Domestic mobile phones fully support domestic foundries, and Foxconn has no chance, and regrets it
Domestic mobile phone manufacturers are trying their best to support local OEM enterprises, and Foxconn has no way out, and it is too late to regret it.
Foxconn, the world's largest foundry, has single-handedly created high-end smartphones, including Apple, with great success. However, not long ago, two domestic mobile phone manufacturers said that they had entrusted all orders to BYD. What is this concept?Is Foxconn facing a crisis in the Chinese market?Did the "Chinese model" that it spent so much effort to replicate in India hit the "stillborn"?
1) Domestic Mobile** adopts the local OEM model.
Some time ago, a 5G mobile phone was disassembled, and it was found that 90% of the mobile phones used domestic chips. This also means that on important chips such as memory chips and RF chips, domestic automobile manufacturers have completely gotten rid of foreign control.
In fact, since 2005, China has been trying to build its own mobile industry, such as waveguide, TCL, and so on. But because the key parts are controlled by foreign companies, their products have not been able to sell at a good price. Today, the domestic ** is strong enough to decide their fate. I believe that local enterprises are not only trustworthy, but also can promote the independent development of China's industrial chain.
Foxconn was once prosperous, but in a political dispute, its performance was cut in half. Relatively speaking, state-owned enterprises like BYD are much more reliable. Today, they have the capacity to mass-produce high-end mobile phones.
2) Foxconn's dependence on China.
In the 80s of the last century, when Foxconn was still struggling in Taiwan, the mainland was ready. Mr. Gou's sense of opportunity was so sensitive that he decided to set up his company in Shenzhen. For a decade, Foxconn quickly became the world's largest waste source, thanks to the huge demand in China's domestic demand.
Foxconn bid for the first Apple phone order in 2007. This not only makes it famous, but also gives it an absolute advantage in the entire Apple chain. 10 years later, the iPhone will replace the PC and become another ** mine of Apple. Foxconn, on the other hand, is the one that has benefited the most.
At that time, a large part of the 470 million units produced in China were produced at Foxconn's factory. If it weren't for the huge market of China, Foxconn wouldn't have been there some time ago.
3) India's Foxconn "factory" is difficult to reproduce the glory of China.
In the eyes of many multinationals, India is China's backup force and an alternative. The same is true for Foxconn, which has invested billions of yuan in India to build factories with 35,000 employees. However, so far, things are not so good.
Unlike the Zhengzhou plant, which was built in two years in China, the plant in India took four years to achieve this goal. In order to continue to scale and make profits, there are still problems in the complex investment climate of the local area.
What worries Foxconn even more is that India's Wistron has been forcibly taken over by a coalition. This raises fears that Foxconn could be merged and acquired. Mr. Gou had to exit the business in India after losing control of the company. At that time, a lot of investment will be wasted.
1) If domestic OEM is completely used, will it have a certain impact on its production efficiency and quality?
At present, there are still certain defects in the production capacity and quality management of domestic OEM enterprises. If the order quantity increases, it may be a great burden on them. In order to ensure quality, domestic manufacturers are likely to still have some foreign foundries to choose from in the short term. In the long run, due to the continuous optimization of local OEM enterprises, it is undoubtedly more prudent to use a unified local industrial chain.
2) Is it possible for Foxconn to withdraw from China?
Terry Gou has said several times that Foxconn still attaches great importance to the Chinese market, and it is unlikely to withdraw some time ago. However, with the continuous growth of domestic OEM enterprises, the advantages of foreign countries will gradually disappear. As a multinational company, Foxconn may set its sights on emerging markets with more promising growth prospects. China's position in the international market is likely to decline in the next five to 10 years.
3) What is the future of Foxconn India?
The current Indian market is a very complex environment, and it is very difficult for Foxconn to achieve the same in China. A trip to India that is forcibly taken over or otherwise seriously hampered will end in an unsuccessful situation. However, as long as Foxconn can overcome all kinds of difficulties and take advantage of India's abundant cheap labor resources, it will be able to gain a foothold in India and become the backbone of its international business. It depends on the resilience of the business and the political conditions in the region.
For a while, there was a heated discussion on the Internet. Some netizens said that if the domestic OEM model is adopted, it will help to achieve independent control of the industrial chain;Others said that the production capacity of domestic manufacturers may not be able to keep up. Others argue that Foxconn's approach is self-inflicted and should not be "ungrateful."However, more people believe that business is like a war, and Foxconn is also trying to adapt to this situation. On the whole, netizens have a positive view of Taiwanese manufacturers, believing that domestic foundries can fully replace Foxconn and complete their own product development and production.
Generally speaking, the reason why domestic manufacturers want to OEM in China is because: first, to ensure that their core technology will not fall into the hands of foreign companies, so as to achieve complete autonomy and controlSecond, better integrate with the localized industrial chain to enhance the overall efficiency of the enterpriseThird, in order to ensure the stability of the first chain, we should deal with various risks from the outside world. Through the above measures, it will help promote China's industrial transformation and form a complete core technology system.
This also shows that domestic foundry enterprises have been able to meet the needs of the domestic market. They have already made great strides in important industries such as organic light-emitting diode panels and memory chips, allowing them to fully replace foreign companies like Foxconn.
Foxconn still has an important first-mover status, and Gou will not easily cede China's huge market. However, the setback in India and the loss of domestic mobile phone orders are definitely a huge shock to it. If Foxconn wants to change this situation, it must have a strategic focus, recognize the situation, and find new breakthroughs.
Domestic manufacturers have abandoned Foxconn and flocked to domestic OEMs, a move that seems to indicate that China's foreign companies are declining. However, Foxconn is a conglomerate, and it also follows the trend. China's market is changing rapidly, and it remains to be seen whether its exports will be able to open.
In any case, this move marks the maturity and autonomy of Chinese companies. And domestic mobile phones, do not need to rely on others, can master their own core technology. This is a major sign that China's "production" is moving towards "high-end". Everyone is looking forward to what kind of excitement the next game will be.