Foxconn needs to be careful about joining notebook ODM business, says Stan Shih
Acer founder, Stan Shih, has responded to questions about Foxconn Electronics' ambitions to step into ODM notebook production and the retail market in China, saying that Foxconn has to be careful because if the company's performance in the two new areas is not as good as that of its EMS business, the new businesses are likely to become a burden on Foxconn's whole operation.
Although Foxconn has invested heavily in the two new businesses, Shih said that there are too many details that can not be solved simply by throwing money at them. This comment mirrors Compal Electronics president Ray Chen's statements in previous reports that Foxconn's heavily-invested notebook team will still need at least two years before it becomes any threat to first-tier makers.
Shih also pointed out that the future PC market will be filled with devices that are designed for specific applications, such as smartphones for communication, and e-book readers for reading. He believes there will be more devices that are developed based on different applications in the future, and the devices will help the PC industry gain more profits.
Shih said he believes Acer's ultra-thin notebook's slim, light-weight design and eight-hours of battery life are all excellent, but since consumers still do not yet completely understand the product, sales have not performed as well as expected. However with more players including Hewlett-Packard (HP) joining the market, ultra-thin notebooks still have a lot of business potential in the future, Shih noted.
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Although Foxconn has invested heavily in the two new businesses, Shih said that there are too many details that can not be solved simply by throwing money at them. This comment mirrors Compal Electronics president Ray Chen's statements in previous reports that Foxconn's heavily-invested notebook team will still need at least two years before it becomes any threat to first-tier makers.
Shih also pointed out that the future PC market will be filled with devices that are designed for specific applications, such as smartphones for communication, and e-book readers for reading. He believes there will be more devices that are developed based on different applications in the future, and the devices will help the PC industry gain more profits.
Shih said he believes Acer's ultra-thin notebook's slim, light-weight design and eight-hours of battery life are all excellent, but since consumers still do not yet completely understand the product, sales have not performed as well as expected. However with more players including Hewlett-Packard (HP) joining the market, ultra-thin notebooks still have a lot of business potential in the future, Shih noted.
source
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