Looking forward to China's 'Apple'

15:11, November 05, 2010      

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The Foxconn events triggered a profound reflection within industry. As more and more young people born in the 1980s and even in the 1990s are entering the work force in China, the low-end modes of production, which are based on cheap labor costs, run the risk of becoming unsustainable. People cannot help but to ask how far the domestic hardware manufacturers, which also still rely on the cheap cost of labor and materials, will go?

Thanks to the new stimulus policies, which are aimed at the integration of information technology and industrialization as well as promoting home appliance consumption in the countryside and home appliance replacement, the PC hardware industry has maintained rapid growth.

But analysts generally believe that those service companies targeting servers, storage and consumer electronics for related sectors of enterprises have the largest market space.

However, China lacks these kinds of leading enterprises. Most domestic enterprises are agents or integrators of foreign equipment manufacturers, hardware producers without innovation or monopolistic enterprises depending on government policies.

Therefore, people are looking forward to the birth of China's "Apple."

So under this context, it is notable that those traditional hardware companies, including Tsinghua Tongfang, Founder Technology Group and Aisino Corporation are seeking to change. Statistics show that PC manufacturing and sales are no longer their main sources of profits.

Specifically, Tisnghua Tongfang is becoming involved in the fields of system integration technology, environment, digital televisions, intelligent buildings and security, while Founder Technology Group is focusing on PCB business.

In addition, brand value has become increasingly important in this industry. Overall, the core competitiveness for technology hardware and equipment companies lies in embedded software and brand value.

By Liang Jun, People's Daily Online


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