FIH has no plans to invest in branded handset vendors
Foxconn International Holdings (FIH), the Hong Kong-listed handset subsidiary of Foxconn Electronics, has no plans to make equity investment in branded handset vendors, but the company does not rule out the possibility of investing in handset design companies, according to company spokesman Vincent Tong.
Tong made the remarks as a rebuke to market rumors circulating recently in China that FIH plans to acquire a certain stake in China-based branded handset vendor Beijing Tianyu Communication Equipment (also known as K-Touch).
However, Tong revealed that FIH will continue to strengthen its deployment in the smartphone segment as Apple's recently launch of its US$199 3G iPhones will help drive up demand for smartphones.
FIH has added additional 700-800 R&D personnel to its workforce since the beginning of 2008 and it will continue to step up efforts to win JDM (joint design manufacture) and ODM smartphone orders, Tong stated.
As part of FIH's cost-down initiation, Tong said that FIH will begin gradually migrating its handset production from Guangdong to Hebei and Shanxi provinces (China) starting from the third quarter of this year, noting that overall production capacity at its new production bases in Hebei and Shanxi will be 50% higher than that the current capacity of its Shenzhen production base.
In other news, Warburg Pincus, a US-based private equity fund, reportedly on June 23 signed an agreement to invest 530 million yuan (US$77 million) in K-Touch, with the aim of helping the China-based handset vendor further expand its business, according to a Chinese-based Sina.com report.
source
Tong made the remarks as a rebuke to market rumors circulating recently in China that FIH plans to acquire a certain stake in China-based branded handset vendor Beijing Tianyu Communication Equipment (also known as K-Touch).
However, Tong revealed that FIH will continue to strengthen its deployment in the smartphone segment as Apple's recently launch of its US$199 3G iPhones will help drive up demand for smartphones.
FIH has added additional 700-800 R&D personnel to its workforce since the beginning of 2008 and it will continue to step up efforts to win JDM (joint design manufacture) and ODM smartphone orders, Tong stated.
As part of FIH's cost-down initiation, Tong said that FIH will begin gradually migrating its handset production from Guangdong to Hebei and Shanxi provinces (China) starting from the third quarter of this year, noting that overall production capacity at its new production bases in Hebei and Shanxi will be 50% higher than that the current capacity of its Shenzhen production base.
In other news, Warburg Pincus, a US-based private equity fund, reportedly on June 23 signed an agreement to invest 530 million yuan (US$77 million) in K-Touch, with the aim of helping the China-based handset vendor further expand its business, according to a Chinese-based Sina.com report.
source
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