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Foxconn Wants to Reduce its Dependency on Apple

By - Source: Digitimes | B 17 comments

Foxconn has grown very much in the tailwind of Apple's success but it appears the company is now looking to make its business sustainable, even if Apple should become less successful.

According to Digitimes, Apple currently accounts for more than 40 percent of Foxconn's sales, which is a windfall in good times but a problem that could bring down the company to its knees should Apple begin to pull orders or experience problems on its own. Not surprisingly, Foxconn may be looking to diversify its revenue base with other high volume products.

Digitimes said that it may be a tough task to replace Apple's volume of orders and dramatically reduce the dependency on the iPad and iPhone maker. Since Foxconn would need a volume similar to that of Samsung's phones and tablets to accomplish that task, we would even go a step further and state that it will be nearly impossible to replace Apple's volume in the short term.

Apple is reportedly still diversifying its production base to its dependence on Foxconn as the major product assembler.

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  • 13 Hide
    devBunny , October 26, 2012 11:46 AM
    Not surprisingly, Foxconn may be looking to diversify its revenue base with other high volume products.

    This is news? Isn't it what all large companies seek to do as a matter of course?
  • 12 Hide
    house70 , October 26, 2012 11:46 AM
    Foxconn needs only to grow a pair, charge Apple more/unit and put the money in better work conditions.
Other Comments
  • 2 Hide
    yialanliu , October 26, 2012 11:41 AM
    Well, they are diversified. They make a lot of HP, Dell computers and their servers. So one would expect if Apple fails in the PC, it would probably mean more HP/Dell orders unless PC overall tank.
  • 12 Hide
    house70 , October 26, 2012 11:46 AM
    Foxconn needs only to grow a pair, charge Apple more/unit and put the money in better work conditions.
  • 13 Hide
    devBunny , October 26, 2012 11:46 AM
    Not surprisingly, Foxconn may be looking to diversify its revenue base with other high volume products.

    This is news? Isn't it what all large companies seek to do as a matter of course?
  • 5 Hide
    nieur , October 26, 2012 12:59 PM
    devBunnyNot surprisingly, Foxconn may be looking to diversify its revenue base with other high volume products.This is news? Isn't it what all large companies seek to do as a matter of course?

    except apple How much percentage of revenue of Apple is from iPhone and iPad
  • -6 Hide
    rantoc , October 26, 2012 1:06 PM
    devBunnyNot surprisingly, Foxconn may be looking to diversify its revenue base with other high volume products.This is news? Isn't it what all large companies seek to do as a matter of course?


    Its news because the writer like to write about how well his favourite brand is doing and try smudge the rest whenever possible!
  • 1 Hide
    EDVINASM , October 26, 2012 1:20 PM
    Can it be that Apple moving away from Samsung will shake the industry a bit and wake the sleeping giants? About time.
  • 2 Hide
    Kami3k , October 26, 2012 2:21 PM
    rantocIts news because the writer like to write about how well his favourite brand is doing and try smudge the rest whenever possible!


    This isn't really a shining light for Apple.
  • -2 Hide
    Miharu , October 26, 2012 2:25 PM
    Soon enough, no one will be willing build iThing with low marging giving Apple so much trouble with production.
  • 0 Hide
    eklipz330 , October 26, 2012 2:26 PM
    the only way foxconn is going to keep moving forward is if they make things more efficient/use more machinery and less slaves
  • 1 Hide
    rantoc , October 26, 2012 2:43 PM
    eklipz330the only way foxconn is going to keep moving forward is if they make things more efficient/use more machinery and less slaves


    They have been looking into robotics but it seems they have stopped those plans due the risk of skynet being born and that it would wipe out all humans due to robotic abuse!
  • 4 Hide
    dark_knight33 , October 26, 2012 3:16 PM
    house70Foxconn needs only to grow a pair, charge Apple more/unit and put the money in better work conditions.


    It's not lack of profit that is keeping them from improving working conditions, it's greed. They do it because they *can*.

    Companies in the U.S. are no different, it's just the minimum standard is higher: http://inequality.org/executive-pay-scorecard-2011/

    Quote:
    Cash bonuses totaled more than $90.5 million for the top 10 CEOs in 2010


    That's an avg bonus of $9,050,000.00 per CEO. EACH bonus could have employed 181 workers at the current middle income avg salary of $50,000. That's the pay of over 1800 jobs, or 18,000 good pay raises that was soaked up by *only* 10 "successful" d***bags.
  • 3 Hide
    freggo , October 26, 2012 3:19 PM
    nieurexcept apple How much percentage of revenue of Apple is from iPhone and iPad


    Tell this to Wall Street. Their 'analysts' have not figured that out yet. As a result we have a stock that is way overpriced and bound to crash.
  • 1 Hide
    captainblacko , October 26, 2012 3:20 PM
    foxconn are already diverse. They do work with HP and Dell etc and they also do there own brand motherboards etc. Maybe they just need a better marketing department!
  • 3 Hide
    garrick , October 26, 2012 4:05 PM
    house70Foxconn needs only to grow a pair, charge Apple more/unit and put the money in better work conditions.

    Apple will make about 400 dollars off every iphone 5 built and it costs about 160 bucks to build. Apple makes a huge profit off sales of the iphone raping the customers and suppliers all the while cashing in on massive profits off sales.
    It's not just new products that are ridiculously overpriced either if you want to have your device repaired that is not under warranty it will cost you hundreds if not thousands of dollars for a simple fix.
    A friend of mine had a broken super drive and the estimated cost from the Apple store was 2000 dollars! You may as well get yourself a new PC for that price!
  • 0 Hide
    Cantisque , October 26, 2012 11:54 PM
    garrickApple will make about 400 dollars off every iphone 5 built and it costs about 160 bucks to build. Apple makes a huge profit off sales of the iphone raping the customers and suppliers all the while cashing in on massive profits off sales. It's not just new products that are ridiculously overpriced either if you want to have your device repaired that is not under warranty it will cost you hundreds if not thousands of dollars for a simple fix. A friend of mine had a broken super drive and the estimated cost from the Apple store was 2000 dollars! You may as well get yourself a new PC for that price!


    There's more cost to a product than the price to manufacture it.
  • 0 Hide
    pliskin1 , October 27, 2012 5:46 AM
    Apple is so evil not even Foxconn wants to deal with them.
  • 0 Hide
    jmalchom , October 31, 2012 10:53 AM
    I had been using foxconn motherboards for years. But lately, they have faltered in their quality. If they put the quality back into their boards, and leave that slave driver known as Apple, they might have a better chance. As one poster below says, Foxconn needs to grow a pair.