This Foxconn, once had unlimited scenery, almost monopolized more than 50% of the global mobile phone OEM market, known as the "world factory", any new iPhone factory, Foxconn's participation is indispensable.
With the Foxconn Kingdom created by Guo Taiming, he became the richest man in Taiwan and the world's richest list, and single-handedly changed Taiwan's status and made this small island gain global attention.
However, at this moment after the Lunar New Year, Mr. Guo was not very happy. This Foxconn's Spring Festival recruitment turned out to be deserted, and the scene of waiting to be fed in the past no longer exists.
In the past year, Foxconn's production scale in Chinese mainland has shrunk by nearly one-third, directly laying off 400,000 employees!
Mr. Guo, what's wrong? Isn't it a foolproof idea to move Foxconn to India?
It turned out that this wave of Foxconn moved east to India, so that Mr. Guo dug a big hole for himself, and he was inexplicably tricked!
First, the old accounts are cleared together
In fact, Foxconn has turned a blind eye to many places in China over the years, and has not really cared about its many problems. These problems are nothing more than three things: taxes, land, rules and regulations.
Foxconn occupies more land than some real estate companies; Tax incentives have also taken advantage of the benefits, and every place they go to, there are tens of thousands of jobs and huge GDP contributions, which makes many ** turn a blind eye.
However, Mr. Guo is determined to leave, and these old accounts will be settled together.
Starting in 2023, inspection teams have been dispatched from all over the country, and tax and land use are the focus, although no fines have been issued for the time being, but the alarm has been sounded and Mr. Guo has been slapped in the face.
In particular, Mr. Guo also publicly said that Foxconn was "rewarding food" to China, and this impatient attitude made China more determined to settle accounts with him.
Second, Apple's betrayal
Everyone thinks that Mr. Guo hugged the thigh of Apple, the big financier, so Foxconn's position is as stable as Mount Tai. And for Apple, Foxconn did not hesitate to spend a lot of money and entered India in a big way.
However, Mr. Guo never expected that this apple was not as loyal as he imagined.
Not only did Apple not give all the orders to Foxconn, but also deliberately dispersed to other competitors, such as Luxshare Precision and Pegatron Computer; What makes Mr. Guo even more chilling is that Apple is also openly inclined to local Indian companies, hoping to cultivate more Foxconn-style Indian companies.
Apple CEO Tim Cook also said to his face that he would transfer 25% of the world's production capacity to India by 2025.
It seems that Mr. Guo and Foxconn are just a screw in Apple's eyes that can be replaced at any time.
Third, Indian workers don't buy it
In fact, everyone knows what kind of place India is, when you come to make money, you can leave if you want, and Chinese companies have suffered losses here.
Mr. Guo bought land and built a number of factory parks, but it was difficult to recruit workers, and Indian workers went on strike at every turn, and Mr. Guo's white hair was about to come out.
Over the years, Foxconn has only 40,000 employees in India, far from expectations.
What's worse is that the rise of local companies has openly robbed Foxconn employees. Tata Group, a veteran Indian enterprise, recently acquired an OEM factory that competes with Foxconn, and publicly announced a salary increase of 2% in front of Mr. Guo to rob Foxconn's employees.
This is simply pouring salt on Mr. Guo's wounds!
Fourth, BYD lost land in China to seize the limelight
In recent years, BYD has risen and entered the consumer electronics foundry, stealing the limelight from Foxconn. This year, BYD acquired Jabil, the fourth largest electronic foundry company in China, for 15.8 billion yuan, and Foxconn's leading position is in jeopardy.
Moreover, BYD directly robbed Foxconn of the Huawei OEM order, making Huawei's mobile phones sell well, and Apple's market position was threatened.
It can be said that Mr. Guo is already at the end of his strong crossbow in China, and his foundation is shaking; In India, Mr. Guo thought that he was self-sprouting and strategizing, but he was countered by the Indian army. Now Foxconn is in a dilemma, in a dilemma, it is really self-inflicted!
Postscript:
From this case, it can be seen that the evil consequences caused by Terry Gou's judgment and decision-making mistakes. Blindly following the trend and talking big will only reap the consequences in the end.