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Apple's management of the industrial chain is very strict, every once in a while will shuffle the cooperative suppliers, unqualified manufacturers will be kicked out of the fruit chain to terminate cooperation, only the real industry giants, mastering the core competitive advantage of the manufacturers can stabilize Apple orders.
As Apple increases its layout in the Indian market, its dependence on domestic suppliers begins to decrease, and after emptying 300 billion production capacity, 13 Chinese manufacturers have been removed from the supplier list by Apple.
Apple has always had the habit of dispersing the layout of the industrial chain, will not put eggs in one basket, the same product needs to find two or three suppliers to supply, not only can improve profit margins, but also reduce dependence on a single supplier, reduce unnecessary risks.
Not only suppliers, but also at the market level, Apple is not satisfied with the layout of the Chinese market, and has frequently invested in the Indian market over the years, and after 2022, the layout of the Indian market will be one after another. First, Apple's largest foundry, Foxconn, spent $500 million to build a factory in India, and then Apple opened two official retail stores in India.
In order to explore the Indian market, Apple CEO Tim Cook personally visited India in May to meet with Indian Prime Minister Narendra Modi. The signal released is very obvious, that is, to continue to increase India, and even to make India a second "Chinese market".
Foxconn's construction of a factory in India will empty the domestic production capacity of 300 billion yuan, paving the way for Apple's layout in the Indian market. In the process of Apple's layout of the Indian market, the list of suppliers has changed a lot.
According to Apple's supplier list for fiscal year 2022, a total of 13 manufacturers in Chinese mainland and Taiwan have been removed, including Cathay Daming Holdings, Tianma Microelectronics and Inventec.
Last year, Apple added 3 new Indian suppliers to work with, and now there are 14 Indian suppliers. Although Chinese manufacturers still occupy the majority and are Apple's largest supplier layout in the world, the current trend is that the number of Chinese manufacturers is declining year by year, and it is becoming more and more difficult to enter Apple's supply chain.
India, on the other hand, has gradually increased its position in Apple's supply chain. Moreover, India's Tata Group will become India's first manufacturer of iPhones for Apple, which means that India has begun to enter Apple's most important core industrial chain, and is expected to have the ability to replace Chinese manufacturers in the future.
After emptying 300 billion production capacity, Apple kicked out 13 Chinese manufacturers, if this trend continues, whether more Chinese manufacturers will be terminated by Apple in the future, no one can say.
What is certain is that Made in India is growing rapidly on Apple orders. Due to India's rapid population growth, young labor is abundant and cheap, which is very attractive to Apple.
Based on all this, Apple will be more determined to invest in the Indian market. But is Apple's layout in the Indian market really that smooth? Some foreign media said that big trouble is still ahead.
First of all, the comprehensive quality of the Indian population is low, although the labor population is abundant, but the education level is average, which will lead to a low product yield. Previously, the media broke the news that the yield of Apple's mobile phone case made in India is only 50%, and if the yield is maintained for a long time, it will affect Apple's reputation and output.
Secondly, the money in the Indian market is not so easy to earn. Those who pay attention to the trends of the Indian market know that foreign companies often encounter obstacles to investment in India, either by surprise examination or frozen assets, which brings great trouble to foreign companies.
Now Apple is still safe and sound in India because India has a cooperative demand for Apple and needs Apple's investment to solve the problem of population employment. Once the industry develops and grows in the future, India has the conditions to sell Apple, and will ruthlessly let Apple keep the money it earns.
Apple's iPhone foundry giant Wistron has seen the true face of India and has decided to completely withdraw from the Indian market. If the money in the Indian market is so easy to earn, Wistron will definitely not withdraw from the Indian market, there is no need to live with money.
So Apple's big trouble is still ahead, India is indeed a populous country, there is a broad consumer market space, but the premise is that India needs to have a perfect industrial chain, high-quality population comprehensive quality. In addition, it is also essential for India to remain open to foreign companies and create a good business environment.
Why has Apple been so successful in the Chinese market? It is because the Chinese market has these advantages, in terms of business environment, Apple may not find a better market environment. Even if Huawei has been suppressed by the United States many times, China has not taken action against Apple, otherwise Apple would not be able to fill Huawei's vacant market share.
Now Apple is reducing the cooperation of Chinese manufacturers year by year and investing in India, let's wait and see.
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