The impact of India's approach to Chinese cell phones is growing, not only Chinese cell phones may therefore reduce investment, and even has set up factories in India Apple and Foxconn may therefore reduce investment and again pay attention to the Chinese market, at this point they may really realize why there is no substitute for Chinese manufacturing.
Chinese cell phones entered the Indian market in a big way, it should be said that since 2014 Xiaomi entered the Indian market, that year Q3 Xiaomi entered the Indian market, then in 2014 Q4 among the top five in the Indian smartphone market, in 2015 Xiaomi and Foxconn cooperation in India to set up factories to produce cell phones, after more than 3 years of efforts, Xiaomi among the first in the Indian smartphone market, and dominated to date.
After the success of Xiaomi phones in the Indian market, OPPO and Vivo also quickly followed into the market, they also responded to the requirements of India to set up factories in India to produce cell phones, relying on local production, OPPO and its sister brands realme and Vivo have achieved success in the Indian market, while ranking among the top five in the Indian smartphone market.
Although the three major Chinese cell phone brands have set up factories in India, but industry sources pointed out that they did not drive the industrial chain to India to set up factories, many components of cell phones are still imported from China, their Indian factories can be said to have been assembly plants, which may let India disappointed, resulting in the situation today.
In fact, India can not blame these Chinese cell phone companies to do so, they are sold in India is mainly low-end cell phones, low profits, India's local manufacturing base is too weak, the skill level of Indian workers is too low, etc. lead to industrial chain companies can not follow into the Indian market, so that Apple and Foxconn will also have an impact.
Apple has previously set up factories with Foxconn in India to produce iPhones, but they are mainly older models of iPhones, they are also like Chinese cell phone companies, the factories in India are mainly assembly plants, components and so on need to be imported from China. iPhone sales in India have been growing rapidly since last year, prompting Apple and Foxconn to plan further expansion of their factories in India.
If Apple and Foxconn's plan to expand its Indian factories comes to fruition, it may be expected to drive the local industry chain, but today's approach in India will make Apple and Foxconn think deeply, and those industry chain companies that plan to follow Apple and Foxconn to set up factories in India are even more worried, so Apple and Foxconn's plan to drive the industry chain to set up factories in India may change.
What is particularly worrying for Foxconn is that it is responding positively to Apple to set up a factory in India, yet Apple is transferring more orders to foundries in mainland China such as Lixun Precision, which seems to show that Apple also does not trust Indian manufacturers too much and still prefers foundries in mainland China, where production is more efficient and quality is also higher.
Now the Chinese cell phone encounter is even more Apple and Foxconn hesitation, after all, set up factories in India in a big way, after earning profits can not be freely remitted, then they went to India to set up the meaning of the factory is also greatly reduced; not yet entered the Indian market, the industrial chain companies are more unlikely to enter, the lack of industrial chain coupled with changes in India's current situation, which can only make Apple and Foxconn lack of confidence.
Previously, Foxconn's iPhone production in India also failed to meet Apple's requirements. News pointed out that the seams of the iPhone produced in India are too large and the quality is not up to par, so Apple has always produced the most advanced iPhone in mainland China; the importance of the Chinese market is now further highlighted, and the rising sales of iPhone in the Chinese market has stabilized Apple's position, which has become another deterrent for Apple.
Perhaps Apple and Foxconn will therefore suspend their plans to expand their Indian factories and return to Chinese manufacturing will be their best choice. Now that the iPhone 14 is about to be launched, ensuring stable production is Apple's number one priority, while mainland China factories, which still account for the majority of iPhone production capacity, are recruiting workers to ensure the production capacity of nearly 100 million iPhones, all of which underscores the advantages of Chinese manufacturing.