Foxconn's transfer of production lines and the establishment of overseas factories in China's mobile phones: revealing the secret behind the decline in China's mobile phone exports by more than 500 million units
In the context of the continuous restructuring of the global technology industry chain, Foxconn and other foundries have shifted their production lines to India, Vietnam and other places, and Chinese mobile phone manufacturers have set up factories overseas, these two trends have jointly affected the significant decline in China's mobile phone exports. According to data disclosed by the General Administration of Customs, China's mobile phone exports fell from a peak of 1.343 billion units to 822 million units in 2022 in just a few years, a decrease of more than 500 million units. This dramatic change not only reflects the competitive landscape of the global mobile phone market, but also reveals the deep-seated reasons behind the adjustment of the supply chain of the technology industry.
1. Foxconn's production line transfer: India has become the new favorite
As a world-renowned electronic product foundry, Foxconn has always been an indispensable part of the technology industry chain. However, as costs rise and competition intensifies in the Chinese market, Foxconn has begun to move some of its production lines to lower-cost regions. As an emerging market, India has become the new favorite of foundries such as Foxconn with its demographic dividend and policy support. According to internal sources, Foxconn plans to achieve its goal of producing 20 million iPhones per year in India by 2024, and the number of employees will also increase to 100,000. This change has not only affected China's mobile phone exports, but also intensified the adjustment of the global mobile phone manufacturing map.
2. Chinese mobile phone manufacturers set up factories overseas: layout in the global market
In the face of the saturation of the domestic market and the opportunities of overseas markets, Chinese mobile phone manufacturers have accelerated their overseas layout. Xiaomi, OPPO, vivo and other mainstream mobile phone manufacturers have set up production lines in India, Indonesia, the Middle East and other places. The commissioning of these overseas factories can reduce production costs on the one hand, and better serve the local market and improve brand influence on the other hand. However, setting up factories overseas also brings certain challenges, such as cultural differences, policy risks, supply chain management and other issues. Despite this, Chinese mobile phone manufacturers have taken this step firmly and injected new vitality into the global mobile phone market.
3. Changes in the global mobile phone market: declining sales and intensifying competition
In recent years, the global mobile phone market has shown a trend of declining sales and intensifying competition. According to market research firm Counterpoint, the global smartphone market shipped 1.55 billion units in 2017 and fell to 1.2 billion units in 2022. This change not only affects China's mobile phone exports, but also reflects the changing demand of global consumers for mobile phone products. With the increasing maturity of smartphone technology and the intensification of market competition, consumers' expectations for mobile phone products are getting higher and higher, and manufacturers need to continue to innovate to meet the needs of consumers.
4. Future trends: supply chain diversification and localization
In the face of changes and challenges in the global mobile phone market, the future supply chain of the technology industry will show a trend of diversification and localization. On the one hand, with the rise of global trade protectionism and the increase of geopolitical risks, manufacturers need to pay more attention to the diversification and stability of the supply chain. By setting up production lines and R&D centers in multiple locations around the world, manufacturers can better cope with various risks and challenges. On the other hand, as consumers' demand for localized services increases, manufacturers need to pay more attention to localized production and operation. By gaining a deeper understanding of the local market and consumer needs, manufacturers can launch products and services that are more in line with the needs of local consumers.
In short, Foxconn's transfer of production lines and the overseas establishment of factories by Chinese mobile phone manufacturers have jointly affected the significant decline in China's mobile phone exports. However, this change also reflects the trends and opportunities of the global technology industry supply chain adjustment. In the face of future market challenges and opportunities, manufacturers need to constantly innovate and adjust their strategies to adapt to market changes and development trends.