Faced with the sudden outbreak of the epidemic, many companies have failed or even went bankrupt. For most companies, it is quite difficult to resume work and production. Even if the work resumed successfully, the sales of many factories were still affected by the epidemic. Whether it is off-season or peak season, the factory orders are pitifully small.
Faced with this emergencies, many factories cannot open source and choose to squander the expenditure. By reducing costs, such as reducing workers' wages. Not only small businesses use this method, but large businesses also reduce costs by reducing spending.
Foxconn factory in Zhengzhou, Henan Province, although the construction was successfully started in 2020, many workers chose to resign. Why do most workers leave?
We know through the employees of the Foxconn factory that many people in this factory have only two or three thousand. Such low labor force allows many people who support their families to find another place to work. Moreover, because of the epidemic situation, logistics has also been affected, and many companies have no choice but to ship the raw materials they need within the specified time.
The average monthly salary at Foxconn is only two or three thousand, and there is no way to get more salary by working overtime, so some employees can only find other higher-paid jobs to support their families. This is also the method taken by some factories to continue to open.
However, Foxconn's average salary has always been relatively high, the main reason is that these workers use their overtime to increase their average salary. But now, because the Foxconn factory lacks raw materials for production, these workers can only be forced not to work overtime.
However, Foxconn factory has another explanation for this statement. In fact, the number of workers in the factory increased by 20% compared with the same period last year. It’s not because employees can’t overtime or get higher salaries. So through the statement of Foxconn factory, we need to study the factory data.
According to the comparison of factory iPhone sales volume, iPhone sales in April this year fell by nearly 77% compared with the same period last year, while it was a 56% decrease compared with the previous month. We know that Apple has always been Foxconn's number one customer, so compared with the decline in iPhone sales, the sales of Foxconn's factory will also be affected.
And due to the epidemic, iPhone sales will not increase significantly during this period. This situation is not only happening with smartphones like Apple, but also with low sales in most smartphone markets. Through data budget, the global smartphone sales will decline in the first half of 2020, and the proportion will likely reach 10.6%.
Foxconn may have more trouble in this situation. According to relevant personnel in the industry, Apple's main operating income in , is in the US domestic market and some European countries, and Apple's sales in China are only ranked third. And we can learn from Apple's stores in the United States and Europe that many are closed. This situation is not optimistic for Apple.
Because Apple's mobile phone sales have been affected by the epidemic, and the proportion of Apple's mobile phones in the United States and Europe is relatively large, and the offline stores in these two countries are now closed, so for Foxconn, factory sales may be greatly affected by the dependence on Apple orders. In terms of sales, the profits of that Foxconn factories can earn will drop.
Faced with the decrease in order sales at Foxconn and the competition from other factories in the industry, which will lead to more unfavorable situations. In the industry, , BYD is a major competitor of Foxconn, but before the epidemic, Foxconn did not regard BYD as a competitor with ability to compete with itself.
In recent times, there have been news that Foxconn's factories are planning to move out of China, so Foxconn's proportion in the market has also declined.The main reason is that BYD occupies a certain position. Moreover, Foxconn’s founder , Terry Gou, , has already spent a relatively high price to build a Foxconn factory in some markets in Southeast Asia.
Foxconn originally wanted to build some factories in Southeast Asia that save labor costs . However, because there are many situations where workers in Southeast Asia are unwilling to get paid by working overtime, they have not achieved the expected goal in saving costs. This led to Terry Gou's transfer from the Southeast Asian market to the mainland market.
Why choose the Chinese market? The main reason is that there is a relatively complete supply chain in China and China has a large population, so they are willing to get paid by working overtime, coupled with the Chinese people's willingness to endure hardships. These are the reasons why Terry Gou wants to put the market back into the mainland.
Even if Terry Gou is optimistic about the mainland market, because Terry Gou has released the news of his original transfer to the factory, in this case, the Chinese will not change because of your changing attitude. So it is not that easy for Foxconn to return to the mainland market. When Foxconn was in such a difficult situation, it was also reported that workers in Foxconn factory were too low.
Foxconn faces its current situation and responds to many false news, this is not a good choice for OEM companies to frequently appear bad news. So even if there are workers working overtime in factories and having high wages, there is no way to make profits without good sales. This is not a good phenomenon for Foxconn.
In fact, there have been news that Foxconn has been transferred from the epidemic to Southeast Asia. In addition, Foxconn's sales have been greatly affected by the impact of the epidemic in recent years, so the company has to face strong competition from BYD in this unfavorable situation. Although the company responded to news that was unfavorable to the company in some cases, as a promising company, it will not choose an OEM with more negative news.
Foxconn's development has been severely affected since the epidemic. The main reason is that it has not had a certain sales volume. In addition, its investment in the Southeast Asian market has not received high returns, and it has continued to obtain labor from mainland China. However, this repeatedly not only adds the factory cost of , but has not yet obtained factory workers.
Although many factories can start construction smoothly under the epidemic situation, their sales volume is greatly affected by the epidemic. Whether in the off-season or in the peak season, their sales volume is not as good as before. Under this circumstance, Foxconn chose to enter the Southeast Asian market from mainland China.
In this process, not only did not directly examine BYD's competition, but the company has also recently reported that workers are constantly changing jobs because the factory wages are relatively low, and there is no way for workers to have enough raw materials to process. Overall, Foxconn's OEM factory will gradually decline due to the rise of BYD.
No company can always be a giant in the factory. Only by constantly learning and developing new things can we further develop, correctly treat competitive companies in the industry, and recognize their shortcomings from other companies, can we become the company that customers will choose.
If a company wants to make a profit, it must have a good reputation. Faced with news such as companies that workers do not choose, partners may choose better companies because of this. Therefore, the company's development must be developed through the efforts of each employee.
