Terry Gou lost !India officially took action, and the Foxconn era may be over

Mondo Technology Updated on 2024-01-28

As Apple's leading manufacturer, Foxconn has rapidly risen to become the world's largest factory in the field of electronic foundry by virtue of its cooperative relationship with Apple. However, in a highly competitive market, Foxconn faces a challenge from India. India's incentives and large population base have made it a popular destination for global manufacturing. In order to win more orders, Foxconn plans to transfer production capacity from Chinese mainland to India and expand the size and number of employees in the Indian factory.

However, challenges in the Indian market have also come with them. The quality of India's labour force is relatively low, with nearly half of the population aged 25-64 not completing lower secondary school. Compared with Chinese employees, Indian employees have a certain gap in terms of learning Xi and organizational skills. In addition, the relatively unstable law and order environment in India has led to a series of problems for Foxconn in India, such as frequent strikes and fire accidents. These problems have led to the slow progress of Foxconn's factory in India, which cannot meet Apple's production needs for high quality and high control requirements, and seriously affects Apple's ** chain in India.

Faced with the challenges of the Indian market, Apple gradually lost confidence in Foxconn and began to incubate other competitors, such as Luxshare Precision and Pegatron. As a result, Foxconn lost some of Apple's orders, further exacerbating their predicament.

In addition, the Indian market has certain restrictions for foreign companies. India** has adopted the policy of "making money and spending in India", and it is difficult for foreign companies to easily transfer funds in India. In contrast, Indian companies are more inclined to bring foreign capital under their control. The Tata Group, one of India's largest conglomerates, has acquired Wistron, an OEM company that is less fortunate than Foxconn, becoming one of Apple's largest foundries in India. The Tata Group not only took orders from Apple, but also poached technical talents from Foxconn through high salaries** and talent training, demonstrating its ambition to compete with Foxconn and win more orders.

At present, it seems that the future competition will be mainly focused on the Tata Group and Foxconn. Following the acquisition of Wistron, Tata Group plans to continue to expand its production capacity in India and seeks to acquire Foxconn's iPhone manufacturing unit in India. This will make Tata Group the most important Apple business in India, and it will be in a life-and-death competition with Foxconn.

However, Foxconn is not willing to give up easily. Their failure in India did not dampen their confidence in the Indian market. Instead, they may learn from their failures and readjust their strategies in an effort to improve production capacity and staff quality in order to win back Apple's orders.

Gou's Foxconn Group has had great success with Apple, but it has also encountered a series of problems in the face of challenges in the Indian market, including limitations on the quality of employees and the production capacity of the factory. At the same time, the Tata Group, with its strengths and ambitions, is aggressively seeking to acquire and expand its business in India, challenging Foxconn's position.

In a highly competitive market, companies need to constantly adjust their strategies and enhance their competitiveness in order to survive and thrive. As a world-renowned electronic foundry, Foxconn must take the challenges of the Indian market seriously and find a path suitable for its own development. Both Foxconn and Tata Group are facing great opportunities and challenges. Only by constantly improving their own strength can they be invincible in the competition.

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