As we all know, as long as the well-known foundries in China are mentioned, we believe that the most familiar is "Foxconn". After all, Foxconn, as the world's largest mobile phone foundry, created the number of foundries in its most brilliant moments, directly occupying nearly three-quarters of the market share of the global foundry industry. It can be said that Foxconn has always been in a "lonely" position in the foundry industry, absolutely in the leading position in the mobile phone foundry industry, and is also a well-deserved "leader" in the global foundry industry. However, just after many domestic technology giants were included in the "entity list", the United States also directly asked Apple to "move" the foundry production line back to the United States. At this time, Foxconn also accepted the "olive branch" for the first time, making a "positive response" to building a factory in the United States, and many friends on the American website also praised: "Thank you very much to my friend Terry Gou , the world's greatest businessman." ”
Smartphones have become an indispensable necessity in our daily lives, especially for young people, and the digital product market will be more active. Apple, which has kept a low profile, has held new product launches for three consecutive months and set a new high in the number of new products this year. Foxconn recently withdrew from the Chinese market.
On the verge of bankruptcy
Foxconn, as the OEM of the well-known brand Apple mobile phone, has also entered a period of stagnation. Many employees have already left. Gou was helpless and focused on foreign countries, but it seemed that the benefits were not good, and the trouble had just begun. Foxconn's entire production is basically operated by Apple's mobile phones. Apple's mobile phones have always had a considerable market in China. However, with the rise of the Chinese mobile phone market, Apple's revenue in China is getting lower and lower.
In the past, Foxconn was the choice of many people, who said his salary was high. But in fact, a large part of Foxconn's high salary comes from overtime pay, because Chinese have a great demand for Apple's mobile phones. Foxconn, of course, needs to work day and night on the parts assembly line. In recent years, with the rise of Chinese mobile phone brands, coupled with the fact that most fruit powders are just ordinary people, they cannot change with the changes of mobile phones, so they will change with the new version every year. This has greatly reduced Foxconn's orders. In this way, the direct impact is the employee's salary. Add to that the pandemic. The basic salary is only two or three thousand yuan per month. Of course, no one wants to work for such a salary. There are a lot of easy and well-paid jobs out there, and everyone doesn't want to go to Foxconn again.
Moved to India
Building a factory in India, not to mention the impact of Foxconn's factory withdrawal on the domestic smartphone market. Only the public felt uneasy, and many even felt betrayed. What the public doesn't know is that Foxconn, which wants to go abroad, seems to be doing a bad job. As the outbreak continues to spread in India, Foxconn's factories in India have experienced massive infections, with iPhone 12 production at its plant down more than 50 percent. According to reports, Foxconn's factory in Tamil Nadu, India, specializes in producing iPhones for the Indian market. The state is one of the most affected areas in India. More than 100 Foxconn employees tested COVID-19. Employees are only allowed to leave, not allowed to enter the factory, and only a small part of the output is retained.
Affected by this news, Foxconn shares fell as much as 6.2%. The stock closed down 5.31 percent, outpacing the market's 3.8 percent decline. The outlook for Foxconn's plant in India has also been dimmed by the CVID-19 crisis sweeping through India. In recent weeks, the number of COVID-19 cases and deaths in India has surged to record levels. As of the end of May, the country had recorded about 28 million infections and more than 300,000 deaths, and experts said the actual number could be much higher.
There is no doubt that the plan to build a factory in the United States has come to an end, but it has also encountered various troubles with India. Unlike the warm welcome foxconn received when it built a factory in the mainland, Foxconn's recognition in the Indian market is not high, and the approval of the factory has been delayed. For a large company like Foxconn, the long delay means that the company has suffered huge losses. Due to Foxconn's series of behaviors, many people say that Foxconn is a "wall-headed grass". According to reports, Foxconn has no choice but to return to the mainland market. It's just easy to go, hard to come back. Is it so easy for Foxconn to shift its focus back to China?
The rise of domestic foundries
The founder of Luxshare Precision is one of the first employees of Foxconn Group to enter China. After resigning, he invested in a factory and established Luxshare Precision. When Luxshare Precision first arrived, Foxconn Group introduced its order to Luxshare Precision. Luxun Precision outside to the factory scale, inside to the management training system are exactly the same as Foxconn Group, is this not Foxconn's apprentice?
Luxshare Precision, known as "Little Foxconn", received half of the order for Apple's 13pro, which is a fatal blow to Foxconn, which returned from overseas. After Foxconn returned to China again, it was still unable to recruit employees even after three consecutive increases in bonuses and benefits. In order not to affect the listing of the Apple 13pro, the Apple Group's Cook inevitably had to change partners. To the surprise of industry groups and individuals, in addition to the "professional apprentices" who got half of the orders, there was also a cross-industry competitor BYD. Although BYD produces cars, its foundry industry is also one of the best in China. Last year, BYD received an order for Apple's new tablet, becoming one of the winners of the Apple Group. This year, BYD Group also won orders for Apple's new tablets.
While BYD only receives assembly orders, its annual revenue is also as high as $34 billion. Although Apple can't learn the core technology, BYD also makes a lot of money by relying on this big tree. Foxconn Group President Terry Gou went abroad to build factories with Apple Group, but he did not expect that Apple Group still had orders in China. And a large part has not yet been handed over to Foxconn Group. Gou once believed that without Foxconn, China's manufacturing industry would go downhill, but he ignored the self-reliance of Chinese people and Chinese companies.
So, can Foxconn regain its footing? It must be hard. Foxconn isn't Apple's only option. In addition, there are many excellent brands in China, and they are starting to get bigger and bigger. Foxconn also hopes to take advantage of the large number of Chinese to find a large number of low-cost labor, which is no longer an easy task. Now there are more and more opportunities in the whole market. No one has to stay at Foxconn all the time.