Taiwan’s contract manufacturing titan Foxconn Technology Group is taking its InFocus handset brand to China, challenging fast-growing mainland rival Xiaomi and using Xiaomi’s own tricks.
Xiaomi has been gaining lots of fans by packing its phones with high specifications and charging much cheaper prices than foreign brands with comparable features. Foxconn wants to outdo Xiaomi by carrying an even lower price tag while offering functions as good as Xiaomi’s, according to Want China Times.
Foxconn chief Terry Gou has it all worked out. He poached Lenovo Group’s e-commerce staff and invited Steven Yeh, previously general manager at Sony Ericsson Mobile Communications in Taiwan, to join the team. The company will also mimic Xiaomi’s internet distribution strategy by partnering with Alibaba.
Foxconn has been looking for ways to become something more than just a maker for other brands. It tried distributing electronics products in China but the plan didn’t quite work out. By focusing on low-cost smartphones, Foxconn may finally find a niche where it can fully exploit its manufacturing prowess and scale edge while keeping competition with its OEM clients to a minimum.
If its handset brand succeeds, Foxconn will probably launch other Infocus products such as LED television, the Taiwanese daily reports.
Meanwhile, Xiaomi, which has been enjoying lots of hype, may have to reinvent itself to offer investors new reasons to justify its much inflated valuation.
– Contact us at [email protected]