Foxconn's employee income has plummeted, and whether Terry Gou's expansion in India will be successful
Foxconn layoffs, can Terry Gou's expansion in India go smoothly?Terry Gou's analysis.
Some time ago, a series of behaviors of Foxconn attracted much attention. Not only did it introduce weekends and standardized working hours, which led to a sharp drop in the income of its national employees, but it also announced expansion plans in India to increase the number of employees from 40,000 to 200,000 within three years. What are the goals and thoughts of Chairman Terry Gou?
Foxconn's series of decisions has sparked speculation that Mr. Gou is trying to grow his business. But what is Gou's real opponent?Will he be able to achieve his expansion plans in India?
First, Foxconn launched"Two-day holiday", what is the purpose of Terry Gou's move?
Some time ago, Foxconn announced that the company would strictly implement a five-day, five-shift, eight-hour working day, which caused complaints from employees, whose wages were halved and could only receive 3,000 yuan. According to industry experts, Foxconn employees used to receive high salaries largely because of overtime. With the introduction of the five-day work week, working hours have decreased, overtime has decreased, and wages have definitely decreased.
The move has sparked speculation about Gou's true intentions. Some analysts believe that Mr. Gou's move may have been in response to adverse external influences. Some people also believe that Chairman Terry Gou wants everyone to know how low the salary is for not working overtime, so as to better accept his job. Others say it's a tactic by Foxconn to respond to the investigation. Regardless, this regulation has had a huge impact on employees, making it impossible for them to continue their lives.
Second, with Foxconn's ambitious development in India, does Gou plan to reduce his investment in the mainland market?
The same is true for Foxconn's expansion project in India. Foxconn announced that it will increase the number of employees in India from 40,000 to 200,000 in the next three years, and said that the Indian factory will reach the level of the Zhengzhou plant in the future. Analysts believe that this indicates that Foxconn will reduce its share of production capacity in the mainland and shift its focus to India.
According to Ming-Chi Kuo, the industry's most influential analyst, Indian-made iPhones will take 12% of the market share this year and could rise to 20-25% next year. That's a staggering percentage. Why is Foxconn expanding its production capacity in India so quickly?Does Chairman Terry Gou want to reduce his stake in the mainland?
Third, Chinese companies join forces, and Gou's expansion in India may not be successful.
Gou's actions make people guess what he thinks"Zoom in"event, but such a plan may not be as he hoped.
First of all, Foxconn's largest customer, Apple, said not long ago that it will continue to maintain close relations with China. Apple CEO Tim Cook said that more than 90% of iPhone production is still done in China. Foxconn wants to reduce its share of the mainland market, which is a bad situation for Apple.
Second, Foxconn's position in the mobile phone market is under threat, as Chinese mobile phone manufacturers are strengthening cooperation with local ** chains and transferring a large number of orders to local ** chains.
Third, Chinese OEMs were able to quickly change Foxconn's low-end assembly process. China's manufacturing industry is so strong that it is not afraid of Foxconn at all"Threats"。
In short, Mr. Gou is not only hurting workers, but it is also making it harder for him to meet his expansion goals in India, as more and more companies are entrusting orders to local co-packs.
Foxconn's behavior some time ago quickly became a hot topic on the Internet.
Some netizens expressed deep sympathy for Foxconn employees, arguing that the company should not be accused of sacrificing workers' rights to alleviate stress. Some netizens said that employees can decide whether to work overtime, and the company has the right to adjust the wage system. Some netizens analyzed the purpose of Gou's move and believed that it was to divert attention.
As for India's expansion, some netizens believe that the move weakens China's position in the world industrial chain and should be monitored. But some netizens said that China is a powerful country and there is no reason to be afraid of Foxconn"Threats"。Some people also believe that this situation will promote the transformation and development of Chinese enterprises and enhance the impetus for independent innovation.
Gou's series of actions have caused huge repercussions online, with heated discussions among netizens and different opinions, reflecting the complexity and sensitivity of the issue.
Foxconn's series of moves some time ago not only harmed the interests of workers, but also showed that Gou was trying to reduce mainland production capacity and expand into India. However, given Apple's behavior, the strength of Chinese companies, and China's manufacturing base, Gou's plans in India may be difficult to realize.
This reflects: first, the social responsibility of enterprises cannot be ignored, and the plight of these enterprises cannot be solved at the expense of the interests of employees;Second, with the continuous evolution of the world's industrial chain structure, China needs to strengthen its independent control over the industrial chainFifth, China's production capacity should not be underestimated.
Let's take a look at whether Gou's plan can succeed and how Chinese companies will respond. In any case, Foxconn's measures have not affected the development of China's manufacturing industry, and China's manufacturing industry will continue to maintain rapid growth in the future and become an important part of the world's industrial chain.