Under the influence of public health incidents in all walks of life, the order volume of many factories has shown a sharp decline, and some small factories are even facing bankruptcy. Not only that, the annual peak order season cannot arrive as scheduled. In order to maintain the normal operation of the business, many factories can only save costs by reducing their salary levels and other means. This phenomenon is vividly reflected in the leading OEM companies in the country. The news that Foxconn ushered in a "resignation wave" has caused heated discussions, but insiders believe that the "troubles" Foxconn has encountered have just begun, and Terry Gou can only accept this reality.
Foxconn ushered in a "resignation wave" and chose to resign due to its low salary. For the normal operation of the company, most companies and factories began to save costs. Due to low wages, many employees chose to leave, which has had a serious impact on Foxconn's industrial development. Regarding the outside world, a large number of employees in the Foxconn factory in Zhengzhou, Henan have resigned and left. Foxconn has ushered in the news of the "resignation wave" of employees, and Terry Gou can only accept the reality. The reason for this situation is mainly because Foxconn’s salary is too low, and employees receive only two or three thousand yuan a month. In an era of rising prices and housing prices, two or three thousand yuan can only barely bear the daily expenses of the entire family, and it requires thrift.
It is precisely because of this that many employees choose to leave because they cannot tolerate low wages. Also, because most of the raw materials in the Foxconn factory cannot arrive in time, employees cannot work overtime normally. Once overtime is not done, the employees' monthly salary will be only two or three thousand. Although the market has always emphasized that Foxconn’s salary is good, these need to be based on overtime work. If employees cannot work overtime, it is understandable to choose to leave because of low wages. However, Foxconn denied the authenticity of the news of the "resignation wave" and said that the existing manpower of the Foxconn park has increased by about 20% compared with the same period.
Foxconn's "trouble" has just begun, and Apple's sales have dropped sharply. As we all know, the reason why Foxconn achieved such excellent results is mainly because of the large number of orders provided by Apple. However, Apple phone sales have been greatly affected by the public health incident. According to statistics, Apple's sales in April fell 77% compared with the same period and 56% compared with the previous period. As an important customer of Foxconn, the decline in Apple's mobile phone sales will definitely be unfavorable to Foxconn's development. Based on short-term market trends, Apple's mobile phone sales cannot increase significantly in a short period of time. But in fact, the global smartphone market is "shrinking"
Global smartphone shipments fell by 10.6% compared with the same period. Regarding this situation, industry insiders believe that Foxconn's "trouble" is just the beginning. Apple has entered the Chinese market many years ago and has gained a lot of wealth. As Apple's main market, CEO Cook decided to transfer some production lines to Southeast Asian markets such as India and Vietnam. However, because local employees are unwilling to work overtime, the raw materials are very expensive, and the special incidents have caused OEM factories in the Indian and Vietnam markets to face suspension of production. These situations have hit Apple's development to a certain extent.
is difficult to recover, and Foxconn, who has returned to the mainland, is in an embarrassing situation. As Apple's official OEM manufacturer, Foxconn relies heavily on Apple's orders. Therefore, the sharp drop in Apple phone sales is obviously bad news for Foxconn. But in addition to the ever-decreasing orders, Foxconn has ushered in a strong competitor, BYD, which is currently competing for Foxconn's market share. However, Foxconn has always looked down on BYD in the past, but because the industry has been rumored that Foxconn is about to leave the Chinese market, BYD began to plunder Foxconn's share in the market. In addition, Foxconn founder Terry Gou spent huge amounts of money to invest in and build factories in India, Vietnam and other places.
I originally thought that the labor costs in Southeast Asian countries were relatively low, but I never thought that the import price of raw materials was very expensive, and workers in Southeast Asian regions were unwilling to work overtime, so Foxconn could not save costs at all. Under this circumstance, Terry Gou once again focused on the mainland market, because my country's supply chain, infrastructure, etc. are very perfect, and our employees are relatively diligent and hardworking and know how to endure hardships. But it can be said that "it is difficult to recover". Although Terry Gou, who once chose to leave with great fanfare, has determined the focus of development and returned to the mainland market, the Chinese people have begun to reject Foxconn. This phenomenon has put Foxconn in a very embarrassing situation.
Summary
Foxconn's "trouble" is just the beginning. Due to factors such as employees' inability to work overtime and their salary is too low, Foxconn has experienced a "resignation wave". Although Foxconn has come forward to deny the authenticity of this news, for an OEM giant, such news is not conducive to its own development. Do you have any opinions on this?
