Cut your revenue by 45%! Another American giant has faced a major defeat, threatening to relocate 100% of its production capacity out of China

Tech 2023-06-05 20:32:02 Source: Network

Revenue plummeted by 45%! After Meiguang, another American giant collapsed, threatening to 100% go ChineseWithin 3 years, all Chinese made chips will be discontinued, and within 5 years, 100% of production capacity will be relocated.Dell, a US technology giant, holds an important position in the global PC market and once dominated Apple, achieving the highest revenue and profit margins in the global computer market

Revenue plummeted by 45%! After Meiguang, another American giant collapsed, threatening to 100% go Chinese

Within 3 years, all Chinese made chips will be discontinued, and within 5 years, 100% of production capacity will be relocated.

Dell, a US technology giant, holds an important position in the global PC market and once dominated Apple, achieving the highest revenue and profit margins in the global computer market. In the Chinese market, Dell's annual shipment volume consistently surpasses domestic brands, ranking among the top three, earning hundreds of billions from China every year.

However, after achieving great success in the Chinese market, Dell is not grateful. Not only did they fall victim to the competition between Chinese and American chips, but at the beginning of this year they also made wild promises: to completely stop using chips produced in China, and to relocate all production lines from China by 2025.

Being too confident is not a good thing. Nowadays, Dell's fate can also be said to be very exciting!

01.100% of production capacity relocated from China? Eating and smashing the pot

Every second that time passes, a Dell computer is sold. The reason why Dell can create such a market myth is inseparable from the Chinese supply chain and Chinese consumers.

In 1998, Dell gained popularity in the global market, but was deeply in a capacity crisis: the efficiency of computer assembly production was slow to keep up with the pace of order growth. In order to reduce costs and increase production capacity, Dell transferred its production lines to China. With the help of China's abundant labor force and low land costs, it built six production lines in a row, which greatly increased production capacity and rapidly rose.

According to statistics, Dell has as many as 200000 workers in the production and assembly of parts in China.

China also provides a huge market for Dell products. According to Canalys data, in 2021, the Chinese market accounted for 26% of Dell's total market share, with annual revenue exceeding 100 billion US dollars.

Although Dell has made a lot of money in the Chinese market, it is still not satisfied.

In recent years, the chip wars between China and the United States have escalated, successively placing Huawei and other Chinese companies on the sanctions list. Kirin chips have become a masterpiece, and production lines such as mobile phones and computers have fallen into a "shortage of chips". American technology companies took the opportunity to take advantage of the situation and cut corners, aggressively dividing up market share in fields such as mobile phones and computers in China, including Dell.

Since 2022, the United States has been vigorously calling for the return of manufacturing and the "de localization" of the supply chain. Foreign companies such as Apple, Sony, and Samsung have relocated their production lines from mainland China.

Dell also jumped out at this moment. At the beginning of the year, a large number of Chinese employees in the Asian region were laid off, and a timetable was recently announced, threatening to "completely eliminate the use of Chinese chips" by 2025, aiming to relocate 100% of production lines from China in four years.

02. Cut revenue by 45%! China's market position cannot be challenged!

Regarding this behavior of eating and smashing the pot, the central media spoke out, "Strengthening the connection between the market and the supply chain". We are never accustomed to choosing to decouple from the Chinese manufacturing industry chain.

According to market research firm Canalys, the shipment volume of PC giant Dell experienced a rare drop in the first quarter, with revenue plummeting by 45%, almost halving.

Nowadays, China has broken the shackles of old American technology, and domestic brands have risen strongly. Huawei, Xiaomi, and other companies have quickly taken advantage of this trend to fill the market. In the first quarter, Huawei regained its market share in the personal computer market, and its shipment volume has surged by 10.7%, becoming the second largest in the domestic PC market.

The days of foreign enterprises dominating the Chinese market are coming to an end.

In the past, German and Japanese fuel vehicles dominated the domestic market, rarely encountering enemies. Now, domestic new energy vehicles such as BYD are unstoppable, ending the market myth of Japanese cars; In the emerging biological health industry, the United States and Japan have also implemented monopolies through a type of biological enzyme technology, with the intention of devouring China's nearly 100 billion market for anti-aging molecules. However, after only three years of landing on channels such as JD.com, domestic "Aimuin" has already broken the technological monopoly of the United States and Japan, with a market share of over 70%.

Data shows that 10 years ago, these biological enzyme molecules were confirmed by authoritative research institutions such as Harvard and MIT to be able to pass the screening of aging cells, and their early results were even sold at a skyrocketing price of 1.58 million yuan, regarded as a "youth preservative" for the wealthy.

American and Japanese biotech companies, on the other hand, are eyeing the huge market of hundreds of millions of middle-aged and elderly people in China, earning nearly ten billion yuan in annual revenue under the banner of promoting "healthy aging".

It is reported that domestic purification technology not only significantly reduces the cost of imported raw materials, but also has been certified by the Harvard Institute of Aging as "much purer than American and Japanese raw materials", thus gaining popularity in overseas markets. According to data from JD channels, in the first quarter, the shipment volume of domestic "Aimuin" continued to rise, reaching nearly 800000 middle class users.

03. Domestic rise! Foreign media: China has established rules

No one is inseparable from anyone. Without respect for the Chinese market, one will naturally face backlash. The lessons from previous experiences are countless to list.

Previously, Adidas, Nike, and now, Adidas' revenue has been declining for 7 consecutive months, showing renewed goodwill towards the Chinese market in an attempt to save themselves. Nike moved its factory out of China, evaporating its market value by 80 billion yuan. In the chip industry, Micron's stock price fell by 4.4% after being countered by China's chip market, resulting in a loss of nearly $20 billion.

Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])

Mobile advertising space rental

Tag: of Cut your revenue by Another American giant has