Apple has made itself successful through products such as iPhone in the past decade, and has also made many suppliers. Foxconn is one of the companies that have become stronger by relying on Apple. Its revenue in 2021 was as high as NT$5.94 trillion NT$, which is approximately US$187 billion.
Foxconn has become the overlord of the global electronics contract industry, but with such high revenue, the net profit generated is minimal. Foxconn's net profit in 2021 was only NT$139.3 billion, or approximately US$4.3 billion.
That is to say, Foxconn's net profit margin is less than 2.3%, In contrast, Apple's revenue in 2021 was US$365.8 billion, with a net profit of US$94.68 billion, and Apple's net profit reached an exaggerated 25.8%.
Although Apple has created huge revenue for Foxconn, it can be seen from this data that the money of was basically earned by Apple because the partnership between Foxconn and Apple is in the Buy and Sell model. The logic of the Buy and Sell model of
The Buy and Sell model is that Apple first goes through strict review and selects a series of high-quality parts and materials suppliers, and then purchases parts from the supplier and sells them to Foxconn at a high price. After Foxconn is assembled, Apple purchases them back and only pays a certain assembly fee.
It is precisely because of this that Foxconn's revenue scale is so high, but its net profit is only US$4.3 billion, or RMB 30.7 billion. Although this amount is very high, compared with Foxconn's 660,000 employees, the value created is simply too low.
If calculated based on the average, .66 million Foxconn employees have averaged over a year, and each person has created a net profit of RMB 46,500 for Foxconn. shows that profit almost all fall into the pocket of Apple. Apple eats meat in large pieces, while Foxconn can only chew bones, which can be called an "sweatshop".
is not so much like Apple pressing Foxconn, but Apple pressing Chinese workers. After all, most of Apple's production lines are in mainland China. There is another more ironic scene, that is, the net profit generated by Foxconn in one year is not as good as Apple's Lightning data cable.
Data shows that Apple has passed the MFi patent authorization, and the annual patent fee is as high as US$3 billion. Some institutions have predicted that can earn US$5 billion per year through the Lightning interface.
The cost of Apple data cable is actually very low, but the unit price is hundreds of yuan per piece. This amount of money is equivalent to making money while lying down. By relying on the Lightning interface in a year, the profit can surpass Foxconn. The gap is simply too big.
It is precisely because of this that Apple is always unwilling to replace the iPhone charging port with Type-C. Even if EU plans to legislate to promote the unification of Type-C interfaces, Apple is still indifferent. The iPhone 14 series still uses the Lightning interface.
It is obvious that if you move the Lightning interface, it is equivalent to moving the Apple's cheese. However, considering the pressure from all parties, Apple may have to make changes next year.
Previously, well-known analyst Kuo Mingchi revealed that Apple's iPhone 15 series will completely cancel the Lightning interface and replace the entire line of products with Type-C interfaces. mainly improves the transmission and charging speed of mobile phones in hardware design.
Guo Mingchi's analysis is also based on certain basis, because the Lightning interface is based on the USB 2.0 standard, the theoretical maximum charging power is 30W, and the data transmission rate is 480Mbps. The performance of can no longer keep up with the current technological development.
has become the mainstream direction to promote the global unification of Type-C interfaces. Apple may indeed abandon the Lightning interface for some reasons. But at present, the Lightning data cable still has a huge market. After all, Apple's stock devices are very high, among which more than 1 billion active devices on iPhone alone.
So no matter how expensive the Apple Lightning data cable is, there are still many consumers considering buying it. So will you consider purchasing Apple's original data cable? Welcome to comment, like, share and talk about your views.
