The industrial chain of is distributed all over the world, and the industrial chain laid out in mainland China is the largest and richest. Apple except headquartered in the United States, the other iPhone , Mac, AirPods and other products are almost all produced in mainland China.
But Apple began to transfer production capacity from the mainland, and various products were successively produced outside the mainland. What is Apple doing this for? What impact does Apple move out of the production line have on us ordinary people?
Apple's industrial chain diversification
Apple's annual revenue is as high as US$300 billion, and most of the net profits in the industry are in the hands of Apple. This kind of money-making ability makes many suppliers want to cooperate with Apple. As long as they can enter the fruit chain, they basically don’t have to worry about orders. If you can become a fruit chain giant, it will not be a problem to achieve a surge in revenue and net profit.
However, Apple's orders are not that easy to get. Even if you get the order, it does not mean you can grasp it. Because Apple will adjust its industrial chain at any time, at least dozens of suppliers lose cooperation in Apple's orders every year.
If suppliers make a fortune by relying on Apple and do not have core technology to allow Apple to maintain long-term cooperation, they are likely to be kicked out of the supply chain by .
As Apple continues to increase its diversified layout in the industrial chain, suppliers may face greater cooperation pressure. Because no one knows whether Apple will suddenly terminate its cooperation, CCTV calls on domestic manufacturers to accelerate their multi-field layout, reduce "Apple dependence" and seek more ways out.
Apple began to transfer production capacity from the mainland, requiring suppliers such as Foxconn to build factories in India, and to produce series of mobile phones such as iPhone13, iPhone14 and other mobile phones in Southeast Asia. There is also an Apple OEM factory layout in Vietnam, gradually putting products such as MacBook, Apple Watch and other products in Vietnam.
If it is just a transfer of consumer electronics , it may not be possible to explain anything, but after TSMC built a factory in the United States, most of the chips of Apple equipment will return to the United States in the future.
Apple CEO O Cook said that it will purchase chip from TSMC's factory in Arizona, USA. Once Apple obtains chips from the United States, the relevant industrial chain facilities may be moved back to the United States.
People in the United States have always hoped to return manufacturing orders. With the opportunity of TSMC building factories in the United States, it may prompt giants like Apple to rebuild their industrial chains in the United States. Either re-select suppliers to cooperate or let suppliers build factories in the United States.
Apple transfers production line for why?
No matter which method it is, Apple is the ultimate winner, and suppliers need to participate in the layout of investment according to Apple's ideas, and they may have to bear the additional investment costs themselves. Apple has successively produced various products outside the mainland. Why is this doing so? There are only two reasons.
First of all, Apple can reduce its dependence on a single market and improve its adaptability to the industrial chain.
Anyone who understands the layout style of Apple's industrial chain knows that Apple will not put eggs in one basket. Unless it is an irreplaceable supplier such as TSMC, , Qualcomm, , the same product will be found to cooperate with two or three suppliers at the same time.
By the same token, Apple's production of products in different countries and regions can reduce its dependence on a single market, significantly improve the adaptability of the industrial chain, and adjust the production capacity layout at critical moments.
Secondly, Apple can expand its profit margins and obtain cheap labor in India, Vietnam and other places.
Apple allowed Foxconn to expand its production capacity investment in India, and one of the core purposes is to expand its profit margins. Because India has a huge population base, India also hopes to convert the population dividend , so preferential policies and measures are taken to allow foreign companies to build factories locally.
After a while, Apple can obtain cheap labor in India, Vietnam and other places, and reduce salary costs. In this way, profit will be available.
Apple cannot get up early without profit, will not do meaningless things, and can become one of the most profitable companies in the world, not just because the products sell well, but the most important thing is to know how to manage the huge industrial chain.
What is the impact of Apple moving out of the production line?
Apple has a large number of orders, and behind all kinds of consumer electronic products is the strong support of hundreds of suppliers. What impact does Apple’s practice of moving out of the production line have on our people? Perhaps in some people's view, Apple's adjustment to the industrial chain will only affect the investment layout of suppliers, but in fact it is closely related to ordinary people.
From the perspective of consumers, Apple places the production line everywhere, which can easily cause price fluctuations in consumer electronic products . For example, if Apple produces chips in the United States, it is possible to produce other supporting parts in the future, and then exports products from the United States to the domestic market. The top products of the goods are estimated to rise.
In addition, from the perspective of workers, Apple transfers production lines, so the domestic production capacity may be separated. It is impossible for Apple to always maintain a capacity that is in short supply. Once market demand declines, production lines in some regions will be withdrawn. Workers may lose their jobs and have no job demand, and the surrounding industrial facilities will also be weakened.
So the impact of Apple production line removal on ordinary people exists, and of course, it is not absolute. Because the market is larger than the company, the market vacant by Apple will be filled by other companies, and Apple production and sales need to be placed in the Chinese market, and it is impossible to move it out completely.
written at the end
Apple has always had the idea of dispersing the industrial chain, and such ideas are gradually becoming a reality. Most of Apple's consumer electronic products are distributed abroad, which can not only reduce dependence on a single market, but also increase profits. As for what kind of industrial results can be achieved, we need to wait and see.
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