Foreign media: Apple "lost" the bet, and India's production road is difficult
Hello everyone, today we're going to talk about Apple's recent big move, which sounds a bit hanging. This has to start with their business common sense that "eggs can't be put in one basket". That's right, Apple decided to move some iPhone orders to India, what kind of decision is this?
Background story: Foxconn has established a new production base in India to take on Apple's iPhone orders. Moreover, the iPhone 15 series has recently begun to be produced in India, but unfortunately, the iPhone 15 Pro version has not yet been able to roll off the assembly line there. It seems that Apple is still a little cautious about India's production capacity.
So, what happened next? For the upcoming iPhone 16 series, Foxconn has already started production of the Pro version in India, but currently only accounts for 15% of orders. This also means that India is now Apple's second largest iPhone production base outside of Chinese mainland, which is a good start!
But Apple's choice wasn't all smooth sailing. First of all, their revenue is impressive, with annual profits of up to $100 billion, and iPhones account for nearly half of the revenue. However, in the market of Chinese mainland, the success of the iPhone can be described as indispensable, with sales of 46.86 million units in 2023, accounting for more than 20% of the total, which is the absolute top priority.
However, India's production problems cannot be ignored. At present, the yield rate of the product is not ideal, and there is also the problem of E. coli exceeding the standard, which are not small hidden dangers. Moreover, India's industrial system is not perfect enough, and the work quality and management mode are relatively low, which undoubtedly brings many challenges to apple production.
What happens next? Apple is clearly aware of these problems, so it decided to transfer some orders for the iPhone 16 back to the mainland for production. Foxconn's production base in Zhengzhou has also begun large-scale recruitment, and it is even necessary to recruit 50,000 new workers, and it seems that they still have to withstand the pressure on production capacity.
And this leads to some negative news about Foxconn in India recently. For example, their refusal to hire married women has sparked controversy. In this regard, Foxconn's leader Liu Yangwei also went to inspect and issued some statements that appeared to be strong, condemning this kind of employment discrimination. Really, hopefully they can improve these unreasonable policies.
In addition, the India government has also noticed this problem and is preparing to launch an investigation, which may affect Foxconn's production capacity in India, and the future trend cannot help but make people sweat.
Therefore, on the whole, Apple's investment in India is difficult at this stage, and many foreign media even bluntly said that this is a "bet loss" risk. Ladies and gentlemen, do you think Apple's move was a witty move or a big gamble? Welcome to leave a message to discuss!