is fully reflected in both Apple and Foxconn. Relying on millions of domestic employees, Foxconn has achieved the world's first place today, but Terry Gou said that Foxconn is giving food to mainlanders.
Apple's revenue also comes from the domestic market, but now it is busy transferring production lines to foreign countries.
However, these two companies have "run" again recently, but this time they "run" from abroad back to China. What's going on? What changes have they experienced abroad?
The cause of Apple's lack of greed
is because Apple has made too much money in the domestic market, which made Apple deeply realize its dependence on the Chinese market. Not only that, we all know that Apple's mobile phone profits are extremely high in the mobile phone industry, but even so, Apple is still continuing to compress costs.
For example, the previous cancellation of headphone jacks and chargers is a marketing method that serves profits.
So in order to continue to increase costs, Apple also wants to transfer it from China. Especially in the face of global trade turmoil, Cook began to arrange his transfer plan in an orderly manner.
Of course, this transfer is just a transfer of Apple's production line, which involves a series of downstream OEM companies.
We all know that China has become Apple's largest OEM site, and the company that plays a major role is Foxconn, and nearly half of Foxconn's revenue depends on Apple orders.
In order to hold Apple's thighs tightly, Foxconn can be said to be obedient.
So when Cook proposed his desire to transfer the production line, Foxconn immediately responded, announcing a high-profile announcement that it would invest $5 billion to build a factory in India. The scale of these factories is not small, and there are expected to be 10 to 12.
Foxconn makes money crazily
According to the data reflected last year, setting up the factory in India has indeed made Apple and Foxconn make another big profit. In the last quarter of 2020, Apple's sales in India were excellent, exceeding one million units for the first time.
Regarding this achievement, Cook also publicly stated that India is an emerging market and has great development potential, so Apple will continue to increase its investment in the Indian market in the future.
But Cook was not happy for too long. As the epidemic went on and on, India was also deeply affected. A serious infection occurred in a short period of time, and even employees at the Foxconn factory were infected. Therefore, India decided to shut down the relevant factories. Among the four factories that were shut down, three of them belonged to Foxconn.
You should know that before, Apple and Foxconn used their "heroic" spirit to cut off their arm, and after some operation, they built India into a major production base.
In the two or three years since Foxconn went to India to build a factory, India's factory became the third major factory outside the factories in Zhengzhou and Shenzhen. The impact of this shutdown can also be imagined.
Foxconn's losses intensified
In fact, Foxconn and Apple have experienced strong storms in India. In 2020, another Apple foundry, Wistron, had an incident of employees smashing and smashing, and the losses of tens of thousands of mobile phones made Apple suffer.
After Foxconn came to India to develop, he also realized the working habits of Indian employees. Because he did not like to work overtime, Foxconn's overtime system was useless for them, and from time to time they would protest by strike.
When you work normally, the work efficiency of Indian employees is not as high as that of Chinese employees. So for a long time, Foxconn was in a loss state, and even the amount of losses reached 6 billion, which was in sharp contrast to Apple's profits.
Nowadays, Apple, which has just seen the profits, is facing new changes. According to statistics, factory shutdowns will directly affect Apple's supply, output will be reduced by more than 50%, and it will even face serious consequences of all shutdowns.
Faced with such a "mess", Apple and Foxconn "escape" back to China one after another.Before, Terry Gou's words were still heard. In order to take the lead, Terry Gou once said that if China leaves Foxconn and Apple, the manufacturing industry will face serious consequences. Nowadays, Foxconn has also started to "return".
In order to express his sincerity in returning to China, Foxconn recruits employees in China and implements a reward system for employees, hoping that domestic production capacity can make up for the losses of Indian factories.
Nowadays, it is not that China cannot live without Apple and Foxconn, but that they cannot live without China. It is clear who gives whom the food to eat.
After this, Foxconn's $5 billion investment has been considered a stalemate. I wonder where Foxconn's Indian factory will go after the epidemic?
