Apple, as the world's largest technology company, became the first company in the world to reach a market capitalization of $3 trillion in 2022, which is equivalent to Japan's total GDP in a year. A company as big as Apple has a global presence.
In particular, most of the assembly of electronic products is carried out in China, in Apple's supply chain, 90% of the world's Apple mobile phones are from China, of which more than 80% are from Zhengzhou Foxconn, it can be said that the Chinese market is very important for Apple, and China has thus solved many employment problems.
However, according to Apple's latest industrial layout, to increase investment in the Indian market, it will open a new factory in India, and as Apple's partner Foxconn also announced that it will move the Chinese mainland's 300 billion production capacity and follow Apple to "expand territory" in the Indian market.
Apple also removed 13 Chinese companies from its chain suppliers. Why did Apple adjust the current industrial layout, and what impact did the adjustment have on China and Apple? Let's find out together.
Why Apple production moved out of China
In today's economic globalization, some huge companies in the world disperse various industrial chains to various countries around the world according to their own conditions, so as to reduce costs and improve their market competitiveness. Apple is a typical such company, whose products are developed in the United States and produced in countries where labor is cheaper, such as China and Southeast Asia.
Since the iPhone began to enter the Chinese market in 2007, because of the novel operating system and advanced design, it has attracted a large number of "fruit fans", and quickly seized the Chinese mobile phone market, and is still the leader of the domestic mobile phone market until now.
In order to save transportation costs, Apple considered the production of Apple's mobile phone business in China, and because of the large number of Chinese, relying on the demographic dividend, and having abundant cheap labor, it slowly placed nine achievements in the production and assembly of global iPhones in China.
But with the improvement of production efficiency, the aging of the Chinese population and the increasing population of India, in contrast, India's population advantage is more obvious, labor is cheaper than China, Apple came up with the idea of moving factories to India.
For Apple, moving its factory to India would mean losing a small portion of the Chinese market, if only because the cost of production was less than the following determination. First, the trade war between China and the United States has intensified in recent years, and Apple's position in the Chinese market is not as solid as before, and it is often resisted by Chinese consumers.
And Apple has no policy support for setting up factories in China, and after the US "Micron Company" was sanctioned by China, many people speculated whether it would be Apple's turn next. In order to avoid future risks and uncertainties, the determination to move out has been strengthened.
Secondly, the rapid rise of domestic mobile phone brands, domestic mobile phone brands adopt the strategy of "small hammer slip, sledgehammer to get it", first use cheap and cost-effective mobile phones to gain a foothold in the mobile phone market little by little, and then gradually launch high-end mobile phone models, little by little squeeze Apple's share in the Chinese market, resulting in Apple's market has lost a trend.
Coupled with the fact that domestic consumers are no longer "only the only thing", more and more people are beginning to choose domestic mobile phone brands, Apple has failed to maintain its position in the domestic mobile phone market.
In addition, China's environmental protection requirements are now higher than before, and apple production has also exposed some obvious environmental protection problems, which are difficult to solve. Instead of retiring bleakly, it is better to exit the market decently, and Apple began to step up its layout to set up a new factory in India.
What are the consequences of moving out of China?
If Apple production is to move to India, it should be mixed for China and Apple.
For Apple, going to the Indian market is to chase lower production costs, production costs are reduced, Apple products will be more competitive in the market, to seize more markets.
And to avoid more policy risks. But moving out of China means losing part of the Chinese market, and the reason why Apple has not been greatly affected by policies for so many years is precisely because Apple can also bring certain benefits to local finances.
If you move out of China, it will inevitably be boycotted by Chinese consumers, because the privacy issues involved in Apple's mobile phone have greatly reduced Apple's reputation, coupled with such a toss, it is difficult to say whether Apple can continue to maintain its position in the Chinese mobile phone market. For China, Apple's factory in China has brought a lot of taxes and jobs to China, as long as Apple can abide by the rules, China is still very happy for Apple to set up a factory in China.
However, after the Apple factory is moved, not to mention taxes, it is bound to cause a large number of labor unemployment, Zhengzhou Foxconn alone has 300,000 employees, not to mention the development of other supporting industries in the vicinity.
Not only that, the reason why the American media raised China's trouble is still to come, because most of the 13 Chinese companies announced by Apple are from Apple, and the dependence on Apple is very high, if Apple "leaves" and establishes a new industrial chain, it will be devastating to these enterprises.
However, we don't have to worry too much about these impacts, Apple's "departure" is a good development opportunity for domestic brands, and it can also drive the development of the upstream industrial chain.
Can domestic brands carry the banner
Once Samsung withdrew from the Chinese market, allowing domestic mobile phone brands to seize the opportunity, Xiaomi, Huawei and "O*V" were able to quickly seize the market. Now domestic mobile phone brands are gradually narrowing the gap with Apple, whether from research and development or product strength, and these brands have occupied a place in the high-end mobile phone market. In particular, Huawei, from the mobile phone system to the mobile phone chip, can achieve complete autonomy, which greatly enhances the market competitiveness.
And Apple moved out of China, domestic brands will definitely seize the opportunity to fill the market gap, those parts suppliers "abandoned" by Apple do not have to be too negative, seize the time to adjust, to adapt to the domestic mobile phone market after Apple moves. Domestic brands will also be able to resist this banner.
epilogue
Apple's move away will definitely cause market turmoil in a short period of time, which is an opportunity and a challenge for our country. If our domestic enterprises can make timely adjustments and quickly transform "Made in China" into "Chinese brands", we may be able to improve the competitiveness of Chinese enterprises in the world.
For everyone to think about Apple moving out of China, welcome to leave a message in the comment area to discuss.