Foxconn: We're getting ready to make Apple's HDTV

A major manufacturer of Apple Inc. products disclosed it is making preparations to build the tech giant’s rumored high-definition television set.

 

Foxconn (Hon Hai Precision Industry Co. Ltd.) chief Terry Gou disclosed this at a press conference in Shanghai, China Daily reported.

 

China Daily quoted Gou as saying Foxconn is making preparations for iTV, Apple Inc’s rumored upcoming high-definition television, although development or manufacturing has yet to begin.

 

Foxconn makes an estimated 40 percent of the smartphones, computers and other electronic gadgets sold around the world.

 

Gou was also quoted in the article as saying Foxconn’s recent 50-50 joint venture factory with Sharp in Japan is one of the preparations made for the new device.

 

The China Daily report said the iTV reportedly features an aluminum construction, Siri voice-activated assistant, and FaceTime video calling.

 

Meanwhile, Foxconn is planning a new push into distribution as it started construction of a new headquarters in Shanghai Thursday.

 

But Foxconn’s manufacturing and operational headquarters will remain in the southern city of Shenzhen. Foxconn employs more than 1.2 million workers at 30 locations on the mainland.

 

Gou said the company’s new e-commerce services will provide clients with “one-stop” services ranging from manufacturing to logistics and reselling to consumers.

 

The China Daily report said Foxconn’s push into distribution in China comes as manufacturing profits have been declining along with rising production costs.

 

It said Foxconn’s first-quarter profit dropped more than 50 percent year-on-year to NT$14.92 billion ($508 million) from NT$35.03 billion, weighed by wage increases.

 

Foxconn has long wanted to enter distribution, where margins are typically higher than manufacturing, but has so far achieved little success.

 

In 2009, Foxconn invested 90 million yuan ($14.3 million) to establish the e-commerce website e-feihu.com, but the B2C site has failed to catch up with industry leaders Taobao and 360.com.

 

Also in 2009, Gou formulated a blueprint aimed at Foxconn establishing its own distribution network on the Chinese mainland by setting up 10,000 chain stores. — ELR, GMA News