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Apple's influence and brand value in the global market have also brought great attraction to its industrial chain. Taking the iPhone as an example, Apple sells hundreds of millions of iPhones every year, which means that Apple's suppliers and partners need to produce and provide a large number of related parts and services, thereby driving the development of the entire industry chain.
Apple has very high requirements for supplier cooperation, so not all suppliers can maintain cooperation in stone. Apple is moving 300 billion mainland production capacity to India, and 13 Chinese manufacturers have been kicked out of the fruit chain in the process, and big trouble is yet to come.
Apple is building another iPhone production base in India, and manufacturing iPhones in India can bring certain benefits to Apple. India is a populous country, and its rapidly growing population is about to surpass China as the most populous country in the world, which will have huge market potential.
And India's growing middle class is growing in demand for high-end consumer goods. Apple's production line in India can better meet the needs of local consumers, while also reducing the cost of selling iPhones in India and improving Apple's competitiveness in India.
In addition, India has been actively promoting local manufacturing, especially in the field of mobile phones and electronic products, providing various preferential policies for foreign companies such as Apple, including tax breaks and subsidies, to attract Apple to invest in India.
Based on various conditions, Apple wants to empty the mainland's 300 billion production capacity to India. Therefore, 4 Indian suppliers entered the apple industry chain last year, while 13 Chinese manufacturers were kicked out of the fruit chain.
In Apple's 2022 supplier removal list, it is shown that first-line manufacturers such as Cathay Daming Holdings, Kaicheng Technology, and Tianma Microelectronics have lost the title of Apple's supplier. These Chinese manufacturers have lost cooperation opportunities for various reasons, which also highlights Apple's very high requirements for suppliers.
Production quality, price and cost, the degree of controllability of core technologies, and Apple's own change in demand direction may become the reasons for suppliers to terminate cooperation.
No matter what is kicked out of the fruit chain, the result is already doomed, but the big trouble is still ahead, after being kicked out of the fruit chain, if the manufacturer's strength is average, it is likely to cause revenue and profits to plummet due to the loss of Apple cooperation.
At the beginning, OFILM was like this, the revenue was cut, the profit plummeted by more than 90%, and Apple had no impact. Therefore, Chinese manufacturers should pay attention to it, and cannot pin all their order hopes on Apple.
The kicking out of the fruit chain of 13 Chinese manufacturers also brings certain warnings to reduce dependence on Apple. So how can Chinese manufacturers do this?
Chinese manufacturers should increase investment in independent research and development and innovation, improve their own technical level and innovation capabilities, develop more competitive products and technologies, and reduce dependence on foreign manufacturers such as Apple.
Secondly, actively expand the market, open up more domestic and international markets, and reduce dependence on the Apple market. Chinese manufacturers can increase brand awareness and market share by promoting their own brands, expanding channels, and strengthening brand marketing.
For example, lithography machine manufacturers can cooperate with chip design manufacturers and packaging and testing manufacturers to form a complete industrial chain from chip design to manufacturing and testing, and improve the competitiveness of the entire industry.
Apple can not care about the interests of suppliers, and no matter how the termination of cooperation will affect suppliers, but from the supplier's own point of view, it must act.
If there is no strength to exclusively supply products for Apple, it is better to carry out a diversified layout, otherwise Apple's style may be included in the list of removed suppliers at any time.
Like TSMC, Qualcomm these manufacturers, are exclusive for Apple foundry chips, provide baseband chips, although Apple can find other suppliers to cooperate, can look at the world, TSMC chip foundry market share accounts for more than half of the world, the world's second largest chip foundry Samsung and TSMC gap is very large, does not meet Apple's requirements for foundry cooperation.
So Apple gives all chip orders to TSMC for production, and every year TSMC contributes billions and tens of billions of dollars in revenue.
As for Qualcomm, it is a firm control of Apple's baseband chip supply, although Apple wants to develop its own baseband chip, but Qualcomm holds a large number of baseband patents, Apple wants to bypass it is also very difficult, maybe Apple can develop its own baseband chip or Qualcomm has to decide.
Such strength is no longer something that Apple can easily say to give up cooperation, and if it gives up cooperation, it will only bring huge losses to Apple. But how many such suppliers can be in the mainland, and it is hoped that domestic manufacturers will increase core technology research and development, improve industry competitiveness, and grasp the initiative of cooperation.
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