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Old May 7, 2013, 11:34 AM   #1
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Foxconn's Push Into Televisions Hints at Preparation for Possible Apple Television




The New York Times reports on Foxconn's efforts to diversify its business, recognizing that while Apple is and will remain an important customer currently responsible for about 40% of Foxconn's revenue, it needs to tap into other markets in order to improve its own stability.

One major push for Foxconn has been the television market, where it has invested with Sharp in an LCD panel factory in Japan and begun releasing its own televisions in partnerships with RadioShack and Vizio.
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Analysts say Foxconn's strategy satisfies two seemingly contradictory goals. The company does not want to compete with clients directly, because it has TV assembly orders from Sony, Sharp and Toshiba. [...] But it needs to absorb excess LCD panels produced by the Sakai factory to take advantage of the lower manufacturing cost per unit. Therefore, Foxconn negotiates with partners to sell the television at or below its production cost.
Despite the push into televisions, including the partnership with Vizio, which is the top-selling brand in the United States for television over 60 inches, Foxconn is said to need additional large partners with Apple viewed as the primary target.
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Analysts say Mr. Gou's efforts to buy an LCD factory and vertically integrate his television manufacturing represent anticipation that orders for an Apple television product will come his way.

"Their gamble now is if Apple will put out a TV, and they should know better than anyone else in the world," said [Thompson] Wu, the Credit Suisse analyst. "They're making a bet that it'll work."
Almost exactly one year ago, Foxconn chairman Terry Gou was initially reported to have confirmed that the company was making preparations for an Apple television set, but the company quickly clarified the situation to deny that any specific acknowledgement had been made.

Foxconn noted that Gou had refused to discuss or speculate on any specific product and merely stated generally that Foxconn is "always prepared to meet the manufacturing needs of customers should they determine that they wish to work with Foxconn in the production of any of their products".

Article Link: Foxconn's Push Into Televisions Hints at Preparation for Possible Apple Television
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Old May 7, 2013, 11:38 AM   #2
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I'm in the market for a new TV. Just give me something to buy.
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Old May 7, 2013, 11:38 AM   #3
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Only time will tell if this proves to be a success for Apple. I have serious doubts that they should be attempting to compete in a market where established hard brand leaders exist.

4K Television will ultimately become commonplace, but not ye and not for a few years in my opinion. Yes, Apple have the available funds to allow them to give this a try, but personally I would prefer they remain focus on what they know, rather then trying to enter a market in which they really have no established mark.
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Old May 7, 2013, 11:38 AM   #4
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Does anyone read the titles before posting an article? This title sounds so awkward.
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Old May 7, 2013, 11:39 AM   #5
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Sometimes I imagine the day-to-day job of an analyst involves a lot of this:

"Siri, remind me every four weeks to release a research note about an Apple TV."
"Siri, remind me every two weeks to release a research note about an Apple iWatch."
"Siri, remind me every three weeks to release a research note about iPhone supply chain inventory."
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Old May 7, 2013, 11:39 AM   #6
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Can apple just hurry up and release IOS 7 and a TV
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Old May 7, 2013, 11:40 AM   #7
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I hope that's not a picture of the new Apple Television. IT'S TINY!
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Old May 7, 2013, 11:43 AM   #8
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hmmm

Quote:
Originally Posted by Macman45 View Post
Only time will tell if this proves to be a success for Apple. I have serious doubts that they should be attempting to compete in a market where established hard brand leaders exist.

4K Television will ultimately become commonplace, but not ye and not for a few years in my opinion. Yes, Apple have the available funds to allow them to give this a try, but personally I would prefer they remain focus on what they know, rather then trying to enter a market in which they really have no established mark.
You do know that Apple entered a market (mobile phones) in which they had no established mark?
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Old May 7, 2013, 11:44 AM   #9
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MacRumors, can we have an "Exclude stories that are sourced from analysts" button please?
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Old May 7, 2013, 11:46 AM   #10
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Made in USA?

When Sony televisions were the best and most desirable they were made in Rancho Bernardo, California. Then Sony moved to China and they went from being number one to an also brand.
Mitsubishi made tv's in Lake Forest, CA with parts sent from Japan.
Then they moved to Mexico and sourced parts in Mexico to increase profits per unit. The TV's failed early and now you cannot find their TV in any store.
They were the Big Tv King and now they can't give their stuff away.
People in general are not going to pay $1500 for an Apple TV that is nothing more than cheap Chinese crap. The Chinese know that if they build a product that will last 10 years, they lose repeat business, but if it last 2 years or less, they get a new sale.

Last edited by OllyW; May 7, 2013 at 01:25 PM. Reason: Removed political content
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Old May 7, 2013, 11:47 AM   #11
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my bet is that apple tv will be controlled telepathically, though you need to be gifted; otherwise there is no much use for you buying it
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Old May 7, 2013, 11:48 AM   #12
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Quote:
Originally Posted by Chumburro2U View Post
You do know that Apple entered a market (mobile phones) in which they had no established mark?
Where the type of competition they will face in the Television market? I think not. Look at what 700.00-1K or dollar equivalent will buy you on the street / amazon retail outlets today.

Companies that have done TV, know it back to front, and have brand support.

I'm not knocking Apple for trying, and I hope they make a success of it, but boy are they up against it.
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Old May 7, 2013, 11:50 AM   #13
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Quote:
Originally Posted by palmharbor View Post
When Sony televisions were the best and most desirable they were made in Rancho Bernardo, California. Then Sony moved to China and they went from being number one to an also brand.
Mitsubishi made tv's in Lake Forest, CA with parts sent from Japan.
Then they moved to Mexico and sourced parts in Mexico to increase profits per unit. The TV's failed early and now you cannot find their TV in any store.
They were the Big Tv King and now they can't give their stuff away.
People in general are not going to pay $1500 for an Apple TV that is nothing more than cheap Chinese crap. The Chinese know that if they build a product that will last 10 years, they lose repeat business, but if it last 2 years or less, they get a new sale.
True, just look at AMERICAN CARS, how reliable and great they are just oil and brakes and that Chevy will last you for at least 10 years

Last edited by OllyW; May 7, 2013 at 01:26 PM. Reason: clean up to quoted post
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Old May 7, 2013, 11:52 AM   #14
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My parents literally just bought a brand new Samsung, not in the market for one myself but I'm interested to see what kind of price tag an Apple TV would rock!
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Old May 7, 2013, 11:52 AM   #15
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Quote:
Originally Posted by Jsameds View Post
MacRumors, can we have an "Exclude stories that are sourced from analysts" button please?
On Engadget you can exclude a subject from your search by using the following example.

http://www.engadget.com/exclude/analyst/

You can replace analyst with any word you don't want from the headline of stories.

I've tried it on ManRumors and many other tech site and it doesn't work.

It's a feature I use most often on Endgadget.
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Old May 7, 2013, 11:53 AM   #16
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Quote:
Originally Posted by Macman45 View Post
Where the type of competition they will face in the Television market? I think not. Look at what 700.00-1K or dollar equivalent will buy you on the street / amazon retail outlets today.

Companies that have done TV, know it back to front, and have brand support.

I'm not knocking Apple for trying, and I hope they make a success of it, but boy are they up against it.
I get what you're saying, but having tried out numerous "Smart" TV's - they're really not that smart. Banner ads, slow and clunky interface, poor selection of almost all terrible apps etc.

After using iOS for so long, using a SmartTV feels ancient in comparison. Apple have the opportunity to do so much in this market, just like when you thought pre-iPhone smartphones were as good as they were going to get.

As an example, my 2012 model LG TV only has 1 out of the 4 UK major catchup services. I can't wait for Apple to set a new standard here, as the current one is nothing short of poor.

Last edited by Jsameds; May 7, 2013 at 12:00 PM.
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Old May 7, 2013, 11:59 AM   #17
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Here we go...again...
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Old May 7, 2013, 12:01 PM   #18
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Any change they announce this in the June meeting?
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Old May 7, 2013, 12:02 PM   #19
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but personally I would prefer they remain focus on what they know, rather then trying to enter a market in which they really have no established mark.
explain Vizio? They did it.
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Old May 7, 2013, 12:03 PM   #20
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I do not think Apple will actually produce a television set. Televisions are commodities; to the average user there is little to differentiate them besides size and a gut feeling on image quality and colour. There is little room for "innovation" (as much as I detest that term) and they are cumbersome and costly to retail, especially at the standards Apple has set in this area.

The opportunity is in content delivery; the television is simply a portal to the devices plugged into it. Apple does not need to produce an actual television set to innovate in this area. The existing set-top box concept they have with the Apple TV is the key. It's cheap to produce, affordable for the consumer, easy to retail, simple to ship, can be upgraded often, and works with nearly every new television out there.

They have yet to do amazing things with the Apple TV, but in the next 1 - 2 years I have no doubt this will change.

Quote:
Originally Posted by Jsameds View Post
I get what you're saying, but having tried out numerous "Smart" TV's - they're really not that smart. Banner ads, slow and clunky interface, poor selection of almost all terrible apps etc.

After using iOS for so long, using a SmartTV feels ancient in comparison. Apple have the opportunity to do so much in this market, just like when you thought pre-iPhone smartphones were as good as they were going to get.

As an example, my 2012 model LG TV only has 1 out of the 4 UK major catchup services. I can't wait for Apple to set a new standard here, as the current one is nothing short of poor.
They do not need to produce an actual television set to do wonders in this area.
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Old May 7, 2013, 12:14 PM   #21
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Originally Posted by Chumburro2U View Post
You do know that Apple entered a market (mobile phones) in which they had no established mark?
Difference being that it was a clear opportunity area. Growth on televisions has leveled off dramatically in recent years and is an already established industry they are trying to penetrate rather than create a niche for.
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Old May 7, 2013, 12:16 PM   #22
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Quote:
Originally Posted by palmharbor View Post
When Sony televisions were the best and most desirable they were made in Rancho Bernardo, California. Then Sony moved to China and they went from being number one to an also brand.
Mitsubishi made tv's in Lake Forest, CA with parts sent from Japan.
Then they moved to Mexico and sourced parts in Mexico to increase profits per unit. The TV's failed early and now you cannot find their TV in any store.
They were the Big Tv King and now they can't give their stuff away.
People in general are not going to pay $1500 for an Apple TV that is nothing more than cheap Chinese crap. The Chinese know that if they build a product that will last 10 years, they lose repeat business, but if it last 2 years or less, they get a new sale.
When has apple made cheap Chinese crap? Why would they start now?

Last edited by OllyW; May 7, 2013 at 01:26 PM. Reason: clean up to quoted post
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Old May 7, 2013, 12:17 PM   #23
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...but in the next 1 - 2 years I have no doubt this will change.
Of course, you remember they said that exact same thing 1-2 years ago?
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Old May 7, 2013, 12:18 PM   #24
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explain Vizio? They did it.
Vizio's main niche was that they marketed cheap and quality TVs which exactly where the marketplace was headed. Apple, might be able to do the quality part...
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Old May 7, 2013, 12:21 PM   #25
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Of course, you remember they said that exact same thing 1-2 years ago?
Well, yes. For that I have no excuse. I am actually surprised they haven't done more with it. I love mine, but wondering where certain features are, notably a full web browser and apps. That said, opening it up to apps also opens it up to networks and studios pushing their own streaming services with separate monthly fees instead of going through iTunes and Netflix. That is already starting to happen with Netflix's recent lost of 2,000 titles.

As well, a forced reliance on AirPlay to get additional content to your TV/speakers does require a second Apple device...
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