Chapter 588 - 421: The Death of Knockoff Phones? Orange and Its 2 Little Brothers

At two o’clock sharp, Lei Yijun smoothed the wrinkles on his clothes and walked to the center of the stage.

Staff from Penguin, Youku, and YY were already in position. The moment he took the stage, they immediately adjusted their camera angles, focusing their lenses on Lei Yijun.

After all, Orange Technology’s last product launch had generated massive traffic and buzz through its livestream, a model Xiaomi was naturally keen to emulate.

Lei Yijun took a deep breath. He knew in his heart that Zhou Hongyi was definitely lurking in one of the live streams, watching his every move.

The Hongmi 1 was a gift for Chen Yansen, but it was also a "gift" for Zhou Hongyi.

He was eager to see just how the 360 F1 would compete with the Hongmi 1.

In fact, Lei Yijun wasn’t wrong. Zhou Hongyi watched and sneered, "360 Mobile Phone never holds product launches. Has that ever affected our sales?"

"Hello, everyone. I’m delighted that all of you could join us here today at the launch event. First, I want to thank the 10 million Xiaomi Mobile Phone users. It is because of your support that Xiaomi is where it is today."

"So, today I will be bringing you four new products, all made with the utmost sincerity."

Lei Yijun clicked a button on his remote, and the image on the large screen behind him switched, revealing a brand-new Xiaomi Mobile Phone.

The Xiaomi 2S!

From the naming convention alone, it was clear this product wasn’t revolutionary, but simply an upgraded version of the Xiaomi 2.

It featured a 5.0-inch touchscreen, a Snapdragon 600 quad-core processor, a 2GB RAM and 16GB storage configuration, a 3-megapixel front camera, a 16-megapixel rear camera, and a 2000mAh battery. It came in two versions: one with Aurora OS and one with Aurora Future OS.

The standard version was priced at 1,999 yuan, while the 32GB high-spec version was priced at 2,299 yuan.

Compared to the Xiaomi 2, the Xiaomi 2S featured optimized upgrades in processor performance, camera configuration, and its browser.

Though its hardware specs couldn’t match Orange’s C series, its 1,999 yuan price tag would definitely crush a host of competitors, such as other phone manufacturers like HTC, OPPO, and Meizu.

When the audience below the stage saw the 1,999 yuan price, they couldn’t help but smile knowingly.

For three years straight, the price of Xiaomi’s flagship model had seemingly never changed, always holding steady at 1,999 yuan.

For users who couldn’t afford an Apple, a Yaocheng X1, or a Mountain Star Galaxy series, but looked down on thousand-yuan phones like the Qingcheng, the 360 F1, or the Xiaolajiao, the desire to buy a Xiaomi 2S was extremely strong.

Hua Country’s market was vast, with many different types of users. Even the most niche phones could find hundreds of thousands of potential buyers.

What’s more, with the Xiaomi 2S’s specs and price, it was enough to make anyone’s heart race in 2013.

This was especially true after Xiaomi Mobile Phone completely abandoned the MIUI system, which alleviated the old problems of overheating and lagging.

Although its sales volume didn’t match the 360 Mobile Phone, its reputation had improved dramatically since 2011.

Therefore, as soon as Lei Yijun finished speaking, the conference hall erupted in cheers. Someone even brashly yelled out, "President Lei is awesome!"

In the eyes of the users, companies like Orange, Xiaomi, and 360, which dared to sell at low prices, were undoubtedly warriors who weren’t afraid of pressure from their peers.

The wave of praise and flattery lasted for a full three minutes.

Only after Lei Yijun’s best efforts to calm everyone down did the noisy conference hall quickly return to quiet.

Next, he introduced the Xiaomi 2A. Its specs were similar to the Xiaomi 2, with only the processor having been upgraded.

The price was 1,399 yuan!

To put it bluntly, directly dropping the price of the Xiaomi 2 to 1,399 yuan would have easily caused dissatisfaction among existing users. So, they made some minor changes and released it as the Xiaomi 2A.

This product was mainly aimed at the low-to-mid-range market, and it could also siphon off potential customers from the 360 N2.

This was because the Xiaomi 2A and the 360 N2 were priced almost identically, but the 2A’s specs were a tier higher.

"The third new product is the really impressive one. It’s equipped with the latest Aurora Future OS. I’m sure many users already know that Aurora Future OS is much smoother to operate.

"After rigorous comparative experiments, the engineers at Xiaomi’s testing department came to a conclusion: under identical conditions, smartphones using Aurora Future OS are, on average, over 30% faster at launching apps.

"At the same time, this is also the first product in the Hongmi series. It features a 4.7-inch IPS touchscreen on the front, an 8-megapixel rear camera, a 2-megapixel front camera, a 2000mAh battery, and supports 720p video recording and dual-SIM dual-standby functionality."

Lei Yijun rattled off a long string of features in one breath, then paused before continuing, "Furthermore, the entire Hongmi 1 line has switched to Aurora Future OS. I believe in Orange Technology’s R&D capabilities. Support domestically developed systems, support the Hongmi phone, support Hua Guohong..."

"President Lei, what’s the price?"

Someone suddenly interrupted.

’Who hired this guy?’

’Doesn’t he have any sense at all?’

Lei Yijun grumbled inwardly.

Live comments began flooding the stream: "I’m guessing 899 yuan. President Lei hasn’t responded to Zhou Hongyi these past few days, so he must have been charging up a super move. The Hongmi 1 is the divine weapon to intercept the 360 F1."

"899 yuan? Same price as the 360 F1, that’s no advantage!"

"Could it be 799 yuan? No way!"

"499 yuan would be best! I’d buy one for my grandma to listen to Beijing opera. It’s a better deal than an MP4 player."

"Stop guessing. I’ve got inside info. The price is 399 yuan! If it’s not 399, I’ll eat shit on a livestream."

"Trying to scam a free meal again? I wouldn’t even give you the shit I take in a public toilet!"

Lei Yijun smiled faintly and quietly pressed the remote.

yuan!

The incredibly eye-catching price filled the entire LCD screen!

"It really is 799 yuan! Awesome!"

"I thought the Qingcheng D2 and 360 F1 were already unbeatable, and now there’s a Hongmi 1. The thousand-yuan phone market is about to become a bloodbath."

"President Lei even ditched the Aurora OS version to support a domestic phone system."

Watching the live comments, Zhou Hongyi couldn’t help but curse under his breath, "Bullshit!"

Did he not know Lei Yijun?

’Chen Yansen must have given Lei Yijun some extra support. Otherwise, with Lei Yijun’s personality, there’s no way he would have switched the Hongmi 1’s operating system entirely to Aurora Future OS!’

’The production plan for the 360 F1 must be adjusted!’

Zhou Hongyi secretly made up his mind.

「Elsewhere.」

The Xiaomi product launch was still underway. Lei Yijun was now introducing the final new product—the Xiaoxiao Smart Speaker.

Aside from a different appearance, the Xiaoxiao Smart Speaker was functionally similar to the first-generation Moss Smart Speaker. The biggest difference was that it used a Celestial Craft T100 artificial intelligence chip, making its performance far superior to the first-gen Moss.

And it was priced at only 599 yuan!

That was 200 yuan cheaper than the first-generation Moss Smart Speaker and 400 yuan cheaper than the Moss M7.

In other words, the Xiaoxiao Smart Speaker had taken over the low-end market.

Everyone in the industry knew that from hardware and software to manufacturing, the Xiaoxiao Smart Speaker was inseparable from the support of Orange Technology.

On the surface, Xiaomi looked like an independent phone brand, but in essence, it was one of Orange Technology’s little brother companies.

Its 799 yuan price point was on par with the Qingcheng D2. Although its specs were slightly inferior, it was still an indispensable and excellent product in the national market.

If the Qingcheng D2 hadn’t stirred things up, the Hongmi 1, following its original trajectory, could have sold 20 million units in a year!

That was even though the original version of the Hongmi 1 was prone to lagging, had little storage space, a poor camera, and insufficient battery life.

This showed that when users in the low-end market bought smartphones, price came first, while the screen and speakers came second.

"Knockoff phones are finished! They’re doomed!" Luo Yonghao, who was in the audience, muttered to himself.

Besieged by the Qingcheng D2, Hongmi 1, and 360 F1, all knockoff phones were going to be wiped out.

Their only options were to transform or wait for death.

After watching the livestream of Lei Yijun’s product launch, the knockoff phone bosses in Huaqiang North were so furious they felt like immediately sending people north to take out Chen Yansen, Zhou Hongyi, and Lei Yijun.

"Those bastards! They’re not leaving us any way to survive!"

Knockoff phones were generally sold for 699, 799, or even 999 yuan. In some remote rural markets, the gross profit on a single phone could be as high as three to four hundred yuan.

Honestly, it was more profitable than arms dealing.

Now, with the Qingcheng D2, Hongmi 1, and 360 F1 available, who would be foolish enough to buy a knockoff phone?

After all, Chen Yansen was a major shareholder in Jingdongfang, allowing him to procure a batch of 4.5 to 5.5-inch touchscreens at the lowest possible prices.

Judging by specs alone, these new phones looked more like knockoffs than the actual knockoffs!

They casually boasted large screens of 4.5 inches or more, dual-SIM dual-standby, and oversized speakers, making them extremely popular in the rural market.

「Meanwhile.」

After the press conference, Lei Yijun arranged a small-scale dinner party.

Huang Renxun kept a smile on his face the whole time, carefully waiting on Chen Yansen, Yu Chendong, and Lei Yijun, hoping the three of them would purchase NVIDIA’s mobile processors.

Perhaps a decade or so later, Huang Renxun would be worth hundreds of billions of US Dollars, a celebrated figure wherever he went.

But in 2013, he was still just a junior.

Chen Yansen was indifferent to him, Yu Chendong offered a few noncommittal words, and only Lei Yijun, who was looking to restructure his supply chain, showed Huang Renxun a bit more enthusiasm.

But to be frank, even that enthusiasm was very limited.

Although Huang Renxun felt aggrieved, he could only endure it, not daring to show any anger.

Before leaving, he approached Chen Yansen and said, "Mr. Chen, I will do my best to facilitate our cooperation, but I can’t guarantee the 3% equity stake. I hope you can understand."

"No problem," Chen Yansen replied nonchalantly, then left with Old Gao and the others.

If Huang Renxun could handle major shareholders like Vanguard and BlackRock, Senlian Capital would gladly take a stake. If not, it didn’t matter.

The sales launch for Xiaomi’s new products was set for 10 a.m. the next day.

Lei Yijun wanted to build up more user demand and release it all at once the next day to set a higher sales record.

He wanted Zhou Hongyi to know that 360’s victory in 2012 was an unfair one.

Did he think Xiaomi didn’t know how to make low-end phones?

’799 versus 899. The advantage is mine!’

Lei Yijun thought with brimming confidence.

That evening, Huxiu.com posted a special report with the headline: "The Twilight of Knockoff Phones: A Classic Case of Good Products Driving Out Bad Is Unfolding in the Mobile Phone Industry."

IT Dark Horse’s headline read: The Death of Knockoff Phones: Orange Technology and Its Two Little Brothers Are About to Reshuffle the Thousand-Yuan Phone Market!

"Knockoff phones should have died a long time ago! They cost three or four hundred to make but they dare to sell them for a thousand. How many people have they scammed?"

"As a user of a Dabolu phone, I have one thing to say to Chen Yansen: Well done!"

"The Qingcheng D2 only costs 799 yuan. Where do knockoff phones get the nerve to sell for 999 yuan?"

The comment sections were filled with angry remarks.

Although knockoff phones had played an important role in the domestic market for the past seven or eight years, alleviating the plight of users who couldn’t afford a phone, it was also a fact that their products were shoddy and their prices were high.

The next day, the Hongmi 1 went on sale. In just one hour, it sold a terrifying 57,000 units.