As we all know, Apple, as a relatively large multinational company, is very strict in the management of the industrial chain.
Apple will shuffle its own cooperative suppliers every once in a while, kicking out those that do not conform, absorbing cooperative supplies that Apple believes are more valuable and can provide the required products, which also forms a so-called fruit chain.
In 2022, Apple will terminate cooperation with as many as 13 cooperative suppliers in China. Among them, there are many industries such as Zhenghe Group and Tianma Microelectronics.
Apple stubbornly believes that only real industry giants can control the core competitive advantage, and only such manufacturers can catch Apple's orders.
Foreign media said to Apple's approach in recent years, "Big trouble will be later!"
Apple kicked out 13 Chinese partner suppliers
Apple has always had the habit of dispersing the layout of the industrial chain, which is also the vigilance that most companies will have.
The so-called put all the eggs in one basket, it is possible to wipe out the whole army, then the same product, naturally to find a number of suppliers, disperse the dependence on these suppliers, will be more secure for themselves.
However, the premise of the guarantee is that the manufacturer must have sufficient productivity and a certain pass for the yield of the product. Apple's rejection of Chinese manufacturers is very different from its attitude towards Indian manufacturers.
Apple has added three to Indian manufacturers, although on the whole, Chinese manufacturers still occupy the majority of Apple's suppliers. But if the current trend continues, the number of Chinese manufacturers will decline year by year.
This means that it will be more and more difficult for Chinese manufacturers to enter Apple's supply chain, and the opportunity to contact the core supply chain will naturally become smaller and smaller.
It is naturally impossible for large enterprises to do things only on suppliers, especially at the market level. In recent years, Apple has not been satisfied with the Chinese market, and terminated cooperation with as many as 13 companies in China.
Apple's eagerness for the Indian market
So where is Apple setting its sights? Naturally, the Indian market has a large population, and even Apple CEO Cook personally visited India in May this year and came to a friendly meeting with India's current leader Modi.
Even in order to open up the Indian market, Foxconn, an agent manufacturer of apples, wants to build a factory in India. And what are the consequences of this? If Foxconn really decides to build a factory in India, it will empty China's domestic production capacity of up to 300 billion.
Then China's absence requires a replacement from another country, and that country is India. India's Tata Group has taken advantage of Apple's recent tendency to become India's first foundry manufacturer.
And India's manufacturing industry is also relying on the orders given by the Apple Group to develop rapidly, so what is the same between India and China in those years? It is the rapid growth of the population, and the Indian labor force, which has a large number of young people, can be described as abundant and cheap.
This is very attractive to the Apple Group, which wants to make profits. But there can be no two identical leaves in the world, India and China's national conditions are naturally very different, Apple's calculation this time is not shrewd.
Flextron decided to fully withdraw from the Indian market
After years of development, compulsory education in China is basically universal.
This means that most young people in China are still relatively high in terms of overall quality, and their overall education level is much higher than that of India. Although India's working population is exceptionally rich, its overall education level and comprehensive quality are incomparable with the current Chinese people.
What does this mean?
It means that Apple's products are made in India, and it is likely that the product volume rate is relatively low, what is the extent of this low? As the media broke before, the yield of Apple's mobile phone case is only 50%. If this goes on in the long run, then Apple's reputation and production will inevitably be affected.
What's more, the Indian people are not stupid, and the money in the Indian market is not so easy to earn. As we all know, many foreign companies face many obstacles when investing in India.
For example, surprise inspections, freezing assets, all of which will bring great trouble to foreign enterprises.
Apple is just not yet backstabbed by India, but when India has the conditions to shoot Apple, then it must be fast. Apple's iPhone foundry giant Flextron saw the true face of India early on and decided to completely withdraw from the Indian market.
summary
Apple's previous great success in the Chinese market is inseparable from China's own environment. But India does not have the same environment as China, especially if there is no US suppression of Huawei, how can Apple replace Huawei's vacant market share so smoothly?
Apple's gradual reduction in cooperation with China in recent years and its focus on India is not generous, but it can indeed be said to be a normal operating model on commercial sites.
As for Apple's big troubles in the future, and what will happen to cooperation with India? It is still necessary to wait for the fermentation of this event, so let's wait and see.