At the end of the year, the manufacturing industry of US companies returned to the flow, and orders in China were cut by 40%, and many factories in Guangdong had nothing to do, giving a 450-day long holiday. Many workers complained, "If you continue like this, you can only go home and farm."
Recently, domestic and foreign technology giant Apple was exposed to accelerate the relocation of production lines out of China, and 14 suppliers have been approved to build factories in India, and it is expected to place 25% of production capacity in India in 2025. In an interview, Cook threatened: We were too dependent on China before!
As soon as the news came out, it once again caused controversy. Many parties speculate that this will have a great impact on the domestic manufacturing industry, and "millions of workers will be lost."
01. Eating and smashing pots? 25% of Apple's production capacity will be relocated to Southeast Asia
The rise of Apple is indispensable to the coordination and dedication of the domestic supply chain.
At the beginning of its establishment, Apple mainly relied on the local production chain in the United States, with high labor costs, low production efficiency, delayed production, and almost bankruptcy.
At the critical moment, Jobs' partner Cook proposed a global supply chain strategy and greatly migrated the production line of Apple products to the mainland. Millions of skilled workers in China worked hard to produce, and with the mainland's abundant and cheap labor, Apple finally significantly reduced costs and ensured production.
Coupled with the outbreak of domestic consumer demand for electronic products, nearly 100 million fruit fans are willing to smash real money to buy Apple mobile phones, Apple has taken advantage of the huge market in the mainland and risen as the king of the global consumer electronics field. In 2022, Apple's market capitalization once exceeded $3 trillion.
But now, affected by the global economic downturn, weak electronic consumption and other factors, Apple no longer wants to share the huge profit margin with domestic foundries.
In 2021, Apple kicked its supplier OFILM out of the fruit chain, and OFILM's stock price fell by 77%, with a loss of 3.281 billion yuan in the third quarter, becoming the first "cannon fodder" after the loss of Apple's orders.
In order not to be abandoned by Apple, many domestic fruit chain companies have reduced their profit margins again and again, and even lost money into the "fruit chain". Goertek's profit fell by 11% in four years, and Luxshare Precision's gross profit fell by 6%.
Who expected that domestic companies would retreat again and again, but Apple was insatiable, making money in the Chinese market while aggressively suppressing prices in the supply chain, becoming extremely arrogant. At the beginning of 2020, Cook threatened to reduce his dependence on the "Chinese supply chain" and move the production capacity of the headphone product line to Vietnam.
Today, 14 of Apple's supply chain companies have been approved to set up factories in India, and Piyush Goyal, India's Minister of Commerce and Industry, revealed that Apple hopes to increase their production capacity in India to 25%.
02. Central media: To reduce dependence, industrial upgrading is imperative
At present, there are still hundreds of domestic foundry enterprises and millions of workers closely related to Apple orders, and it is foreseeable that once Apple's production capacity is withdrawn on a large scale, these factories will face a significant reduction in orders and workers have nothing to do.
In this regard, the central media issued a warning that enterprises should deploy in multiple fields to reduce Apple's dependence.
Three years ago, the Taiwanese company Foxconn was encouraged by Apple to build factories in Southeast Asia. In the face of the outflow of orders, domestic brands such as Huawei, Honor, and Xiaomi rose strongly to make up for the position, and handed over orders to BYD, breaking the situation that Apple and Foxconn were the only ones.
In recent years, the mainland has also accelerated the iteration of scientific and technological OEM manufacturing, and has achieved irreplaceable positions in the fields of chips, aerospace, and biotechnology.
Many facts have also proved that without relying on foreign brands and foreign orders, only our own brands and our own technology rise.
03. Many companies took the initiative to "abandon" Apple and turn to new energy vehicles
While Apple eats the dividends of domestic foundry enterprises and earns money in the Chinese market, it plans to quietly transfer the industrial chain, since it does not know the proportions again and again, we are not used to it.
Today, a number of fruit chain foundries have taken the initiative to "abandon" Apple and began to gradually shift their production capacity to new energy vehicles and other fields, including Foxconn, Goertek, Luxshare Precision and so on.
"De-fruit chaining" has also begun to bear fruit. Several companies that were previously hit by Apple's order transfer are recovering. After Lens Technology undertook domestic new energy vehicle orders, its stock price rose by 18.81%, and Luxshare Precision rose by 4.99%.
In the future, in response to the outflow of orders from foreign companies such as Apple, we must get rid of "dependence", develop our own high-tech industries, and support domestic fist products and national brands such as Huawei, BYD, and C919, so that the national industry can be invincible.