Full retreat! The first Indian Apple foundry, escape at the speed of light!

Tech 2023-05-15 11:08:03 Source: Network

How much does Cook prefer India? Open two Apple retail stores in New Delhi and Mumbai, India, and fly to India to meet with representatives from the political and business sectors. During Apple's over an hour long earnings call, Cook mentioned 'India' no less than 20 times

How much does Cook prefer India? Open two Apple retail stores in New Delhi and Mumbai, India, and fly to India to meet with representatives from the political and business sectors. During Apple's over an hour long earnings call, Cook mentioned 'India' no less than 20 times.

According to The Wall Street Journal,In Apple's eyes, India is the next China

Image from power plant

But is that really the case?

Wistron of Taiwan, China, Apple's main supplier, gave the answer: certainly not.

Latest news,Weichuang plans to withdraw from India as a whole within one year and disband most of its business in India.

Although currently, the official response from Weichuang to this news is just four wordsNo comment.

But everyone with a clear eye knowsWeichuang's defeat in India is a matter of certainty.Because in the past 15 years in India, Weichuang has suffered too many injuries.

The most severe one is at the end of 2020,The violent incidents of "smashing, looting" that Weichuang encountered in India.

The cause of the matter is still uncertain.

The most mainstream media statement is that Weichuang's factory in Narsapur, India was caused by salary arrears and short paymentsLocal workers gathered social personnel to cause trouble in the park.

However, the statement from Weichuang is that the money was already given to a third-party labor agency,It is these people who did not pay wages to the workers and have nothing to do with Weichuang.

The outcome of the matter is quite clear.

These workers who have done their work but haven't received any money don't care how many of you are. To put it bluntly, they haven't received any money either. So nearly 2000 people passed through the park like locusts, and the places they passed were full of chaos.

theySetting fire to cars, smashing glass, dismantling equipment, seizing mobile phonesAccording to post event statistics,About 20000 iPhones were damaged.

This incident can be said to be the biggest shadow left by India on Weichuang.

Image from NDTV

theyForeign funded enterprises are here to intensify the exploitation of local people.

So Apple's supplier factories,It is indeed possible to obtain cheap manpower in India, but it is not recognized by the local people.

In addition, the Indian government'sThe ever-changing business environmentIt also makes everyone walk on thin ice.

Of course, in addition to external pressures originating from the Indian environment, Weichuang has developed the idea of a rapid evacuation. The internal pressure of Weichuang itself became the last straw that crushed him.

The picture shows Indian workers and H& M conflicts at a clothing processing factory in India

As a fierce member of the fruit chain, Weichuang follows Apple, which is "the boss eats meat, the younger brother drinks soup".

Reasonably, at the call of Apple,Weichuang should expand its scale in India.

But ideals are full, reality is bony.

Apple is currently in a difficult situation for itself, let alone Weichuang, which mainly focuses on assembling iPhones. These companies that make "hard money" at the bottom are even more struggling to survive.

According to WeChat's latest monthly financial report data, WeChat's revenue in April was NT $62.126 billion (approximately RMB 13.987 billion), a monthly decrease of 34.58% and an annual decrease of 9.11%, which is the lowest point in the same period over the years.

In July 2020, due to its meager profits, Weichuang sold its iPhone assembly plant in Kunshan, China to Lixun Precision. In April of this year, due to the shift of iPhone to OLED screen panels, Weichuang closed the LCM (display module) OEM factory for iPhone LCD panels (liquid crystal displays) in Taizhou, China.

So is it difficult for Weichuang? Stopping work and production directly indicates the problem.

The picture shows the notice of Weichuang closing the Taizhou factory

Although Weichuang has been trying to transform,Get rid of 'big customer dependency'However, the current results are minimal.

By the way, Black Horse once again mentioned that Weichuang's predecessor was a department of Acer Computer. So it also has rich experience in the production and OEM of laptops. In addition to Apple's orders, he has also held orders from Lenovo and Dell.

However, in today's environment, PC end consumption and mobile end consumption are both "passing the winter".

Therefore, under the pressure of order volume and revenue, it is inevitable for Weichuang to close the factory.

When Weichuang fully retreats from India, who will become its' Takeover Man '?

At present, the most thoughtful thing isTata Group, a local Indian enterprise

That's right, it's the Indian version of "Samsung" with a market value of over 100 billion yuan and control of the economic lifeline of IndiaTata Group He intends to spend 40 to 50 billion rupees (approximately RMB 3.38 to 4.22 billion) to acquire WeChat's iPhone production factory.

Tata GroupiPhoneiPhone

However, it is still difficult for him to replicate China's production chain system in India.

Tata Group

As of now,Compared to the improvement and integration level of the domestic Apple supply chain system, India clearly does not have this condition.

Although nominally, the shipment volume of the main iPhone models produced in India has increased from 1% to 7% in just a few years. But in reality, these orders were still fed to Apple's inherent fruit chain companies.

Image from OLEDindustry

And if these companies want to move all of them to India, they may face various challenges like Weichuang, such as local labor relations, sunk costs invested in the early stage, and the need to integrate and debug the production chain.

theySo far, the iPhone supply chain in India is both incomplete and fragmented.

At the same time, this adds hidden costs to the transportation and assembly of iPhone components.

More importantly,There are some technical issues that India cannot solve at the moment, and the cost of commuting becomes expensive.

they

The picture shows Guo Mingyi revealing that the production progress of iPhone 14 in India is lagging behind that of China

In addition, when Indian Apple supply chain manufacturers are still trapped in labor disputes with local workers,The supply chain of components for domestic mobile phones has already been automated for production.

For example, in the Xiaomi Yizhuang workshop in China, when few workers can see it, one mobile phone after another goes offline. By the way, the production capacity of this factory is over a million high-end smartphones.

Domestic automated mobile phone manufacturersNot only does it have higher production efficiency and guaranteed yield, but it also has advantages in the integration of chain production.

This is a level that India still cannot reach.

So Apple wants to turn around in India, which is not optimistic from the current situation

Although the demand for phone replacements among Indians is indeed enormous, giving them the blue ocean that phone manufacturers dream of, at first glance,Apple's going to India to stir things up is still more harmful than beneficial.

In short, the dark horse can only wish Apple success.

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: Full retreat The first Indian Apple foundry escape at