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Foxconn Seeks to Offset Slowing Apple Growth With Software and Licensed Apple Accessories
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Why do you think it's so hard?
Hey bro, as long as they don't hire someone like Forstall, they'll be fine.
I am only saying it is no surprise to me, that there is a reduction in production allocation to Foxconn, based on the saturation of the current line-up. We cannot always expect the same sales of a successful well established (multi-generation product), to be comparable to a successful new product, hence you get misleading sale figures or percentages which make a product or company look like they are failing somehow.
For example last year Apple were the largest computer seller with over 14% of the market with combined iPad and Mac sales. However there are figures which show reductions in iPad sales and cannibalised sales by iPad mini etc. All this is irrelevant if overall growth is maintained within a company.
Future innovation will be the key as it always has been for Apple. Also, I do not feel this will spell the end for Apple either.
You say 'tomaato' and I say 'tomarto'. I did not think I was speculating anything different to what you have.
Hardly. We are talking about Apple accessories here. Those things help sell iPhones and require them to pay licensing fees to Apple.
Rule #1 in software engineering: asians are good in hardware, but very bad in software. software development in japan has low prestige. so engineers try to avoid it.
same in china.
There's an apparent downside to the use of a massive company that must hire a nation of workers to rapidly produce hundreds of millions of precision products and then telling them to sit tight while we perfect the next design. An extended "coffee break" costs billions.
It is quite appropriate for Foxconn to investigate what can be done during non-peak periods. It is wise to consider products that complement the sales of the Apple products they manufacture.
It is quite appropriate for Foxconn to investigate what can be done during non-peak periods. It is wise to consider products that complement the sales of the Apple products they manufacture.
So your telling me that if Apple upgrades the iPhone 4, iPhone 4s, iPhone 5, iPad 2, iPad mini, iPad 3 and iPad 4 that it will "offset" Foxconn production? This actually hurts Foxconn even more because people won't have a reason to upgrade to newer iDevices. It hurts Foxconn to have Apple support older hardware.
It's the same reason why Apple pulled Siri and Maps from iPhone 4 users. They want you to upgrade. Your living in dream land if you think iPhone 4s will have the same OS features as a iPhone 5s. I wouldn't be surprised if iPhone 4 users get screwed completely out of the update with the reason being old hardware.
The only sure fire way to increase production is too release new hardware such as larger screened iPhones and Retina iPad mini's with new and exciting features. A iPhone 5s will tamper off quicker in sales compared to a iPhone 5 just because of the 4" screen size and Foxconn knows this.
Er, about that slowing growth
iOS shipments stacked by quarter: http://twitpic.com/clgjd8
The headline here sounds like BusinessInsider or WSJ.
There isn't yet a long term "slow growth" trend anywhere on the books.
iOS shipments stacked by quarter: http://twitpic.com/clgjd8
The headline here sounds like BusinessInsider or WSJ.
There isn't yet a long term "slow growth" trend anywhere on the books.
If they make Foxconn-branded products for consumers then they'll need to offer customer support. Do they already do so?
It seems to me that the word supplement is more appropriate in this instance. Any professional writers (excluding bloggers
) care to chime in?This is going to making better rumors for macrumors. Now employees will know which are the next iPhone when they company make accessories. Also companies now making accessories will paying more money for engineering drawing so they can being ahead of Foxconn and Foxconn paying to get information what competitor accessory companies making. But being big and first is what buyers like Walmart looking for. Be interesting see what happen next
I don't see Apple being pleased with leaked accessories from the company making your secretive iDevices. But you really can't blame Foxconn when Apple sales are not meeting head count. To ramp up heavily and then to ramp down when sales slow must be driving Foxconn crazy. Could you imagine operating a company like that on a month to month basis? A competitor could release a killer product which could instantly harm current demand.
I wonder how many iPad 4's and mini's are sitting unsold because people are waiting for the next release or just don't want to upgrade what they have.
Yeah, because we don't want those Chinese to get all uppity there.
It's called moving up the ladder to take your lucrative job. When Samsung started, they made mostly off label electronic components for other companies like IC chips, RAM and capacitors. They're now a pretty big company.
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I don't see this as a bad thing. FC will be making Apple hardware and possibly soon authorised Apple accessories. The same production expertise will go into both. And cause they are authorised by Apple, they won't cannibalise anything Anything Apple already do. Possibly also made by FC.
This is just JC saying, hey Apple can be make some authorised accessories to sell so use up ant potential unused manufacturing capacity if Apple growth slows.
FC is not pulling a samesung and cloning as much Apple hardware as they want to. I can even see Apple being ok with it. As authorised Apple accessories do nothing without the Apple hardware you have to first purchase from Apple.
This is just JC saying, hey Apple can be make some authorised accessories to sell so use up ant potential unused manufacturing capacity if Apple growth slows.
FC is not pulling a samesung and cloning as much Apple hardware as they want to. I can even see Apple being ok with it. As authorised Apple accessories do nothing without the Apple hardware you have to first purchase from Apple.
Yes but slowing growth is better click bait.
Yeah clickbait.
Foxconn makes heaps more stuff for other manufacturers, like HP for example, and other phone manufacturers. It would be a slow down of Windows, Android, or even feature phones that might make FoxConn worry - not Apples few percent.
This is just part of Foxconns broader business plan, they have more automation and now they are diversifying.
That's true. But my impression is that the smartphone market is still growing, with huge opportunities domestically and especially in emerging markets.
I think that the thin form factor client (with apologies to Larry Ellison) market will also continue to grow rapidly. Indeed, I don't think it has even begun to be tapped. I see enormous growth potential both at the high end with full-OS tablets in the Surface category, or with hybrid laptop/tablet devices, and also at the extreme low end, with very cheap browser-only designs.
Apple doesn't seem to want to be in either of those markets, but so far, Apple has done very very well with the iPhone and iPad. Time will tell.
You had more pre-amble than content. (I recognize my post ads nothing to this conversation)
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Which means they will maintain the absolute lowest P&E ratio (relative to growth) of any company in the Tech industry (probably any industry). Why do you think $600 is about right, what on earth is that based on? Their growth rate is still significantly higher than say Amazon or Google. Do you think they are both ridiculously over-valued?
It Could Happen, Foxconn is a important piece
"Foxconn: We want to be the Samsung of China."
You already are, you just can't put your name on it.
Foxconn is one piece of a massively complex puzzle. From the get go, Companies knew so much reliance on each other was a bad idea, but without another option, it became the price of business. Now, these companies have replicated each others strong points, and developed there own self-reliant supply chains. Samsung is building up south korea with the best tech they can, while working with sharp to corner the mobile market. Apple controls Taiwan semiconductors, so they can write there own semiconductor instructions, and designs without fear of leaked material. Foxconn will continue to grow, completing contracts until they can do an exclusivity deal with say Microsoft or some other big company, and we will have our big three. The Market will keep these three. Apple, will expand worldwide faster as a US company(they already have brazil). Samsung, will expand through lower asia and fight with apple for work contracts. Foxconn will develop china further, aiming its sights at Indonesia and India. This will be a fight to the death, and its very possible i see one of these becoming an Umbrella like corporation.
"Foxconn: We want to be the Samsung of China."
You already are, you just can't put your name on it.
Foxconn is one piece of a massively complex puzzle. From the get go, Companies knew so much reliance on each other was a bad idea, but without another option, it became the price of business. Now, these companies have replicated each others strong points, and developed there own self-reliant supply chains. Samsung is building up south korea with the best tech they can, while working with sharp to corner the mobile market. Apple controls Taiwan semiconductors, so they can write there own semiconductor instructions, and designs without fear of leaked material. Foxconn will continue to grow, completing contracts until they can do an exclusivity deal with say Microsoft or some other big company, and we will have our big three. The Market will keep these three. Apple, will expand worldwide faster as a US company(they already have brazil). Samsung, will expand through lower asia and fight with apple for work contracts. Foxconn will develop china further, aiming its sights at Indonesia and India. This will be a fight to the death, and its very possible i see one of these becoming an Umbrella like corporation.
Surely this would be a good thing, quality "second party" accessories as a middle ground between Apple's own expensive ones and the dirt cheap ones that don't always work.