Chapter 3184 Surrender

Zhou Shaoning said in a deep voice: "So the situation we are facing now is far more complicated than Samsung. Samsung has a strong motivation to quickly reconcile with Ericsson, but we can't. My team has gone through repeated evaluations in the past few days. We think it is more appropriate to suspend the use of MediaTek and self-developed chips in India.”

Zhou Buqi opened his eyes wide, "What do you mean? Really surrendered?"

"Surrender is the only way to maximize benefits."

Zhou Shaoning didn't look like he was joking at all.

Zhou Buqi frowned, "In the short term, accept the injunction from the New Delhi court, refuse to accept Ericsson's plan, and start a tug-of-war with them?"

Zhou Shaoning smiled and said: "Yes, that's what it means!"

"Then you have to give a good reason."

Zhou Buqi accepted all the gifts and agreed to accept Li Zairong's oil painting. He came to China soon, and he came over to ask for an alliance to fight against Ericsson. However, Kawaii Star chose capitulationism, which made Boss Zhou feel a little embarrassed.

Zhou Shaoning said: "The first is Qualcomm. Qualcomm hopes that we can reduce the share of MediaTek and self-developed chips to expand the procurement of Qualcomm chips. In the past year, we have had friction with Qualcomm in many aspects. I think this time... …There should be some concessions to ease the relationship between the two parties. They chose to attack us at this point in time, which is actually a timing of the listing, which can be regarded as a conspiracy.”

"Well, no matter what happens, there is no need to interfere with the listing plan."

As soon as Zhou Buqi heard that it was related to going public, he became cautious.

There are many shareholders behind Asda, and listing will satisfy everyone's interests. If something happens to affect the normal IPO process, for many investment institutions, they will not be able to complete the task targets they set at the beginning of the year.

Once the indicators cannot be achieved, many investors will lose their jobs.

This is the reason for the "power of capital". It is actually the power of the system. It is not that money is a deterrent, but that the people behind the money may go crazy.

If you destroy people's jobs, they might fight you!

It would have been okay if Asda had not started the listing process, but now it has started to implement it, and the management has also included this item in the new year's fundraising, investment and dividend strategies. Once the IPO is stranded, it will have a huge impact on the capital market, and many large capital institutions will be in trouble.

This is like a woman who is either aloof and indifferent to her pursuers. But after dinner and a movie, you and I went to a hotel to book a room together, and he took off his pants... At this time, you said that you are very traditional and keep your integrity. It is really not surprising that someone went crazy and did some illegal things.

Zhou Shaoning said: "Samsung is different from Asda. The Korean market is very small, and Samsung's self-developed chips are mainly for overseas markets. Ericsson can handle Samsung in India, and it can also be done in developed countries in Europe and the United States. Samsung has to Accept it. We are different.”

Zhou Buqi instantly understood what he meant, "In the domestic market, Ericsson's intellectual property prosecution may not be effective!"

"It's not impossible, it's certain." Zhou Shaoning has great confidence in this. "Taken together, the patent fees for global smartphones are generally between 8% and 10% of the selling price of the mobile phone. I'm talking about Europe, the United States, In developed countries such as South Korea, Japan and Australia, it is different in many developing countries. The royalties of mobile phones generally only account for 3% to 5% of the sales price in China.”

Zhou Buqi nodded, "The more economically developed the region, the more attention it pays to the protection of intellectual property rights."

Zhou Shaoning explained: "This is inevitable. They have first-mover advantages. Standard patents in those industries are basically in the hands of developed countries, and their protection is definitely the strongest. Similarly, the weaker the intellectual property rights of countries, The protection of intellectual property rights will tend to be weaker, and it is in their interests to be weaker.”

"India?"

"India is an exception this time. India's protection of intellectual property rights has always been very poor and is notoriously poor around the world. This strong performance must be due to the greater commitment of Qualcomm and Ericsson behind it. And India's performance in By promoting 'Made in India', they also hope to restrict foreign mobile phone manufacturers to gain market space for local mobile phone manufacturers."

"Yeah." Zhou Buqi understood what he meant, and it really made sense. "So Aisda's domestic mobile phones can actually pay lower patent fees than overseas versions of mobile phones." Zhou Shaoning said with a smile: "This is indeed the logic, but in patent negotiations, regions are not divided, but all businesses are discussed."

"Um?"

Zhou Buqi opened his eyes wide.

Zhou Shaoning said: "Mobile phones equipped with MediaTek and self-developed chips cannot be sold in India. It is conceivable that they cannot be sold in developed markets in Europe, the United States, South Korea and Japan. However, these mobile phones can be sold domestically, in Latin America and Africa , there will also be sales opportunities in the Middle East market.”

Zhou Buqi was delighted, "So even if we refuse to negotiate with Ericsson, we can still mass-produce mid- to low-end mobile phones equipped with MediaTek and self-developed chips. But these mobile phones cannot be sold all over the world. We need to find Ericsson can’t do anything about sales in countries that don’t protect intellectual property rights enough!”

Zhou Shaoning said slowly: "If we negotiate with Ericsson now, it is almost impossible to achieve a result. Because once we negotiate, Ericsson will demand the global market and charge for all mobile phones produced by Asda equipped with MediaTek and self-developed chips. Patent fees. This means that many places that do not need to pay patent fees are forced to pay patents, just like using Qualcomm chips.”

Only then did Zhou Buqi realize how expensive Qualcomm chips were.

This is a global patent binding!

If someone else’s solution is adopted, there will be no global binding patent, and there will be huge room for evading patent fees. If you are not satisfied, you can talk slowly and fight for it slowly. You have a good plan, and I have a wall.

To purchase Qualcomm chips, you have to pay Ericsson a patent fee of approximately US$2.50. If you don’t use Qualcomm’s chips, you have to pay a $5 patent fee. At first glance, it doesn't seem like there's much difference.

But in fact, the difference here is not between US$2.50 and US$5, but between US$0 and US$5.

In many markets, there is no need to pay royalties to Ericsson.

Ericsson now wants not only a US$5 patent fee, but also a US$5 patent fee for mobile phones in all markets around the world. This requirement is a bit too high and seriously goes against the interests of mobile phone manufacturers.

Not just Asda.

It can be said that all domestic mobile phone manufacturers will encounter such troubles.

The solution is also simple.

As Zhou Shaoning said, the worst case scenario is not selling in restricted countries, but only selling mobile phones equipped with Qualcomm chips to those countries.

Zhou Shaoning said: "Mobile phones using MediaTek and self-developed chips are often low-end phones. There is no market for such mobile phones in developed countries and regions. Where there is a market, intellectual property protection is not strong enough. This is Provided us with options.”

Zhou Buqi said slowly: "In the field of mid-to-high-end mobile phones, we still have to rely on Qualcomm chips. But in the mid-to-low-end mobile phone market, it is not impossible to release several mobile phones with MediaTek and self-developed chips. As you said, Sharding management.”

"Yes, shard management." Zhou Shaoning smiled, "If there is no ban, you can sell mobile phones with MediaTek and self-developed chips to avoid the patent fees of Ericsson and other patent parties. You can basically escape 10 US dollars per mobile phone. In places like India where there is a ban, we will all use Qualcomm chips and surrender to Ericsson instead of going head-to-head with them.”

"In this way, we can save a lot of costs every year. So the one who is anxious should be Ericsson. The longer it is delayed, the more serious the damage will be to Ericsson."

Zhou Buqi thinks his idea is very good, very complete, and very consistent with the style of the domestic IT industry.