Foxconn Wants to Reduce its Dependency on Apple

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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  • devBunny
    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?
  • house70
    Foxconn needs only to grow a pair, charge Apple more/unit and put the money in better work conditions.
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  • yialanliu
    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.
  • house70
    Foxconn needs only to grow a pair, charge Apple more/unit and put the money in better work conditions.
  • devBunny
    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?