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  • Apple Reportedly Becoming Less Important to Foxconn


    Foxconn, one of Apple's key manufacturing partners, is said to be interested in reducing its long-term reliance on Apple.

    Terry Gou's Foxconn Technology Group has its sights set on the future and growing the company beyond the needs of the iDevice maker. Although some are taking this aspiration as a sign of lost confidence in Apple, Foxconn may also have higher ambitions for its own production capacity.

    Its new strategy is a shift away from making products that other companies design, and toward developing products of its own, with an especially aggressive push into designing and manufacturing large, flat-screen televisions.
    “Foxconn senses that the Apple aura isn’t as invincible as before,” says analyst Jamie Wang of research firm Gartner. “So they are worried that they need something besides Apple’s business that will allow them to grow.”

    In addition to Apple, Foxconn is presently the biggest contract manufacturer for such American electronics heavyweights as Dell, Hewlett-Packard and Amazon.

    Source: New York Times
    This article was originally published in forum thread: Apple Reportedly Becoming Less Important to Foxconn started by Michael Essany View original post
    Comments 15 Comments
    1. vinaygoel2000's Avatar
      vinaygoel2000 -
      I think it's because Foxconn can't produce high quality devices as Apple wants and this move was triggered by Apple returning thousands and thousands of iPhone 5s back to Foxconn because of quality issues.
    1. unison999's Avatar
      unison999 -
      Quote Originally Posted by vinaygoel2000 View Post
      I think it's because Foxconn can't produce high quality devices as Apple wants and this move was triggered by Apple returning thousands and thousands of iPhone 5s back to Foxconn because of quality issues.
      It is smart business move called diversifying, seeking other business ventures so they do not depend solely on Apple.
      Apple returning thousands of idevices out of millions delivered to Apple that is less than 0.1%, which is pretty good quality control if you ask me.
    1. deltabell's Avatar
      deltabell -
      Quote Originally Posted by vinaygoel2000 View Post
      I think it's because Foxconn can't produce high quality devices as Apple wants and this move was triggered by Apple returning thousands and thousands of iPhone 5s back to Foxconn because of quality issues.
      You honestly think that is the reason? Thousands returned compared to the millions made, ye they're not producing very good products at all :/ They have seen the shares tumble and realised they need other ventures to make sure they survive and grow as a company.
      Apple do not rule the entire business sector of the world.
    1. AKCHRIS's Avatar
      AKCHRIS -
      I'd have to Agree, nothing wrong with the strategy. To Quote,"Never Keep All Your Egg's in One Basket". It's the same for Apple I'm sure they can find Just about ANY Business that can Do the Same as Foxconn. After All SOONER or Later Apple WILL be knocked off the Hill and no longer Be the King of The Hill.
    1. vinaygoel2000's Avatar
      vinaygoel2000 -
      When I said "thousands and thousands", I meant 8 million. You guys happy now?
    1. exNavy's Avatar
      exNavy -
      Gee I don't doubt they want to get away from apple, they have caused great scrutiny into how humanely they treat their workforce, and with the recent return of what 1 million defective iphones? I can see how they'd want to get out from under a microscope.
    1. stolenpentium's Avatar
      stolenpentium -
      Quote Originally Posted by vinaygoel2000 View Post
      I think it's because Foxconn can't produce high quality devices as Apple wants and this move was triggered by Apple returning thousands and thousands of iPhone 5s back to Foxconn because of quality issues.
      Indeed!
    1. 96aman96's Avatar
      96aman96 -
      Quote Originally Posted by vinaygoel2000 View Post
      I think it's because Foxconn can't produce high quality devices as Apple wants and this move was triggered by Apple returning thousands and thousands of iPhone 5s back to Foxconn because of quality issues.
      True that buddy
    1. ohthatguyagain's Avatar
      ohthatguyagain -
      And also... If you manufacture millions of ingeniously conceived devices, you're bound to think you're capable of the same greatness alone and make the foolhardy mistake of trying to do that.
    1. cgfusion's Avatar
      cgfusion -
      I think the confidence loss is the other way, Apple is losing confidence in Foxconn, yes,yes, it's only thousands out of millions, but a good company tracks and reacts to trending of data not just a total number. The trend here of poorly made devices is definitely on the increase, thus Apple is reacting, and Foxconn is playing defense by looking like they are on the offense.
    1. Lysias55's Avatar
      Lysias55 -
      They Want to make large, flat-screen televisions? yeah where is the turnover in that? that's stupid, I agree with the whole eggs in one basket thing, but when you have a golden egg, you keep it!
    1. jOnGarrett's Avatar
      jOnGarrett -
      Quote Originally Posted by vinaygoel2000 View Post
      I think it's because Foxconn can't produce high quality devices as Apple wants and this move was triggered by Apple returning thousands and thousands of iPhone 5s back to Foxconn because of quality issues.
      I think Foxconn saw apple stock lose nearly half its value within a 7 month period, followed by weaker than expected demand for the iPhone 4, I mean 4S, I mean 5. in addition to apple's world wide market share falling--all while Samsung & Google are seeing all sots of record sales, profits and stock prices.

      They see the writing on the wall.
    1. unison999's Avatar
      unison999 -
      Quote Originally Posted by vinaygoel2000 View Post
      When I said "thousands and thousands", I meant 8 million. You guys happy now?
      ok, Apple said in January they sold over 500 million devices (should use manufactured but we don't have that number).
      8 million defective out of 500 million sold that is 1.6%, that is still a great quality control number.
    1. vinaygoel2000's Avatar
      vinaygoel2000 -
      Quote Originally Posted by unison999 View Post
      ok, Apple said in January they sold over 500 million devices (should use manufactured but we don't have that number).
      8 million defective out of 500 million sold that is 1.6%, that is still a great quality control number.
      We are talking about iPhone 5. Not iPhone in general. Apple has sold about 55 million iPhone 5s to date. 8 million defective out of 55 million. Do the math.
    1. unison999's Avatar
      unison999 -
      The 5~8 million is a rumor, since most reports 5 million my guess it is a more accurate number.
      9.1% though is high but consider how many was delivered in such a short time to Apple it is not so bad, and it is within Apple's set 90% QC requirements.
      I really do not see how Apple can change company, I can not think of another company that can produce at the scale Apple demands. I guess we will see with the new company that is producing the new cheap iPhones that is if the rumors is true...