Stronger by Paying Salaries and I Have 1 Billion Employees

”President Chen, why did you choose to build your own factory?”

After coming to a stop, Lei Yijun asked curiously.

At that time, aside from OPPO, which had toyed with the idea of building its own production base, companies like Xiaomi, Meizu, and Coolpad all chose to partner with manufacturers like Innolux, BYD, and Foxconn.

For one, management costs were lower. For another, contract manufacturers had extensive supplier resources, allowing for better control over procurement costs, quality, and delivery schedules. Finally, the cost of a mobile phone production line was exorbitant, requiring hundreds of millions in capital for the initial equipment investment alone.

Although Lei Yijun was wealthy, he didn’t have the confidence to build a mobile phone factory before Xiaomi went public. The cost was simply too high.

If production line technology was updated too quickly, they would have to purchase new equipment. What mobile phone manufacturer could withstand that kind of pressure?

It wasn’t until six years later, when Xiaomi had ample capital, that it built its own factory in Yanjing’s Changping district with an annual capacity of 10 million units. Even then, its low- to mid-range models were still outsourced to contract manufacturers.

”The cost of a self-built factory is a bit high, it’s true, but it allows us to control the production schedule and ensure stability in quality and output.”

Chen Yansen replied with a smile, casually making up a reason.

Lei Yijun nodded. Although what Chen Yansen said made sense, he felt it wasn’t the real reason.

But he didn’t press the issue. If the other party didn’t want to say, it would be pointless to ask.

Chen Yansen had Zihao escort the two of them upstairs.

By 9:40, the guests attending the launch conference had all gradually arrived.

Having greeted dozens of people at the entrance in one go, Chen Yansen deeply felt that an occasion like this truly required a brand department manager who understood people and knew proper etiquette.

Unfortunately, Ye Qiuping wouldn’t be starting until mid-August at the earliest.

”Brother Sen, it’s about time. The host is getting antsy.”

Wang Teng came downstairs and walked up to Chen Yansen to remind him.

”Let’s go.”

Chen Yansen acknowledged, followed Wang Teng into the elevator, and went straight to the top-floor banquet hall.

Unlike his last visit for the annual meeting, this time the hall was filled with rows of chairs instead of round dining tables.

The first three rows were occupied by supplier representatives from Qualcomm, Sharp, and Sony; mobile phone manufacturer representatives from Xiaomi, OPPO, Meizu, Coolpad, and others; and the principal and deans from Xuyuan.