Foxconn to enter information security realm with joint venture

26 Mar 2015 | Author: | No comments yet »

Apple Inc. (NASDAQ:AAPL) Introducing Trade-In Program In China After U.S Aimed To Bolster Its Sales.

Foxconn Technology Group isn’t satisfied with just making iPhones, and plans to break into the information security market through an upcoming joint venture. (Bloomberg) — Apple Inc. plans to introduce a trade-in program for iPhones in China, people familiar with the effort said, after a similar program bolstered sales in the U.S.

On Thursday, the Taiwanese manufacturing giant announced it would set up in May a joint venture with Korea’s SK C&C, an IT services provider, to develop information security systems for the Chinese market. Consumers will be able to take older iPhones to Apple stores in China for credit against the company’s products as soon as March 31, the people said, asking not to be identified because the details aren’t public. The venture will be based at one of Foxconn’s factories in China, where it has hired over a million workers to assemble electronics for vendors that include Apple, Microsoft and Sony. The manufacturing partner will then make any necessary repairs and resell them through its own online outlets: Under the China program, retail staff at Apple outlets will assess an iPhone’s condition before offering store credit for those originally bought in Greater China, the person said. China is a key part of Apple’s growth plans, with demand for larger-screen iPhones fueling a record profit of US$18 billion (RM66.18b) during the final three months of 2014.

Thursday’s deal with SK C&C will also involve the two companies working together on healthcare, finance and improving manufacturing processes, Foxconn said in a statement. While Apple is soon launching an Android trade-in program that lets users switching from competing handsets earn money toward their new iPhone by handing over their old device, the China trade-in offer will apply to iPhones only for the time being.

Apple’s new retail chief has been focusing on improving the company’s presence in China, with several new Apple Stores opening within the country in recent months. The deal with Foxconn deepens the relationship with Apple’s largest supplier, whose Taipei-listed flagship Hon Hai Precision Industry Co. gets half its revenue from making iPhones, iPads and MacBooks. This isn’t anything new given that resellers for Apple have been running trade in programmes for quite some time – particularly around the launch of a new iPhone they’ll do trade in’s with the traded in phone to get reconditioned and resold through the one day sales websites. Apple Inc. (NASDAQ:AAPL)’s stock on 25 March traded at beginning with a price of $126.71 and when day-trade ended the stock finally fell -2.61% to end at $123.38.

While Apple doesn’t break out regional unit shipments, researcher IDC estimates iPhone sales, which previously were tepid in China, spiked 42 percent during the 2014 calendar year to 46.3 million.

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