Global monopoly of technology

Luo Sheng didn't know that the other party was reminiscing about his glorious achievements, but it was not important. He immediately said with a smile: "We Chinese people like a compromise solution, the so-called middle way, the middle way."

Mollenkopf said quietly, "I would like to hear the details."

Luo Sheng immediately said: "Children only choose, as long as the conditions permit, I prefer to have everything. Therefore, my solution is that I will hand over the supply orders for the Greater China market to Huawei, while the international market supplies The goods orders will be handed over to Qualcomm."

After hearing the solution proposed by Luo Sheng, Molenkopf was secretly relieved. Although the solution was still unsatisfactory, in general it did not reach the worst outcome he had ever thought of.

There is no doubt that the Greater China market is very large, but compared to the global market, Qualcomm's share is obviously much more.

Just hold on to it.

Well, Mollenkopf felt that the boat of friendship with the Côte d'Azur could still be rowed happily.

But at this moment, Luo Sheng's next conditions directly made him want to overturn the friendship boat.

Luo Sheng added: "However, there is an additional condition, that is, Qualcomm's supply price must be basically the same as that of Hua, and your double charge is very unreasonable and needs to be cancelled."

For an Azure smartphone, Qualcomm earns 672 yuan in patent fees, which is approximately US$52.9. The annual patent fees paid by the Blue Coast to Qualcomm account for 55% of Qualcomm's annual revenue, which is as much as half.

This is also one of the reasons why Wah has smashed baseband chips for desperate money these years. Even if only half of Qualcomm's fees are charged, it is also a huge profit.

The high prices and high profits of Azure mobile phones lay out, and Qualcomm also followed the profits. It really has been earning money until now. When Huawei has not yet started, the domestic semiconductor industry chain strategic plan has not yet taken shape, Luo Sheng I can only endure paying "Qualcomm Tax" honestly.

Now that there are new choices, of course there are new bargaining powers.

From here, it can also prove the reason why Qualcomm can’t lose the big customer of the Cote d’Azur. Qualcomm’s current market value of 221.9 billion U.S. dollars, more than two-thirds of this figure, is close to 150 billion U.S. dollars. of.

Once lost, Qualcomm's market value will inevitably fall to about 80 billion US dollars. Worse than this, it will lose the future.

"Mr. Luo, this is impossible. It is the same as the supply price of Huawei? My Qualcomm's cost is a multiple of Huawei. There is no profit at all. This is what you mean by friendship?"

Mollenkopf's address to him has changed from "you" to "you", which shows that he is really impatient, and his expressions and expressions are quite dissatisfied.

Although he still does not know the price and cost of the baseband chip supplied by Huawei, he is very clear that Qualcomm will not be able to compete because of the labor cost, prepaid capital, supporting facilities and scale effect of China. Relative low cost is inevitable, and this is the embodiment of competitive advantage.

It’s not that Chinese entrepreneurs are willing to sell products low, but mass production under the effect of scale, the cost is lower than yours, and it was originally intended to open up the international market to grab your share and gain a price advantage. Why not fight?I sell lower than you. I can still make a profit. Why not?

On the other hand, competitors, if they don’t cut prices, they will see their share continue to lose.

Because of this, products made in China can spread all over the world, defeating one after another, especially the low-end manufacturing products. The shopping malls in western developed countries are full of various "magic drops". Products of.

Although the price of high-end technical products will not be the price of cabbage, the comparative advantage of the price is relatively speaking. Huawei's products can be sold cheaper than your Qualcomm, which is a manifestation of competitiveness.

Facing the excited Mollenkopf, Luo Sheng calmly said: "How can there be no profit? We can give you a weight to calculate the exchange difference. If there is a tariff on exports, you have no or low tariffs. Of course I don’t comment on your country’s imposing tariffs, but it can be established in the European market, and it can be established in other regional markets. After all, you can warn them with an aircraft carrier."

Mollenkopf said: "Even so, it can't be maintained. Mr. Luo, you seem to have forgotten the huge research and development costs."

Luo Sheng said: "This is your business, OK, if you really want to optimize and control the cost, I suggest you move the factory to our side, so that you can enjoy the same as Huawei. The advantages of scale and supporting facilities also hedge a huge part of the cost. Of course, this is just an immature suggestion, you can ignore it."

Mollenkopf instantly understood that he was trying to force Qualcomm to increase its investment in China.

Objectively speaking, Luo Sheng's proposal on these conditions is indeed beneficial to Qualcomm, but the problem is that the baby has long been calling for the return of manufacturing, and various multinational companies that threaten North America have quickly moved back from China.

The contradiction is here.

At this time, Luo Sheng added: "I haven't finished talking about Mr. Mollenkopf. If the tariffs on the North American market can be lowered, in the future, every Azure smartphone sold in North America will be paid by your company. The North American market remains unchanged. In the North American market, I can let a portion of the profits come out to make your company a little bit more, don't you say that I am not justified enough."

Mollenkopf said in his heart: I really thank you for your righteousness.

It is worth mentioning that the scalping approach in Mexico is not an academic style after all. Yeluzi’s short-term use is no problem, but it can’t be done all the time. There are often no wet shoes at the riverside station. Don’t lose out.

If Qualcomm can break the tariff barriers in the North American market, it will be good for both parties. It is reasonable for him to earn more. If the horse runs, he will have to pay. Horses eat grass.

But this is also equivalent to forcing Qualcomm to be the "tool company" of the Côte d'Azur. Mollenkopf certainly knew that Luo Sheng was for this purpose.

damn it!

He cursed a few words in his heart, and then said firmly: "Mr. Luo, this is too harsh for Qualcomm, we can't accept it."

Luo Sheng said calmly: "I am Party A. I have the final say. Your company must either agree to it or the friendship between us will end here. The choice is yours."

Mollenkopf dared not say: "You...!"

When I think that more than half of the company's income is derived from the Blue Coast, I can only dare not say anything.

To be suffocated, you have to hold back.

Luo Sheng added: "Your country is arguing about it every three to five. I am tired, and it may not be a bad thing to decouple early. There is a saying here, "Long pain is worse than short pain." A detonator that may detonate at any time is not as trouble-free as the two clearings, and it will be another year of hardship."

That’s how it is said, but in fact, if the Blue Coast and Bluestar Technology completely lose the international market, it is also very hurtful. Really, everyone is a loser. Luo Sheng is also trying his best to prevent this from happening, including showing Reebok Technology and other emerging potential leaders in the eight major semiconductor fields, etc., are all in order to maintain international market share.

This series of actions is a kind of deterrent in a sense, telling the other party plainly that I have an alternative plan.

Including what the head of Gaotong said is that it is very difficult for me to give up the international market, but I am tired, I don't want it, and I don't want to play with you anymore.

Luo Sheng has no lack of courage. He is betting that this group of multinational companies in North America are more unacceptable to the harm and risks of decoupling than himself, and will try to avoid them.

To put it bluntly, it is a company whose anti-risk ability is not as good as Luo Sheng.

Of course, you have to play a trick, so you can take the initiative in your own hands.

It's not that I don't want to decouple now, but I want to decouple. You can't decouple. You have to protect the cooperation between the two parties from breaking down, and the two sides have arrived.

Directly turn passive into active.

With the initiative, there is bargaining power, with bargaining power, there is control power, and with control, you can control the international pricing power of products.

At the end, Mollenkopf still said firmly: "Mr. Luo, Qualcomm cannot accept your proposal."

Sitting on the large curved sofa, Luo Sheng raised Erlang’s legs, and the big man shrugged his shoulders while sitting and spreading his hands: “Then I can only say that it’s a pity, but I still hope you can think about it. I can give you a week to think about it. So be it."

The video communication between the two parties was interrupted. Luo Sheng stretched out comfortably, glanced at the clock and said, "Gan. I have been talking with this boy for a long time, and I have kept my sister waiting for a long time."

Soon he left the large living room and went to the SPA room in the leisure area of ​​the building.

On the other hand, in the office of the CEO of Qualcomm's headquarters, in the middle of the night, Mollenkopf ended the remote video communication and shouted by himself: "Made Fak, damn Luo Sheng, want Qualcomm to be your pawn. Tools? Huh, as long as I am still in charge of Qualcomm, this will not happen unless the board fires me, I swear."

When have you experienced this kind of bird anger? When I think of the respectful appearance of the other party when negotiating with Xiao Mi and other manufacturers, I compare Luo Sheng, think about it and get angry. Mollenkopf is venting a few words. Yaliezhong left the company.

...