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Foxconn Seeks to Offset Slowing Apple Growth With Software and Licensed Apple Accessories

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Earlier this month, we noted that Apple's primary manufacturing partner Foxconn/Hon Hai has been seeking to diversify its business, an effort in large part intended to offset slowing growth for Apple's products. One aspect of that effort has been a focus on televisions, with some suggesting that the work could bring benefits for Apple's rumored television set.

The Wall Street Journal now follows up with more on Foxconn's expansion plans, reporting that the company is looking at a software push into mobile applications and cloud services to complement its existing expertise in hardware. Foxconn is reportedly also moving to enter the accessory business, recognizing the relatively high profit margins available for such products. That accessory business will reportedly include officially licensed Apple accessories sold under Foxconn's own brand.
Hon Hai is also reviewing plans to make accessories such as data transmission cables, headphones and keyboards under the Foxconn brand, said executives who have direct knowledge of the plan.

"Chairman (Terry Gou) has ordered all business units to produce peripheral accessories of electronics products as it is more profitable than assembly services. We also plan to license Apple's technology to make some own-brand accessories that are compatible with iPhones and iPads," said one of the executives.
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The market for third-party Apple accessories is of course already well established and offers a wide array of products, but some may hope that Foxconn's existing partnership with Apple for manufacturing of the company's flagship products could lead to innovative new accessories that could come to market more quickly than those from competitors.

Article Link: Foxconn Seeks to Offset Slowing Apple Growth With Software and Licensed Apple Accessories
 
Article Link
https://www.macrumors.com/2013/05/27/foxconn-seeks-to-offset-slowing-apple-growth-with-software-and-licensed-apple-accessories/
mazz0

mazz0

macrumors 68040
Mar 23, 2011
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Leeds, UK
Why on Earth would foxconn, a company who do nothing but build hardware to other people's designs, think they can write software?
 
trainwrecka

trainwrecka

macrumors 6502a
Apr 24, 2007
516
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Earth
They don't have to wait for leaks to get new product dimensions. Talk about having the upper hand. I'm shocked it took them this long.
 
T

Tiger8

macrumors 68020
May 23, 2011
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mazz0 said:
Why on Earth would foxconn, a company who do nothing but build hardware to other people's designs, think they can write software?
Click to expand...

Why not? They seem to be doing a good job manufacturing Apple products, which isn't an easy task.

Wait before you judge
 
D

DaffyDuck

macrumors 6502
Jun 18, 2007
472
3
ConCat said:
Not that it makes sense, but he thinks that Apple is bad, and slowing it down is a good thing. Perhaps it makes more sense in his native language...
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He's from Philadelphia. He's pretending to speak as a Foxconn factory worker.
 
j_maddison

j_maddison

macrumors 6502a
Mar 31, 2003
700
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Nelson, Wales
I thought their main problem wasn't being able to assemble th stuff quickly enough, there's always months of restricted supplies when Apple release a new product. They only seem to catch up a quarter or so before the next big release.

I'm not sure where this slowdown is occurring ......
 
T

The Phazer

macrumors 68030
Oct 31, 2007
2,997
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London, UK
Hopefully Foxconn can get good quality accessories out more quickly with their inside track.

The iPhone 5 accessory ecosystem is still a disaster, with a major lack of native lightning products, many of which are exceptionally badly designed (we're still waiting for a nice dock that can cope with a case properly).
 
AppleMark

AppleMark

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Jun 17, 2009
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The CCTV Capital of the World
mazz0 said:
Why on Earth would foxconn, a company who do nothing but build hardware to other people's designs, think they can write software?
Click to expand...

What evidence is there to suggest that they cannot? :confused:

Sounds as naive a presumption as somebody in the last decade saying: "Why on Earth would Apple, a company who do nothing but build computers, think they can take over the music industry and make phones"
 
R

rmwebs

macrumors 68040
Apr 6, 2007
3,140
0
mazz0 said:
Why on Earth would foxconn, a company who do nothing but build hardware to other people's designs, think they can write software?
Click to expand...

They have their own TV sets, running their own firmware. Works very well too. They have also built TV's and written firmware for others for years. Same goes for monitors and other related products. They do a fair amount of 'off brand' stuff, most of which they do the firmware for.

Why on earth would you assume a company with all their money and manpower wont be able to setup a dedicated software division :rolleyes:
 
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