Shopping malls are like battlefields, unpredictable. The former partners have become-for-tat opponents in the blink of an eye.
In this smart phone wrestling match, the three business giants Terry Gou, Lei Jun, and Cook staged an embarrassing business war drama.
Guo Taiming, the founder of the Foxconn empire, single-handedly supported Xiaomi to glory, and counterattacked Xiaomi at the most difficult time, cutting orders by 70%, which caught Lei Jun off guard.
And Apple, the global mobile phone hegemon, has also encountered unprecedented challenges in the vast emerging market of India.
For a time, the pattern of the top three was shrouded in suspicion, and the undercurrents of all parties were surging.
What is the reason why Guo Taiming, who has always been known for his "professionalism, integrity, and responsibility", hates Xiaomi to the core?
Why is Apple betting on BYD, and where will it go in India?
1. Terry Gou's Foxconn Empire
Gou Taiming, the self-made richest man in Taiwan, with his keen business sense and vigorous style, has created a huge OEM empire - Foxconn.
In the tuyere of smart phones, Foxconn once became the world's largest electronic product foundry, and has in-depth cooperation with Apple, Xiaomi and other giants.
In this business game, Guo Taiming is in a dilemma. On the one hand, Xiaomi, as one of Foxconn's important customers, has contributed considerable orders and profits to Foxconn.
Xiaomi's rapid rise in the smartphone market also relies on Foxconn's strong manufacturing capabilities and supply chain management.
The two companies can be described as mutually beneficial and win-win, sharing weal and woe.
On the other hand, Apple, as Foxconn's largest customer, has far surpassed Xiaomi in terms of order volume and profit contribution.
With the rapid growth of Xiaomi, its voice in the supply chain has been increasing, and it has begun to exert pressure on Foxconn, demanding price reductions and priority supply. This undoubtedly touched the bottom line of Gou's interests.
Terry Gou knows that in this law of the jungle in the business world, there are no permanent friends, only eternal interests.
He must choose between Apple and Xiaomi to ensure Foxconn's long-term development. After weighing the pros and cons, Terry Gou made an astonishing decision - cut 70% of Xiaomi's orders and directly transfer production capacity to Apple, which is more profitable!
This move was like a bombshell and caused a huge sensation in the mobile phone circle. Xiaomi obviously did not expect that its former partners would fight back at a critical moment.
Without the manufacturing thigh of Foxconn, it is still unknown whether Xiaomi can continue to dominate the mobile phone rivers and lakes.
Apple took this opportunity to increase its procurement of Foxconn.
At the same time, in order to diversify supply chain risks, Apple also pushed to set up a factory in India, trying to create a "de-Foxconn" production system.
In India, where infrastructure is backward and policies are unstable, whether this plan can be carried out smoothly is also full of uncertainties.
The business chess game behind Guo Taiming is by no means a whim, but a careful weighing of the pros and cons.
He understands the delicate balance of the foundry industry and knows how to survive and thrive in the cracks.
Behind this big gamble is Terry Gou's accurate judgment of the market situation and the strategic layout of Foxconn's future.
Of course, there are no eternal friends and foes in the mall, and cooperation and competition are often only a thought.
Even if Xiaomi suffers a heavy blow temporarily, with Lei Jun's innovative genes and Internet thinking, it is unknown what will happen in the future.
Whether Apple's ambitions in India can shake the hegemony of Made in China remains to be tested by time.
No matter what the outcome is, Terry Gou's good show will go down in the history of science and technology.
It reveals the pivotal position of foundry giants in the industrial chain, as well as the complex and changeable interest pattern under the wave of globalization.
In this rapidly changing business battlefield, only by assessing the situation and being flexible can we be invincible.
Second, the rise and setbacks of Xiaomi
Xiaomi, an emerging brand born in the Internet era, has set off a "Xiaomi style" in the smartphone market with its excellent cost performance and geek style.
Lei Jun, the entrepreneur who dares to be the first in the world, not only made Xiaomi synonymous with national mobile phones, but also created a new business model of "Internet + hardware".
Xiaomi's success is not only due to Lei Jun's unique strategic vision, but also inseparable from the support of Foxconn's strong manufacturing capabilities.
Through close cooperation with Foxconn, Xiaomi has achieved high-quality mass production at a very low cost and quickly occupied the low-end mobile phone market.
The brand concept of "born for fever", coupled with the ingenious operation of the fan economy, Xiaomi has become a phenomenal existence.
As the smartphone market becomes saturated, Xiaomi's growth momentum is starting to slow down. On the one hand, the competitive pressure from brands such as Huawei and OPPO is increasing;
On the other hand, Xiaomi's bargaining power with Foxconn in the supply chain is limited, and it is difficult to further reduce costs.
Foxconn's decision to cut Xiaomi's order by 70% is undoubtedly worse, putting Lei Jun in an unprecedented predicament.
Without the strong backing of Foxconn, can Xiaomi continue to dominate the mobile phone world? This tests Lei Jun's adaptability and leadership wisdom.
In the face of the crisis, Xiaomi did not sit still, but actively took countermeasures to try to save the day.
Xiaomi has stepped up its efforts in independent R&D and innovation. Through the acquisition of chip company Songuo Electronics, Xiaomi began to lay out the field of chip design, trying to achieve independent and controllable core technology.
At the same time, Xiaomi also launched the MIX series of concept mobile phones to explore cutting-edge technologies such as full screen and folding screen, showing strong innovation strength.
Xiaomi began to adjust its product strategy, focusing on the mid-to-high-end market. By launching flagship models such as the Xiaomi Mi 10 and Xiaomi Mi 11, Xiaomi strives to get rid of the "low-end" label and establish a high-end brand image.
At the same time, Xiaomi also launched the Redmi independent brand, realizing the diversified operation of the brand to meet the needs of different consumer groups.
In addition, Xiaomi has accelerated the pace of global expansion. Through intensive cultivation in overseas markets such as India and Europe, Xiaomi has formed a broad global market layout and reduced the risk of dependence on a single market.
Especially in the India market, Xiaomi once won the first place with its online channel advantages and localization strategy, becoming one of the most popular mobile phone brands in the region.
Of course, Xiaomi's transformation has not been easy. In core areas such as chips and operating systems, Xiaomi still has a gap compared with giants such as Qualcomm and Google;
In the high-end market, the premium ability of the Xiaomi brand needs to be improved; In its overseas expansion, Xiaomi also faces many challenges such as patent barriers and cultural differences.
But Lei Jun's fighting spirit of "never give up" is Xiaomi's most valuable asset.
"Born in sorrow, die in peace." Crises often breed turnarounds.
For Xiaomi, the sharp shrinkage of Foxconn's orders is not only a slap in the face, but also a rare opportunity for self-innovation.
Only by facing challenges head-on and forging ahead can Xiaomi seek new breakthroughs in the face of adversity and achieve phoenix nirvana and rebirth.
Third, Apple's India dilemma
Apple, the world-changing tech giant, has always been the dominant player in the smartphone space. With exquisite craftsmanship, outstanding performance and the ultimate user experience, the iPhone has become synonymous with high-end mobile phones.
Tim Cook, the man who inherited Steve Jobs' mantle, led Apple to expand its territory to all corners of the globe with his operational excellence and strategic vision.
In this vast India market, Apple has encountered an insurmountable chasm. Unlike the success of the Chinese market, Apple's growth in India can be described as difficult.
High prices, limited localization adaptation, and aggressive domestic brands have made the iPhone's market share in India hovering in single digits.
Faced with this dilemma, Apple decided to take a leap and build its own production base in India.
By localizing production, Apple hopes to reduce costs, circumvent tariffs and appeal to India consumers at more competitive prices.
At the same time, Apple also plans to increase online sales by cooperating with India e-commerce platforms to make up for the lack of offline channels.
On the road to "Made in India", Apple has encountered many obstacles.
Poor infrastructure, shortage of skilled workers, and unstable supply of raw materials...... Various practical difficulties have repeatedly delayed Apple's production plans in India.
Even the old partner with Foxconn for many years is difficult to exert its former power in India, and the production capacity and yield rate are far less than those of Chinese factories.
In desperation, Apple set its sights on another domestic giant, BYD.
As a leader in the field of new energy vehicles and batteries, BYD has rich experience and technology accumulation in intelligent manufacturing and automated production.
By cooperating with BYD, Apple hopes to use its industrial layout and localization advantages in India to realize the iPhone India dream as soon as possible.
But can BYD be Apple's "lifesaver" in India? This is still an unknown. Compared with Foxconn, BYD's experience in the field of consumer electronics is relatively limited, and it remains to be seen whether it can quickly adapt to Apple's high standards and strict requirements.
At the same time, under the complex social environment and uncertain policy risks in India, BYD is also facing many challenges whether it can successfully promote the construction of production capacity.
In fact, Apple's plight in India reflects the difficulties that multinational companies generally face in the process of localization in emerging markets.
cultural differences, consumption habits, policy barriers...... These seemingly intangible factors often become the key variables that determine success or failure.
For Apple, in order to gain a foothold in India, hardware manufacturing alone is far from enough, but also needs to make more efforts in localized marketing, channel construction, after-sales service, etc., to win recognition with a closer attitude to India consumers.
Of course, in this era of globalization, no market is an island.
Apple's development in India is not only affected by macro factors such as Sino-US trade frictions and geopolitical games, but also closely related to India's own industrial policy and investment environment.
Only by assessing the situation and adapting measures to local conditions can Apple open up a new world in this vast emerging market.
Foxconn's "anti-water", Xiaomi's dilemma, Apple's entanglement...... This three-kingdom kill between mobile phone giants fully demonstrates the complex game under the reconstruction of the global industrial chain.
For brand manufacturers such as Apple and Xiaomi, the diversified layout of the supply chain is not only the need for risk hedging, but also the key to controlling core technologies and improving bargaining power.
For foundry giants such as Foxconn and BYD, under the dual trend of globalization and localization, how to achieve a balanced customer structure and regional market balance will be a compulsory course.
In the future, with the accelerated application of new technologies such as 5G, artificial intelligence, and flexible screens, the smartphone industry is expected to usher in a new round of changes.
This competition without an endgame will promote the further differentiation and reorganization of the industry pattern. The wrestling game between leading enterprises and the breakthrough innovation of small and medium-sized manufacturers will inject new vitality into this trillion-level market.
epilogue
For ordinary consumers, this seemingly distant business wrestling is closely related to our lives.
Every technology iteration and every new product release may affect our consumption choices and usage habits.
And in this rapidly changing digital age, only by maintaining the courage to innovate and an open mind can we find our place in this competition with no endgame.
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