Although Lei Jun hadn't yet founded Xiaomi, his influence in China's internet industry was already immense—just one step below tech titans like Ma Huateng, Jack Ma, and Robin Li.
He might not have been a household name to the public, but he was inside the industry. His presence symbolized power and recognition.
So when someone like him visited the company, the atmosphere shifted. Smiles broke out. Employees—from interns to executives—stood straighter, proud that Chinese Tech had earned this level of attention.
Haifeng gave Lei Jun a full tour of the facility. After introductions with Li Gang, Zhang Yu, and other senior executives, they settled into the reception room for a private conversation.
As they sat down, Haifeng poured him a glass of water.
Lei Jun smiled. "President Lu, I came for two reasons. One is to chat about smartphones. Two, to ask if you need funding."
Haifeng blinked in surprise.
He came all this way… to talk? Not to invest?
Wait—he's not trying to get in on my company… he wants to build his own.
He was right. Lei Jun did want to make phones.
Just days earlier, Lei had stepped back from his internet ventures and started viewing the industry with new eyes. He realized no other companies had broken through outside BAT (Baidu, Alibaba, Tencent).
And the key to breaking through?
Smartphones.
It was no longer about who controlled the websites—it was about who controlled the devices people used to access them.
If a company could dominate smartphones, it could dominate the future of the mobile internet.
"I'm already forty," Lei Jun said. "Old by startup standards. Smartphones and mobile internet are a young person's game. Their way of thinking is different."
Haifeng raised an eyebrow. "I thought you were here to invest. Don't tell me—you plan to start a phone company yourself?"
Lei Jun gave a small, wistful smile. "I've missed many waves already, as you know. I think this might be the last one worth chasing."
"You've worked on everything BAT does," Haifeng said. "But I get it—smartphones are different. You're here to ask about the market?"
"Exactly. I wanted your take on where the domestic industry is going."
Lei Jun leaned forward sincerely. "Tell me, why are young people switching to smartphones? Why leave feature phones behind?"
Haifeng answered without hesitation.
"Because smartphones offer services to feature phones never could. It's that simple.
It's not just a tool—it's part of the culture. A trend."
The conversation lasted all morning. Lei Jun never even stopped for lunch.
Later that day, Haifeng called a company-wide meeting.
But this time, the atmosphere was completely different.
There was no stress. No uncertainty.
Every executive walked into the room energized, their expressions confident. Even the most cautious managers looked eager.
Haifeng stood at the front of the room.
"I have two things to announce," he said.
🏢 1. Direct-Sale Store Expansion
"We'll open official direct-sale smartphone stores nationwide within the year."
It was a plan Haifeng had proposed earlier—placing at least one direct store in every provincial capital, with franchise stores in first-, second-, and third-tier cities and even towns where possible.
If direct stores weren't viable, they would partner with local retailers.
The requirement was simple: nationwide offline visibility.
Initially, this proposal faced intense resistance. Opening 30 to 40 official stores would cost a fortune.
But now?
No one objected.
The executive in charge of retail even stood up and gave his word.
"We'll hit every milestone, President Lu. Guaranteed."
🏭 2. Fully Automated Production Lines
"The second announcement is about production," Haifeng said. "I've already ordered intelligent manufacturing lines from our overseas research division. Five are done and shipping in now."
In truth, he'd bought them through the system—for 100 million points each. It's way too expensive to order more… for now.
Zhang Yu leaned forward.
"President Lu, how many phones can one of those lines produce daily?"
"One phone every ten seconds," Haifeng said smoothly. "You do the math."
Zhang's eyes went wide. "Wait—360 phones an hour, 8,640 a day… five lines is 43,200 units daily?!"
"And how many people do we need for that?"
Haifeng smiled.
"None. These are fully intelligent lines. Not a single person is required."
The room went silent.
Then Zhang blurted:
"That's insane."
No one disagreed.