Thursday, June 23, 2016

Foxconn transformation or a tremendous impact on the mobile phone industry

Recently, Foxconn announced financial technology and services platform will be launched during the year in the rich rich, it is understood that the financial services for the electronics supply chain, not pre-oriented consumers. Foxconn has made loans, financial guarantees operating license qualifications and equipment leasing and factoring and other local services. The wallet management platform in addition to the supply chain partners, will also step into the P2P net loan field. In addition, Foxconn future will establish a private equity fund of 300 million yuan, the main investment in the mainland of start-up companies.
As Apple's largest contract manufacturer, Foxconn has set up at least six financial services companies in the Chinese mainland, and to provide 10 billion yuan of funds to the periphery more than 100 component suppliers.
Media that Foxconn main purpose is to reduce dependence on Apple and get involved in high-margin business areas, at present, about 50% of Foxconn's revenue from Apple, but it may not stop there.
If you do not read Foxconn purpose and future development of financial products available, let us recall that in the previous two months, Foxconn done.
In early April this year, Foxconn to 3,890 billion yen ($ 3.5 billion) acquisition of a majority stake in Japan's Sharp. Media said Terry Gou, Foxconn hopes to embark on the road of transformation, has become an international brand-name manufacturers.
The end of May, Foxconn with the transaction price of 350 million US dollars from the hands of Microsoft bought Nokia's functional machine business.
After reviewing these two news, Foxconn is not that more mysterious ...... so let us look at Foxconn depth this series of moves, what specifically do something.
It is understood that Foxconn has made propaganda in China Taiwan region to promote team while promoting InFocus phone Nokia and Sharp's mobile phone business, Nokia and Sharp to enter China Taiwan market. In the future, Sharp will only Foxconn mobile positioning high-end products, while the InFocus as low-end products. Nokia is a functional machine product line.
In the Japanese market, Sharp Foxconn before getting smart phone business has been promoting InFocus mobile phone brands, and after obtaining Sharp smartphones, given the Sharp has a higher profile in Japan, so the focus will be the promotion of Foxconn put Japan Sharp body.
So, Foxconn layout of the mobile phone industry to get involved in the financial industry and what is the relationship?
Foxconn financial services executives believe that "Foxconn supply chain has a natural advantage, we understand better than anyone the electronic component supplier's business situation, because they are our customers." Obviously, Foxconn is helping companies solve supply chain their financial problems should be noted that, although the pre Foxconn to do just to help enterprises solve financial problems, but the official also said that if this business progress, will launch a direct-to-consumer financial products. In short, supply chain finance Foxconn to start, and then goes directly to ordinary investors sold financial products packaged loans.
Although we can not predict how Foxconn which actions carried out in the consumer finance market, but what is certain is that after the phone has a complete product line to provide consumers with online financial services such as money market funds, consumer persons and micro-credit loans allow Foxconn to reach the fastest speed in transition.
Let us imagine that. Future, have a Sharp (high-end), InFocus (low-end), Nokia (low-end functional machine) three brands of enterprises to purchase installments 0 Interest way to provide consumers with similar microcredit finance products, while providing other financial services, and he is the mobile phone industry's largest OEM manufacturers, he is Foxconn after the transition, he would cause much of an impact the industry?
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