Foxconn plans for diversification; to make and sell its own hardware

A fall in Apple’s revenue has forced Foxconn, the electronics contract manufacturing company, to look for new ways to carry on its business. According to a report published in one of the leading news daily, Foxconn is looking for a diversification of its business. 

It is even planning to build, brand and directly sell its own electronics accessories, which will be well suited for devices such as Apple’s iPhone and iPad. According to the report, Foxconn is aggressively moving to add new clients and expand its business to reduce reliance on Apple.

Coincidently, both the companies have seen their revenue fall in the first quarter of 2013. Foxconn has suffered a revenue decline of 19 percent while Apple for the first time in a decade has seen its year-over-year profit go down.

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You might soon see Foxconn products in the market

According to the report, Foxconn is planning to supply components for all the devices it assembles, because as on date, components for the devices assembled by the company are purchased from various vendors across the globe.

The company also wishes to sell its own branded accessories, which will include cables, headphones and keyboards. These products will be compatible with Apple products such as the iPhone and iPad. The company is said to be exploring new avenues in online retail as it believes that the sales could generate higher margins than its current manufacturing efforts.

Only time will tell how successful Foxconn will be in executing its plans and what effect will it have on companies like Apple, as market experts believe that about 50 percent of Foxconn’s revenue come from such companies.