Describing the results of the last quarter, Apple heads had the courage to recognize that the market is not the same. Sales of smartphones and Apple tablets , though growing, but not as rapidly as before. The rate of return is rapidly declining. By the way, last year Apple has historically characterized the minimal cost. The growth of profit is achieved either by increasing the price of the finished product, either by reducing the cost of producing it, and often both processes occur simultaneously.
Prime contractor for Apple in the face of Hon Hai Precision Industry (Foxconn), is not satisfied with this situation . Apple has high demands on the quality of components and the organization of production process technology, is coupled with low cost . While turnovers were high, Foxconn tried to put up with it. Once the rate of sales growth began to slow down, the Chinese think about finding a safe haven. Apple provides Foxconn 60% to 70% of revenue, and reduce dependence on this customer is not so simple.
Associate reported that the leadership of Hon Hai Precision Industry is in talks with the Indonesian government and local operators to build the country's production of phones for the local market. Outside the country, these phones do not come out, the project is designed solely for home consumption.
Investment from Foxconn is not specified, but they can reach $ 10.5 billion, according to some estimates. The company will build its own factory in Indonesia to produce phones for local operators. The company will produce annually up to 3 million mobile phones.