Foxconn, Apple’s long time manufacturing partner based in China, is not in the news today for its workers committing suicide or being paid low wages while being made to work 12 hour shifts. Foxconn is now being seen as shifting its strategies to end its reliance on Apple, which has been a big customer for quite a while. Jamie Wang, an analyst at Gartner, says that Foxconn believes Apple’s “aura” isn’t what it supposed to be and that they need more than just Apple’s business if they want substantial growth in the future.
Foxconn also manufactures products for Amazon, Dell, Hewlett Packard as well as other American companies, but Apple by far provides it the most business. Its obvious that decline in iPad and iPhone shipments will result in Apple placing less orders for units to be manufactured. Foxconn reported that their revenue was down 19.2% last quarter as opposed to the same time last year, primarily because Apple’s orders weren’t as high as they used to be. Foxconn’s debut in the consumer product developing niche starts from large, flat-screen HD televisions. The company’s spokesman has said that they’ve sold 20,000 60-inch television sets in Taiwan, surely that won’t rake in as much revenue as Apple brings in for it, but its not exactly like Foxconn is cutting the cord with Cupertino altogether. The spokesman declined to say how many units Foxconn has sold through retail partners. This could be their contingency plan, perhaps we’ll see them venture in to other product lines as well, smartphones maybe?