In just 10 short years since its inception, Apple’s iPhone product line has reshaped entire industries in Asia.
In 2006, Hon Hai Precision Industry plays an important role in the history of consumer electronics. However, in 10 years, the iPhone has pushed Foxconn’s revenue from $ 38 billion to $ 145 billion and turn it into one of the largest employers in the world. Meanwhile, Dell – once a client of Foxconn, has become a “victim” in the heyday of tablets and smartphones.
The introduction of iPhone in September last X has created a “race” remarkable 10 years of the iconic smartphone from Apple. Has more than 1.2 billion iPhones sold worldwide since they were launched in 2007, changed the fortunes of Apple and other high-tech industries of Asia.
Affect Asian tech background
IPhone promote technological innovation among suppliers and encourage new companies to expand quickly. Apple is benefiting from the fierce competition between vendors and partners. According to analysts, manufacturers benefit from iPhone X include South Korea’s Samsung – provides OLED and Company manufactures semiconductor – Semiconductor of Taiwan as core chips.
Nearly 70% of the 200 companies formally define Apple’s suppliers in the area of Asia, including Taiwan companies account for about 25%. Therefore, to meet the demand in the last decade, hardware vendors in Asia has hired hundreds of thousands of new workers, including Foxconn employs nearly 1 million people in China.
But the rise of the iPhone is also a major influence on the rise – up of technology companies in Asia. Some personal computer brands, Acer of Taiwan, has fallen into gloomy situation. And the integration of many advanced features to the iPhone, including the camera, listen to music and play games, also caused many disasters for companies manufacturing game machines and standalone cameras. The famous electronics manufacturers in Japan as Nintendo, Toshiba, Canon and Nikon have bogged down (unless Sony has provided sensors for the iPhone’s camera).
However, if only small quantities signing a contract with Apple will not be profitable enough. Two suppliers tissue – module (module): Wintek (Taiwan) and TPK Holding is an example. So Apple’s suppliers need to be alert to market trends in order to better evaluate about Apple’s next step. If not, they will only be short-term profit.
Smartphone in the next 10 years
Currently, the iPhone and the suppliers are faced with major challenges like the state of the personal computer company met a decade ago. Although X iPhone is expected to sell about 32 million units in the last chance this year but estimated by analyst Arthur Liao at Fubon Securities company, this handset has become a mature product. IPhone demand is slowing and it is faced with stiff competition from smart phones cheap Chinese.
However, many leaders said there would be no threat to smartphone demand. Internet Of Things Technology – IOT will likely create a new kind of market, the devices will be integrated sensor to health care, health care for the users.
According to research firm IDC, the smartphone market will grow 3.3% per year from 2016 to 2021, much lower than the rate of 10.4% in 2015. In the past financial year (end end in September), the number of iPhone shipments increased only 2.3%. According to research firm Strategy Analytics market analysis, last year, Apple sold 215.4 million iPhones, accounting for 14.5% market share, followed by sales of 309.4 million smartphones by Samsung Electronics.
Few people know that when the iPhone first appeared on the market, Apple has increased the price of 200 USD (about 4.5 million) to 399 USD (about 9 million). Despite higher prices, sales of the company rose more than nine-fold to US $ 229.23 billion in 2017. Currently the market value of the Group “giant” has reached about 895 billion dollars, with could become the first company in the world with a value of $ 1,000 billion.
One of the key factors behind the success of the iPhone is the Chinese labor is relatively cheap, meet the advanced equipment scheduled request of Apple.
However, 18 suicides led to 14 deaths at Foxconn’s university area of southern China in 2010 has revealed the harsh working conditions that employees here have endured. After this tragedy, Apple has tightened the rules of conduct for themselves in the labor activities at the supplier and Foxconn has increased wages, building centers of medical care and allow workers can go home instead of staying in the company dormitory.
And yet, Apple’s supply chain continues to be threatened because of the labor rights issues. Recent reports show that students had practiced too much overtime during the peak production of the iPhone X at the main factory of Foxconn’s iPhone in the Chinese city of Zhengzhou. Fortunately “Apples Disability” was promptly rectify this situation.
To strengthen its presence in China and to ensure a solid relationship with the government, Mr. Cook has over 10 visits to this country as CEO. Not only that, the company also announced plans to set up four research centers and development here.
Ten years is a long time in the high-tech industry and whether or not Apple has peaked? Many of Apple’s suppliers are becoming very worried about the future of the smartphone segment. Very likely, the functionality of this handset still exist but will evolve into different forms.
Currently, Apple is also reducing its dependence on hardware to accelerate development of cloud computing services, content and payment technology, ready to compete with Netflix and Amazon on the media
Copyright by 24h