How has OFILM, which once thrived on Apple orders, developed a year after being kicked out of the supply chain by Apple? According to OFILM's own financial forecast, its operation in the past year may face serious losses, amounting to 2.7 billion.
This is a pity, after all, OFILM can also be regarded as a leader among its international counterparts, and the emergence of such "turbulence" is also a loss in the domestic field of science and technology. But while regretting it, we must also pay attention to a question: Is it true that these companies that rely on Apple really can't continue to operate after leaving Apple?
OFILM
OFILM is a domestic technology-based enterprise, which has been established and started operations as early as 2002 and successfully listed in 2010. From the perspective of its founding time, OFILM has a history of 20 years, and it can be regarded as an old enterprise.
OFILM's ability to develop rapidly, expand its scale to a very large extent, and become one of Apple's suppliers is inseparable from the development of smart phones. The past decade has been a golden age for smartphone development. Especially in China, it has experienced a leap from zero to everyone has a smart phone. OFILM provides key components for the smartphone industry, which makes the company rise with the expansion of the smartphone market and continue to gain more benefits.
As the saying goes, "playing iron must be hard by itself", OFILM itself also has a strong strength, otherwise it will not become a leader in its peers. Now it operates a wide range of businesses, spreading from smartphones to more smart industries. Including smart homes, smart cars, smart cities and more. It mainly provides touch panel modules and camera modules for these smart terminal products, which are simply the screens and cameras of smart terminals. I believe that everyone understands the importance of these two parts of the components for smart terminals, not to say that there is no one to use, at least there is no one to buy.
Kicked out of the supply chain by Apple
OFILM's main business is to provide indispensable key components for smart phones, and the reason why it can become bigger and bigger is related to its emphasis on technology. Before OFILM, in the screen, it had to be the strongest Samsung, and even Apple had to rely on Samsung. And the camera, to count Sony is more powerful, because it is not only Apple's main supplier, many other well-known mobile phone manufacturers also need to buy from Sony.
However, OFILM developed in the cracks, not only in the screen business continues to catch up, but also in 2016 to acquire a Sony company specializing in camera business "Sony South China Company", and the trend into Apple's supply chain, began to rise.
Although OFILM has risen, it has a new problem, that is, it suffers from Apple dependence. Although OFILM has successfully reached the top, its market share is getting higher and higher, but the components of business sources are seriously unbalanced, with Apple and Huawei as the leaders providing most of the orders, while other customers can only account for a small part of the remaining part.
The scale is large, but it is dependent on the orders of large customers to do this. At this time, OFILM has become a vassal of a large customer and is held hostage to "grow".
Then the worst happens. First of all, Huawei was sanctioned, resulting in a large reduction in shipments, and OFILM's orders from Huawei were reduced a lot, which made its business suffer a lot. Then in 2020, after Apple announced that it would kick OFILM out of the supply chain, the bitter winter faced by OFILM still came.
Without the support of the two major customers, OFILM is like an ordinary person who suddenly suffers from an incurable disease and loses his spirit. Relying on the orders of large customers to develop to this large volume of OFILM has now lost its dependence, giving the majority of netizens the feeling that it will soon fall.
Continuous losses, stock prices plummeted, OFILM seems to have come to the most difficult moment.
Stay away from "apple dependence"
Ofilo's encounter gives all Apple suppliers a realistic case of what happens without Apple. As the only technology company in the world today with a market value of more than three trillion yuan, Apple not only reaps huge profits itself, but also many suppliers along with its entire industry chain can obtain significant profits every year.
Although most of these suppliers are still in the "safe zone", OFILM is undoubtedly a wake-up call to these suppliers that the immediate interests are not at their fingertips, and the suppliers are always facing the risk of being kicked out of the circle of interests. Especially in the context of the current complex international situation and the continuous strengthening of market competition, this possibility has also been enhanced.
For suppliers, they should not pin their hopes on the "benevolence" of large customers, but should continue to improve themselves. Invest more money in research and development, create better products, strengthen their own personnel management, and provide better services to customers, so that it is possible to be in an equal position with major customers and not be unilaterally abandoned.
Staying away from "apple dependence" seems to be necessary to act immediately.
With an annual loss of 2.7 billion, when will OFILM's "apple dependence" be cured?
OFILM, who lost 2.7 billion yuan, sounded the alarm bell, "Apple dependence", how terrible?