Apple's industrial chain changes
Apple is a global technology giant, but what others talk about is not how strong Apple has in terms of technology strength, but how profitable Apple is.
How much money is Apple making? As the first company in history to exceed US$3 trillion in market value, it is not an exaggeration to describe Apple as wealthy as a country. Its market value can keep up with many countries' GDP for a year.
, and Apple set a record of US$120 billion in revenue in one quarter, equivalent to US$140,000 per day, equivalent to RMB 10 billion. Apple's daily revenue is equivalent to the annual revenue of listed companies. Revenue data such as
is placed in front of many suppliers, and few are not moved. So when Apple tries to cooperate, suppliers almost always strive for order opportunities, even if Apple lowers the price.
However, entering the Apple industry chain does not mean that you can rest assured. Apple can adjust the cooperation between industrial chain suppliers at any time. As long as it does not meet Apple's cooperation requirements, or there is no need for cooperation, it will be kicked out of the fruit chain. In addition, Apple has shifted its production capacity from mainland China to Southeast Asian countries and regions such as Vietnam over the years, which has led to a continuous change in Apple's industrial chain.
From the perspective of suppliers, it is very likely that they will face huge revenue and profit losses after losing Apple's cooperation, just like OFIL 's net loss last year was 2.7 billion yuan, but Apple was not affected in any way because other suppliers replaced the original industrial chain position.
So what should suppliers pay attention to when cooperating with Apple? The most important thing to pay attention to is to comprehensively examine your own strength performance in the industrial chain. If your comprehensive strength is better than your competitors, the possibility of being terminated is very small, so you only need to guarantee the supply according to the contract.
But if the strength is average, if you win orders with price strategy , you need to consider strengthening your diversified business layout.
After all, Apple is very strict in the management of fruit chains. Although being able to enter fruit chains also means that they have outstanding strength, there are many similar suppliers in China, and when other manufacturers are equally outstanding, it depends on who can stand out.
Therefore, when suppliers cooperate with Apple, they cannot relax. Those with outstanding strength will continue to work hard, and those with average strength will make more preparations. In order to see an accident in the process of Apple transferring production capacity and adjusting its industrial chain.
Can Apple leave the Chinese market?
Apple will not stop transferring production capacity. At present, Apple has put iPhone , Mac, AirPods and other products in foreign production lines to manufacture.
, especially the iPhone, which accounts for the largest proportion of revenue. Apple not only allocates more production capacity to Foxconn's Indian factory, but also arranges the production of iPhone14 in advance.
This shows that Apple attaches more importance to the production status of the foreign industrial chain. If this trend continues to develop, Apple will make more investments in foreign production lines in the future. Since Apple has transferred its production capacity many times, can it leave the Chinese market? Let’s talk about the conclusion first. The answer is no. There are three main reasons.
First: Apple's industrial chain accounts for the largest proportion of the Chinese market, and it is impossible to leave
Apple's industrial chain is spread all over the world, with parts from China, the United States, Japan, South Korea, etc. Among them, in terms of the proportion of industrial chain suppliers, mainland China has the largest share.
According to a list of Apple supplier distribution areas, the number of suppliers in mainland China reached 380, ranking first, and Japan ranked second, with 128 suppliers. Mainland China accounts for about half of the number, so it is impossible for Apple to leave easily.
Second: Apple can produce and sell itself in mainland China, and it needs the support of the mainland's consumer market
The mainland has a complete and huge manufacturing industry chain, from a screw to a large screen manufacturing, can be produced in mainland China.Almost all of Apple's consumer electronics products have OEM factories in mainland China, or are supplied by mainland suppliers.
can not only be produced by itself, but also be invested in the consumer market. This self-produced and self-selling model allows Apple to better get support from the consumer market, saving money through import and export links.
Third: Complete transfer of production capacity is very expensive and time-consuming, which is not in line with Apple's pursuit of profits
Apple builds factories and equipment in Southeast Asia, essentially in order to seek cheap labor support, thereby increasing profits. The situation that does not meet the profit pursuit is not what Apple wants to see, just like once Apple completely transfers its production capacity, it will lead to a significant increase in the cost of equipment and it will take a very long time.
The iPhone produced in mainland China accounts for 98% of Apple's industrial chain's production capacity. If Apple wants to reduce the proportion of production capacity to 90% in mainland China, it will take at least 8 years. It is conceivable that it is completely impossible for Apple to completely transfer production capacity, and it is impossible for it to leave China.
was written at the end
While Apple terminated cooperation with some mainland suppliers, it also included other mainland suppliers into the industrial chain. It can be seen that Apple's industrial chain needs global support. Although Apple wants to diversify the industrial chain, the importance of mainland China is still irreplaceable.
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