I remember having conversations years ago about what Foxconn would do going forward, and whether or not they would be happy as the manufacturer to brands. The WSJ article, Amid Margin Squeeze, Foxconn Designs Its Own Fate, puts this question to rest.
Recently, the $130-billion-a-year in revenue company has ventured into handset accessories under its own brand, and sales and distribution of mobile phones. It also plans to offer telecommunications services in Taiwan.
For me, this has always been a bit of a no brainer. Foxconn has an amazing amount of talent in the firm that is not just managing the supply chain and assembling gadgets for their customer, but have for years also been bringing designs to the brands that they feel would sell well in the market.
Partner that with every entrepreneurs desire to be seen out front, and it was only a matter of time before Guo “dipped” his toes into creating his own consumer brand.
It is unclear whether Foxconn’s new offerings can grow large enough to significantly affect the company’s bottom line. The company doesn’t break out how much of its business currently consists of assembly work for others.
Some of Foxconn’s latest initiatives, such as making its own mobile accessories under the “Coverbank” name as well as a Bluetooth headset branded “Candyard” are raising eyebrows, with many analysts wondering whether Foxconn will ultimately compete with its clients in smartphones and other gadgets.
Foxconn has said it has no plans to enter the smartphone market with its own set of products.
No plans (yet).