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.