Analysts at Daiwa
Capital Markets in Hong Kong believe that That Apple Inc. (NASDAQ:AAPL) is
about to invite more firms to build the iPhone. They said that the
California-cased electronics giant is about to assign iPhone assembly work to
Foxconn International Holdings.
Production is supposed
to be underway by the end of this year or earlier next year, as per Daiwa that
believes the firm will assemble 7 million iPhones next year.
The name Foxconn may
ring some bells. However, the company had nothing to do with the iPhones till
date.
In other words, the firm
has been a victim of its own success, as Motorola, Sony and Nokia, some of the
biggest customers of Foxconn, had fallen behind the smartphone race, thereby
dragging the performance of the biggest contract manufacturer of handsets in
the world.
By expanding the number
of firms that make the iPhone beyond Hon Hai Precision, Foxconn International’s
parent and the only producer of the iPhone, Apple will be sharing the fruits of
its success. Daiwa predicts that revenues will shoot up more than 30% in 2013
with iPhone involved.
Chances of Foxconn
attaining the rights to make the gadget seem fairly good.
Hon Hai Precision is
actually the anchor firm of Foxconn group, which is again the parent company of
Foxconn International. Both the companies are designed on a model that is
somewhat identical in terms of serving customers and containing cost, as per
Daiwa.
The broker mentioned
that shares of Foxconn International must reach 3.80 Hong Kong dollars in a
span of 6 months, when compared to its level of HK$2.68 at the midday break in
Hong Kong on Thursday.
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