Tech Giants: Starting from Bankrupt Companies

224: Chapter 224 The Collective Anxiety of Domestic Mobile Phone ManufacturersLate at night, all over China.

In Guancheng, Guangdong, at the VIVO headquarters imaging laboratory.

3:00 AM, the laboratory is brightly lit.

Imaging Director Old Chen, 40 years old, stares at the comparison screen. On the left is the night scene sample from the HX2, and on the right is the night scene sample from VIVO’s latest flagship, the X23.

Same scene, same time.

HX2 photo: Lights are not overexposed, dark details are clear, and noise is almost invisible.

X23 photo: Highlights are blown out, dark areas are pitch black, and noise is obvious.

”The gap...” Old Chen mutters, ”is so big it’s like a product of two different eras.”

Engineer Xiao Wang says in a low voice, ”Director Chen, the HX2 uses a 1-inch large sensor, while ours is 1/1.7 inch. And their spark super energy imaging algorithm...”

”I know.” Old Chen rubs his temples, ”Hardware gap, algorithm gap, comprehensive gap.”

He picks up the phone and calls CEO Shen Wei.

”CEO Shen, not asleep yet?”

”Can’t sleep.” On the other end of the line, Shen Wei’s voice is weary, ”Seen the data for the HX2, right?”

”Seen it. We... can’t catch up.”

Silence.

Then Shen Wei says, ”Contact the Spark Department of Commerce. Ask if they are selling their camera modules and imaging algorithms. Price... is negotiable.”

”But that is the core...”

”We have to buy the core too.” Shen Wei interrupts, ”Consumers don’t care if it’s self-developed, they only look at the results. If the results aren’t as good as others, you will be eliminated. We used to buy Sony cameras, Samsung screens, Qualcomm chips, Panasonic batteries, we have always been buying technology, buying components, so why can’t we buy from Spark? Buy from whoever has more advanced product technology, not to mention everyone is a Chinese enterprise.”

Beijing, Xiaomi Technology Park.

CEO Lei sends a message to the company’s internal group:

”Brothers, you’ve all seen the Spark launch, right?

”We used to always say Apple is expensive, say Samsung has high premiums, say Chinese enterprises need to focus on price-performance ratio.

”Now Spark tells us: Top-tier technology can also have a reasonable price. The HX2 sells for 7999, with parameters that completely surpass the iPhone X and Samsung S9.

”This breaks the industry’s unspoken rule: High-end must be expensive.

”What will happen next? Apple and Samsung will lower prices, the mid-range market will be squeezed, and the price-performance route will become harder and harder to follow.

”Xiaomi’s only way out—cling to Spark’s thigh.

”I have already contacted Spark to discuss chip procurement and imaging technology licensing. We will use Spark’s technology to achieve Xiaomi’s pricing.

”This is not surrender, it’s recognizing reality. In the face of an absolute technological gap, sentiment and slogans cannot save the company.

”Let’s encourage each other.”

This internal statement was screenshotted and leaked, spreading wildly online.

Many people sighed: CEO Lei is still pragmatic.

Tonight is destined to be a sleepless night. After testing the HX2 phone, OPPO also gave up on its self-developed technology plan; the time cost and funding were not worth it, and it would be impossible to produce equivalent technology in 3-5 years. The only solution is to purchase Spark’s components and algorithms, otherwise, they will inevitably be eliminated by the market and surpassed by peers.

Shenzhen, Huawei headquarters.

Mr. Ren’s office light is on, the old man is reading a technical report.

10:00 PM, the phone rings.

It is Su Chen.

”Mr. Ren, haven’t rested yet?”

”I’m old, don’t sleep much.” Mr. Ren laughs, ”CEO Su, you won a big victory today, how do you have time to find me?”

”Thank you for the support, Mr. Ren.” Su Chen says, ”Huawei’s global channels helped Spark open up the situation. Also need to thank you for your communication technology support.”

”Mutually beneficial.” Ren Zhengfei says, ”If your mobile phones sell well, our 5G base stations can be deployed faster. Besides, we also own half the shares of Huaxing Mobile Phone, it’s all our own company. By the way, next month our Mate 20 series will be the first non-direct product to be equipped with Spark’s full-stack technology. Please give your support, CEO Su.”

”chip, imaging, battery, fast charging, the whole set.” Su Chen confirms, ”Wishing the Mate 20 big sales.”

”But I want to remind you.” Mr. Ren’s tone is serious, ”You touched too many people’s cakes today. Apple, Samsung, Sony, GoPro... Tomorrow, they will try to get it back on batteries. Power batteries are a trillion-dollar market, involving more interests.”

”Then let them see.” Su Chen’s voice is calm, ”What is an absolute technological barrier. In the face of absolute strength, any opposition is a paper tiger.”

”Are you sure?”

”Gunshot test.” Su Chen says, ”Live demonstration tomorrow, the battery won’t catch fire even if shot by a gun.”

The other end of the phone is silent for a few seconds.

Then Mr. Ren laughs: ”Good. Then I’ll just wait and watch the show.”

Hanging up the phone, Mr. Ren says to his assistant: ”Notify the terminal business department, all Mate 20 batteries are to be replaced with Spark semi-solid-state batteries. The price can go up by 20%, we want to make the first flagship phone with over 20 hours of battery life.”

”But the cost...”

”Cost is not the problem.” Mr. Ren says, ”Technological leadership is the problem. Spark gave us a chance to lead, we must seize it.”

He looks at the night outside the window, whispering: ”Chinese technology, it is finally time to set the rules.”