Foxconn has millions of employees in mainland China, which solves the problem of population employment and promotes the development of China's manufacturing economy. In this regard, Foxconn has indeed contributed a lot. But Foxconn is a commercial company after all, and making money is the top priority.
Foxconn sees the potential of the Indian market, follows Apple to India to make money, and bets a lot of investment in India. Linked to Foxconn's repeated setbacks in the mainland, Terry Gou began to fight back, and Foxconn accelerated its "withdrawal", how big is the impact?
The Indian market has huge consumption potential, and Apple has reached an agreement with India on the intention of cooperation, so Apple has been operating in India over the years. There is news that Apple plans to significantly increase production capacity in India, aiming for an annual production of 50 million units. If this is achieved, India will account for 20% of the world's iPhone production capacity.
Not only that, Apple will also start the research and development of the new iPhone 17 in India, and it will be put into production in India after the research and development is completed. This was originally done at the U.S. headquarters, but Apple is advancing it in India, which is enough to show that Apple attaches great importance to the Indian market. The more this is the case, the more active Foxconn, as Apple's largest foundry, will be.
In just one month, Foxconn has twice announced additional investments in India, one with 11 billion yuan and the other with 12 billion yuan. A full 23 billion yuan of investment will be used to expand iPhone production in India, and Foxconn is accelerating its "withdrawal" and diversifying its industrial chain like Apple.
Guo Taiming began to fight back, and in the mainland market, Foxconn suffered many setbacks, but it was all Foxconn's own fault.
The relevant departments inspected Foxconn's land and tax issues, and finally found that Foxconn did have tax problems, and fined Foxconn 20,000 yuan. This fine is nothing to Foxconn, but it can serve as a warning and let Foxconn understand not to step on the red line easily.
In contrast, in order to win over foreign companies such as Foxconn, India has given various preferential policies, and India has cheap labor and the entry of its major customer Apple, so Foxconn has no reason to give up Indian investment.
Needless to say, the Indian market is attractive to Foxconn, although the mainland market also has a huge population and labor, but from Foxconn's point of view, who would make more money?The question is what will be the impact of Foxconn's accelerated "withdrawal".
First of all, it is necessary to determine whether Foxconn will disperse or withdraw. If the former is the case, then employees in both the Indian and mainland markets will be guaranteed employment. However, Foxconn implemented a five-day, eight-hour work system on the mainland and abolished overtime.
For a labor-intensive enterprise like Foxconn, if it can't work overtime, employees will not only lose more labor compensation, but Foxconn's order output will not be able to meet well.
Especially the iphone15 series is in the peak sales season, but Foxconn does not allow overtime, it is difficult for Foxconn to really evacuate, so it will reduce the working hours. In the long run, will Foxconn still be able to meet the demand for a large number of jobs?
Perhaps the possibility that some people will lose their jobs cannot be ruled out, after all, Apple's orders are limited, and India has divided some orders, and orders elsewhere will naturally decrease.
But it is worth noting that there is more than one mobile phone giant in China, and there is more than one foundry, and the vacant market share will eventually be filled.
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