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

Chapter 216 Rice Impacts the Low-End Market, MediaTek Pays the Price

He picked up the rice-shaped phone and examined it for a long time, turning it over and over. He also glanced at the Honor 3 and Honor 3 Pro, which were still unopened next to him.

In terms of texture, at the price point of 1999, everyone is using plastic.

However, Honor's design is clearly more advanced and is more appealing to users.

Of course, it also has a fatal flaw: the four-inch 460P screen is a bit outdated.

But its excellent feel saved the day, and the system is the latest EMUI 2.0, which is significantly smoother than Android.

K3V1虽然是低频版，但28nm的工艺带来的续航优势是实实在在的，直接爆杀MSM8260（火龙S3）

In terms of multitasking, where dual-core processors have an advantage, the K3V1 is not particularly weak, and the performance difference with the system is not significant.

In short, the fire dragon has finished...

As for the Honor 3 Pro, it is clearly a product designed to compete with the Mate 2, but it is priced at around 2500 yuan.

The Taishan 600 dual-core processor runs much faster than the Honor 3, and the screen has been upgraded to 720p, completely solving the biggest problem and eliminating the difference in display quality.

Just as he was pondering how to solve the problem, Lin Bin pushed open the door and came in, holding a report in his hand.

"Mr. Lei, are the evaluation results out?"

Lin Bin's face showed a hint of joy, but he wasn't in a hurry.

After all, although the Honor 3 series was heavily criticized at the launch event, their products seemed very good, but they had a fatal crisis.

That's a 460 screen.

The entire industry is now using 720P, except for a certain international brand... Consumers' requirements for screens are no longer what they were a year ago.

The threat from Honor is actually not that great.

Lei Jun looked at the report for a while, but the expression on his face did not ease.

"Old Lin, we still don't have any advantage?"

雷布斯指着性能测评结果:火龙S3（MSM8260）娱乐兔跑分结果是4300分，荣耀3Pro的跑分大概在3500分。

In terms of performance, the Xiaomi seems to have a clear advantage over the Honor.

"Old Lin, ordinary users don't just look at benchmark scores. Most users are more concerned about battery life. The Honor 3 Pro has a super large 3800mAh battery, so its battery life is at least three hours longer than ours?"

"Old Lei, I know," Lin Bin said, looking at Lei Jun. "Isn't this the biggest problem?"

"What about the price?"

"Yes." Lin Bin finally showed a worried look on his face. "Once the Honor 3 series was released, their models were priced from 1000 to 4000. The Enjoy 799 and 999 models swept the low-end market, the Honor 3, 3 Pro and Honor Play held the mid-to-high-end market, and the Mate and Transsion S series competed in the high-end market."

Our Mi 3, priced at 1999, is directly outclassed by the Honor 3; we don't stand a chance.

Lei Jun got up and walked to the window.

The Mi series sold over 400 million units, and the Mi 2 and Mi 2s series also sold well, but it could never shake off the nightmare of Honor.

During the Series A funding round, all the investors told him that DaMi was the hope of China's mobile phone industry.

Many people also say that they are investing in him as a person, so a higher valuation is not a problem.

But only he knows how much pressure he was under.

Of course, this pressure was entirely self-inflicted. After all, at this point, he had promised the person making the promise that the annual shipment volume would reach 6000 million units within three years.

What does 6000 million units mean? That's the sales volume of Nokia, the world's number one, in a single quarter.

It's insane for a new brand to achieve Nokia's specifications within three years by relying solely on the Chinese market.

Ultimately, he believed he could do it.

The business model of internet-enabled mobile phones is to burn money to gain scale. If the scale doesn't increase, the costs won't come down; if the costs don't come down, the prices can't be lowered; if the prices can't be lowered, users won't buy.

This is an endless loop.

The only way to break the vicious cycle is to increase shipments.

But despite all his calculations, he hadn't anticipated Shen Fei's unexpected return, as the African hegemons had come back ahead of schedule.

"The Redmi project can't be delayed any longer?" You finally made this decision.

Lin Bin hesitated: "Mr. Lei, with supply chain prices so high right now, wouldn't Redmi be losing money if they made this?"

"We'll do it even if we lose money?" Lei Jun's voice was urgent, not because of the shipment volume targets, but because of the price range.

"Didn't you see how well the Enjoy series sold for 799? In less than a year since its launch, it has already shipped 4000 million units."

They make several million yuan on average every month, even if the profit margin on a single phone is very low.

Huawei has already brought the K3V1 down to the thousand-yuan price range, and it's only a matter of time before it hits the hundred-yuan market.

With only one self-developed processor, we can't even enter the low-end market.

Lin Bin also panicked. The biggest problem with the K3V1 was that it couldn't handle the 720 screen, which put the Honor 3 in a fatal crisis.

However, if this is implemented in the Enjoy series, it won't be a crisis for the product, but rather a unique feature...

"Old Lin, could you continue contacting MediaTek and discuss the chip price again?"

"We've already negotiated, and they said this is the lowest price they can offer."

Lin Bin is talking about the MTK6574 this time, which seems to be a level higher than the 6573, but in reality... MediaTek has once again performed a trick.

The chip's performance was not improved; in fact, the maximum clock speed was reduced to 502MHz, but it's still acceptable in the million-dollar price range.

"Then let's talk again." Lei Jun's tone was full of determination. "Tell them that the new MediaTek version of the Mi 3 is not a youth version, but a direct choice for consumers."

If they can lower the price by another 10%, we'll sign a three-year long-term contract covering the low-to-mid-range market. Except for the MTK6574, our annual purchase volume for other chips will not be less than 1500 units.

Lin Bin was intimidated by Lei Jun's boastful words.

1500 million units? That's twice the annual sales volume of rice, and that's just the MediaTek version?

"Mr. Lei, this amount..."

"I know," Lei Jun nodded, "but this is the only way. Only by increasing the volume can the cost come down."

Only then can we push the price of Redmi down to 799 yuan. Once Redmi has established a foothold and cultivated the market, we'll be qualified to continue competing.

"But can 3D rice really consume all these chips?"

"I just said that the Mi 3 will have an additional option, I didn't say that these chips will only be used by him."

A relieved smile appeared on Lin Bin's face; he understood.

MediaTek wants to move into the high-end market?

Then my rice company will use all your chips in low-end phones, and we'll all...

…………

One day later, at MediaTek headquarters.

Zhang Song sat in the conference room, looking at the contract in front of him, his hands trembling slightly.

Rice company, three years.

Mtk6574: 4500 million units sold in two years.

Flagship series: Used in flagship mobile phones, with an annual shipment volume of no less than 1500 million units for three years.

This was the largest deal he had ever closed since becoming an account manager.