As globalTechnologyGiant'sApple, for a long timeChainEmigration has always been a matter of concern. Recently,FoxconnLarge-scale investments and expansion plans in India have sparked heated discussions. Not only does the company plan to move 300 billion of its production capacity out of China and ditch 320,000 employees, but it also plans to build another one in India."Applesmobile phone production base".
withFoxconnSimilar, anotherChainEnterprisePegatronIt also began to move overseas. PegatronIt is a subsidiary of Pegatron and was established in Shanghai more than 20 years ago. Its main business is:NotebookManufacture of computers and mobile phones. With the background and advantages of ASUS as a parent company,PegatronIt quickly grew to become the fifth largest in the worldNotebookThe foundry company, with 100,000 employees, contributes about 10% of Shanghai's GDP every year, with an annual production capacity of more than 90 billion.
However,PegatronRecently, it was suddenly announced that the production line would be shut down and began to move overseas, resulting in 100,000 employees facing unemployment. AboutPegatronThe reason for the shutdown was not directly responded to. Combined with the current context, we can draw some speculations. On the one hand,ApplesAsPegatronOne of its main customers, due to the impact of the downward trend in the consumer electronics industry, its order volume has also declined. According to data released by IDC, in 2022, the worldSmartphonesShipments were down 19% whileApples's shipments were down 15 percent. At the same time,HuaweiWith the rise of innovation and satellite ** capabilities this year, it is expected to regain lost market share, which also makes itApplesIt had to accelerate the layout of overseas markets. Moreover, in response to the "decoupling" plan of the United States,ApplesAcceleration willChainThe transfer from China to India, Vietnam and other places has also led to some Chinese companies being removed fromChainMedium culling.
ForApplesChainMany people are worried about the future of these 100,000 employees. At the same time, there are concerns about whether it will be rightManufacturing in ChinaInflict heavy damage. However, the transfer and renewal of low-end manufacturing industry itself is an inevitable stage of historical development. Just as from the United States to Europe, to Japan, South Korea, Taiwan, and the mainland, and now it has begun to shift to India, low-end manufacturing is often caused byEconomyDeveloped regionsEconomyLess developed areas are gradually shifting. Therefore, instead of being too obsessed with retaining these manufacturing companies, we should accelerate themIndustrial chainto cultivate local brands and realize industrial transformation and upgrading.
1. Competition and demand changes in the technology market
ApplesAs leadingTechnologyThe company has been in the fierce market competition. Over the past few years,SmartphonesIntensified market competition and sluggish growth in emerging market demandApplessales and profitability declined. At the same time,Huaweiand the rise of other competitors to makeApplesIt needs to be more flexible in its layout and adjustmentsChainto adapt to changes in the market.
2. The policy and pressure of the United States
With tensions between the United States and China,United States**Start rightManufacturing in ChinaRestrictions and repression are carried out to protect domestic industries and security. United States**It is planned to implement a "decoupling" policy, i.e. to reduce the number of people withManufacturing in Chinadependence, further promptedApplesand other multinational corporations will accelerate the willChainMove to other regions to diversify risks and avoidUnited States**restrictions.
3. The potential and cost advantage of the South Asian market
South Asian regions such as India and Vietnam have low labor costs and huge market potential. ApplesHopefully, by willChainShift to these regions to better meet the needs of these emerging markets and take advantage of cost advantages to improve their competitiveness. India, in particular, as one of the most populous countries in the world, has a large middle class and has great potential.
4. The saturation of the Chinese market and the slowdown in market growth
Although the Chinese market is the largest in the worldSmartphonesOne of the markets, but the saturation is gradually increasing, and the market growth is slowing down. At the same time, with the rise in labor costs in China andRMB exchange rateappreciation,Applesand other multinational companies need to find more cost-competitive production bases to improve profitability and reduce costs.
1. Apple's orders have declined and market competition has intensified
As a subsidiary of Pegatron,PegatronDependencyApplesof orders. However, withApplesDeclining market share and the rise of competitorsPegatronalso saw a decline in orders. EspeciallyHuaweiAsApplesThe direct competitors in the market are becoming more and more competitive, making thatApplesRightChainThe adjustment is imperative.
2. The strategic layout of Apple's transfer to India and other places
In order to compete for market share in the South Asian market, and decreaseProduction costsApplesSelect WillChainTransfer from China to India and other places. This strategic layout is rightPegatronand so onChainThe company caused a shock, causing its order volume to drop significantly, and eventually had to shut down some production lines or transfer capacity.
3. The pressure and policies of the United States
ApplesAs a U.S.-based company, it is subject toUnited States**Policy implications. With the tensions between the United States and China and the implementation of the "decoupling" policy,ApplesIn order to avoid and ChinaIndustrial chainThe fracture and limitation, the choice will be partialChainMove to places like India to slow downUnited States**pressure.
1. The transfer and upgrading of low-end manufacturing in China's manufacturing industry
As a global manufacturing power, China has long relied on low-end manufacturing to gain a competitive advantage. However, with the rise in labor costs and the saturation of the market, the low-end manufacturing industry is gradually moving towardsEconomyShift from underdeveloped areas. This is an inevitable stage of industrial development, not onlyApplesChainThe result of the adjustment. Manufacturing in ChinaWe should accelerate industrial upgrading, improve the technical level and added value of products, and adapt to changes in market demand.
2. Cultivate local brands and promote the development of local industries
Despite the impact on low-end manufacturing, China should strive to cultivate local brands and promote the development of local industries. As suchHuaweiThe return of the mobile phone business will drive the relevanceIndustrial chainChina can achieve this by cultivating local brands and innovation capabilitiesIndustrial chainof upgrades and domestic substitutions.
3. Find new market opportunities and layouts
Manufacturing in ChinaWe should actively look for new market opportunities and expand the export market for our products. With the advancement of the Belt and Road Initiative and the development of international initiatives, China has broad opportunities in emerging markets and developing countries. At the same time, China can also be in intelligent manufacturing,New energyNew materialsand other high-tech fields to find new market opportunities and play an important role in the global layout.
In short,ApplesChainof adjustments andPegatronThe shutdown of production lines is the result of market competition and changes in the global environment. Manufacturing in ChinaWe should take this opportunity to accelerate industrial upgrading, cultivate local brands, find new market opportunities, and actively respond to global changes and challenges. Only through upgrading and innovation,Manufacturing in Chinain order to remain competitive in the competition and for ChinaEconomyto contribute to the sustainable development of the company.