"Wu Kai, add 20 sets of cell phone production lines for me."
"20 sets? F * ck, Boss Chen, are you on steroids?"
"Senior, you don't have the guts?"
"It's not that I don't have the guts, but 20 sets of production lines is too risky."
After signing the contract with the major cell phone manufacturers, Chen Yu called Wu Kai over.
Previously, he had been in charge of the OEM business.
However, when Chen Yu said to add 20 sets of production lines, Wu Kai was scared out of his wits.
"If we don't take risks, how can we do our OEM business? If we don't take risks, how can we compete with Foxconn?"
Huanyu Technologies had always been in the OEM business.
However, most of the time, Huanyu Technologies produced for themselves.
As for the OEM, the volume was not particularly large.
For example, they were the OEM for Huawei.
However, other than Huawei, most companies produced and manufactured by themselves.
This model was called IDM in the international market.
IDM was called International Integrated Components Supplier. To put it simply, they did everything in one go.
They designed, manufactured, packaged, tested, and ultimately sold the downstream consumer products themselves.
The advantages of this model were obvious.
Because everything was done by themselves, the quality control of the products was much better than the OEM.
At the same time, they could integrate and utilize resources and had a technological advantage.
In addition, the profits were higher because of the side business.
Of course, the most important thing was that their own manufacturing would not be controlled by other manufacturers.
However, this model also had its disadvantages.
It made the company large in scale, and the management and operating costs were very high. Because it required a lot of investment in all aspects, the return on capital was relatively low. Also, because it seemed like they could do everything by themselves, when they really did it, they would realize that they did not do a very bad job in any aspect, but they did an average job.
In the market environment, electronic products had to go through four stages.
Design, manufacturing, testing, and marketing.
Among them, the least profitable were manufacturing and testing.
The most profitable business was design and marketing.
Looking at it from another perspective, if they were solely responsible for design and marketing, they would undoubtedly save more money.
It was the same for Huanyu Technologies's OEM business. Although it seemed that Huanyu Technologies was the least profitable out of the four segments, their OEM technology was the most advanced. This greatly increased the efficiency of the entire cell phone manufacturing process. If the quantity was small, it might not be obvious. However, if the quantity was large, it would have a huge advantage in terms of cost control.
Since Chen Yu had taken on so many orders, the first thing he wanted to do was to make his scale as big as possible.
As long as the scale of the OEM increased, Huanyu Technologies' manufacturing cost would be lower.
The lower the manufacturing cost of Huanyu Technologies, the more other mobile phone manufacturers would rely on Huanyu Technologies.
In that case, even if the domestic cell phone manufacturers survived the crisis in the future, many cell phone manufacturers would probably have to consider if they really wanted to take it back and do it themselves.
That was why Chen Yu asked Wu Kai for 20 sets of production lines.
Facing 20 sets of production lines, Wu Kai was also shocked by Chen Yu's move.
"Foxconn, you want to fight with Foxconn?"
"Can't we?"
"I don't think we have the ability."
"Not now doesn't mean we won't in the future. We need to accumulate the ability to challenge Foxconn now."
Although Foxconn's technology was far inferior to TSMC.
Moreover, anyone could do the OEM business.
However, when your OEM business reached a certain volume and monopolized more than 50% of the global market.
Then, you would have a huge say in this.
Most of the time, the series of products that you produce will depend on your judgment.
This was also one of Chen Yu's plans to fight back against the European and American technology giants in the future.
"Okay, you're awesome. My judgment is not as good as yours. However, we don't have the money. "
Wu Kai spread his hands and expressed that even if he wanted to create so many production lines, he could not do it.
For a production line like an electronic product, each production line was around tens of millions.
Of course, there were also small production lines that could be done with a few hundred thousand.
However, these production lines that cost hundreds of thousands could only produce a few phones a day.
With 20 production lines added up, Wu Kai estimated that at least 500 million would be invested.
This required a huge investment of gold and silver.
"Money is indeed a problem."
Previously, in order to acquire the two major home appliance supermarkets, Chen Yu had emptied his pockets.
Although it was not that Chen Yu could not take out a few hundred million now, after all, Huanyu Technologies had a lot of money in the past.
However, if he continued to take out money like this, it would be very disadvantageous for the company.
If the entire group was always in a situation of shortage of funds, if something went wrong, it would be the end of everything.
Chen Yu had done this once before, and he would not do it again.
Although the funds were tight, it was not impossible to solve this problem.
"Wu Kai, don't worry. We are a little nervous, but there are people who are not."
"Borrow from others?"
"Who would be willing to lend you a few hundred million at once? Why don't you ask your father?"
"My father can't get 500 million cash flow even if he goes bankrupt."
"Then forget it."
"Boss Chen, is there anyone else who has money?"
"Stupid, we don't have money, but Wang Xuehong does."
Chen Yu patted Wu Kai, and Wu Kai suddenly understood.
Huanyu Electronics was not the only company in Huanyu Technologies. Back then, he had also brought in HTC from Tai City, which was also known as Hongda Electronics.
It was also because of Hongda Electronics that Huanyu Technologies' OEM technology improved to a new level.
Now, the entire business had improved by leaps and bounds, leaving a group of competitors behind.
Chen Yu might not have money, but for the daughter of the God of Business, Wang Xuehong, she was a super-rich woman.
However, Chen Yu did not think of Wang Xuehong to let Wang Xuehong pool the money.
Logically speaking, a business expansion like this should be based on the proportion of shares.
If you don't pool the money, sorry, then your shares will be diluted.
Chen Yu thought of Wang Xuehong, but he wanted her company, Hongda Electronics, to take care of the entire bill.
In other words, Chen Yu did not plan to pool a single cent.
If he did not pool the money, then his shares would be diluted?
How could that be possible?
As the major shareholder of Huanyu Electronics, who could dilute Chen Yu's shares?
As for not wanting to pool the money and not wanting to give up the shares, how could Wang Xuehong agree?
That would depend on Chen Yu's ability to bluff.
"You don't say, Wang Xuehong is really rich."
Wu Kai also smiled.
"That's it then, I'll go to Tai City tomorrow. Oh right, how's our Pear phone coming along? "
In the past, Huanyu Technology had produced low-end phones and ultra-low-end phones.
Of course, they had also made mid-to-low end phones.
But they had never made mid-to-high end or even high-end phones.
It was not that they did not want to do it before, but because the conditions were not ripe and the time did not allow it.
To establish their own mobile phone brand, mid-to-high end and high-end phones were a must for any mobile phone brand.
It could even be said that no matter how well a mobile phone sold, if there was not a mid-to-high end or high-end phone brand, then in the eyes of ordinary consumers, the mobile phone brand was just a normal mobile phone brand. The mobile phone brand would never be able to compete with Nokia, Sony, Samsung … these giants.
Therefore, during this period, Huanyu Technologies had been quietly developing mobile phones.
The Pear phone was to be launched by Huanyu Technologies, and so far, Huanyu Technologies' most high-end mobile phone.
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