Revenue plummeted 45%! Micron then collapsed another American corporate giant, which threatened to be 100% de-Chinese
"All Chinese-made chips will be stopped within 3 years, and 100% of production capacity will be moved within 5 years."
The US technology giant Dell occupies an important position in the global PC market, once beating Apple and winning the first place in the global computer market revenue and profit margin. In the mainland market, the annual shipment of Dell computers has been crushing domestic brands all year round, ranking in the top three, earning hundreds of billions from the mainland every year.
However, after the success in the Chinese market, Dell is not grateful. Not only did it fall into the competition between Chinese and American chips, but at the beginning of this year, it also released wild words: completely stop using chips produced in China, and move all production lines out of China in 2025.
Being too confident is not a good thing. Now, Dell's end can also be said to be very happy!
01.100% capacity relocation out of China? Eat and smash pots
"Every second that passes, a Dell computer is sold." The reason why Dell can create such a market myth is inseparable from the Chinese supply chain and Chinese consumers.
In 1998, Dell made a name for itself in the global market, but it was mired in a capacity crisis: the efficiency of computer assembly production could not keep up with the growth of orders. In order to reduce costs and increase production capacity, Dell transferred the production line to the mainland, with the help of the mainland's sufficient labor force and low land costs, 6 production lines were built in a row, which greatly increased production capacity and rose rapidly.
According to statistics, Dell has as many as 200,000 workers in China's parts production, assembly and other links.
Continental also provides a huge market for Dell products. Canalys data shows that in 2021, the Chinese market accounted for 26% of Dell's total market share, with annual revenue exceeding 100 billion US dollars.
Earning a lot of money in the mainland market, Dell is not yet satisfied.
In recent years, the chip war between China and the United States has escalated, and Chinese companies such as Huawei have been sent to the sanctions list one after another, and Kirin chips have become extremely sound, and production lines such as mobile phones and computers have fallen into a "shortage of core tide". U.S. technology companies took the opportunity to fall into the hole and wantonly carve up the market share of mainland mobile phones, computers and other fields, and Dell was among them.
Since 2022, the United States has called for the return of manufacturing and the "de-neutralization" of the supply chain. Apple, Sony, Samsung and other foreign companies have moved their production lines out of the mainland.
Dell also jumped out at this time. At the beginning of the year, a large number of layoffs of Chinese employees in Asia, not long ago announced a timetable, threatening to "completely eliminate the use of Chinese chips" by 2025, and strive to move 100% of production lines out of China after four years.
02. Revenue cut by 45%! The position of the Chinese market is unchallenged!
For this kind of eating and smashing pots, the central media spoke out, "strengthening the connection between the market and the supply chain." We are not used to choosing to decouple from China's manufacturing industry chain.
Market research agency Canalys released data that PC giant Dell's shipments ushered in a rare plunge in the first quarter, with revenue falling 45%, almost halved.
Today, the mainland has broken the shackles of old American technology, domestic brands have risen strongly, Huawei, Xiaomi and other companies have quickly made up for the position, in the first quarter, Huawei regained the personal computer market share, shipments rose 10.7%, jumping to the second place in the domestic PC market.
Not only that, with the breakthrough of core technology in the mainland and the improvement of the high-end industrial chain, the days when foreign-funded enterprises were domineering in the mainland market are coming to an end.
In the past, German and Japanese fuel vehicles crisscrossed the domestic market and rarely encountered opponents, but now BYD and other domestic new energy vehicles are in full swing, ending the market myth of Japanese cars; In the emerging biological health industry, the United States and Japan have also implemented monopolies with a class of biological enzyme technology, intending to swallow up the mainland's nearly 100 billion anti-aging molecule market. However, in only three years since the domestic "Aimu Yin" landed on Jingdong and other channels, it has already broken the monopoly of technology in the United States and Japan, and its market share accounts for more than 70%.
Data show that 10 years ago, such biological enzyme molecules were confirmed by Harvard, MIT and other authoritative scientific research institutions, and the early landing results were even speculated to a sky-high price of 1.58 million by screening aging cells, and were regarded as the "youth preservative" of the rich.
American and Japanese biological companies look at the huge market of hundreds of millions of middle-aged and elderly people in the mainland, and under the banner of helping "healthy aging", they earn nearly 10 billion in revenue every year.
In this regard, mainland biotechnology enterprises took the lead in breaking through the production capacity difficulties with total enzymatic technology and launched more people-friendly domestic health products.
It is reported that domestic purification technology has not only greatly reduced the cost of imported raw materials, but also been certified by the Harvard Institute on Aging as "far purer than American and Nissan raw materials", thus heating overseas markets. Jingdong channel data shows that in the first quarter, domestic "Aimuyin" shipments continued to rise, reaching nearly 800,000 middle-class users.
03. Domestic rise! Foreign media: China has set rules
No one is inseparable from anyone. If you do not respect the Chinese market, you will naturally be eaten back. The lessons from the past are already numerous.
Previously, Adidas, Nike, and now, Adidas' revenue has fallen for 7 consecutive months, re-showing favor to the Chinese market for self-help. Nike moved its factory out of China, losing 80 billion in market value. In the chip industry, Micron's stock price fell by 4.4% after being countered by the mainland chip market, losing nearly $20 billion.
These examples send a signal to the world that the global supply chain is closely related to the downstream market, and blindly engaging in confrontation will only make it suffer. If foreign companies want to continue to dig for gold in the Chinese market, they must naturally abide by the "rules of China".