Gou is in trouble, Foxconn makes important decisions, and the future of hundreds of thousands of workers is uncertain
After Huawei's crackdown, Apple and Foxconn shifted production capacity to India and Southeast Asia, which has become more arrogant recently. At that time, in order to attract Foxconn to build factories in the mainland, we gave enough preferential policies, how could we pat our butts and leave? In October last year, Foxconn's competent authorities launched an investigation, pointing directly at Foxconn's tax and land problems, and the competent authorities did not violate the rules, and Guo himself knew about it.
The investigation only found that the Foxconn subsidiary had misreported taxes and imposed a fine of 20,000 yuan. The art of punishment lies in lifting high and lowering low. Is it that the relevant departments dare not punish Foxconn? Don't you dare to impose a huge fine of billions of dollars on Foxconn? Of course not! This 20,000 euros is a way, which is equivalent to a step forward for Terry Gou, if Foxconn chooses to continue to take root in the mainland, then the previous thing will be canceled, if Foxconn is bent on following Apple's example, then the next thing to face is a sky-high fine of billions of yuan, and these illegal acts will be made public!
Obviously, this punishment angered Gou and Cook, who directly issued a strict order for Foxconn to increase the share of iPhone production capacity in India to 20-25% by 2024, and only 12-14% in India by 2023. And Apple has also said that Foxconn must meet this goal even if it has a return of only 50% on the production of iPhones in India.
In addition, Apple's NPI (New Product Introduction), that is, the process of ** iPhone from the completion of Apple's research and development to the introduction of the foundry for trial production, is also a process that tests the foundry's technology and manufacturing strength. Apple requires Foxconn to complete the NPI phase of the standard iPhone 17 in India from 2024, so Foxconn must strengthen its manufacturing capacity at its Indian factory.
As a result of these actions, the number of employees at Foxconn's mainland plant has dropped from 1.2 million at its peak to 76 now70,000 people, which means that hundreds of thousands of people have already lost their jobs. What's even more heartbreaking is that under the impact of Huawei's Mate60 series, the sales of the iPhone 15 series are less than expected, causing Apple to cut orders for Foxconn one after another. In November last year, Foxconn was supposed to be Apple's peak sales season, but it suddenly released new working hours, strictly implementing the two-day + 8-hour work system. Friends who have been to the factory know that the basic salary of the factory is very low, and it is difficult to maintain the minimum living with a basic salary of more than 3,000 to earn a high salary.
And Guo Taiming seems to be completely crazy, investing in semiconductor projects in India was cut leeks, and in November this year, an additional 10 billion investment was made in India, and in December, India ** confirmed again that it received a huge investment project of 12 billion from Foxconn. Obviously, Terry Gou doesn't seem to want to turn back, he wants to completely replace Apple in India, and go all the way to the black!
Is it safe to hold apple thighs tightly? People who are familiar with Apple's business management strategy certainly know that Cook will never allow the company to dominate, so as to avoid the behavior of the store bully customers sitting on the ground and raising prices. Therefore, despite Foxconn's frequent expressions of loyalty, Apple continued to divide Foxconn's orders to Lucent Precision and Pegatron. Regarding the iPhone 15 series, Lucent won some orders for the iPhone 15 and 15 Pro, and Pegatron won some orders for the iPhone 15 Plus and 15 Pro. While Foxconn continues to hold most of its orders, it is already facing a crisis.
Another OEM giant, BYD, is growing day by day. BYD not only accepted Huawei's mobile phone OEM orders in China, but also began to grab Foxconn's cake in an attempt to enter Apple's ** chain. Some time ago, BYD acquired Chengdu and Wuxi mobile phone electronics manufacturing companies under Jabil Group for 15.8 billion yuan, and these two companies were on Apple's list of ** merchants. This means that BYD is about to bring a huge boost to Apple's ** chain. Since then, Foxconn has one more strong competitor.
As for what Foxconn did, I believe that the competent authorities have long seen it in their eyes and remembered it in their hearts. Since you have been given a chance, and you don't cherish it, then wait for the next huge fine! What do you think about this?