Kumagai Hide's hand trembled slightly.
While the low price is a factor, the more important reason is the sheer volume of the order, which helps him maintain his position within the company.
After all, although Sony sensors are very good, they are mainly used in professional cameras, and their market share in the mobile phone market is not actually high.
Hideaki Tanaka was also a little excited. Although Mr. Kumagai signed the order, he was the first person to handle it, and the order could also determine whether he could be promoted to department head next year...
After Liu Fang finished signing, she stood up and formally bowed to Kumagai Hide.
"Mr. Kumagai, thank you for Sony's trust."
This order may be just the beginning; depending on market changes, we may place more orders this year.
After all, China and Africa are the two fastest-growing markets in the world.
Hideki Kumagai paused for a moment, then bowed in return.
"Mr. Liu, your reputation is well-deserved. I wish us a pleasant cooperation."
We will deliver the goods as soon as possible, and we hope your additional order will arrive soon as well.
"It's a pleasure working with you. Our next stop is Sharp. You can earn a small information fee."
Liu Fang then gave Kumagai Hide a look.
Hideki Kumagai immediately understood the reasoning behind this: he had to make up for the loss he suffered here by taking it out on Sharp.
…………
As they walked out of the Sony building, Liu Fang and the rest of her team were all beaming with smiles.
"Mr. Shen, the contract is signed. Except for the 500-megapixel lens, which we gave them a little face by raising the price by $0.1, everything else perfectly meets our expectations."
Ten seconds later, Shen Fei replied: "Thank you for your hard work. I'll celebrate with you when I get back."
Liu Fang looked at the words and smiled.
When I first visited Sony last year, I waited in the reception area for half an hour, only to meet with an ordinary employee. After talking for 20 minutes, I was dismissed.
Now, Sony's vice president has to personally greet them, discuss things with them, and agree to their incredibly low prices.
Times have really changed.
According to the information revealed by Hideki Kumagai, things are also going smoothly at Sharp.
Yoshinori Hasegawa offered the lowest price directly: 480p screen, custom sizes of 4 inches and above are available (standard sizes are 3.3 to 3.7 inches), capacitive touchscreen, and a flat price of $12 per unit for orders exceeding 2000 million.
720p screen, can be produced from 4 inches to 4.6 inches, Sharp ASV technology, TFT LCD, 1670 million colors, capacitive touch, LED backlight.
For orders exceeding 2000 million, the price was set at a minimum of $28.
However, there is one requirement: the payment method for the goods must be the same as the final payment method for the sensors.
These prices were all the lowest in the industry. Liu Fang symbolically cut $1 off each item and signed a huge contract totaling 5000 million.
The total contract amount is US$8.7 million.
…………
1 month 21 number.
Liu Fang returned to Guangzhou.
Shenyang Aircraft Corporation (SAC) held a small celebration party at its headquarters. There was no champagne or cake, just a dozen or so people gathered around a barbecue and drinking beer.
Huang Tianya raised his glass: "Liu Yidao, those two cuts were well done."
Liu Fang punched him lightly, laughing and scolding, "Who's the knife? I was clearly there to discuss cooperation. We're having a friendly collaboration. Don't make me sound like a crazy woman."
Shen Fei sat in the main seat, watching the group of people make a fuss, a smile always on his lips.
His key personnel are all assembled, and the future looks promising. The next step is to use the limited time available to teach Jobs how to make a mobile phone.
[Steve Jobs: It's going to be gone so soon?]
Wang Mengyang chimed in, "President Shen, the battery target for this year is 240Wh/kg, and we should be able to achieve it ahead of schedule."
Shen Fei nodded: "No rush. Let's take it slow."
He paused briefly: "This year, Transsion's goal is not to run the fastest, but to run the most stable. Batteries are of paramount importance; they must be safe."
Wang Mengyang nodded silently; he understood the principles of technological security.
"Mr. Liu, would you like to say a few words at the annual meeting tomorrow?" Shen Fei said with a smile.
"Boss, let's not go for it, we don't have the eloquence..." Liu Fang said with a smile.
"Haha!" Everyone around burst into laughter!
Liu Fang, who dominates the supplier market, actually claims that she is not good at speaking!