As we all know, Apple's order is a huge opportunity for the best traders. However, working with Apple doesn't mean it's easy to make a profit. That's why a Chinese company, after two years of cooperation with Apple, decided to take the initiative to give up Apple's orders, give up the opportunity to cooperate with Apple, and bear billions of losses.
As Apple's lens module manufacturer, OFILM has always occupied an important position in Apple's chain. However, the partnership was terminated by Apple in March 2021, which put OFILM in a difficult position. Although OFILM is looking for new customers to replace Apple, their devices designed specifically for Apple cannot be used by other customers.
At this critical moment, China's Wingtech Technology came to the rescue. As a leading manufacturer of optical products and solution provider, Wingtech Technology not only acquired the camera equipment cooperated by OFILM and Apple, but also obtained the qualification of Apple's cooperation. After commissioning, the products they produced in December 2021 passed Apple's verification and entered the stage of normalized batch shipments. Since then, Wingtech Technology has become the leading optical module manufacturer in the fruit chain.
However, surprisingly, Wingtech Technology took the initiative to give up this Apple order. According to Wingtech Technology, "based on the latest business progress with specific customers, combined with changes in the market environment and the company's business planning, it was decided to stop producing optical module products for specific customers." While Apple is not explicitly mentioned, it's clear that this "specific customer" refers to Apple.
What are the considerations for Wingtech Technology's decision?Perhaps we can get a glimpse of it from the revenue of their optical module business. 2021 is the first year that Wingtech Technology has entered the ** chain of Apple's optical modules, and in the two years of cooperation, their optical module business has lost nearly 700 million. This loss trend continued in 2022, reaching 33.5 billion yuan, and in the first half of 2023, the loss will be as high as 7 million yuan. It was not until the third quarter of this year that Wingtech Technology achieved a net profit of 10 million yuan.
On the whole, in the two years of cooperation with Apple, Wingtech Technology's losses have been staggering. Continued cooperation may not be able to recover the decline, and timely stop loss is the right way. Therefore, Wingtech Technology has decided not to accept any new orders for Apple's optical modules and focus on other areas of cooperation, such as smart home and laptops.
The cases of OFILM and Wingtech Technology have sounded the alarm for domestic first-class companies. Getting an Apple order does not necessarily bring stable profits, and it can lead to huge losses. Domestic ** businessmen should understand that don't be led by Apple, Apple's orders are not everything. It is necessary to make rational decisions according to their own actual situation and look for other cooperation opportunities in order to achieve sustainable development.
The decision of Chinese companies to voluntarily abandon Apple's orders is not an easy task, but the practices of OFILM and Wingtech Technology show that sometimes it may be wise to voluntarily give up. When working with Apple, traders need to fully assess the risks and rewards and stop losses in a timely manner. After all, Apple's orders are not a panacea, and blindly chasing Apple's cooperation can lead to huge losses.
As a domestic businessman, we need to learn from this, not to rely too much on Apple's orders, and to look for more cooperation opportunities to ensure our own sustainable development. Only in this way can we truly cooperate with international giants and gain a place in the global market.