Hon Hai to transform into technology services company and will provide total solutions from content creation to information management, cloud storage and data transmission

June 16, 2014 Leave a comment

Hon Hai to transform into technology services company

CNA

2014-06-11

Taiwan’s Hon Hai Precision Industry, a main supplier of Apple, is set to transform itself into a technology services company to meet consumer demand and has no intention of launching own-branded products.

Hon Hai, better known as Foxconn Technology Group, will provide total solutions from content creation to information management, cloud storage and data transmission, Terry Gou told reporters Tuesday at the Global Device Summit, part of the Mobile Asia Expo in Shanghai.

Asked to comment on recent market rumors that Hon Hai plans to launch own-branded budget phones to take on China’s popular handset maker Xiaomi, Gou said his company “will not build its own brand as people have speculated” but will rather continue to manufacture products for customers based on demand.

He said Hon Hai has established multiple relationships with its customers, including a cloud server cooperation agreement signed in late April with US PC vendor Hewlett-Packard.

Under this partnership, Hon Hai will be responsible for product design and manufacturing, while HP will be in charge of sales and marketing, Gou explained.

In Aug. 2013, US projection equipment maker InFocus and FIH Mobile, a subsidiary of Hon Hai, jointly launched two smartphones in Taiwan with starting prices of NT$11,900 (US$396) and NT$13,900, respectively.

Hon Hai said it expects InFocus to become one of the top five smartphone brands in Taiwan within two years and one of the 10 best-selling brands in China within three, according to local media reports.

 

Filed under Macro Trends, TMT Trends

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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