Apple announced that Foxconn had broken its arm, and all orders were handed over to Lixun Precision, which was dissatisfied.
Foxconn is Apple's main foundry, and the two sides have a very close working relationship. But before Foxconn was recalled as the sole foundry for iPhones, Foxconn was Apple's largest foundry, and after that, Foxconn's importance to Apple began to gradually decline.
Foxconn can become the world's largest electronic foundry, inseparable from the support of Chinese mainland. When Foxconn came to Chinese mainland, it only built a small factory with dozens of people, and with the support of the Chinese population dividend and the development of production policies, Foxconn's business scale expanded rapidly.
Subsequently, Foxconn became Apple's main foundry with unrivaled production capacity, accounting for the majority of iPhone OEM production, and Foxconn's industrial park in Zhengzhou is still the world's largest iPhone OEM park.
After becoming Apple's main foundry, Foxconn gradually began"Drifting away", Foxconn founder Terry Gou also began to make arrogant public remarks on multiple occasions. For example, Gou has previously said that Foxconn can withdraw from the Chinese mainland market at any time. And about"Enjoy the meal"'s remarks have aroused widespread attention and discussion among domestic netizens.
Some time ago, Foxconn was jointly investigated by the Chinese tax department and the natural resources department, and the main content of the investigation involved the possible existence of Foxconn"Illegal land use"with"Tax evasion"Issue. Some industry experts said: Judging from the current situation, Foxconn may indeed have this kind of illegal behavior.
In addition, well-informed sources revealed that some of Foxconn's factories in Shenzhen have tax evasion, and Foxconn has also used some industrial land for real estate development. Judging from some past cases, Chinese authorities generally need to have some evidence before launching an investigation.
It is not difficult to see that Foxconn is now widely regarded as an illegal enterprise. Since the investigation began, Foxconn's share price has risen by more than $32.1 billion within 24 hours of filing the case, as have the shares of some of Foxconn's other subsidiaries and parent company, Hon Hai Group.
There is no doubt that the Chinese authorities' investigation has had a serious impact on Foxconn after news broke that it would be fined $180 billion and confiscate 20,000 pieces of land the size of a football field. Although the news was quickly confirmed as a rumor, it indicated the market's attitude towards Foxconn.
Surprisingly, Foxconn has suffered not only from this incident recently, but also from Apple's"Stab in the back"。Previously, the novelty rate of the iPhone 15 made in India was less than 50%, which caused consumer dissatisfaction with Apple, and even directly affected the sales of the iPhone 15 in the Chinese market.
But what people didn't expect was that Apple CEO Cook issued a statement on this matter in advance, Cook said: The iPhone 15 mobile phones sold in the Chinese market are exclusively produced in China. This also means that Cook directly defined the iPhone 15 product in question as a product produced by Foxconn.
Foxconn is Apple's largest foundry, especially in the Chinese market, in fact, the vast majority of iPhones are produced by Foxconn. This also means that Apple is showing the outside world that it is Foxconn that is in trouble, not Apple's other foundries in India.
This news is obviously not good news for Foxconn, because Foxconn's reputation in the market was not very good some time ago, and this incident will only lead to a further decline in Foxconn's reputation. To everyone's surprise, Apple also announced some time ago that they would hand over part of the iPhone assembly order to Lucent Precision.
Foxconn is ready to work with Apple to shift production capacity to regions such as India and Vietnam, while reducing production capacity in China and building factories in India. But Foxconn's exit will certainly free up some capacity and labor, and Lucent Precision, BYD and other Chinese foundries will be able to capitalize on the opportunity for rapid growth.
There is no doubt that domestic foundry companies such as Lucent Precision and BYD have gradually begun to develop in terms of foundry technology and production capacity. Although it is still difficult to compare with Foxconn in terms of scale, they have been able to take orders from Foxconn to Apple.
There is no doubt that Foxconn's current life does not seem to be easy, and they have been because of"Dumping"Apple is under investigation by the Chinese authorities and has to compete for market share with fast-growing domestic foundries such as Lucent Precision, which could be very difficult. I also wonder if Terry Gou will be before for himself"Arrogance"remorse.