In December last year, Apple CEO Cook visited Apple's red supply chain factory and rarely visited the AirPod production line at Kunshan Liexin. Unlike previous visits to mainland China, they visited Hon Hai and other Taiwanese foundries. Yue Honghai’s first provisional shareholder meeting, Chairman Guo Tingming, also stressed that don’t tie Hon Hai and Apple together, and outline the development of 5G, Internet, AI artificial intelligence and other fields. Two events can reveal that Apple’s supply chain will soon be reshuffled. , Lixun may become China's first mobile phone assembly plant.
Senior executives of science and technology familiar with the mobile phone industry stated that the most successful of the Hon Hai Group is the vertical integration of mobile phones. Foxconn often promotes vertical integration with its guests, making Hon Hai more powerful than any other electronic e-mail in Taiwan. Hon Hai’s operators are now completely copying the road of Hon Hai’s Empire established by Terry Gou. Lixun started from the connection line and joined Xuande’s connector in Taiwan to purchase the Meiru Suzhou factory to assist Kang Control’s purchase of the most advanced equipment. Into the acoustics and headphones, under the guidance of Apple, but also into the soft board, recently bought Lite-On's lens assembly plant, Li-xun is fully equipped with the strength of the machine, within three years may see Lixin grab Order to the Apple iPhone's cell phone assembly. The industry official said: 'BYD can't do anything, Lixun will complete.'
Apple increased red supply chain is Apple's strategy to return to China, which Kukshan visit Kunshan plant can be seen, the largest market for Apple's iPhone is in China, but Apple's market share has been China's brand of mobile phones However, the current assembly plant is still one-third of the Taiwan factory, Apple in order to restore the Chinese market, we must import land-based assembly plant, which is bound to go Political considerations.
The vertical news and Apple cooperation for many years, the two sides running in has reached a certain level, which for Hon Hai is a considerable potential threat, the first is the foreclosure will affect the market share, once the Apple Assembly plant added legislation, will Parting out some of the assembly plant volume, it is understood that the last two to three years the total amount of unassembled apples in Hon Hai did not rise in 2017, Apple's iPhone handsets more than 20 million sticks, but almost all went to Wistron and Shuo, once legislation news again come in, certainly will ship Hon Hai shipments.
Second, the legislation once the information into the Apple Assembly Plant, the unit price will drop significantly, according to past history, legislation for the connection line, breaking Hon Hai and Zheng Wei dominance, bargain cut to Zheng Wei, Hon Hai almost Is to lose money orders; Lixun into the acoustic components, but also to break the AAC, Gore alone, unable to compete with the legislature Taiwan factory said: "Lixun is the most standard price destroyer, which is in line with the easy-to-operate supply chain Cook's taste '.
Ericsson's goal is to win Apple cell phone assembly, which will enable Hon Hai's revenue and profit to face the test.