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

Chapter 67 Lei Jun: Oh no, my luck...

Shen Fei humbly replied, "The Chrysanthemum Factory has a solid technical foundation; with a good mentor, the fire will start burning."

Aside from that funding, we didn't play a significant role.

"That funding is the key. Those parts are also very important." Ren Zhengfei said for a while, then continued to play with the phone.

After a while, he asked again, "So, what are your suggestions regarding pricing, Mr. Shen?"

Mentioning the price immediately piqued Shen Fei's interest. Of course, this wasn't just ordinary play; it was play with great potential, after all, in his previous life, a certain company had achieved widespread fame precisely because of this price.

I'm sorry, Mr. Lei!

Xiaomi's luck has been cut in half, but Lei Jun (CEO of Xiaomi) is believed to be able to turn things around with his marketing efforts.

At that moment, Lei Jun, who was working at Kingsoft, suddenly felt as if something had left him...

"1999, please."

"How much?" Yu Dazui thought he had misheard.

The office immediately quieted down. Yu Dazui and Ren Zhengfei both stared wide-eyed. Then, Ren Zhengfei, not believing it, picked up his phone and placed it in front of Shen Fei.

Is this phone priced at 1999?

"It is indeed 1999 Chinese Yuan," Shen Fei repeated.

Seeing that he wasn't joking, Yu Dazui immediately became anxious.

"Mr. Shen, that's impossible. Even at the cost price you gave, the hardware cost of Mate is close to 1800, and there's hardly any profit at 1999."

Keep in mind that this is a smartphone. Samsung and Nokia feature phones cost three or four thousand yuan, not to mention smartphones.

Apple's iPhone, if you convert it to any price, is around 5000, but we sell it for 1999...

"That's how you shock the market," Shen Fei said, showing no surprise whatsoever.

Initially, this price may not be profitable, and could even result in losses. However, once the volume picks up, it will definitely be a huge profit.

"Mr. Yu, I have a question for you."

How many people in China can afford a mobile phone that costs three or four thousand yuan?

"Three or four thousand, it would cost at least tens of millions or even hundreds of millions, but most people wouldn't spend that much money."

"How many people can afford a phone that costs 1999?"

"Well... well, this price is about the same as mid-to-high-end feature phones. As for smartphones, they're ridiculously cheap."

Most people could manage it if they gritted their teeth; the number is at least... over 300 million.

"So..." Shen Fei spread his hands. "Are we doing business with 1 million people, or with 3 million?"

Yu Dazui opened his mouth but didn't say anything; he was convinced.

"But 1999 is indeed too low." Ren Zhengfei shook his head slightly. "This price is indeed very attractive, but it is very likely that we will be trapped at this price, which is not good for the future."

Mr. Shen, please don't test us on this; we will fully support you.

Ren Zhengfei, having spent so many years in the business world, immediately understood the feasibility and shortcomings of the plan.

And they guessed Shen Fei's next move.

"Therefore, I suggest we take two separate routes."

Shen Fei combined the old path taken by the chrysanthemum factory in his previous life with the experience of rice production to create a more comprehensive plan.

"Therefore, Huawei should focus on its main brand and target the high-end market. I suggest pricing the first Mate model at 2599 RMB, positioning it as a premium product."

At the same time, we established a sub-brand to focus on the cost-effective market, and released two phones in succession.

Let's use these two phones to shake up the market, and then, leveraging our carrier channels, while foreign manufacturers are still dealing with the financial crisis, let's take the lion's share of the domestic market.

Then it accelerated the demise of feature phones.

"A sub-brand." Yu Dazui nodded slightly; that was a good idea.

But this involves naming, and then he glanced at Shen Fei cautiously.

"This plan is good... A dual-brand strategy can also better mitigate risks. I wonder what you think of this name?" Ren Zhengfeng's face immediately lit up with a smile.

When it comes to naming things, he really doesn't trust Yu Dazui.

An engineering student... what does he know about names?

"Let's call it Glory," Shen Fei said.

Then, looking at the two who were deep in thought, Shen Fei continued, "This plan is indeed a bit rushed. The first-generation Honor phone used the same design, the same chip, and the same system as the Mate."

However, the casing could be made of plastic, the camera pixel size could be smaller, the battery could be smaller, or a regular battery could be used directly.

The cost was reduced to around 1400 yuan, then the price was set at 1999 yuan, or even worse, 1799 yuan... and then rapidly expanded through telecom operators.

"Glory, bringing honor to one's ancestors..." A glint flashed in Ren Zhengfei's eyes, then he looked at Shen Fei.

"That's right, that's one reason, but its greater responsibility is to meet the sales targets of domestically produced mobile phones, which is also a great honor."

"It was I who was narrow-minded." Ren Zhengfei raised his teacup again and toasted Shen Fei.

Shen Fei raised his glass and said again, "Honor will be responsible for increasing sales volume, seizing market share, and cultivating user habits. Mate will be responsible for prestige, establishing brand image, and generating profits."

As the two brands expand the market, users will naturally upgrade to the higher-end Mate series.

As for Yu Dazui, he was taking notes and receiving private lessons from Shen Fei.

At this point, Shen Fei turned his gaze to Yu Dazui once again and asked a crucial question.

"Mr. Yu, if there were a phone that looked similar to the Mate, performed similarly, and was a few hundred yuan cheaper, which phone would users choose?"

Faced with this sudden problem, Yu Dazui felt that it wasn't so simple. Was there some kind of trap? So he thought about it for a moment.

He thought about it for a while, but it seemed like there wasn't anything wrong with it.

"What's there to think about? Consumers will definitely choose the cheaper one. Most users don't understand specifications; they only look at the appearance and price..."

"So..." Shen Fei nodded in satisfaction, then concluded.

"Honor's 1999 yuan price tag shocked the market and quickly boosted sales. The Mate set a benchmark and broke through to the next level."

We're pursuing a two-pronged approach, focusing on both sales and brand building. We're not short of money, so we can experiment and learn from mistakes.

Having plenty of money and being willing to try and fail made Ren Zhengfei think for a long time before finally nodding in agreement.

I agree.

But the Honor brand is definitely fraught with tension, so it needs to operate independently.

"Of course, I have the same idea. Even if President Ren doesn't bring it up, we should still separate it out," Shen Fei said.

"Honor can be placed under Huawei's terminal division, or, if Mr. Ren (Ren Zhengfei) is willing, it can be placed under our joint venture."

"Let's put it under Huawei's devices, otherwise Honor will be on the same level as Huawei's devices."

Shen Fei nodded. He didn't care about the problem; it didn't matter where it was placed, as long as the plan was followed.

He checked the date again: "Honor can wait a bit, then it can be the first to feature Taishan fast charging technology. This is an exclusive selling point that can quickly build reputation."

Yu Dazui was already excited: "Fast charging technology is about to go into mass production. When will Honor's first phone be released? I'll have the project team quickly cut some features."