Foxconn to expand to Indonesia to make up for Apple shortfall

Foxconn, otherwise known as Hon Hai Precision Industry, is hoping to make an agreement with Indonesia to make up for falling Apple smartphone demand.

Foxconn, otherwise known as Hon Hai Precision Industry, is hoping to make an agreement with Indonesia to make up for falling Apple smartphone demand.

 
The company makes a whopping 60 to 70 percent of its revenue from assembling Apple devices like the iPhone and iPad, but poor performance from Apple recently has prompted it to attempt to diversify.
 
Simon Hsing, spokesperson for Foxconn, told Reuters that the Taiwanese company is in talks with several Indonesian phone companies over the $2.4 billion phone market. He added that they will not be making Apple products there, but rather would focus on local Indonesian brands, which also would not be exported.
 
 Foxconn to expand to Indonesia to make up for Apple shortfall
 
It is expected that Foxcon will invest between $5 billion and $10 billion in the country, with a proposed factory in an industrial zone near Jakarta. The predicted output is three million handsets per year.
 
Foxconn sales dropped 19 percent in the first quarter of this year compared to last year, largely due to weakening demand for the iPhone, which has been overshadowed lately by Samsung's Galaxy range.
 
Other companies have also felt the pinch from putting all their eggs in one Apple-shaped basket. The newly formed Japan Display, which fuses the display divisions of Sony, Hitachi and Toshiba, recently revealed that it was going to focus on acquiring other, smaller clients.
 
Source: Reuters