Will Apple Share Its iPhone Pie?
Apple (NASDAQ:AAPL) may be preparing to ask additional manufacturers to start building the iPhone by the end of the year or early next year. The Wall Street Journal said that according to analysts at Daiwa Capital Markets, Apple was likely to commission Foxconn International to manufacture its smartphone in addition to current assembler Hon Hai Precision.
Most Apple products are manufactured by Foxconn’s parent company Hon Hai Precision, while Foxconn International focuses on other handsets and has had nothing to do with the iPhone so far. However, the two companies are part of the same larger group and are built around a similar structure when it comes to serving clients.
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Among Foxconn International’s biggest consumers until now are Nokia (NYSE:NOK), Motorola (NASDAQ:GOOG), and Sony (NYSE:SNE), all companies that are individually behind Apple in the smartphone race and have, as a result, pulled the performance of their manufacturer down as well. Getting the Apple contract will help Foxconn International share the fruits currently being enjoyed by Hon Hai Precision, Daiwa said.
The Hong Kong-based Daiwa estimated that Foxconn International was likely to assemble 7 million iPhone units in 2013, which is likely to grow its annual revenues more than 30 percent.
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