Foxconn hitches bumpy ride with electric vehicles
HONG KONG: Foxconn is hitching a bumpy ride with electric vehicles. The $39 billion iPhone-assembler, formally known as Hon Hai Precision Industry , wants to diversify by supplying parts for 10% of the world’s green cars by 2027. It’s an ambitious and risky goal, but the Taiwanese technology giant’s electronics expertise and deep pockets put it in a strong starting position.
A recent emphasis on autos is Foxconn’s latest attempt to reduce dependence on Apple, which accounts for about half its revenue. Broadly speaking, contract-manufacturing for electronics is a low-value business: Foxconn’s net profit margin has been shrinking for years, to nearly 2%. Moreover, the situation has become more precarious as rivals such as China’s Luxshare vie for Apple’s attention.