"This article is original, plagiarism is prohibited, and violators must be investigated"
For many companies, being able to break into Apple's supply chain means that they no longer have to worry about the company's revenue, and becoming Apple's production chain can bring considerable profits and great growth opportunities to enterprises. Some companies have even completed the transition from small factories to large enterprises.
In addition, as a representative of high-tech enterprises, being able to enter Apple's supply chain also means that technical strength has been recognized, in short, it can be "gilded".
Apple believes that everyone is very familiar with it, and at that time, a divine machine 4S could be said to be unmatched, and 6S left the title of "kidney machine". Looking at the world, there is no mobile phone that can do this.
Apple has a large number of global supply chains, more than 200, but the number in the mainland is the largest, and 98 of the more than two hundred suppliers are mainland enterprises. Among them, Foxconn, the largest electronics professional manufacturer in the mainland, is also Apple's foundry, and Foxconn has more than 100,000 employees assembling Apple's products every day.
Compal exits Apple's supply chain
In addition to Foxconn, Compal Electronics, the world's second-largest laptop maker, is also a major supplier to Apple.
But recently according to the Taiwan Economic Daily, will no longer accept apple watch and iPad contract manufacturing orders, it is understood that the reason is that the growth and profits are limited, the extremely low profit margin has made the company more and more unbearable, in the process of OEM for Apple, Compal can get only 3%-4% gross profit margin.
According to market research data, Apple's mobile phone revenue accounts for up to 75% of the total global mobile phone revenue, its sales gross profit margin is as high as 38%, and the total market share of other mobile phone manufacturers is only one-third of Apple's. It is said to be cooperation, but the income gap can be described as a huge disparity.
At present, Compal has disbanded the service team for Apple and transferred the relevant personnel to other product lines or business areas. Its orders will be forwarded to the production lines of Luxshare Precision, BYD and Foxconn.
Become an associated risk in Apple's supply chain
Indeed, there are a lot of companies that have grown after joining Apple's supply chain. But in fact, the seemingly bright surface actually contains a lot of helplessness and heartache behind it.
First of all, entering Apple's supply chain does not mean that you can sit back and relax, because there is a risk of being kicked out of the supply chain at any time. If the company does not make two preparations to develop businesses other than Apple's foundry, then it is likely to face bankruptcy.
Previously, OFILM was an example. Powerful as OFILM, as a leading manufacturer of precision optoelectronic thin film components in China, ranked first in the global market share of mobile phone modules, but after Apple terminated its contract with it, the net profit margin fell by more than 90% in only one month, with a net loss of nearly 2.6 billion yuan in 21 years, and sales fell by 53% year-on-year.
OFILM is still like this, and the situation of other companies may be worse under normal circumstances.
In addition, the restrictions after becoming Apple's supply chain are very large, Apple will require it to open a separate production line, and send internal management personnel to supervise, the entire production line is carried out under the eyes of others, their own technology, production line operation, personnel management, etc. have been touched thoroughly.
In addition, this production line is only allowed to process products for Apple, not for other OEM, and even the company's own products cannot be used. Moreover, Apple will not hand over important technology to foundries, generally simple assembly work.
Compal is not the first company to actively withdraw from Apple's supply chain, in fact, Quanta, which previously oem Apple Watch 3 for Apple, also voluntarily withdrew from Apple's supply chain, citing orders that earned less and lost more. At the time, Compal also said that he would not repeat the mistakes of the past. But just three years later, it followed suit.
Write at the end
Behind the profitability difficulties of Apple's supply chain companies, in addition to the lack of core technical support, it is also related to Apple's almost surveillance management of the supply chain.
Careful people may notice that in fact, Apple's supply chain list is updated very frequently, and from Apple's previously published supply chain list, 34 suppliers have been replaced in 20 years alone. The so-called stimulus competition is just a cover for Apple, and its original intention is to use competition to continuously squeeze the profits of the supply chain.
Whether it is to change suppliers or suppliers to actively withdraw, it will not have much impact on Apple, but if Apple takes the initiative to eliminate supply chain companies, the situation is different.
Of course, this is not to say that apple must be boycotted, after all, it does provide a lot of jobs for the country. But in any case, technology is the core of development, and enterprises should also be prepared to become the active party while becoming Apple's supply chain.
Previously, CCTV has also called for reducing Apple's dependence, coupled with the encounter of OFILM and Huawei, it has also sounded the alarm for more companies, and more and more companies have realized the importance of reducing Apple's dependence. From Compal's initiative to break away from Apple's supply chain, it can be seen that more and more companies have the courage to say no to Apple.
For Compal's active withdrawal from Apple's supply chain, what are your thoughts, welcome to leave your views in the comment area to exchange together.