Apple and Foxconn are accelerating the transfer of production lines, and Apple intends to increase the layout of the Indian market and put more iPhones in India. Foxconn also followed closely to ensure Apple's order cooperation. Although India has a huge population advantage and cheap labor, they have overlooked an important issue that will affect the success or failure of the Indian market.
India is likely to become the world's most populous country this year, but with a land area of only 2.98 million square kilometers, it needs to accommodate more than 1.4 billion people.
High population density is only one thing, on the other hand, India needs a lot of jobs, otherwise the population cannot be converted into dividends and it will become a crisis.
As a result, India began to introduce labor-intensive enterprises in recent years, and expressed great welcome to factories such as Foxconn, and constantly facilitated Apple's production of iPhones in India. We want land to give land, and we want policy to policy.
Even in order to increase Foxconn's production capacity in India, Karnataka specifically amended the law to allow Foxconn to implement a two-shift labor system in India, so that women can also work night work.
It is not difficult to understand India's approach, after all, the population problem is ahead, and if jobs are not introduced, the labor force is saturated, resources are scarce, and the economy will be difficult to develop.
Apple is very satisfied with India's production conditions, India's abundant population can bring cheap labor, which is of great help to save costs and improve profits. And India's smartphone consumer demand is growing, Apple can develop high-end mobile phone market share in India.
Wherever Apple lays out the market, you can basically see Foxconn. As Apple's largest foundry, Foxconn has always followed Apple, and when Apple accelerated its withdrawal from China and increased its market layout in India, Foxconn followed.
Foxconn announced a $700 million investment plan in India to create 100,000 jobs over the next decade. However, Foxconn appears to have increased its investment, with news that Foxconn increased its investment to $970 million, but cut jobs by half.
Foxconn's additional investment of hundreds of millions of dollars seems to be intended to invest more capital to build a high-quality industrial chain. The reason for cutting half of the jobs may be because of the quality route. Only by raising the quality can the problem of quantity be solved.
Although Apple and Foxconn continue to invest in the Indian market, they have overlooked an important problem, that is, proficiency in the production process requires long-term training, and it cannot reach the industry's yield level in the short term.
The overall quality of India's working population is generally low, and only a small number of people receive higher education. Although producing iPhones is an assembly line job, many jobs are not done well without a good education.
Just like India's Tata Group produces mobile phone cases for Apple, the yield rate is only 50%, which is completely unable to meet Apple's standards, and half of the mobile phone cases produced will be eliminated. If Foxconn is also such a yield, the product is estimated to be unable to continue. Therefore, Foxconning is not indiscriminate, even if half of the jobs are cut, it must ensure quality.
Everyone understands the truth and knows what the problem is, but how to improve the comprehensive quality of the Indian labor force and ensure product yield is an important issue.
Either pay a high price to hire engineers for specialized training, or choose between output and quality.
Foxconn is more likely to choose the first solution, looking for experienced engineers and professional technical personnel from abroad to teach production skills in Indian factories and improve work efficiency for Indian workers. If it is only a few hundred people to train, it can involve tens of thousands of people in training and teaching, and the difficulty is multiplied.
This is not something that can be done in a short period of time, China has spent decades developing manufacturing and achieving today's high-precision industrial chain pattern. The use of 5G technology to build smart factories, the development of industrial robots for automated operations, and the workers of labor have basically received 9 years of compulsory education, and can easily complete complex iPhone assembly and production work.
This is also the reason why Foxconn recruits millions of employees in the mainland, because the support of the mainland labor force guarantees sufficient production capacity for Foxconn. Apple's iPhone's ability to gain a foothold in the high-end market is not so much the support of Foxconn as the credit of Chinese workers.
If this is placed in India, the yield rate is low and the supply chain is incomplete, I am afraid it will be difficult to promote the production capacity layout.
China's manufacturing industry has population and technology advantages, and Apple cannot be separated from the Chinese market. The more you deploy in the Indian market, the easier it is to experience the gap, and in the end, you still have to focus on the Chinese mainland of production. Of course, you can't blindly hi yourself, Apple is determined to transfer the production line, and will not look back after taking the first step.
What China needs to do is to maintain the competitive advantage of high-end manufacturing, with core technology in hand, and anyone can develop without it.
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