What is the possible impact of Dell transferring 50% of its production capacity out of the mainland?
A few days ago, Apple reported that global PC manufacturer Dell Inc. had notified **Chain and foundry that it plans to transfer 50% of its production capacity from Chinese mainland to places like Vietnam by 2025.
Many people in the industry do not think about this problem, thinking that there are many things missing Dell, it doesn't matter, China has such a strong manufacturing industry, such a complete ** chain, and the world's most complete industrial system, leaving Chinese mainland will lead to rising costs and slowing down efficiency, so Dell must have regretted it.
This understanding is also correct, but in fact this is also a very serious consequence for Chinese manufacturing, for Chinese mainland, because it means that American manufacturers have already started"Towards China's ** chain"Prologue.
How strong is China's laptop manufacturing industry?Data shows that more than 90% of the world's laptops are currently manufactured in Chinese mainland. Chinese mainland is the world's largest exporter of laptops, accounting for about 80%-85% of the world's exports, with an annual export volume of about 2600 million units.
Perhaps, the impact of transferring a 50% stake in Dell to a company won't be too big – after all, Dell's share of the laptop segment is only 18%, and 50% of the production capacity is roughly equivalent to 20 million to 30 million units.
But Dell's move is just the beginning, with Dell taking the lead, HP, Apple and other companies are likely to follow suit, and once these manufacturers do the same, China's laptop manufacturing capacity will be excessive.
Laptop manufacturing is not low-end capacity, but high-end capacity, once eliminated, it will be a major blow to China's manufacturing industry.
Moreover, due to the relocation of the laptop manufacturing industry, it will lead to the relocation of the global ** chain system, in fact, now some power management tablets and driver IC tablets like Taiwan have also begun to migrate to Vietnam, India, Southeast Asia and other places.
And since these upstream and downstream chains have also moved to other places, what are the advantages of Made in China?You know, the first chain is a moat made in China, and the labor cost is not a moat at all, and the current labor cost in Southeast Asia is not high, and when it comes to labor skills, the difficulty is not high.
In fact, not only Dell is doing this, there have been rumors that Apple is also planning to move the production capacity department out of Chinese mainland, this part of the capacity, as far as possible to 50%, according to DigitimesResearch analyst Lukelin estimates, by 2027 India will produce 45-50% of Apple's iPhone, the same as China's production.
Apple's products also include iPhone, Mac, AirPods, etc., all of which are high-end products, and once transferred abroad, it will have a huge impact on China's manufacturing industry.
So on this issue, we can't take it as a joke, whether China's production can face the situation of ** chain diversion, how to ensure the advantages of China's production, so that China's production has a real gap, is a very important issue.