Foxconn Strays from Apple Diet

Foxconn announced its future smartphone business strategy plan will be focused on diversifying its products to avoid “solely munching on Apple,” according to high ranking company official Chen Hui Long at the Zhengzhou factory’s third anniversary celebration.  Foxconn is extending its product range in its “eight monitor” plan to include smartphones, tablets, notebooks, all-in-one computers, portable TV, smart TV, electronic billboards, and large outdoor LED displays, said Chen. 

The company's Zhengzhou factory, one of the largest Apple iPhone factories globally, manufacturers and exports 100,000 phones per day. The factory will be diversifying its product line with the introduction of U.S. brand InFocus smartphones. The phone designed by Foxconn will be manufactured by the Zhengzhou factory and sold in China. According to sources, the price of the large screened smartphone will be between RMB 1,000 to 3,000 (US$ 163.43- US$ 490). Foxconn is currently in talks with three major Internet service providers, while sales of the phone will mostly rely on existing company experience shops. 

Company employees have already received InFocus phones that are unavailable on the market during the Foxconn Zhengzhou factory celebrations. Foxconn announced it will be issuing InFocus phones to all employees in the future. Besides smartphones, InFocus also has tablet products, which will be manufactured by Foxconn’s Chengdu factory. According to an industry source, the Taiwanese manufacturer is trying to “de-Apple,” by cutting its reliance on Apple products. This also marks the beginning of Foxconn's transforming business model.

Foxconn already showed its ambition of stepping out of the Apple OEM role in May this year, when Chen told reporters the company plans to distribute, and offer after sales service including maintenance for Apple iPhones in the Chinese market. The Zhengzhou factory is well on its way of becoming a major base for iPhone sales in China next month. The domestic sale arrangement provides many benefits, Chen continued. Since Henan Province has offered Foxconn many manufacturing conveniences, local consumers will have an opportunity to receive concessions upon iPhone purchases. 

Aside from smartphone and tablet manufacturing, as part of Foxconn’s latest “eight monitor” project, the new Kaifeng factory to be launched in Nov. 2013 will be manufacturing large outdoor LED displays. However, the factory's main focus will be manufacturing portable TV. 

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