#919 - Huaxing Communications
Apple won't be using 5G baseband chips this year. Next year, Apple will consider settling with Qualcomm to obtain 5G baseband technology!
Instead of letting Qualcomm snatch this business opportunity, it's better to let Huaxing Communications handle it!
After all, Huaxing Communications is investing heavily but lacks a real source of income, which is a somewhat abnormal situation for the company's development!
Generating income by selling 5G baseband chips is a viable direction for Huaxing Communications' development!
After all, if Apple doesn't cooperate with Huaxing Communications, it will eventually cooperate with Qualcomm!
Both Qualcomm and Apple are leading global companies!
If these two companies cooperate, the impact would likely be something Lu Haifeng wouldn't want to see!
After learning of Huaxing Communications' arrival, Cook hesitated slightly but ultimately decided to discuss it with them!
After all, 5G communication technology is an irreversible trend!
Apple has long been criticized for its communication technology!
Especially after Apple completely fell out with Qualcomm, Apple couldn't continue using Qualcomm's basebands!
This also meant that Apple phones lacked any advantage in communication technology!
Now, the arrival of Huaxing Communications is like sending charcoal in the snow for Apple!
"Huaxing Communications is now a relatively well-known communication technology company globally!"
"Currently, Huaxing Communications holds over 30% of global 5G patent technology, which means we have very strong communication capabilities!"
The person who came to Apple this time was Cheng Peng, the head of Huaxing Communications!
Cheng Peng was originally the vice president of Qualcomm but was later squeezed out by Qualcomm's senior management and shareholders!
Cheng Peng eventually left Qualcomm and joined Huaxing Technology, becoming the head of Huaxing Communications!
Cheng Peng not only possesses professional technical skills, but also has excellent vision in communication technology!
Having him as the head of Huaxing Communications is beneficial for its development!
After listening to what Cheng Peng said and looking at the relevant baseband chip data he handed over, Cook's face showed a hint of hesitation!
Hongmeng X10 chip, this is the first-generation external baseband chip developed by Huaxing Communications!
This baseband chip allows the phone to successfully connect to the 5G network, and also incorporates millimeter-wave reception!
5G communication is actually different domestically and internationally!
Internationally, it's mainly based on millimeter-wave network connections, and this Hongmeng X10 baseband chip can connect to 5G networks both in Daxia and internationally!
And now, this 5G baseband chip is a very good choice for Apple!
In terms of overall performance, it's not much different from the X50 baseband chip recently released by Qualcomm!
Moreover, this Hongmeng X10 baseband chip is relatively cheaper than the X50 baseband chip released by Qualcomm!
The 5G baseband chips released by Qualcomm basically cost around $30!
The price of Huaxing Communications' 5G baseband chip is very affordable, with each chip costing only about $20!
This price is about 2/3 cheaper than Qualcomm's 5G baseband chip!
And now, Apple's relationship with Qualcomm is very strained!
Even if Apple can reach a cooperation agreement with Qualcomm now, Apple would basically need to pay a certain amount of compensation!
Like the re-cooperation between Apple and Qualcomm in the original timeline, they compensated almost tens of billions of dollars, which is unacceptable to Apple!
Not only did they lose money, but their face was also slapped by Qualcomm, which is not what Cook wants to see!
And now, this 5G baseband chip does meet Apple's current needs!
Cook is also very satisfied with this 5G baseband chip!
However, Cook is also worried about being controlled by the other party, and even afraid that they will stop supplying goods after a cooperation is reached!
After all, Huaxing Communications belongs to the Huaxing Group, and Huaxing Technology now has three major mobile phone brands, which are competitors!
"We are very interested in the cooperation you mentioned!"
"However, we still have some concerns. I wonder how much your company's chip production is per year!"
Cook didn't directly agree, but wanted to first understand the production volume of the Hongmeng 5G baseband chip so that he could make his own decision!
According to Apple's annual mobile phone release situation, each generation of mobile phones basically has a hot-selling period of about two years!
The Apple X phone released last year counts, and the next-generation Apple 11 phone will continue to sell for another year after it comes out!
And the total sales of one generation of products in these two years can basically reach about 100 million units!
And Apple also needs enough 5G baseband chips to meet the production capacity of its products!
"This kind of chip is jointly produced by us and Huaxing Semiconductor!"
"The manufacturing process of this chip is relatively simple, and we can produce about 300 million of these chips a year!"
Cheng Peng looked at Cook's expectant look and stated the current production capacity of Huaxing Communications' 5G baseband chip!
Of course, the so-called production of 200 million units is just a conservative estimate by Cheng Peng!
According to the current level of Huaxing Semiconductor, producing such a baseband chip is much simpler than producing mobile phone processors!
The baseband chip itself is a part of the mobile phone processor, and even its volume is less than 1/5 of the mobile phone processor chip.
Huaxing Semiconductor has now expanded many production lines, and there is already excess capacity in processor production!
It is also very easy for Huaxing Semiconductor to produce more of these baseband chips!
Over 300 million units!
Cook was secretly pleased when he heard Cheng Peng's words!
Obviously, he now has his own ideas, after all, in his opinion, this is a very good opportunity!
"Apple is also very much looking forward to cooperating with your company. Of course, Apple needs at least 200 million 5G baseband chips every year!"
"If your company is willing, we are willing to sign a three-year supply agreement with your company!"
Cook now values this 5G baseband chip very much!
Some time ago, he even wanted to spend a lot of money directly to buy so many 5G baseband chips!
Signing for such a long time is also to ensure the interests of Apple!
In Cook's view, 200 million 5G baseband chips per year are a must for Apple, which will also enable Apple phones to better realize the advantages of communication technology!
