Foxconn is best known for manufacturing a majority of Apple’s iPhone and iPad devices. Now the Chinese devices manufacturer is planning to produce and sell its own brand of accessories.
According to a new report, the company will create various accessories for electronics devices that include Apple smartphones.
The move makes sense since Foxconn parent company Hon Hai already owns numerous retail outlets throughout China.
An unnamed executive tells the Wall Street Journal that Foxconn is attempting to build its own accessories so it can diversify its client base. Apple currently accounts for an estimated 50 percent of Foxconn’s profits, and the company’s revenue fell by 19 percent last quarter. Foxconn tends to experience drops in revenue when Apple waits upwards of a full year to release a new iPhone or iPad device.
Selling electronics accessories could help the company avoid seasonal problems with revenue.
This is not the first attempt by Hon Hai to generate more revenue for Foxconn. The company recently invested in LCD display manufacturer Sharp. Foxconn has recently expressed its desire to manufacturer and sell 4K televisions.
Foxconn is expected to produce and ship its own accessories with the ultimate goal of receiving access to Apple’s very lucrative Apple-branded accessories market.
The move shouldn’t come as a surprise because accessories are cheap to manufacture and offer extremely high profit margins.
The rumor also suggests that Foxconn is investigating an online sales channel that could provide accessories for smartphone, tablet, and other device lines.
From power chords and headphones to cases and bluetooth based keyboards, Foxconn plans to develop as many accessory types as possible.