Terry Gou continues to miscalculate
Introduction: As the founder of Foxconn, Terry Gou has been very successful in the mainland market. However, due to the misjudgment of Apple's choice of interests and the migration of the ** chain, it is losing its former glory. Foxconn used to rely on Apple's orders to grow and grow, but due to Apple's dissatisfaction and pressure, Apple began to reduce its dependence on Foxconn and distribute orders to other manufacturers. In addition, Foxconn's efforts in the Indian market have also encountered various problems and challenges, and the continuous acceleration of capacity transfer has not achieved the expected results. At the same time, Foxconn was also investigated by the United States, which made Gou's miscalculation even more obvious. In this context, how Foxconn will respond and adjust its strategy has become the focus of attention.
From dependence on Apple to marginalization.
Foxconn's success was aided by Apple's orders, but Mr. Gou did not foresee how fragile that reliance would become. Apple, a company that is committed to reducing risk, has gradually begun to reduce its dependence on Foxconn's orders. Although Foxconn is actively building factories in India, due to India's supporting facilities and the quality of workers, the product quality is not ideal, and even there is a phenomenon of returns. As a result, Apple began to divide some of its orders among other manufacturers, such as Luxshare Precision and Pegatron. This shows Cook's dissatisfaction with Foxconn, and further weakens Foxconn's position in the Apple ** chain.
Foxconn also faces other problems. With the emergence of new foundries such as Luxshare Precision, BYD and Kaihong Technology, Foxconn is gradually being replaced by these companies. These manufacturers have made great progress in both technology and management, and have gradually won the trust of Apple. At the same time, India's Tata Group wholly acquired Wistron, which became Apple's largest assembly plant in India, further undermining Foxconn's competitiveness in the Indian market. In short, Foxconn is facing a serious challenge, going from being a company trusted by Apple to being marginalized.
Lost orders and replaced by Chinese companies.
Gou's original intention to set up a company in India was to follow in Apple's footsteps, but the results were disappointing. After Foxconn left, Luxshare Precision grew rapidly and became the recipient of Foxconn's orders. Other foundries such as BYD and Kaihong Technology are also developing rapidly and challenging Foxconn. This means that Foxconn has taken a serious hit in terms of market share and has lost orders that originally belonged to it.
The rise of homegrown businesses in India.
Foxconn had hoped to regain its position as a giant in the Indian market, but its plans did not go as planned. The Indian market is not friendly to foreign companies and is often referred to"The grave of a foreign company"。Wistron, Apple's assembly plant in India, has announced its withdrawal from the Indian market and was acquired by the Indian conglomerate Tata Group. Now, the Tata Group has become Apple's main foundry in India. This once again exposed the difficulties and challenges faced by Foxconn in the Indian market. Despite this, Gou continues to invest in India in the hope of breaking new ground. Unfortunately, he was not aware of the peculiarities and risks of the Indian market.
U.S. goals.
Foxconn has considered the possibility of building a factory in the United States, and has even received the welcome and support of Trump**. However, Foxconn's construction of a factory in the United States ultimately failed due to high costs and an unsuitable business environment. Today, the United States has significantly reduced its attention and attention to Foxconn, and even included two subsidiaries of Foxconn"Unchecked list"。At the same time, Foxconn has also been tracked down and investigated by the United States. This situation made Gou's miscalculation even more obvious, and Foxconn also silently suffered the consequences.
Summary. Terry Gou has lost his past glory in the development of Foxconn, and his position in the Apple chain has gradually weakened. His miscalculation was mainly due to the failure to foresee Apple's reduction in dependence on Foxconn's orders and the misjudgment of the Indian market. Foxconn faces multiple challenges, such as marginalization, orders being replaced by other foundries, competition in the Indian market, and harassment from the United States. For Gou, it was imperative to revisit his strategic decisions and find new solutions to revive Foxconn's glory. This requires not only his vision and wisdom, but also the joint efforts and innovation of the entire Foxconn team. Only in this way can Foxconn regain its former glory and move towards a brighter future.