is inseparable from Apple's Foxconn
Guo Taiming founded Foxconn in 1974 and came to the mainland to develop in the late 1990s. Taking advantage of the market dividends, Foxconn has built one OEM after another in the mainland, and it is Apple that has really changed the fate of Foxconn.
In the era of Jobs, Apple tried to find suitable foundries around the world. Foxconn, which was eager for Apple orders, came to the United States with a thick cooperation plan.
Since Foxconn has formed a certain production scale in the mainland, Apple also hopes to gain a foothold in the mainland market, and finally the two sides came together. To this day, Apple and Foxconn still maintain a close cooperative relationship. In the fruit chain with rich profits, Foxconn ranks first in the world in the market share, and the company's financial report profits are also quite impressive.
However, the cooperative relationship between Foxconn and Apple is not irreplaceable. Apple can find Luxshare Precision , Pegatron participates in OEM, and allocate iPhone orders to other manufacturers. If Foxconn does not have Apple, it will probably be difficult to find a second customer of the same level.
originally had such a customer, but Foxconn took the initiative to give up. It is Huawei .
At its peak, Huawei's mobile business was not inferior to Apple at all, and its order production capacity was even higher than Apple. If Foxconn insists on cooperating with Huawei, there will be a big way out.
Results Under the changes in market rules, Foxconn "stabbed" Huawei and maintained its boundaries. When Huawei needed to cooperate, Foxconn made its own choice. Although Foxconn has stabilized its business revenue with Apple orders, it also has a great dependence on Apple, a major customer.
In fact, Foxconn has also tried to change over the years. In addition to its foundry business, it also involves semiconductors, automobile manufacturing, etc.
For example, Foxconn built a packaging factory in Qingdao , and then jointly ventured with local companies in India to seek semiconductor incentive subsidies in India. In terms of automobile manufacturing, since 2019, Foxconn has developed its business and released a number of electric car prototypes in 2021 to show the outside world the capabilities of Foxconn's automobile manufacturing.
However, Foxconn does not intend to sell its own brand of cars, but instead returns to its old business and car OEM. Since it is OEM, it is inseparable from customer orders. There are Apple and car OEMs, and Foxconn has focused on Tesla.
At Foxconn's annual technology day, Foxconn unveiled three electric car prototypes, Model B, Model V, and Model C, with the models hatchback , pickup truck and SUV respectively. According to Foxconn, the order volume of Model C reached 15,000 within 32 hours after the reservation was launched. The focus is not on this, but on Foxconn's efforts to win the opportunity of OEM.
Can Foxconn transform into automobile manufacturing be successful?
Foxconn plans to ship 500,000 to 750,000 electric vehicles by 2025. To achieve this goal, we can only cooperate with several major electric vehicles, such as Tesla.
Foxconn called out to Musk, saying: "I hope to produce electric vehicles for Tesla one day." Foxconn's electric vehicle business is still in its infancy, so it sets such a ambitious goal. The result of
is still unclear, but is this kind of behavior of striving for the cooperation of the employer too double standards? First, he saw the momentum that Huawei had "stabbed" and terminated cooperation, and then caught up with the electric car surge, and then "kneeled" Tesla in the United States.
You should know that Tesla has its own super factory and has battery factory facilities all over the world, which has almost formed a complete industrial chain. And Foxconn wants to rush to manufacture OEM, this time it is a loss of face. Perhaps in the eyes of some people, making money is not shabby, but it also depends on how to make money.
So can Foxconn transform into automobile manufacturing? It can be roughly judged that it is difficult for Foxconn to get Tesla’s OEM orders. Because Tesla adopts the self-production and self-sales model, there is no need to share the profits to the OEM factory.
Then Foxconn can only win orders from other manufacturers. Apple seems to have its own electric vehicle business, but it has been in the R&D stage, and the automobile team is even more in a state of falling apart. There is still a big suspense about whether Apple will really implement its automotive business.
, and Foxconn did not suddenly enter the automobile market. It had already set the route of automobile OEM a few years ago. What was the result? It seems that no car company has handed over the car OEM orders to Foxconn.
Even if Foxconn gets some orders, the products produced are all not small, car parts, such as central control display screens and in-car entertainment equipment, while the vehicle manufacturing orders are still vacant.
Therefore, the key to success in Foxconn's transformation into automobile manufacturing is how many car companies can be accepted and recognized, and no one wants the core technology to be mastered in the hands of others. Foxconn probably doesn’t know how far Foxconn’s auto OEM can go under the background of many self-built production lines and self-developed core technologies.
summary
Foxconn's mobile phone OEM business has been a great success, and it has become the world's number one with Apple's thighs. However, building a car is different from building a mobile phone. It is related to safe travel, and car companies cannot be careless. Judging from Foxconn's automobile business, it is more practical to do OEM than to do OEM.
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