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Whether local or multinational, the location of a company and processing plant is usually considered in a comprehensive manner. In the past decade or even decades, China has become a home for multinational companies.
The reason is very simple, the mainland has preferential import and export policies, cheap and large labor force, broad consumer market and other favorable conditions, which can create a development prospect with great profit margins for multinational companies.
However, with the rapid development of the mainland in recent years, the economy is also gradually transforming. Against this backdrop, we are hearing that many multinational companies are gradually moving their factories to Southeast Asia.
Apple, for example, is moving industries related to product production out of the mainland, and Foxconn, Apple's agent, is laying off employees.
Apple and Foxconn are shifting their production locations to Southeast Asia. In order for the products to be better produced in India, they even plan to spend 5 billion to build a factory.
Of course, their expenses are not meat buns and dogs, but profitable, after all, Indian processing plants ship a quarter of the world's largest shipments to Apple. With huge numbers and considerable profits, Apple's move is not surprising.
It is worth mentioning that labor costs in the mainland are gradually increasing, which undoubtedly increases the cost of building factories.
India's population is second only to the mainland, but the cost of labor is far less than that of the mainland, and the cost of building a factory in India is naturally lower.
Someone has investigated labor costs in two countries and came to the conclusion that the same wage can employ one worker in China and three workers in India.
With such an obvious cost comparison, I believe that any factory will be excited.
In addition to the factor of labor costs, India's official attitude is also very supportive of the implementation of multinational companies, and even introduced many measures to encourage foreign investment in the country.
Apple is ready to spend a lot of money to build factories in India in order to reduce labor costs and make more profits. Does this move mean that Apple will move all parts production and assembly to Southeast Asia?
In the past three years, the world has fallen into the stage of epidemic prevention and control, and it is very inconvenient to enter and exit the country, whether it is goods or personnel.
After the epidemic ended, the CEO of Apple Mobile came to China in March 2023. During his time in China, he went to retail stores in major first-tier cities in mainland China to check the sales situation.
Even in the Beijing retail store, he eagerly checked the situation in the store, including the interior decoration, sales and customer flow, so that many customers were very impressed with him.
Now that Apple has made the decision to move the factory to Southeast Asia, it is implementing this decision. So why should Apple's CEO focus on retail stores in China?
The reason is obvious, he is very concerned about Apple's sales in the Chinese market, and even personally wants to experience the Chinese market firsthand, so as to adjust his future plans for the Chinese market.
The CEO of Apple Mobile came to China to check on the situation, which not only attracted the attention of the people on the mainland, but also attracted the attention of the US official. Immediately after he returned to the United States, American officials visited him.
However, the meeting between U.S. officials and Apple's mobile phone CEO is not over, and the two sides are secretive about what is being discussed.
But those who have a heart can speculate one or two. In previous years, Apple wanted to use the mainland's Yangtze River memory chips for better development, but this idea was publicly resisted by the United States before it was implemented in the United States.
The reality is that Apple does use Yangtze River storage chips, but because the official pressure of the United States is not circulating in the United States, the products produced can only be sold in our country.
According to Apple's public data last year, its profits and sales are very impressive, but comparing these data with the previous year, discerning people know that sales of Apple products are declining.
In response to this obvious data comparison, Apple officially said that it was caused by consumers not wanting to buy mobile phones and the mobile phone market was sluggish.
As mentioned earlier, China's population is the largest in the world, and the consumer market is also considerable.
It can be said that the Chinese market plays an important role in Apple's sales, which must be the main purpose of the CEO's trip to China.
With the development of the country and the progress of society, the consumption concept of the mainland has undergone a lot of changes, and more and more domestic mobile phones with complete functions and configurations are becoming more and more inclined, and the sales volume of foreign brand mobile phones represented by Apple in China is decreasing.
If Apple wants to reproduce sales in China, it must face up to China's huge market and re-plan its development plans in China.
If China wants to retain more multinational companies, it will have to formulate different policies for different enterprises, so as to increase domestic job opportunities and improve the national economic level.
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