The industrial chain and the Internet tear off the fig leaf of domestic brands, even greedier than Apple and Tesla

07/01 2024 558

Some domestic mobile phone brands constantly promote that they have saved China's industrial chain, but recently, industry insiders and the Internet have angrily torn off their fig leaf, pointing out that they are much greedier than Apple and Tesla, and it is actually Apple and Tesla that have saved China's industrial chain.

Industry insiders pointed out that many domestic industrial chain companies cooperate with these well-known domestic brand cars and mobile phone companies, and most of their performance is losing money. The exploitation of these companies on the industrial chain is simply appalling, but these companies have been promoting how they saved China's industrial chain.

On the other hand, it directly pointed out that companies like Sanhua Intelligent Controls and Top Group, which cooperate with Tesla, have rapidly developed into giants in the new energy industry chain. Checking their performance reveals that Sanhua Intelligent Controls' revenue in 2023 was 24.558 billion yuan, with a net profit of 2.921 billion yuan, representing a net profit margin of 11.9%.

Companies like Luxshare Precision and Lens Technology, which cooperate with Apple, as well as Chinese industrial chain companies like Zhongji Xuchuang and Foxconn that cooperate with NVIDIA, have all achieved good profits, driving rapid growth in performance and becoming industry giants. This highlights that these American companies truly focus on win-win cooperation with the industrial chain, leaving appropriate profits for industrial chain companies.

Recently, internet companies have also pointed out the greed of domestic mobile phone brands. It is reported that domestic mobile phones charge commissions of up to 50% on game apps, while their commission rates in overseas markets are only 30%. Moreover, in overseas markets, they also have to give a large proportion of these commissions to Google, which owns the Android system. Apple's commission rates in both domestic and international markets are 30%, and after anti-monopoly penalties in Europe, Apple has reduced the commission rates of some apps to 15%.

It can be seen that whether it is for industrial chain companies or internet companies, domestic brands' exploitation of domestic enterprises is far greater than that of foreign-funded enterprises. Facing the greed of domestic mobile phone companies, an internet company has been resisting in recent years, even taking drastic measures such as removing apps from the shelves. However, these domestic mobile phone brands have formed alliances to jointly exploit domestic internet companies, insisting on a 50% commission rate.

For industrial chain companies, the performance of many industrial chains that have frequently hit the headlines in the media in recent years, such as BOE and O-Film Tech, has also proven the importance of foreign-funded enterprises to them. Domestic brands' support for them is far inferior to that of foreign-funded enterprises.

BOE began mass-producing OLED panels as early as 2017 and has been striving to become a supplier of Apple in the following years. In 2020, it successfully became an Apple supplier for the first time, and the profit it made in one year was equivalent to the sum of the previous 10 years. This shows how lucrative Apple's profits are for them.

O-Film Tech was once a supplier of Apple in its early years, and its performance has grown year after year under Apple's leadership, with revenue exceeding 50 billion yuan. Later, it was kicked out of Apple's supply chain, and that year's revenue dropped by 40% while profits plummeted by 90%. This shows how lucrative Apple's profits are, while domestic enterprises only contribute 60% of revenue, but their profit share is only 10%.

It is worth noting that after a certain industrial chain company was kicked out of Apple's supply chain, its revenue dropped significantly, only one-third of what it had been when it was still in Apple's supply chain. However, a domestic mobile phone brand claimed that it saved this industrial chain company. Facing the propaganda of these domestic brands, industrial chain companies dare not say anything, but they are actively seeking to become suppliers of Apple, Tesla, etc., proving who their best customers are.

This reality can be said to have torn off the fig leaf of these domestic brands. They claim to support the domestic industrial chain, but their actions are indescribable. Industrial chain companies understand better who is better for them, domestic brands or foreign brands, and who they should rely on to make money.

Domestic brands should understand that the development of the domestic industrial chain can support them to go further. Blindly indulging in the current exploitation will ultimately lead to the loss of innovation in the industrial chain, which will affect their long-term development. Win-win cooperation needs to be proven by actions.

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