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Abandon the bottom line? Apple kicked 13 Chinese companies out of the industrial chain, should China continue to rely on Apple?

author:Eagle Eye Finance
Abandon the bottom line? Apple kicked 13 Chinese companies out of the industrial chain, should China continue to rely on Apple?

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Apple's kicking 13 suppliers out of the fruit chain will affect many companies and individuals, but what is more concerned is Apple's real intentions, after Foxconn moved away from China's production capacity, Apple has further accelerated its withdrawal from the Chinese market, which is a serious warning for domestic companies and manufacturers.

Abandon the bottom line? Apple kicked 13 Chinese companies out of the industrial chain, should China continue to rely on Apple?

Apple kicked 13 Chinese manufacturers out of the fruit chain

In order to earn more profits, Apple will put eggs in different baskets in terms of industrial chain selection, but Apple's move to kick 13 Chinese manufacturers out of the fruit chain is likely to indicate that Apple wants to gradually get rid of the Chinese market.

If Apple really wants to go, it will definitely have an impact on China's economy, science and technology and other fields.

According to the electronic information industry network, Apple recently announced last year's supplier list, 10 Chinese manufacturers have become new partners in Apple's supply chain, but at the same time, Apple has also eliminated 13 Chinese manufacturers.

The 13 Chinese manufacturers excluded include but are not limited to Fuchi High-tech, Kaicheng Technology, Tianma Microelectronics, Deep Blue Materials, Zhenghe Group, etc., including Inventec, Jingshuo, and Taiyao Technology in Taiwan.

Abandon the bottom line? Apple kicked 13 Chinese companies out of the industrial chain, should China continue to rely on Apple?

For the kick out of the fruit chain, Tianma Microelectronics made a relevant response, but only lightly said that "you can contact downstream manufacturers for market information".

Although there are 4 new suppliers in Japan, 3 have also been removed from the fruit chain.

Some insiders believe that this incident will have a lasting impact on related companies, and those excluded manufacturers need to evaluate their supply chain strategy, but what is more worthy of attention is Apple's supply chain strategy.

Previously, Foxconn went to India to build factories to invest, which not only moved China's production capacity, but also catalyzed the process of Apple going south.

Apple's desire to move Apple suppliers to India means Apple could move 300 billion of capacity from the mainland.

India is also trying to attract Apple to invest in India, and Apple's response shows that they really attach importance to the market of India, a populous country.

Apple's iPhone production in India has increased significantly, accounting for nearly 7% of total iPhone production, which is much higher than the 1% increase in 2021, which shows that India has attracted Apple investment to achieve remarkable results.

As of March this year, Apple's iPhone exports from India in the past year are worth as much as $5 billion, and it is reported that Apple currently has the idea of trying to jointly produce the next generation of iPhones in China and India.

Abandon the bottom line? Apple kicked 13 Chinese companies out of the industrial chain, should China continue to rely on Apple?

If this is the case, it probably means that Chinese companies are being rejected by Apple's industrial chain, and Apple is gradually moving away from the Chinese market

In this regard, some people say that China is Apple's big customer, last year China's apple export amount reached 1040.204 million US dollars, although compared with the same period of the previous year decreased by 389.378 million US dollars, but for Apple is still a large piece of fat, to give up China such a big plate, it is really incomprehensible.

In fact, India's population base and growth rate are no less than China's, India's population has reached 1.408 billion in 2021, considering the purchase demand potential from the perspective of numbers, India's market potential is no less than China's.

Abandon the bottom line? Apple kicked 13 Chinese companies out of the industrial chain, should China continue to rely on Apple?

Although there are many reasons for Apple and suppliers to terminate their cooperation, it is not difficult to see that Apple intends to gradually get rid of the Chinese market.

Abandon the bottom line? Apple kicked 13 Chinese companies out of the industrial chain, should China continue to rely on Apple?

Why is Apple pulling away from the Chinese market?

Apple has absorbed a lot of wealth in the Chinese market in recent years, while the United States is also curbing and suppressing China's technology and economic fields.

The United States makes money in the Chinese market to eat, and still thinks about smashing China's rice bowl, what will the Chinese side think?

Abandon the bottom line? Apple kicked 13 Chinese companies out of the industrial chain, should China continue to rely on Apple?

From the perspective of the United States, if China is really stronger, what will be China's attitude towards the United States at that time?

Although the United States needs to make money from the Chinese market, the United States has also seen China's counter-sanctions against itself over the years, and Micron is a good example.

When Apple "eats Chinese food", it also thinks about whether China will counter-sanction itself?

In general, the transfer of the industrial chain is bound to cause enterprises to lose orders, many Chinese fall into unemployment, resulting in an increase in unemployment and natural impact on social and economic development.

The change in the supply chain proves Apple's idea of creating a diversified supply chain, and it has to be said that this approach is shrewd in order to avoid over-reliance on enterprises and not putting eggs in the same basket.

Foreign suppliers such as Samsung are also considering shifting the focus of the industry, and if Apple has established a sound industrial chain in other countries, perhaps the status of these Chinese companies will be completely replaced.

Abandon the bottom line? Apple kicked 13 Chinese companies out of the industrial chain, should China continue to rely on Apple?

At that time, if the hard power of Chinese manufacturers is not qualified, it may lead to a sharp decline in corporate profits, which in turn will have a series of impacts on enterprises and individuals, and by then, the Chinese market will lose its attractiveness and constraints to the United States, and trouble may come.

China needs to be wary of this, not to put all the hope of orders on Apple, and Apple's desire to gradually withdraw from the Chinese market has also given domestic companies some necessary inspiration.

Abandon the bottom line? Apple kicked 13 Chinese companies out of the industrial chain, should China continue to rely on Apple?

The prospect and direction of Chinese manufacturers in high-end industries

Many netizens said that if Apple really leaves the huge Chinese market, there will definitely be an impact on revenue, which can only be verified by time, but the point is not here.

Even if Apple really wants to withdraw from the Chinese market, there is still a domestic Huawei that can be on top.

Abandon the bottom line? Apple kicked 13 Chinese companies out of the industrial chain, should China continue to rely on Apple?

Think ahead, if Apple really goes, and there are no state-owned enterprises like Huawei in front, will the gap between China and the United States in high-end industrial developed countries further widen?

Chinese Only when they have made achievements in the field of high-tech industries and have their own signboard can they be invincible in the world.

The United States is relying on high-end industries such as chip semiconductor equipment, which has stuck China's neck for many years.

To this end, how many researchers and staff work hard day and night in research and development and technology, that is, to reduce dependence on American companies and enterprises.

Chinese manufacturers must work their own, increase investment and research and development, and avoid over-reliance on foreign high-end technology products, otherwise they can only rely on "parasitism" to develop in science and technology and economy, and they will never get rid of the fate of being stuck in the neck.

Abandon the bottom line? Apple kicked 13 Chinese companies out of the industrial chain, should China continue to rely on Apple?

Chinese manufacturers must put more effort into independent innovation, market expansion, and enterprise cooperation, and strive to form a new industrial chain.

China's development speed in science and technology, economy, economy and trade is considerable, if domestic manufacturers can increase efforts and increase high-end industrial core technology research, it will definitely bring a new atmosphere to China's high-tech industry. So, what do you think about Apple's approach and the prospects for China's high-end industry?

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