At the moment, Foxconn's situation is precarious, not only because of the recent continuous investigations, but also because of a series of scandals. Development from domestic to overseas has been fraught with setbacks and difficulties. Domestically, Foxconn has faced intense regulation and investigations, which have had a huge impact on Mr. Gou's industry. Foxconn's overseas development is also not satisfactory, especially in India, although the local promise of preferential support policies, but in fact did not materialize, but gradually disappeared after the completion of the construction of the plant. As a result, Foxconn faces many problems overseas, including adaptation, cynicism from local companies, and financial problems. In this case, Gou's withdrawal actually sends a signal that Foxconn is in trouble.
From another point of view, the crisis facing Foxconn is actually a microcosm of the crisis that Apple is facing. Apple's development in overseas markets in recent years has not been stable, especially after the rise of Huawei, Apple's orders in China have fallen sharply, and its market share is in jeopardy. In order to diversify the risk, Apple began to look for more OEM suppliers, which further increased the pressure on Foxconn's orders. With the decrease in the number of orders, Foxconn's performance has been declining, and the output value cannot be increased. In the past, the success of co-packing was inseparable from cheap labor and efficient execution. However, in recent years, labor costs in China have risen sharply, and Foxconn's salary level has been unable to meet the needs of most workers. Therefore, Foxconn chose to develop in India in the hope of using cheap labor again, but India's labor efficiency is not as expected. At the same time, another domestic giant, BYD, is rising, not only limited to the field of automobiles and batteries, but also began to get involved in mobile phones, computers and other fields of OEM. In the case of Foxconn facing "many dangers and obstacles", it is still uncertain who can gain an advantage in the field of OEM.
For Gou, the most important thing at the moment is to deal with Foxconn, so he has no time to worry about other affairs. In fact, he realized the grim situation facing Foxconn, so he chose to focus more on the development of the company. After all, Foxconn is crucial to his personal future, and if something goes wrong with Foxconn, Gou's political future will become extremely difficult and may even be terminated. Therefore, his withdrawal is not only a clear reflection of the choice, but also an identification and response to Foxconn's predicament.
To understand Foxconn's predicament and Terry Gou's withdrawal, we have to look back at Foxconn's development process. As one of the world's largest electronics OEMs, Foxconn has achieved great success over the past few decades. However, with the intensification of competition in the global electronics industry and the adjustment of the industrial structure, Foxconn is facing increasingly severe challenges. The profit margins of the foundry business have been gradually compressed, and the turbulence of domestic and foreign markets has also had a great impact on Foxconn's operation. In the face of such a situation, Foxconn must accelerate transformation and upgrading, and find new growth points to cope with market changes and giant competition.
However, transformation is not an easy task. Foxconn's overseas expansion has not gone as smoothly as expected, especially in India. Although India has promised preferential support policies, there are many problems in practice, including delayed administrative approvals and unfriendly competition from local enterprises. At the same time, more and more OEM enterprises have emerged in the domestic market, and they are fiercely competitive and firmly occupy the market share. In such an environment, Foxconn needs to find new growth points, break through the shackles of the traditional foundry model, and carry out technological innovation and industrial upgrading.
In addition to the challenges of the external environment, Foxconn is also facing pressure from internal management and cultural transformation. For a long time, Foxconn was known for its strict management and low cost advantages, but this model has gradually shown signs of fatigue. With the improvement of employee treatment and welfare, workers' demands for rights and interests are also increasing. In addition, the mental state of workers and the handling of employee relations are also important issues that Foxconn needs to face. Ensuring employee motivation and stability is essential for Foxconn's stable operation and sustainable development.
To sum up, the predicament faced by Foxconn is the result of a combination of factors. Gou's withdrawal from the election can be understood as his cognition and response to the situation at Foxconn. As an entrepreneur, he needs to focus more of his personal energy and resources on his business to secure its future development. Withdrawing from the election is also a prudent consideration for his own political future, so as to avoid political factors that lead to instability in the company. For Foxconn, in the face of various challenges and dilemmas, only transformation and upgrading can be invincible in the fierce competition.