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If manufacturing and assembly enterprises leave China, they are destined to fail.

Apple's production line transfer is regarded within the industry as a comprehensive test of the Chinese mainland's manufacturing industry.


This is not only a challenge but also a probe into the capabilities of this industry.

Many Taiwanese enterprises, such as Foxconn, Wistron, Pegatron, and Luxshare Precision, have actively participated.


From the perspective of the manufacturing industry, this test is both an opportunity and a challenge.


Wistron, once a key assembler for Apple, handled more than 20% of iPhone orders.

However, under Apple's enticing promises, Wistron sold its mainland factories and shifted its focus to the Indian market.


As a result, Wistron's share in Apple's supply chain plummeted, now accounting for only 1% of orders.


This transition not only caused Wistron to lose its original market share but also endangered its position in the global manufacturing market.


Despite Foxconn's significant investments in India, this strategy led to a noticeable decline in its original market share, creating a clear gap compared to the past.

Foxconn's production line in mainland China remains relatively stable, but with some business transferred to India, Foxconn has to deal with rising costs and decreasing efficiency.


Moreover, the expansion into the Indian market faces multiple challenges, including policy, culture, and labor market issues, putting Foxconn's global market position to the test.

In contrast, Luxshare Precision has seen a substantial increase in its share, rising from 10% to 20%, and is expected to continue growing, becoming the biggest winner in this industrial shift.


Luxshare Precision has gained Apple's trust by leveraging its flexible production model and rapid response to market demands.


Luxshare Precision continuously innovates in technology and management and demonstrates strong capabilities in supply chain integration, standing out in fierce market competition.


Without the impact of Chinese manufacturing

Wistron did not foresee the current predicament when it decided to sell its mainland business.


Regret comes too late, as there is no turning back.


Wistron's decision highlights the risks and uncertainties in global business layouts, making other companies more cautious when making similar decisions.


Foxconn is starting to rethink its future development path, perhaps needing to learn more from Luxshare Precision's model, understanding the messages conveyed by this industrial shift, to avoid major deviations in future development.

Foxconn is seeking a diversified development strategy, not only adjusting its geographic layout but also increasing investment in product lines and technological innovation to ensure its core position in the global supply chain.


For Apple, this transfer also brings profound impacts.


One major insight is that Chinese manufacturing remains an indispensable part of Apple's supply chain, with its manufacturing strength being hard to replace by other regions.


In Apple's global layout, balancing multiple interests to ensure the stability and efficiency of the supply chain is crucial.

With the transfer of production lines, technological innovation and automated production will be key to future development.


Chinese manufacturing has a strong foundation and advantage in this regard, and through technological upgrades and automation transformations, it can further improve production efficiency and product quality, consolidating its competitiveness in the global market.


The global supply chain is becoming increasingly complex and diversified.


Companies must consider geopolitical, market demand, and production cost factors when formulating global layout strategies.

Through diversified layouts, companies can effectively reduce risks and enhance the flexibility and resilience of their supply chains.


Sustainable development has become an important trend in global industrial development.


In the production process, companies need to pay more attention to environmental protection and social responsibility, promoting green manufacturing and sustainable supply chain construction.


Chinese manufacturing also needs to continuously improve in this regard, achieving sustainable development goals through technological innovation and management optimization.

This production line transfer sends a clear signal to all participants and observers: the strength and advantages of Chinese manufacturing cannot be ignored, and experiences and insights should be drawn from it to integrate into one's own development.


Despite the unknowns and challenges in this transfer, there will undoubtedly be more opportunities after the challenges.


The key lies in how to transform the advantages of Chinese manufacturing into one's own competitiveness and development opportunities.


Regardless of the external environment, this production line transfer will undoubtedly provide valuable experiences and lessons for all related companies, helping them find a more solid position in the global supply chain and enhancing their competitiveness.

In future development, companies need to continuously innovate, actively respond to challenges, seize opportunities, and achieve sustainable development.


In the tide of globalization, Chinese manufacturing will continue to play an important role, driving the progress and development of the global industry.


Through this production line transfer, major companies need to see not only the immediate challenges but also the future opportunities.


In the context of global economic integration, the influence and competitiveness of Chinese manufacturing remain factors that major companies must seriously consider.


Whether in technological innovation, supply chain management, or market expansion, Chinese manufacturing will continue to play its irreplaceable role.


In the future, with technological advancements and market changes, Chinese manufacturing will encounter more development opportunities and continue to occupy an important position in the global industrial chain.

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