Foxconn completely withdrew from the Indian market, and foreign media Guo Taiming suffered a practical lesson
From the perspective of the most profitable technology companies, Apple is undoubtedly the most valuable company under Cook's leadership, with a current market capitalization of more than $3 billion. Apple's rise is inseparable from the full support of the mainland market, which accounts for more than 90% of the assembled production in the mainland market alone. The mainland's well-established industrial system, as well as the first-class parts chain and huge labor force, make Foxconn the most important for Apple"Royal"Foundry.
However, no matter how much the mainland market contributes to Apple, it cannot change the fact that Apple has left the mainland market. Some time ago, Apple CEO Tim Cook said bluntly that Apple is accelerating"Escape"Chinese mainland market, while India will be the main market and production base.
However, some time ago, there was a news in the Indian market that Apple and Foxconn did not expect. You know, Foxconn and Wistron are Apple's"Genuine"The foundry is the backbone of Apple's mobile phone assembly, and it is also the first company to respond to Apple's investment in India.
In recent years, Apple's investment in India's first-chain factory accidents have been frequent, such as worker problems, factory fires, etc., which directly led to the closure of the factory, affecting the progress of orders, and finally the mainland factory paid the bill. For example, in the previous Foxconn factory in India, due to the imperfect facilities of the local grassroots industrial system, the quality of workers was low, and there was a shortage of Chinese workers"Three males"spirit, resulting in the slow progress of Foxconn's Indian factory's orders, and finally had to be urgently transferred to the Zhengzhou factory in order to complete the production task on time.
It is worth noting that these Apple assembly companies in Wistron were the first to invest in India, since 2017, Apple began to assemble iPhones in India, Wistron is also the first company to produce iPhoneSE for Apple in India, Foxconn only began to invest in India in 2019, and only began to produce high-end iPhones in the Indian market in the past two years.
Wistron's strength and technical level have a certain lag compared with Foxconn, so Apple's order volume is not very high, and Apple's OEM profit is not high. The most important thing is that Wistron has continuous problems with its factory in India, and some time ago Wistron officially announced its complete withdrawal from the Indian market!
It is worth noting that Wistron has announced its withdrawal from the Indian market, and the Indian factory has been given to the Indian Tata Group, which at first glance is a normal business transaction. In other words, when the Tata Group discussed cooperation with Wistron Information Tsu, it asked Wistron to hand over most of the funds, that is, the control of Wistron India's factory.
Due to the frequent problems of the Indian factory, coupled with the meager profits of the iPhone foundry, and the fewer and fewer orders, Wistron finally had to choose to give the Indian factory ** to the Tata Group, and as a result, Wistron announced that it would completely withdraw from the Indian market. As a result, Wistron announced its complete withdrawal from the Indian market. This makes it the same as Apple's"Royal"The factory was the same, and then Apple's transfer of a large amount of production capacity to Foxconn in India was unexpected, because the efforts made could end up being in vain.
Not only Wistron, but also China's Xiaomi in the Indian market some time ago is the best example. India first suspected Xiaomi of tax evasion and fined Xiaomi more than 500 million euros, and then simply seized Xiaomi directly from India's 4.6 billion euro warehouse. This led to a direct loss of more than 5 billion for Xiaomi. The meeting between Wistron and Xiaomi in India is equivalent to someone else's cutting"Leeks"The same.
Now that Apple has accelerated its exit from the African continent, betting on the future in India is a foregone conclusion. As Apple's largest foundry, Foxconn chose to transfer 300 billion production capacity to follow Apple, and also bet its future on India. In this regard, some industry experts believe that Terry Gou is"Remember to eat but not to play"After all, the Indian market was indeed a lesson from the past, and now it continues to choose to transfer production capacity to India.
In addition, although Foxconn actively cooperated with Apple to relocate and invest in Vietnam, India and other places, Apple does not seem to buy it, but is cultivating other foundries, intending to reduce its dependence on Foxconn, as reported by Taiwan some time ago: Apple's next-generation iPhone15 series models, about 27% of orders have been dispersed to Pegatron and Lianchuang and Lucent Precision.
Maybe it was the encounter between Xiaomi and Wistron in the Indian market, or maybe it was Apple's behavior of dispersing orders, which made Terry Gou wake up and no longer follow Apple. He began to look for other opportunities, with Foxconn reportedly building a semiconductor factory in Qingdao and Shanghai Microelectronics acquiring 46 lithography packaging and testing machines.
What's more, Gou seems to recognize that neither the basic industrial facilities nor the quality of the labor force can be compared with the mainland. Foxconn chose to establish a new headquarters in Zhengzhou to develop emerging industries. Externally, Foxconn wants to reduce its dependence on Apple. In this regard, there have been warnings that Foxconn needs to reduce through structural diversification"Dependence on Apple"。
Although Guo Taiming once claimed to be arrogant"In the past few years, it has been he who has rewarded the hinterland, and the hinterland has not been able to leave him"However, he chose to concentrate Foxconn's future development on the mainland, which shows that he still has a conscience. I think that if Foxconn can turn back time, we will continue to tolerate it with a normal heart.
If you choose a path to go black, after Apple transfers production capacity to India, the next one to be cut is Foxconn. The mainland market is also inseparable from Foxconn, because with the continuous development of China, many domestic factories have begun to grow, such as Luxshare Precision, BYD, CATL, etc.