relies on the order volume of Apple in the United States to survive Foxconn , Not long ago, news of employees resigning, and the resignation wave was ushered in a wave of resignations. Employees only received two or three thousand in a month, so many workers could not accept it and resigned. For experts, Foxconn's troubles have just begun.
As a global OEM giant, Foxconn has now heard of a resignation wave in its OEM factory in Henan. Many employees receive only two or three thousand per month. Such a low salary cannot meet the survival and living needs of ordinary families and individuals.
plus most of Foxconn employees work overtime. If employees cannot work overtime, their salary will be very low. After Foxconn ushered in a wave of resignation, although Foxconn officially refuted the news of this wave of resignation, To a certain extent, Foxconn's development has been greatly affected.
The outbreak of the epidemic has caused many companies to suffer a great impact, especially domestic companies, including the global smartphone market, which has also been greatly affected.
The relationship between Apple and Foxconn in the United States is very close. Apple in the United States has become Foxconn's largest customer, so if this continues, the order volume of Apple will directly affect Foxconn's survival. When the global smartphone market cannot develop normally, the order volume will also decrease. The decrease in the order volume of Apple in the United States will also cause Foxconn's subsequent development to be in trouble.
The outbreak of this epidemic has caused many stores of American companies to close. In addition, many problems in the United States have exposed their order volumes to be greatly reduced. Due to the sharp reduction of order volumes of Apple's orders in the United States, Foxconn is the only one that directly affected.
Although Foxconn responded to the news of the resignation wave, it said that the factory in Zhengzhou, Henan has not only not seen a resignation wave, but has increased more in terms of employee demand. This statement has not been recognized by netizens.
You should know that according to the data released earlier, not long ago, the sales of Apple's iPhone 2 in the United States fell very high year-on-year. With such a big change in the decline, Foxconn will naturally not be able to escape the impact this time.
Whether in the long term or short term, Foxconn's next order volume will also shrink greatly. In the short term, the trend of iPhone sales such a significant price reduction has been affected by the global epidemic on the one hand, and on the other hand, it is also an outbreak of internal problems in the United States.
The global smartphone market has had different degrees of impact, and the global smartphone shipments have also declined to a certain extent. In this way, Foxconn's order volume will not be as high as in previous seasons. Compared with the peak season of order volume, it is now in a very undesirable state.
In the long run, the epidemic cannot be completely solved in a short period of time. The repeated outbreaks of the epidemic will also cause Apple's order volume to fluctuate greatly, , so from this aspect, we can see that Foxconn is in great trouble. Industry insiders believe that Foxconn is actually facing more than these troubles, and Foxconn's other troubles have just begun.
Since Foxconn cannot continue to develop in its original order volume, and it depends largely on Apple in terms of revenue, once the terminal market targeted by Apple in the United States, that is, the US market and the European market, do not bring about the expected development effect, and is in a state of store closure for a long time, Foxconn, which has a high dependence on Apple in the United States, will be affected in terms of order volume and sales.
. Since Foxconn chose to build a factory in the United States earlier and focused its development on the Southeast Asian market. Later, if Foxconn chose to return to the domestic market, its competitive pressure would be very high. is an important competitor in the domestic market now, that is, BYD .
When BYD was developing its focus and gradually shifting its core business to the Southeast Asian market, BYD quietly achieved business development and expansion of its strength. Through cooperation with Huawei , BYD gradually occupied Foxconn's original market share.
What's more dramatic is that when BYD was developing in the domestic market before, Foxconn did not care about it. Instead, BYD achieved good development shortly after Foxconn turned around and left the domestic market, which is also a bit troublesome for Foxconn.
As for Foxconn's development in the Southeast Asian market, Southeast Asian workers are not willing to work overtime. Coupled with the outbreak of this epidemic, many order volumes of Southeast Asian factories cannot be completed on time, and the backlog of order volumes of finally returned to the domestic market.
Southeast Asian market also has a great dependence on the domestic market, and many parts are inseparable from the domestic market. Therefore, when the founder of Foxconn tried his best to turn to the Southeast Asian market, he found that his previous efforts had been wasted.
Compared with the Southeast Asian market, the domestic market no longer has cheap advantages in labor, but in terms of transportation and industrial chains, they all have better development advantages. Not only that, domestic workers can accept overtime work, and their labor efficiency is also relatively high on . , which was previously optimistic in the Southeast Asian market, and Guo Taiming will also be "slapped in the face".
It is relatively simple to leave the domestic mainland market, but it will be more difficult to return to the domestic mainland market. Foxconn's operation actually made it lose the trust of many users. Coupled with the rise of BYD, it will occupy Foxconn's market share to a large extent.
Foxconn is facing many troubles now. As an OEM giant, workers are unwilling to work overtime and have small orders, the subsequent sales and revenue will naturally decline to varying degrees.
When Apple in the United States chose to build a factory in the United States, Foxconn followed closely behind. Not only that, it was also willing to provide more jobs and financial subsidies to the US market. Foxconn does this to better please Apple in the United States. After all, the order volume brought by Apple directly affects Foxconn's survival.
In its development process, Foxconn regards Apple as its largest customer, and its long-term development in the future will be restricted by Apple in the United States. As the founder, Terry Gou later chose to focus on the Southeast Asian market, because the development of the Southeast Asian market is more like the early Chinese market.
The Southeast Asian market also has cheap labor, and the market development has not been saturated. What is more important in the Southeast Asian market is that it will not increase significantly in housing prices and land prices. These are important reasons why Foxconn and Apple in the United States choose to develop in the Southeast Asian market.
For Terry Gou, what he felt even more unexpected was the situation of Southeast Asian workers unwilling to work overtime and the outbreak of this epidemic. After the outbreak of the epidemic, many large enterprises were also affected a lot, and many small enterprises were still facing bankruptcy.
Foxconn's previous development in the Southeast Asian market has obviously been wasted. If you want to return to the domestic mainland market, you have to face competition from BYD. BYD's cooperation with Huawei has achieved a win-win goal. As a global OEM giant, Foxconn is far superior to BYD in terms of strength, but if Foxconn has never taken the rise of domestic local companies seriously, it will only affect its long-term development in the end.
Foxconn chose to leave the domestic market, and this wrong judgment will also bring a fatal blow to Foxconn. Domestic labor no longer has the advantage of cheapness as it was in the early days, but it has made great progress in transportation and supply chains. The improvement of the supply chain can enable enterprises to better save costs.
Foxconn still lacks some in terms of its long-term development perspective. It is understandable that Foxconn wants to get rid of its dependence on the domestic market, but the most important thing is to focus on its long-term development in the future.
