Now that I have failed to invest in India, I still want to go back to China for gold, but I don't know that BYD and other foundries have eaten up their share. Where should Guo Taiming go?
When it comes to Foxconn, we are most familiar with the story that it refused to help Huawei OEM and abandoned the China market for overseas development.
Indeed, for the development of Apple's business, Guo Taiming went to India to invest billions of dollars to build Apple's exclusive production line. Before leaving, Guo Taiming did not forget to stab Huawei who had helped him.
Foxconn, which lacked competitive advantage in its early years, fell into a business crisis. Apple's large number of orders were cancelled, and its revenue was greatly reduced. At such a critical juncture of life and death, Huawei distributed product orders to Foxconn and "rewarded" Foxconn with a meal.
Thanks to Huawei's assistance, Foxconn was able to recover and embark on the road of development as a "world factory".
Unexpectedly, in recent years, Huawei's chip supply has been cut off by American companies such as Apple, mobile phone shipments have plummeted, and revenue has also been in crisis.
The situation is very similar to that of Foxconn. However, Guo Taiming seems to have forgotten the kindness of Huawei in those years, followed the pace of Apple, resolutely rejected Huawei's OEM request, and completely tore his face.
After that, Guo Taiming knew that he couldn't get along at home, so he quickly hugged Apple's thigh and prepared to go to India for development.
Thanks to Apple's reward, Foxconn's revenue even surpassed that of chip foundry giant TSMC for a time. In 20 14, Apple's orders created 54% of Foxconn's revenue. It can be said that more than 90% of Apple's products will be handed over to Foxconn for production. From then on, Guo Taiming decided that there must be food to eat with apples.
In 20 15, Guo taiming announced that he would invest $5 billion in India, but the plan was postponed to 20 18.
By 2020, Apple and Huawei have become incompatible. In order to suppress the China market, Apple announced that it would withdraw its production line from Chinese mainland. Facing the land where he grew up and the apple, Guo Taiming left China with Cook without saying anything.
After coming to India, Guo Taiming once again invested 654.38 billion US dollars. He thought he could make a fortune by cheap local labor, but he didn't realize that India's industrial layout was very backward, and even the parts needed for its production had to be exported by domestic foundries, so he couldn't buy decent parts locally.
In addition, the quality of the labor force is extremely poor, and it is always late for work, and its adaptability to the assembly line is poor, and it is unwilling to learn assembly technology. All these factors have made Guo Taiming frown, and the production capacity of the production line has not been improved. The ensuing Indian epidemic has made Foxconn worse.
Due to the epidemic, Foxconn was forced to shut down the production line, and this shutdown does not matter. There was a problem with the supply of Apple products, which caused the shipments to plummet by more than half, which also made Cook very angry. Guo Taiming's position in Apple's OEM chain began to waver.
At one time, Guo Taiming also wanted to set up a factory in America. As the saying goes, being close to the host makes him feel more secure and can eat more meat. Based on this idea, Guo Taiming invested and built a factory in the United States. However, none of the preferential support programs promised by the United States in the past disappeared, and Guo Taiming was completely fooled.
Not only that, but Apple also began to carve up Foxconn's OEM orders and transfer some of them to Foxconn's competitor Luxshare.
Undoubtedly, this is to sprinkle salt on Guo Taiming's wound. Desperate, Guo Taiming remembered his days in China market, so he brazenly returned to China.
At present, Guo Taiming is trying to quickly set up an OEM production line by giving bonuses to local factories to prepare for the OEM task of Apple's new products, but Guo Can Taiming, who has been in the palace twice, still earns this money?
BYD didn't agree at first. As another big foundry giant in China, BYD quickly took over most of the order business after Foxconn moved out of the mainland, and Huawei and other companies handed over the order to BYD.
In 2020, BYD's financial statements showed that the mobile phone assembly business alone created a revenue of 60 billion yuan for BYD, an increase of 12.48% compared with previous years, and the development level was no less than that of Foxconn.
Moreover, the development of companies such as Huawei and Xiaomi is no less than that of Apple. Consumers are more willing to choose domestic brands with higher cost performance when choosing. Apple's development is not as optimistic as Cook and Guo Taiming imagined.
In addition, no domestic enterprises are willing to send money to this baiwenhang again. After all, Huawei helped it so much and was stabbed. Other companies will naturally not give Guo Taiming such an opportunity.
After all, now Guo Taiming has paid the price for his repeated jumps. We will wait and see what the future development prospects of "sweatshops" are.