Chapter 58: Sanxin’s Intentions (Ch 826503145)

With Google announcing that it will add 18:9 display ratio and full-screen gesture operation to the latest Android system, the last piece of the full-screen technology puzzle has finally been completed.
This news instantly set off the entire technology industry, and the full-screen era officially began.
The full-screen support of the Android system not only means the maturity of hardware technology, but also marks the comprehensive adaptation of the software ecosystem.
For mobile phone manufacturers and screen panel suppliers, this is undoubtedly a huge opportunity, but also a fierce competition.
As the world’s largest screen panel supplier, Sanxin Screen Panel Co., Ltd. (a subsidiary of Sanxin Group) quickly held an emergency meeting after learning the news.
The atmosphere in the meeting room was solemn.
Li Zaiming, general manager of Sanxin Screen Panel, sat in the main seat with a gloomy look on his face.
He swept his eyes over every executive present and slowly said, “Have you all seen the recent news about full-screen displays in the Chinese market?”
As soon as he finished speaking, the screen behind Li Zaiming displayed the company’s order volume data for the past six months.
Compared with the first half of last year, order volume has directly decreased by 20%.
This figure is undoubtedly a huge blow to Sanxin, the world’s largest screen manufacturer.
Li Zaiming’s tone was filled with suppressed anger: “20% of orders are lost, what does this mean? This means that our position in the Chinese market is being shaken!”
The concept of full-screen has gradually emerged since last year, but Sanxin Screen Panel has always maintained a wait-and-see attitude.
Although there is more and more discussion about full-screen displays in the market, Sanxin executives believe that this is just a gimmick created by Chinese manufacturers to attract attention.
It was not until the second half of last year that Guozi Company found Sanxin and customized an OLED full-screen with a “bangs”.
As Sanxin’s largest partner, the demand for the fruit forced Sanxin to open a new production line separately.
However, Sanxin did not expand the production scale of full-screen displays, but continued to wait and see until the arrival of the full-screen era in China.
Li Zaiming admitted at the meeting: “We thought that full-screen was just a short-term trend and would not have much impact on the market. But now it seems that we were wrong.”
“Recently, a screen panel manufacturer in China has become particularly famous, called Huateng Microelectronics.” Li Zaiming said in a heavy tone, “This company not only proposed the concept of full-screen, but also took the lead in providing full-screen screens to major manufacturers in China.”
It can be seen from Li Zaiming’s expression that he is extremely dissatisfied with the rise of Huateng Microelectronics.
20% of the lost orders were almost all from the Chinese market. These orders were snatched away by a little-known Chinese company.
“Hua Teng Microelectronics, this company has only been established for two years, but it has already snatched a large number of orders right under our noses.” Li Zaiming’s tone was full of sarcasm and anger. “As a global screen panel supplier, when has Sanxin ever suffered such a loss?”
“Mr. Li, don’t worry. The screens produced by our company are always the best in the industry. Huateng Microelectronics is just taking advantage of the gimmick of full-screen…” an executive tried to comfort him.
“As long as we mass-produce full-screen displays and bring them to market, what does Huateng Microelectronics have to fear?” another executive echoed.
However, Li Zaiming’s expression did not improve, but became even gloomier.
He slammed the table and said sharply: “Stupid! You are so arrogant!”
“There is an old saying in China, I hope you remember it: Born in adversity, die in comfort!” Li Zaiming’s eyes were like knives, sweeping across every executive present.
“Do you think that Huateng Microelectronics just relied on hype to grab the order? Do you think that our Sanxin’s position is unshakable?” Li Zaiming’s tone was full of sarcasm, “If you continue to be so arrogant, Sanxin will be eliminated by the market sooner or later!”
Finally, Li Zaiming, as the general manager of the company, issued three important instructions:
Comprehensive transformation to full-screen production: Eliminate old production lines and fully embrace full-screen technology.
Increase cooperation with Chinese brands: open higher levels of screen purchasing rights to Chinese manufacturers.
Implement the “choose one of two” strategy: requiring partners to purchase Sanxin screen panels while not purchasing Huateng Microelectronics’ screen panels.
These three instructions made the executives present look stunned. The first instruction was expected, but the second and third ones took them by surprise.
“Mr. Li, is it inappropriate to open up higher-level screen purchasing rights to Chinese brands?” an executive asked cautiously.
Li Zaiming glanced at him coldly and asked, “Not right? Then tell me, how can we take back the lost order?”
“We can lower prices or increase marketing efforts…” another executive tried to make a suggestion.
“Lower the price? Increase marketing efforts?” Li Zaiming interrupted him with a hint of disdain in his tone, “Do you think Chinese manufacturers will care about that little price difference? What they need is a better product! If we don’t come up with a better screen, why would they choose us?”
“But will opening higher-level screens to Chinese brands affect our cooperation with Apple?” another executive expressed concern.
“The fruit company is an important partner of ours, but the Chinese market cannot be ignored either.” Li Zaiming said with a hint of determination, “We must make a choice, and my choice is to fully embrace the Chinese market.”
The third instruction – the “choose one of two” strategy – shocked the executives present.
This strategy requires partners to purchase screen panels from Sanxin while not purchasing screen panels from Huateng Microelectronics.
“Mr. Li, is this strategy a bit too radical?” an executive asked cautiously.
“Radical?” Li Zaiming said with a hint of sneer, “If we don’t take radical measures, Huateng Microelectronics will continue to erode our market share. We must let them know who is the leader in this market!”
“However, this strategy may trigger antitrust investigations…” another executive expressed concern.
“Antitrust investigation?” Li Zaiming said with a hint of disdain, “As long as we operate properly, there will be no problem. What’s more, Huateng Microelectronics is just a small company. They have no ability to fight against us.”
“If we don’t come up with better screen panels, how can we get Chinese mobile phone manufacturers to order large quantities of our screens?” Li Zaiming said coldly, “Only by getting Chinese companies to order large quantities of our screens can we make other screen panel companies lose profits! No soup to drink!”
In Li Zaiming’s mind, there can only be one company dominating the global screen panel market, and that is Sanxin.
His goal is not only to regain lost orders, but also to completely suppress emerging competitors such as Huateng Microelectronics.
“To seize other people’s business is to squeeze their living space!” There was a hint of cruelty in Li Zaiming’s tone.
“Why should Huateng Microelectronics compete with us?”
Li Zaiming wants to trample Huateng Microelectronics under his feet so that it will never be able to stand up again!
Li Zaiming’s three instructions not only mark the strategic transformation of Sanxin Screen Panel, but also indicate that the competition in the global screen panel market will enter a white-hot stage.