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When it comes to tech giants, everyone must think of familiar names such as Apple and Huawei, which are not only brands, but also like signs of the times. Recently, the geographical transfer of the supply chain has become a hot topic of discussion after dinner, especially Apple's wave of operations, which can be said to have caused a lot of turmoil.
Apple, these two words can be used all over the world
It is said to be a household name. From the Arctic Village to the Antarctic Station, you can see apples. Recently, however, Apple has made a big move, that is, it plans to move part of its supply chain from China to India, and it also intends to build a new production base in India. This is not only about the jobs of tens of thousands of workers, but also likely to reshuffle the entire global electronics manufacturing sector.
In Apple's supply chain migration drama, Pegatron, Apple's main foundry, plays an important role. Recall that more than 20 years ago, China attracted a large number of foreign companies with its policy advantages and cheap labor, and Pegatron was one of them. The company was originally located in Shanghai's Kangqiao Industrial Zone, where it manufactured notebooks and mobile phones. It is backed by Heshutron, a wholly-owned subsidiary of ASUS, and technology and capital are not a problem.
Pegatron has been in the limelight for a while, and in just a few years, it has become the world's fifth largest notebook OEM company, with as many as 100,000 employees, contributing 10% of Shanghai's GDP every year, and its annual production capacity is as high as 90 billion, which is simply the pride of Shanghai. But after a long time, Pegatron began to gradually lose its former aura. Recently, it announced that it was closing its production line in Shanghai and moving its operations overseas.
Apple's challenge and response
Going back to Apple itself, Apple is also in big trouble in the face of the overall decline in the consumer electronics market. According to IDC, global smartphone shipments fell by 19% in 2022, and Apple naturally took a beating in this cold snap. In order to cope with this situation, Apple began to look for new markets and new production bases, in order to maintain its position as the big brother of the global electronics market. At this time, the Indian market was favored by Apple and became its new hope.
The Rise of Huawei: A Challenge to Apple
When it comes to the competition of tech giants, it is impossible not to mention Huawei. Huawei's Mate 60 Pro was an instant hit, and the phone's satellite phone feature is even more unique, successfully reclaiming a part of the market that was previously occupied by Apple. This is undoubtedly a huge challenge for Apple, and it has also forced it to speed up the layout of overseas markets.
Apple and China: The end of the honeymoon period
Apple's relationship with China used to be so close, and China was not only a huge market for Apple products, but also its main production base. But as the global political and economic environment changes, Apple began to accelerate its shift to the Indian and Vietnamese markets. This not only has an impact on China's supply chain companies, such as Pegatron, but also marks the end of Apple's honeymoon period with China.
India, as the world's second-largest smartphone market, is a huge piece of cake for Apple. Apple plans to significantly increase iPhone production in India in the next few years. It is reported that Apple aims to produce more than 50 million iPhones per year in India, and there are plans to increase production as well. This strategic shift is not only Apple's response to market changes, but also the search for new growth points.
Apple's outlook in India
Apple's plans in India can be described as ambitious. Its major manufacturers, such as Foxconn Technology Group, are already planning to build new factories in southern India, which are expected to create tens of thousands of jobs. In addition to iPhones, Foxconn also plans to produce iPads and other devices in India. The implementation of these plans means that Apple's iPhone production in India will increase significantly in the next few years.
While the Indian market presents a huge opportunity for Apple, production in India is not all smooth sailing. Since the supply chain is still in its infancy, it may increase the cost of transporting parts. This, combined with the instability of local unions and the labor market, can have an impact on production. However, despite these challenges, Apple is steadfast in expanding its production base in India.
In the context of globalization, every decision made by tech giants affects the economic and industrial landscape of the entire world. Apple's supply chain shift is not only a natural response to market changes, but also a microcosm of changes in the global manufacturing landscape. Although this transfer has brought challenges to China's manufacturing industry, it also provides opportunities for China's industrial upgrading. In this era of unpredictability, only by constantly adapting and innovating can we stay ahead of the competition. What do you think about this? Feel free to leave a message to discuss and share your views.