First of all,CookDuring his visit to China in October this year, he chose Luxshare Precision Factory as the first stop of his visit. During his visit to the factory, he made it clear that he wanted to achieve a win-win goal with China's first-class chain enterprises. However, the intelligent observer knows that this is only for givingApplesIt's just an excuse to flee the Chinese market and transfer capacity. The data shows that this year IndiaiphoNE's production capacity will account for 13% next yearApplesThe plan is to increase this ratio to about 25%. At the same time,FoxconnThe production capacity of the plants in Zhengzhou and Taiyuan will be reduced by 35% and 75%, respectively. As can be seen in the diagram below,ApplesThe proportion of components used in Chinese mainland is from 45% fell to 2%, while the proportion of components in the United States increased from 22% to 33%. Two recent news messages also indicate thisApplesThe company plans to transfer production capacity to India. First of all,ApplesIssued a notice to its battery ** manufacturers asking them to expand their production capacity in India because:ApplesThe next step will be to procure battery parts in India. In addition, Hon Hai (FoxconnThe parent company plans to invest Rs 12,820 crore to build a new plant for the increaseApplescapacity. Taiwan's "Economic **" reported that the new factory will replace Chinese mainland and undertakeiphone development and pre-production tasks of new models, which means:FoxconnIt intends to withdraw from the Chinese market. ForCookA series of actions, foreign media said that he was very shrewd. On the one hand, he has frequently visited China in recent years and expressed his stance and helpedApplestransfer capacity, and at the same time save to a certain extentApplesDamaged image in the Chinese market. Second, manufacturing is a pillar industry of a countryApplesIn the past three years, it has successfully increased the proportion of U.S. components by 11%, promoting the return of advanced manufacturing in the U.S. and reducing the threat of being exposed to the risk of ** chain. Thirdly, the Indian market has extremely low labor costs and is given high subsidies, which can be reducedApplesto improve profit margins. However,AppleswithFoxconnThere is clearly some risk in betting on India. As we all know, India has always had the title of "graveyard of foreign businesses", and many well-known foreign enterprises have suffered significant losses in India. For example, in 2005, South Korean steel giant POSCO invested US$12 billion to build a steel plant in India. There are also tech giants like Vodafone, Xiaomi, OPPO, Samsung, Microsoft, etc., who has not lost billions or even tens of billions in the Indian market?Even India's senior ** has publicly stated that more than 2,700 foreign companies have fled India in the past seven years, with an average of nearly 400 companies leaving each year, and the number of foreign companies entering the Indian market each year has decreased from more than 300 to 63. This is clearly a "fire pit", butAppleswithFoxconnDare to jump in, it's just iron-hearted. Just in July of this year,FoxconnIt has withdrawn from the $19.5 billion semiconductor factory construction plan in cooperation with India's Vedanta Group, and its investment of more than $3 billion is no longer recoverable. This is just the beginning, India givesFoxconnThe pit dug will definitely be bigger!At the same time, this yeariphone15There are serious problems with quality control. It is known that India producesiphoThe NE yield rate is less than 50%, and there are all kinds of strange problems, such as frame paper insertion, lens dust, camera failure, frame paint peeling, and so on. Europe has begun a collective boycott of Indian-made productsiphone15。Predictably, ifApplesContinue to transfer production capacity to India, and its reputation will be completely destroyed!And now, with Huawei's strong comeback, it has taken overApplesDiscarded chain capacity. Therefore,ApplesNow we should not focus on "fleeing the Chinese market", but on our own survival!
ApplesceoCookDuring his visit to China in October this year, he made it clear that he wanted to achieve a win-win situation with China's first-class chain enterprises. However, from the data andApplesA series of actionsCookIt seems to be working onApplesFleeing the Chinese market and preparing for the transfer of production capacity. ApplesIt is planned to be IndianiphoNE production capacity will be increased to 25%, while reducing production capacity at the plant in Chinese mainland. CookA series of operations were called "shrewd" by foreign media, because it successfully promoted the return of the U.S. component industry and reduced the risk of the first chain. However,AppleswithFoxconnIt may be too risky to bet on India, which is a market that continues to bring huge losses to foreign companies and is made in IndiaiphoNE's quality issues also seriously affected the brand's reputation. At the same time, the rise of Huawei has also made itApplesIt has lost its original competitive advantage in the production capacity of the first chain. So, forApplesNow we should focus more on our own survival than on "fleeing the Chinese market". Thoughtful decision-making for:ApplesThe future is crucial.