It is known that Foxconn’s profits are believed to come from producing various Apple products. Despite this reality, Foxconn plans to develop and produce its own business. The company plans to build, brand and sell its own electronic accessories compatible with smart devices such as the iPhone and iPad.
Apparently, a company’s executive shared with The Wall Street Journal details about Foxconn’s expansion. The report suggests that Hon Hai Precision Industry Co. known as Foxconn is working to add new clients as well as to expand its business, in order to reduce its reliance on Apple.
Based on statistics, Foxconn’s profits during the first quarter fell with almost 19 percent. However, the net profit is up to 2.9 percent, which coincide with Apple’s first decline in a decade. As market watchers suggest, Apple is believed to be responsible for more than 50 percent of Foxconn’s revenue.
The report reveals the plans of Apple’s manufacturer to be able to supply all of the components for devices it assembles. In the case of Apple and other customers, the companies buy their components from multiple manufactures and then, they provide them to Foxconn in order to assemble the final product.
Foxconn appears to be interested in selling its own branded accessories such as cables, headphones and keyboards that will be compatible with Apple’s products such as iPhone, iPad and more. In the same time, Foxconn plans to sell its own electronics and those of its partners directly.
Such efforts in the online retail operations might generate for the Hon Hai Precision Industry company higher margins that its current manufacturing projects. The company showed increased interest in television and it bought a notable stake in LCD maker Sharp as a part of its plan.
As Apple’s profit decline, Foxconn resembles the economic decay since the company is no longer producing the same amount of parts for the Fruit Company. In the same time, there were multiple problems with some of Foxconn’s products delivered to Apple. Tim Cook’s company rejected a high number of components since they did not fulfill its demands.
However, in what concerns Apple’s declining profits, the company is facing tough times since it has yet to release any major products in 2013. According to Apple’s CEO, the Cupertino-based company is planning to reveal new products this fall and throughout 2014.
In the same time, optimists expect a new MacBook model introduced at Apple’s annual Worldwide Developers Conference in June. Nonetheless, the MacBook is only a small part of Apple’s business, as the high margin iPhone and iPad have become the company’s mark.