Apple is one of the most well-known tech giants in the world, and its iPhone products are world-renowned. However, Apple's performance in the Chinese market has not been satisfactory, facing strong challenges from competitors such as Huawei, as well as the instability of China's ** chain. In order to reduce costs and risks, Apple decided to move some of its iPhone production to India, and its largest foundry, Foxconn, followed suit.
Terry Gou, the founder of Foxconn, has promised to move 300 billion production capacity to India to provide better services for Apple. However, this promise failed to return Apple's sincerity. Recently, Apple released a shocking statement claiming that all legally certified iPhone 15 series phones sold in Chinese mainland are assembled in China.
In the future, mobile phones sold in China will also be made in China. This reversal undoubtedly dealt a heavy blow to Foxconn's investment and efforts in India, and foreign media even described Gou's heart as broken. So why did Apple make such a decision?What is the future of Foxconn in India?These issues have become the focus of attention.
The reason behind Apple's big reversal
The Sino-US war has been going on for several years, which has brought great uncertainty and risks to Apple's business. Apple's products and components are heavily dependent on both China and the United States, and once affected by tariffs or sanctions, it will lead to higher costs and ** disruptions.
In order to avoid this, Apple has had to find a balance and compromise between China and the United States, and emphasizing that the Chinese-made iPhone is a compromise that can avoid angering China** and consumers, and can show its loyalty and cooperation to the United States** and consumers.
India** has been promoting the "Make in India" policy, encouraging foreign enterprises to invest and produce in India, giving certain tax and subsidy incentives. However, India's policy is not stable, and there are frequent adjustments and changes, which bring uncertainty and risks to foreign companies. For example, India** once required Apple to have a 30% localization rate for mobile phones sold in the Indian market, but Apple felt that this requirement was too harsh, leading to disagreements and frictions between the two sides.
The needs and preferences of consumers in the Indian market for mobile phones are very different from those in the Chinese market. Consumers in the Indian market are more focused on the phone's features and features than on brand and design. Consumers in the Indian market prefer Android-based phones over Apple's iOS.
What is the outlook for Foxconn in India
Apple is Foxconn's largest customer in India, and Foxconn's production in India is mainly to meet Apple's orders and demand. Apple's reversal statement, although it did not explicitly say that it would cancel or reduce orders in India, hinted at Apple's importance and dependence on the Chinese market, as well as the uncertainty and risks of the Indian market.
Apple may adjust its production and sales strategy in India according to market changes and the impact of policies, which will affect Foxconn's production capacity and profits in India. If Apple's orders and demand in India are reduced or stopped, Foxconn's investment and efforts in India will face great losses and failures.
India** has been promoting the "Make in India" policy to provide certain support and protection for foreign enterprises to invest and produce in India, including tax incentives, subsidy policies, infrastructure construction, workforce training, etc. Foxconn's development in India also relies heavily on the support and protection of India.
If India** can continue to provide favorable conditions and environment for Foxconn, Foxconn's prospects in India will be more optimistic and stable. If India** changes or withdraws its support and protection for Foxconn for political or economic reasons, Foxconn's prospects in India will become difficult and dangerous.
Conclusion
Apple's reversal statement made Foxconn's prospects in India unavoidable, and also broke Gou's heart. Foxconn's development in India is not only affected by Apple's orders and demand, but also by the support and protection of India**, as well as by the potential and competition of the Indian market.
Foxconn's prospects in India are both opportunities and challenges, both hope and risk. Whether Foxconn can succeed in India also depends on Foxconn's strategy and execution, as well as the attitude and actions of Apple and India**. What are your thoughts on Foxconn's prospects in India?Feel free to leave a message in the comment section to share your views and thoughts. Terry Gou