According to fox News and many other foreign media, Apple is evaluating the impact and consequences of giving up the Chinese market, which means that Apple is likely to withdraw from the Chinese market in the future, and the loss of Orders from Apple will bring difficult consequences for the Chinese mobile phone industry chain.
I. The significance of Apple to China's supply chain
With the growth of domestic mobile phone brands, domestic mobile phones now occupy nearly 50% of the global mobile phone market share, the industry seems to think that domestic mobile phones have become an important support of China's industrial chain, but the reality is not so.
The loss of apple orders led to a 40% drop in revenue, but net profit plunged 90%. As the largest panel manufacturer in China, BOE's profit from domestic mobile phones is far less than Apple's, and its profit in 2021 is equal to the sum of the previous 10 years. Therefore, boe actively repaired its relationship with Apple after it was reported that it might be kicked out of Apple's supply chain. Vijet, the largest radio frequency IC enterprise in China, did not enter the Supply chain of Apple. It had been losing money before, and finally turned a profit in the first quarter of this year, but only a meager profit.
All this shows that the profit of domestic mobile phone brands to domestic supply chain is actually very meager, in fact, this is also the helplessness of domestic mobile phone, they occupy nearly 50% of the global mobile phone market, but they occupy only more than 20% of the profit share, their own limited profit naturally cannot give domestic supply chain enough profit.
Apple in addition to the more profitable than domestic handset can give supply chain, and it can help domestic supply chain to improve technical level, the industry pointed out that in order to help improve the technology level of supply chain, apple will also help the supply chain to buy the latest equipment, these devices may be can't buy domestic supply chain enterprise, apple, of course, also can have the supplementary requirements, Supply chain companies need to bring the latest technology to Apple.
Second, domestic supply chain may have to live a hard life without Apple orders
As mentioned above, It is true that being an Apple supplier can make a good living, as Opitron's profits soared when it supplied components to Apple and BOE's profits soared when it became an Apple supplier.
In today's environment, this possibility seems to be increasing. The average price of the largest domestic mobile phone brand is only about 1100 yuan, and the average price of the other two domestic mobile phone brands is only about 1600 yuan. Only by low-priced domestic mobile phones can they gain a large market share in the overseas market.
However, now the life of domestic mobile phone brands in the overseas market is becoming more and more difficult, the Indian market, European market has come to domestic mobile phone brands adverse news, which means that domestic mobile phone brands in the overseas market may shrink, in this case, domestic mobile phone can bring domestic supply chain income will also shrink.
In this case, if Apple leaves the Chinese market, the domestic supply chain will be worse, the income will further shrink, and the blow to the domestic supply chain will be very big. In fact, since the beginning of this year, the domestic supply chain can still survive, mainly thanks to Apple. Domestic mobile phones have ordered 270 million units, but Apple is increasing orders, which can be seen that the importance of Apple to domestic supply chain is strengthening.
In general, the dependence of domestic supply chain on Apple is increasing, and the contribution of domestic mobile phone to supply chain is decreasing, so Apple will only become more and more important to domestic supply chain. On the contrary, as Apple moves to Vietnam and India, it is gradually driving the growth of the local supply chain, and its dependence on the Chinese supply chain is gradually decreasing in the future.
So constantly calling for domestic supply chain reduce dependence on apple in the media, domestic supply chain little voice response, apple or homebred mobile phone bring them more profit, they know, don't follow the media called for dancing, after all, the media is finished, the supply chain enterprises have to eat their performance.
