Apple Factory Leads India, Bigger Troubles Still Ahead

Tech 2023-05-15 11:03:55 Source: Network

In an interview, Gou Taiming made bold remarks and threatened:I'm here to build a factory in mainland China to reward you with food!Because Guo Taiming concluded that the mainland cannot do without Foxconn, which has brought hundreds of thousands of jobs to the mainland and boosted the GDP of Zhengzhou, Zhoukou, Shenzhen and other places. However, has Foxconn's development not benefited from the dividends of China's economic development?Without China's cheap labor, strong infrastructure, and comprehensive supply chain system, could Foxconn have what it is today?Empty 300 billion production capacity, Apple fully withdraws from ChinaWith the increasing sanctions imposed by the United States on Chinese technology companies, attempts are being made to exclude them from the global supply chain

In an interview, Gou Taiming made bold remarks and threatened:I'm here to build a factory in mainland China to reward you with food!Because Guo Taiming concluded that the mainland cannot do without Foxconn, which has brought hundreds of thousands of jobs to the mainland and boosted the GDP of Zhengzhou, Zhoukou, Shenzhen and other places. However, has Foxconn's development not benefited from the dividends of China's economic development?Without China's cheap labor, strong infrastructure, and comprehensive supply chain system, could Foxconn have what it is today?

Empty 300 billion production capacity, Apple fully withdraws from China

With the increasing sanctions imposed by the United States on Chinese technology companies, attempts are being made to exclude them from the global supply chain. And Apple, rooted in China, is becoming increasingly uneasy. Once China cuts off the Apple supply chain, the trillion dollar technology giant will instantly collapse! So, Apple kicked 34 Chinese "fruit chain" companies out of the supply chain and transferred their industrial chain to India. At the call of Apple, younger brothers such as Foxconn and Wistron went to India to establish foundries, paving the way for Apple's capacity transfer.

Previously, a person claiming to be a Foxconn intermediary stated that 8 production lines have been dismantled in the Shenzhen factory area, and recruitment of new employees has been stopped. Temporary workers have been gradually dismissed, and old employees are encouraged to take vacations. The entire park has become quite deserted. Amidst the ice and fire, Foxconn is conducting a large-scale recruitment campaign in India, with officials saying they will recruit 53000 new employees in the next two years!This year, some colors of the iPhone 15 will be assembled and shipped from India. In 2024, Foxconn will increase the production capacity of its Indian factory to 20 million units per year. Foxconn has invested at least $2 billion in building factories in India, and in the future, $300 billion in production capacity will be moved from China to India!

Recently, Foxconn Executive Chairman Liu Yangwei bluntly stated:In the future, India will provide 100000 jobs and become Foxconn's "super OEM factory".At this point, the horn for Apple's comprehensive withdrawal from China has sounded!

Apple's exit from the Indian market was unexpected

Just as Apple was transferring its supply chain production capacity in a grand manner, it was challenged by its own "little brother". Recently, Wistron, which has been deeply involved in the Indian market for 15 years and is one of the OEM factories for the iPhone, announced that it willThe Weichuang India OEM factory is sold at a price equivalent to RMB 4.05 billion, and is expected to gradually exit the Indian market in 2024, with India's Tata Group taking over.Weichuang stated that the environment in India is no longer suitable for normal operations!

Although India has a large number of cheap labor, its population quality is extremely low, and it is very lazy and difficult to manage,Even Apple engineers have sent roast that Indians lack a sense of urgency and are far less efficient than Chinese.Moreover, India's infrastructure construction is extremely imperfect, without an efficient logistics system, and India also lacks a complete mobile phone supply chain. In addition, India's manufacturing level is extremely poor, Apple employees roast:The yield rate of iPhone shells produced in India is only 50%, which is truly maddening!So, the industry has always been pessimistic about Indian manufacturing.

In addition, the chaotic management of Indian factories is also a headache. Foxconn and Wistron's Indian factories have experienced multiple accidents such as fires, worker unrest, and medical accidents, resulting in the production line being forced to stop production and ultimately being forced to transfer orders to mainland China for production, in order to solve the production capacity crisis! On February 27th, the Precision India Factory in Zhengwei, founded by Guo Taiming and his brother Guo Taiqiang, suddenly caught fire. Four production lines were set on fire, and the other six production lines could not be restored in a short period of time, resulting in a direct loss of up to 12 million US dollars!

Foxconn is also struggling to survive

Foxconn is also struggling to surviveiPhone 15

Moreover, if Foxconn invests heavily in India, there is a high probability that it will be "cut off" because the business environment in India is really poor! Recently, India directly fined Xiaomi 500 million yuan and seized over 4.6 billion yuan in deposits. Xiaomi's appeal was still ineffective, resulting in a direct economic loss of over 5 billion yuan, equivalent to Xiaomi working in India for 10 years in vain.So even if Foxconn has established a foothold in the Indian market, it may not escape the risk of being "slaughtered" in the end!

In summary, it is China that rewards Apple and Foxconn with food, and Apple and Foxconn cannot do without China!

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