Rumor: Foxconn, Sharp to Establish Handset JV in China
Sina Tech, 5/07/12
Terry Cheng, VP of Taiwanese electronics manufacturer Foxconn (2038.HK; 2354.TW), met with senior management of Sharp China in Beijing today to discuss the possibility of launching a handset joint venture in China, according to an industry source. The source said Foxconn's aim continues to be to pivot from being an OEM to developing its own brand, and 3G smartphones provide a very good opportunity to do so. The source added that Cheng also recently paid a visit to China Unicom (NYSE: CHU; 0762.HK; 600050.SH) president Lu Yimin, pointing out that Foxconn would have no need to meet with operators unless it planned to develop its own brand of handsets.
However, in the event Foxconn does begin selling its own branded handsets, handset vendors may distance themselves from Foxconn's outsourcing business.
Keywords: handset vendor Lu Yimin handset Foxconn 2038.HK 2354.TW 3G JV Sharp Terry Cheng contract manufacturer smartphone branding wireless
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