Is it difficult for Guo Taiming to fall asleep? 27% of Apple's large orders were split between two Chinese companies

Tech 2023-05-24 14:31:56 Source: Network

Apple has always been a leader in the global consumer electronics market, but recently there have been some changes in the order distribution between Apple and Foxconn. According to media reports, Apple has allocated orders originally belonging to Foxconn to Lucent Precision and Asus, with these two Chinese companies accounting for 12% and 15% of orders respectively, resulting in a significant decrease in Foxconn's order share in Apple's OEM factories

Apple has always been a leader in the global consumer electronics market, but recently there have been some changes in the order distribution between Apple and Foxconn. According to media reports, Apple has allocated orders originally belonging to Foxconn to Lucent Precision and Asus, with these two Chinese companies accounting for 12% and 15% of orders respectively, resulting in a significant decrease in Foxconn's order share in Apple's OEM factories. This news is undoubtedly a blow for Foxconn, but it is a significant business opportunity for both Lexus Precision and Asus. So, what is the reason behind this? What impact will this incident have on the Chinese manufacturing market and Foxconn? Below, we will introduce one by one.

Redistribution of Benefits for Apple's Entrusted Factories

Apple has redistributed orders that originally belonged to Foxconn and distributed them to Asus and Lexus Precision. This event may involve some background factors, and the specific situation will be summarized below.

1. OEM companies outside of Foxconn

In China, besides Foxconn, there are many other OEM factories, such as Heshuo, Lixun Precision, Yulong, etc. These OEM factories have strong production capacity and technical capabilities. Therefore, Apple naturally has many options for reallocating orders. Foxconn is an important foundry for Apple, but it is not the only option.

2. Enterprise for order allocation

Heshuo and Lixun Precision are the companies that Apple redistributes orders, and these two companies also had significant performance before being selected. As a leading electronic OEM enterprise, Heshuo has achieved significant success in expanding into the global market. Lixun Precision is another well-known OEM company, with customers including multiple technology giants such as Apple.

The above two points are the main factors causing Apple to redistribute orders, and Apple's move may also be due to multiple considerations. Especially for Foxconn, which has been overlooked in this allocation, both the reduction of order share and the damage to its image are quite serious.

Factors to consider when choosing a substitute factory for enterprises

The factors for enterprises to choose a substitute factory mainly include production capacity, product quality, delivery time, price, and other aspects. With the increasing demand for product quality from consumers, the requirements of enterprises for the quality of OEM products have also increased. Therefore, the production capacity and quality issues of the OEM factory are very important considerations for enterprises.

In addition, when choosing a substitute factory, enterprises also need to consider risk control and production planning. If there are quality issues with the OEM factory, it may threaten the reputation and morale of the enterprise in the minds of consumers. In addition, due to the limited production capacity and resource distribution of the OEM factory, many adverse factors such as unsold orders, transportation delays, or personal reasons may have a negative impact on the enterprise. Therefore, when choosing a substitute factory, enterprises should be patient and cautious, comprehensively consider various factors, and ensure the accuracy and effectiveness of the final decision.

Advantages of cooperation among multiple OEM factories

Foxconn's performance in this incident

Foxconn encountered problems with order allocation this time, although the specific reasons are not yet known, it is undoubtedly inseparable from the impact of the epidemic, competition, and employee turnover. In addition, as a contract manufacturing enterprise with strong strength in the industry, its order volume and revenue situation are very important. But if its order volume suddenly decreases, it will have varying degrees of impact on Foxconn's image and business. In this regard, Foxconn can choose to optimize its production capacity, expand new business markets, and strengthen cooperation with Apple, and gradually overcome the impact of the above issues.

Will Guo Taiming's candidacy have an impact on the company?

When Guo Taiming ran for the Taiwan election, his promised political philosophy and policy goals may have varying degrees of impact on his companies. At the same time, due to Guo Taiming's reputation and strength, he may promote the introduction of relevant legislation, the formulation of certain policies, and the direction of industry development regulations, which will have an impact on enterprise operations and market share. Unfortunately, these impacts are currently unforeseeable. However, we can effectively predict and make timely adjustments through in-depth analysis and mastery of market conditions and industry trends.

Summary:

The news event that Gou Taiming struggled to fall asleep was a test for everyone. For Apple, redistributing orders can help optimize its supply chain and strengthen competition among different foundries such as Asus and Lexus Precision. For Foxconn, the significant reduction in order quantity has had a significant negative impact, but it still has room for self revitalization. As for us consumers, we should focus on product quality and the concept of giving brand value, and resist fashion risk behaviors such as plagiarism and counterfeiting, in order to safeguard the long-term development of China's manufacturing industry.

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