Chapter 154: Stacked Layer Structure
“Sales of the entry-level model are increasing, rapidly raising our market share in the Middle East, Southeast Asia, Africa, and Europe.”
Seong-hwan’s expression was full of confidence as he delivered the performance report.
“What were last month’s figures?”
“We sold 15 million units of the entry-level Quantum 1-A, and 2.5 million and 5.5 million units of the premium models, Quantum 1-S and 2-S, respectively.”
That totaled 24 million units.
Considering that last year’s total sales were 68 million units, at this rate, we could surpass the previous year’s performance in just three months.
“With the increase in Quantum sales, the performance of downstream components such as lenses, actuators, and camera modules is also surging.”
Turning to Executive Director Oh Seong-hak, I noticed a rare bright expression on his face.
His expression alone told me how much profitability had improved.
“Last month’s total revenue was 23.982 trillion won.”
“Wow!”
Exclamations of surprise erupted from those around us as Oh Seong-hak delivered the report.
Last year’s annual revenue was 62.8 trillion won.
We had achieved a third of that in just one month.
“What’s the operating profit?”
Executive Vice President Hong Chung-ki asked, and Oh replied with a smile.
“4.27 trillion won. In terms of profit margin, it’s around 17.8%.”
“Hmm, the profit margin has improved significantly. Is this due to the outsourcing effect?”
Oh Seong-hak nodded.
“Thanks to outsourcing and increased production volume, manufacturing costs have decreased significantly, and the high sales of premium models like the Quantum 2-S have also contributed.”
“If we maintain this, we could exceed 20 trillion won in annual profit.”
“Including Dojin Soft’s operating profit, we could reach up to 25 trillion won.”
I nodded and said,
“It seems the monetization models introduced by Dojin Soft are quite effective.”
“Revenue from the emoji store and advertising platform is substantial, and transaction fees from Dojin Pay are steadily increasing.”
Moreover, with the gradual expansion of the app market and content sales commissions, this trend seemed likely to continue for quite some time.
“Haha, at this rate, wouldn’t it be possible for us to monopolize the mobile market?”
“Not quite a monopoly, but I’m aiming for a 50% market share for Quantum.”
“Only…… 50%?”
Hong Chung-ki’s words made me chuckle.
Only 50%.
Before the regression, A-ple’s highest global market share was 23%, and Ahsung’s was around 31%.
Even with that share, A-ple became the world’s most valuable company.
And……
“Actually, even 50% isn’t an easy target. NokiaTel, the former leader, has successfully transitioned to smartphones, and latecomers are flocking to this market. You know the situation well, right?”
Moreover, despite consecutive failures, Ahsung continued to knock on the smartphone market’s door.
Chilbong, who had been listening beside us, spoke up.
“Speaking of which, I have something to say.”
Everyone’s attention turned to Chilbong.
“What’s so serious?”
“……Ahsung is developing the Titan 4, and its specifications are far more impressive than expected.”
How impressive could the specs be for Chilbong to use the word “overwhelming”?
Reading my thoughts, Chilbong connected the prepared materials to the screen.
Soon, the Titan 4’s specifications appeared on the screen.
[Titan 4 Development Specifications]
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AP: A-Core X4 (CPU +40%, GPU +70% performance improvement)
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RAM: LPDDR4 8GB
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Storage: UFS 3.1
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Display: 5.9-inch QHD AMOLED
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Battery: 4800mAh / Fast charging supported
At this point……
“Is this…… possible?”
The moment I checked the specs, I understood why Chilbong’s face had hardened.
The AP, RAM, and storage were all technologies that wouldn’t be commercialized for another 1 to 3 years.
“Considering that the specs of the Quantum 3-S we’re currently developing are UFS 2.0 and LPDDR4 4GB…… the gap is quite significant.”
“It seems Chairman Cheon is feeling the pressure.”
Hong Chung-ki responded to my words.
“Every smartphone they release is losing to us, and even the feature phone market is being eroded by the entry-level Quantum…… They must be desperate to recover.”
“……”
As I paused, Chilbong added,
“The specs are threatening, but the real problem is something else.”
“The real problem?”
“We won’t be able to source the new AP, the X4.”
“……We can’t get the X4?”
“Yes, upon verification, the X4 is designed with a completely new architecture and doesn’t use our patented low-power cache interrupt parallel processing technology.”
“So…… they’ve solved the power consumption issue without the patent?”
“It seems they focused more on boosting performance.”
Chilbong’s explanation made sense.
But……
‘Pursuing performance alone is bound to cause problems.’
“UFS 3.1 is in a similar situation, right?”
“Correct. Ahsung’s high-speed serial transmission patent is key. At this point, we can only secure 2.0.”
In other words, we’re at a disadvantage in RAM, storage, and AP.
If the Titan 4 is released as is, we won’t be able to compete in hardware.
Moreover, with such a significant difference in hardware specs……
Even using Midas’s abilities, we’re likely to fall behind in benchmark scores.
The atmosphere, which had been buoyant after our victory over the Titan 3, froze in an instant.
“CEO, shouldn’t we consider measures to upgrade our hardware specs?”
I shook my head at Hong Chung-ki’s suggestion.
“If Ahsung has been sharpening their knives, it won’t be an easy problem to solve.”
They have overwhelmingly superior semiconductor technology.
The AP, RAM, and storage, which determine hardware specs, all require semiconductor manufacturing capabilities.
Even if we have the technology to overcome the current situation……
Implementing it would take considerable time.
“So, you’re just going to let the Titan 4 launch as is?”
“With those hardware specs and Lunar on board, we’ll lose a significant portion of our market share.”
My goal of toppling Ahsung would also be jeopardized.
But currently, there’s no way to counter Ahsung’s overwhelming hardware.
So……
“I plan to just watch.”
“What?”
“Are you serious?”
All the team leaders present expressed concern.
After surveying everyone, I spoke slowly.
“Is the situation only visible to me?”
“What situation?”
Everyone looked puzzled, and Hong Chung-ki asked on their behalf.
“Is there something wrong with Ahsung?”
“The Titan 4’s performance is undeniably impressive. But pushing performance too hard always creates vulnerabilities, doesn’t it?”
“You don’t mean…… the Titan 4 will have issues?”
“I doubt Ahsung would release a product without minimal verification.”
Hong and Chilbong said simultaneously.
“Well, if the A-Core X4 AP is designed solely for performance, power consumption and heat issues are inevitable.”
“You think…… heat issues will lead to consumer complaints?”
I replied with a meaningful smile to Chilbong’s question.
“If it stops at consumer complaints, we’ll be lucky.”
In an instant, all eyes in the meeting room turned to me.
Hong Chung-ki, sensing something, spoke again.
“Do you have some other information?”
“It’s not certain, just an assumption. If the X4 doesn’t use low-power cache interrupt parallel processing technology, power efficiency will suffer, and prolonged use of high-spec applications will cause severe overheating.”
Pausing briefly, I continued.
“Moreover, the battery used this time is a high-density cell with a stacked layer structure supporting fast charging. While it has higher energy density than existing batteries, its structure has limitations in dissipating internal heat.”
My words instantly changed the atmosphere in the meeting room.
Most of those present had some understanding of the technology.
The implications were immediately clear.
Chilbong asked cautiously,
“You mean…… in high-temperature situations, the cells could expand, or worse…… there’s a risk of combustion?”
I quietly nodded.
“Specifically, during fast charging while running high-spec applications for extended periods, if the internal temperature exceeds a certain threshold and interference occurs between cells…… unexpected thermal runaway could happen.”
Hong Chung-ki’s face hardened as he said,
“If such a problem occurs, it won’t end with consumer complaints.”
It could escalate to a recall.
In fact, before the regression, Ahsung had conducted a large-scale recall for a similar issue.
“An issue of that magnitude would become a global risk, requiring re-certification from the FCC and CE, and in the worst case, Ahsung could be expelled from the mobile market for years.”
Before the regression, with their overwhelming market share and competitiveness, they recovered quickly.
But the situation is quite different now.
If battery fires or explosions occur consecutively under these circumstances……
Ahsung might no longer be able to operate in the mobile business.
“So that’s why you said you’d just watch.”
I nodded at Chilbong’s words.
“If they’re going to make a blunder, there’s no need to stop them.”
Moreover, component supply is blocked.
There isn’t enough time to develop our own AP and storage.
But……
“We can at least put on a show to make Ahsung anxious.”
“A show……?”
“What do you mean?”
Facing their puzzled expressions, I smiled and replied,
“If they think we’re finding a solution and developing Quantum 3, they’ll rush to release the Titan, won’t they?”
“Ah.”
Chilbong, immediately understanding, exclaimed.
“You mean to pressure Ahsung into releasing the product without sufficient performance and reliability verification?”
“Exactly.”
More precisely, while Ahsung will conduct basic verification……
They won’t have enough time to resolve the issues.
“Hmm…… Then I’ll contact Micron and Qualcomm in the U.S. to negotiate storage, RAM, and AP supplies.”
Micron and Qualcomm are second only to Ahsung in semiconductor technology.
They’re sufficient to pressure Ahsung.
I immediately instructed them to proceed,
and the news soon reached Ahsung.