Foxconn Wants to Reduce its Dependency on Apple

By Wolfgang Gruener
published

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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Wolfgang Gruener
17 Comments Comment from the forums
  • 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.
    Reply
  • house70
    Foxconn needs only to grow a pair, charge Apple more/unit and put the money in better work conditions.
    Reply
  • 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?
    Reply
  • nieur
    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
    Reply
  • rantoc
    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!
    Reply
  • EDVINASM
    Can it be that Apple moving away from Samsung will shake the industry a bit and wake the sleeping giants? About time.
    Reply
  • Kami3k
    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.
    Reply
  • Miharu
    Soon enough, no one will be willing build iThing with low marging giving Apple so much trouble with production.
    Reply
  • eklipz330
    the only way foxconn is going to keep moving forward is if they make things more efficient/use more machinery and less slaves
    Reply
  • rantoc
    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!
    Reply