Text | Hearing the sound of the green tree
Edit | Hearing the sound of the green tree
Sources: All of the information stated in this article is based on reliable sources, and is detailed at the end of the article
Preface
In 2023, BYD's annual revenue will be 602.3 billion, a year-on-year increase of 42%, but the source of income is not only selling cars, BYD is not only good at making cars, but also has first-class OEM mobile phone capabilities.
Of the 602.3 billion revenue, 118.5 billion came from the "mobile phone parts and assembly" business, accounting for about 20%.
You must know that in the past, the mobile phone OEM business, from Apple and Samsung abroad, to Huawei, Xiaomi, etc. in China, was basically Foxconn, but now, it has long been in turn.
BYD rises
As a well-known car manufacturer in China, BYD's new energy vehicles have long been well-known all over the world, so everyone's impression of BYD has always been a "car company".
But as everyone knows, BYD entered the 3C electronic product OEM as early as 2003, and BYD is not a problem with screens, lens modules, soft circuit boards, etc.
In terms of OEM business, BYD currently ranks among the top 5 ODM manufacturers, OEM for domestic mobile phones such as Huawei and Xiaomi Honor.
In March this year, Apple CEO Tim Cook visited China, and also visited BYD's foundry in Shanghai with BYD's Wang Chuanfu, which shows that even Apple is BYD's partner.
Once upon a time, Foxconn was regarded as Apple's "royal factory", and at its peak, even one out of every two Apple mobile phones was produced by Foxconn.
As the world's largest electronic product processing plant, its customers are all over the world, not only Apple, but also South Korea's Samsung, Japan's Sony, the United States' Dell, etc., Foxconn firmly occupies the top spot in the field of electronic foundry.
As the first brother in the industry, Foxconn is the only one, and most domestic counterparts cannot be compared with it, and BYD at this time is still a "younger brother".
In recent years, with Foxconn's successive wrong choices and the rise of foundries such as BYD, an innovation has been triggered in the field of domestic electronic foundry.
With a lot of help from the righteous and little help from the unjust, what did BYD rely on to "break out of the encirclement" and win the favor of domestic mobile phones and Apple?
BYD's advantage
There are tens of thousands of parts on a car, and there are only a few hundred parts on a mobile phone, and compared with making a car, there is no doubt that the difficulty of building a mobile phone will be lower.
When Apple announced a 10 billion car construction plan, it took 10 years and failed to develop a car, which is enough to see that the difficulty of building a car is incomparable to that of making a mobile phone.
As a domestic car company, BYD has a professional R&D team, and some of the chips on BYD's new energy trams are independently developed by the team.
Therefore, in the electronic foundry of mobile phones, tablets and other electronic foundries, BYD can not only provide assembly line services, but also provide additional chip design and development services, more comprehensive and professional customer services.
As a domestic low-end brand, after cooperating with BYD, Honor mobile phone used BYD's chip, not only did not step on the thunder, but the performance was greatly improved, standing out among the low-end mobile phones.
In addition to chip research and development, BYD is also very good in the production process, initially Apple only fancy the metal shell processing technology, and then gradually expanded to glass, structural parts and assembly.
From the iPhone, to the iPad, to the Apple Watch, etc., Apple has now become BYD's largest customer in the electronics field.
Apple's requirements for the production process are very strict, if it meets Apple, domestic brands can also be satisfied, so BYD has also successfully launched and Huawei, Xiaomi, Honor, vivo, OPPO and other mobile phone OEM.
Mobile phone OEM is only a production branch of BYD, as well as OEM intelligent cockpit, robots, automotive intelligent systems, etc., many smart products, BYD can provide services.
With so many production lines laid out so much and so widely, will BYD's production capacity be reduced? Actually, no, BYD's production capacity is very flexible and can be adjusted according to the market demand of different products at any time.
For example, in 2022, Apple's mobile phone encountered a "difficult birth" crisis, and BYD rose to the challenge and manufactured more than 50 million iPhones for it, which once became a legend in the industry.
BYD produced drawings in 3 days, made mask machines in 7 days, and rolled off the first mask in 10 days, achieving a daily output of 20 million, becoming "the world's largest mask manufacturer" in one fell swoop.
In contrast, Foxconn is obviously a little powerless in R&D, process and capacity coordination, and BYD's rise has made Foxconn feel threatened.
In addition, BYD is a conscientious enterprise, while Foxconn is "scandal-ridden", and the founder Terry Gou is even more self-righteous, looks down on the mainland, and is strongly resisted.
Foxconn's current situation
Before the epidemic in 2019, Zhengzhou Foxconn's total exports were 219.9 billion yuan, and the total imports were 113.8 billion yuan, accounting for more than 80% of Zhengzhou's trade volume, which can be called Zhengzhou's foreign trade leader.
Such achievements also gave Guo Taiming a lot of confidence, so much so that Guo Taiming arrogantly said: "The mainland can't do without me, I built a factory in the mainland, and I was giving the mainland a meal." ”
At the beginning, if it weren't for the mainland's preferential policies for Taiwan compatriots, giving various policy conveniences, 5 years of tax exemption and 5 and a half years of tax, so that Foxconn could become stronger and stronger, how could there be Guo Taiming today.
The achievements are mutual, but Guo Taiming will only put gold on his face, belittle and look down on the mainland, and has been condemned and resisted by many mainlanders.
After "leaving India", Foxconn invested 64 billion yuan to build factories in Southeast Asia, but he did not expect that the strike and fire caused Apple to fall into a deep supply crisis, and finally ended up being "broken up" by Apple and "harvested" by the Indian consortium.
After returning home, it was found that inland orders were lost, and the market share declined one after another.
The corporate image is a living business card, just like BYD and Wahaha, this kind of positive and positive enterprises will be supported by everyone, and Foxconn is the negative teaching material.
Guo Taiming wants to eat "turning back grass", and hopes to give Foxconn another chance, not that it can't, but Foxconn should let us see that it is a conscientious enterprise that understands Entu.
In the face of Taiwan compatriots, the mainland is tolerant and accepting, but it is not without a bottom line, and as long as Foxconn is still developing on the mainland, it should be a conscientious national enterprise and make more contributions to the two sides of the strait.
The latest news on April 17, Foxconn invested in the construction of a new science and technology park in Zhoukou, this "comeback", but also a turning point for Foxconn, I hope it can be grasped.
Resources:
Yicai, 2023-12-29, a report on "BYD's "Another Battlefield"".
Global Times, 2023-10-23, a report on "Foxconn was investigated, and there was a lot of discussion on the island".
Wall Street News, 2023-07-11, report on "Suddenly, Foxconn withdraws, Made in India suffers a heavy setback".
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