With the advancement of globalization and the rapid development of technology, the cooperation between Apple and Foxconn has become increasingly close, and together they have forged a huge smartphone empire.
However, behind this seemingly unbreakable partnership, there are indescribable subtleties. Apple doesn't seem to fully trust Foxconn, especially after the famous 2016 incident in which Foxconn took the lead in opposing Apple's reduction of OEM orders, Apple began to implement a diversified chain strategy to diversify risks and ensure the stability and efficiency of production.
Under the guidance of this strategy, Apple gradually introduced new foundries such as Wistron, Pegatron, and Luxshare Precision, and gradually reduced Foxconn's share of the iPhone assembly business.
In addition, Apple has set its sights on the Indian market, which has great potential. India is also eager to develop its own manufacturing industry, so the two sides hit it off, and India has provided a series of preferential policies to attract investment and construction of factories by Apple and its chain manufacturers.
Over time, India's smartphone manufacturing industry has shown phenomenal growth momentum. According to statistics, India's mobile phone shipments have exceeded 200 million units in 2022, making it the world's second largest smartphone shipment.
Currently, 5% of iPhones are already made in India, and Apple plans to increase that proportion to Rs 1 trillion by the first quarter of 2024.
In this context, in order to maintain its position in the field of iPhone assembly, Foxconn has also begun to actively deploy in the Indian market. However, the reality is far more complicated than expected.
Foxconn thought it would be able to make a big splash in the Indian market and become Apple's largest OEM in India. However, the rise of the Tata Group, a local Indian enterprise, has brought unprecedented challenges to Foxconn.
Founded in 1868 and headquartered in Mumbai, India, Tata Group is one of India's largest group companies and is involved in a wide range of sectors, including communications and information technology, engineering, materials, energy, etc.
Despite its late start in the field of electronic foundry, with the support of India** and its own strong financial strength, Tata Group has quickly made its mark in the Indian market.
It not only acquired Wistron's mobile phone assembly foundry in India, but also discussed an acquisition with Pegatron, showing strong expansion intentions.
More seriously, the Tata Group is trying to poach key technical talent from Foxconn by offering higher salaries and benefits. This has led to a sharp increase in competitive pressure on Foxconn in the Indian market.
At the same time, Foxconn's attitude towards foreign-funded companies in India has also worried Foxconn. According to reports, India has reviewed Foxconn's application for investment in the construction of a chip foundry in India many times, but has never been approved, which undoubtedly increases the uncertainty of Foxconn's development in the Indian market.
To sum up, Foxconn originally hoped to open up new markets and win back more Apple orders by investing in India. However, due to the strong competition of the Tata Group, a local Indian company, and the policy bias of India's **.
Foxconn's "gamble" does not seem to have succeeded as expected. Gou faces unprecedented challenges, and Foxconn's future in the Indian market remains uncertain.