Being overly dependent on Apple orders can be dangerous to the health of a business. Ask Imagination Tech or Dialog. Which is why iPhone assembler Foxconn is seeking to diversify its business.
In a new interview, Louis Woo, special assistant to Foxconn chairman Terry Gou, outlined some of the company’s plans – and how it has to be careful not to be seen to be competing with Apple …
Woo told Reuters that there were some obvious new directions for the company.
But the company is also seeking to sell electronics products direct to consumers. Analysts think it won’t do this under its own branding, but instead seek to acquire established brands.
“We have built data centers for many of our customers, but we’re not known to provide data center services,” Woo said. “In the future since we’re having all these pieces, we can put them together to provide […] integrated solutions” for businesses that include both sophisticated hardware and software services such as cloud computing.
Some of the company’s plans are … less obvious. Such as smart toilets.
Some observers have suggested that Foxconn could emulate Xiaomi, by selling both phones and services through its own stores. But analysts have warned of the risks of being seen to compete with its biggest customer.
Woo said Foxconn was very conscious of this.
“There will definitely be risks,” in pursuing so many different areas, said Boyce Fan, an analyst at Trendforce.
The company is currently working on a US-based display plant, but a recent report suggested it was scaling back on what was initially set to be a $10B investment.
