Exam Tips, Certification Exam Guides, Microsoft Exam Tips, CISCO Exam Tips: Foxconn may sell own branded accessories after Apple profits dip

Foxconn may sell own branded accessories after Apple profits dipGet the lowest prices anywhere on Macs and iPads with exclusive coupons: Apple Price Guide updated May 25th. (Get the lowest prices anywhere)

HomeReviewsBackpagePrice GuidesNew MacsMacs with AppleCarePrevious MacsiPadsApple Wireless DevicesBid on New & Used Apple ProductsFollow UsTwitterFacebookGoogle+RSS Feeds & QriusiPhone AppTip UsSend us a tiptip us anonymouslyContact us by e-mailForumsAAPL: 445.15 ( +3.01 )Never miss an update Follow AppleInsiderFollow @AppleInsider –A+
Monday, May 27, 2013, 08:51 am

Foxconn may sell own branded accessories after Apple profits dipBy Sam Oliver

With most of its profits believed to come from manufacturing Apple products, Foxconn plans to diversify its business, and is even planning to build, brand and directly sell its own electronics accessories compatible with devices like the iPhone and iPad.

Details about Foxconn's internal plans were shared with The Wall Street Journal by an unnamed executive at the company, which is also known as Hon Hai Precision Industry Co. According to a report published Monday, Foxconn is "aggressively" moving to add new clients and expand its business to reduce reliance on Apple.

Tim Cook at Foxconn

Apple CEO Tim Cook touring an iPhone production line at a Foxconn plant in Zhengzhou, China.
Last quarter, Foxconn saw its revenue fall 19 percent in the first quarter of 2013, though net profit was up 2.9 percent. The revenue reduction coincided with Apple's first year over year profit decline in a decade.

Market watchers suspect that Apple is responsible for about 50 percent of Foxconn's revenue, though the company doesn't offer such numbers in detail.

But according to the unnamed executive, Foxconn plans to be able to supply all of the components for devices it assembles. Currently, customers like Apple must buy their components from multiple vendors, and provide them to Foxconn to have the final product assembled.

Beyond its ambitious manufacturing plans, Foxconn is also reportedly interested in selling its own branded accessories, including cables, headphones and keyboards that would be compatible with Apple products such as the iPhone and iPad.

Foxconn may even sell its own electronics and those of its partners directly, Monday's report said. The company is said to be investigating online retail operations, because those sales could generate higher margins than its current manufacturing efforts.

Foxconn's efforts to lessen its reliance on Apple's iPhone for its profits were first detailed earlier this month by The New York Times, though Monday's latest report offers more specifics on what those plans may entail. The company has also shown increased interest in televisions, and bought a significant stake in LCD maker Sharp as part of those plans.

Apple's declining profits come as the company has yet to release any major products thus far in 2013. CEO Tim Cook signaled in April that major new products will be arriving this fall and throughout 2014.

In the interim, Apple is expected to introduce new MacBook models at its annual Worldwide Developers Conference in June. In particular, MacBook Air inventory has been drying up ahead of the company's planned June 10 keynote. But the Mac has become an increasingly small part of Apple's business, as the high-margin iPhone and iPad have come to represent the lion's share of the company's revenue.Tags:FoxconnJump to comments (21)Categories:General(function(d, s, id) { var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) return; js = d.createElement(s); js.id = id; js.src = "//connect.facebook.net/en_US/all.js#xfbml=1"; fjs.parentNode.insertBefore(js, fjs);}(document, 'script', 'facebook-jssdk'));Tweet!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0];if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); Pin It

On Topic: GeneralFoxconn may sell own branded accessories after Apple profits dipReview: Scosche enters car radio fray with iOS connected controlFREQWorking Apple I fetches $671,400 in German auctionGoogle's Motorola issues second appeal of dismissed ITC case against AppleSouth Australia's first Apple Store draws line hours ahead of opening [update: photos and video]Today's' HeadlinesFoxconn may sell own branded accessories after Apple profits dipApple's iPhone sales tactics in Europe under antitrust investigationRelated ArticlesFoxconn looks to lessen reliance on iPhone, positions for potential Apple televisionApple believed to be subsidizing wage increases at FoxconnFoxconn & Sharp may spend $1B on LCD plant to boost production for AppleApple product refreshes boost Foxconn to record $3.2B profitRumor: Foxconn testing Apple televisions sized 46 to 55 inchesPrevious Comments View Allzoffdino2013/05/27 09:01am

Without asking Tim Cook or some senior Apple's supply chain people, it's impossible to know how much of this is attributable to slowing demand from Apple, and how much from Apple's strategy to diversify its supply chain. Pegatron announced it would hire 40,000 more workers, which can only mean a big order from someone. I guess after years of running with single supplier for each critical stage, Cook has finally changed his strategy and use multiple suppliers to spread out the risks.

rogifan2013/05/27 09:10am

I hate when AI runs with the meme that everything an Apple supplier does or is rumored to be doing is because of falling demand from Apple products.

geekdad2013/05/27 09:19am

Doesn't demand always slow before a big expected Apple product release?
Isn't this a seasonal transition when people know Apple is about to release new products so they simply just don't buy.....

ireland2013/05/27 09:27am

More iPads and iPhones selling per quarter: clearly must be a sign of slowing demand.

island hermit2013/05/27 09:27am

Quote:Originally Posted by geekdad? View Post

Doesn't demand always slow before a big expected Apple product release?
Isn't this a seasonal transition when people know Apple is about to release new products so they simply just don't buy.....

So you're saying that Apple is going to release something within the next month?

matrix072013/05/27 09:30am

The Wall Street Journal. 'Nuff said.

geekdad2013/05/27 09:33am

Quote:Originally Posted by island hermit? View Post

So you're saying that Apple is going to release something within the next month?

WWDC on June 10th....new products....start the summer cycle of product releases/announcements. You might even see something in the fall too in time for the holiday shopping season...... I hope you were being sarcastic....

pedromartins2013/05/27 09:33am

That's not the point, apple isn't going to release anything and that's the wise thing to do.

The problem is that tech blogs are talking about lower demand (apple is doomed) when Apple is using other companies like pegatron, TSMC (etc) more and more instead of relying exclusively on 1 manufacturer.

island hermit2013/05/27 09:34am

Quote:Originally Posted by geekdad? View Post

Do they normally announce products at WWDC?

I thought Apple was only releasing in the fall? Why would it be slowing down already for a product releases in the fall?

geekdad2013/05/27 09:38am

Quote:Originally Posted by pedromartins? View Post

That's not the point, apple isn't going to release anything and that's the wise thing to do.

I see your point........Yes...Apple does use other suppliers. If orders for Foxconn as slowing then maybe Apple just shifted order to another one of their suppliers. I get that. But the point i was making is people who buy Apple usually wait to buy until after rumored product launches are over. They either buy the new product released or buy the previous product that might be available at a reduced price.

View all commentsLogin to Comment

Have an opinion? Sign Up to share it.

Latest Apple Headlines article_thumb