Foxconn: Want to get rid of LED "OEM" label

(Text / high-tech LED reporter Hu Yanling) Under the aura of "the world's largest foundry empire", Foxconn Technology Group (hereinafter referred to as: Foxconn), which entered the 38th year, looks still in full swing.

Although Foxconn chairman Guo Taiming is not satisfied with the title of "foundry factory", in the consumer electronics field, it is almost impossible to create a self-owned brand belonging to Foxconn.

Now, Guo Taiming has set his sights on the LED lighting industry, which is in a period of rapid development.

"In the products produced by Foxconn, only the LED products are printed with the brand label of 'FOXCONN'." Recently, Foxconn LED Lighting Division said to "High-tech LED" that although the group is also for Philips, General Electric and other international lighting giant OEM products, but LED display, LED lighting products are the only products within the group that have their own brands.

"Foxconn hopes to realize the transformation and upgrading of the emerging field of LED, and thus step out of the first step of independent brand breakthrough."

However, despite the unparalleled manufacturing cost advantages of others, Foxconn's LED brand is not the same.

LED independent brand road
"Foxconn began research and development of LED products in 2005. In 2006, Foxconn began to test LED lighting products." The above-mentioned person said that Foxconn invested in the L ED field because the group had factories all over the country. Local governments have requirements for energy saving and emission reduction in factories. “The LED lighting products produced at that time were only used inside the Foxconn factory and in the lighting of nearby living areas.”

With the gradual increase in the acceptance of LED technology and product market, Foxconn has also begun to OEM LED lighting products for other companies. According to Foxconn internal sources, in 2009 alone, Foxconn's LED foundry business provided by Philips and General Electric, the two major international lighting giants, exceeded 200 million yuan.

Since then, the rapid development of LED lighting application market at home and abroad has gradually improved the business structure of Foxconn LED application products.

According to the above sources, in 2011, only 50% of the company's LED lighting products were supplied to the Group's internal lighting replacement projects, including factory lighting and nearby streets and living areas. In 2012, Foxconn LED Division hopes to reduce this indicator to 40%, with a view to gradually increasing sales in the export market.

Because the factory area is much more used, LED street lights, LED industrial and mining lights, LED explosion-proof lights have always been the strength of Foxconn LED lighting. Said the above person.

With the development of LED lighting products, Foxconn has also entered the field of LED display. At the LED exhibition held recently, Foxconn also specially exhibited the only P3 HD 3D LED display at the show. Many of the high-quality display effects will stop at the Foxconn booth.

Foxconn LED Display Division revealed that in 2006 Foxconn began to develop and produce LED display products, mainly exported to South Africa, Italy, Iran and other countries. The main reason for the LED display to be overseas and light domestic is that the domestic LED display market is the price and the cost, while the Foxconn LED display uses the Japanese chip, which has no advantage in price.

However, Foxconn began to turn the display center to the mainland China market, and the company is developing products that meet the performance and cost performance of the domestic market.

"In the next ten years, Foxconn will not only pay attention to the change of quantity, but also pay more attention to the qualitative change. The company that Foxconn has the ability to do well will never be just a foundry." Guo Taiming said in an interview.

Foxconn, which is under the brand name of “the world's largest processing plant”, has long been at the end of the industrial chain and is one of the biggest victims of profit squeeze caused by rising manufacturing costs. According to the financial report data of the first three quarters of 2011 released by Hon Hai Precision of Foxconn Group, the gross profit margin of the company was only 3.70% from January to September 2011, down 19.04% from the same period of last year.

Take Foxconn as an example of Apple's foundry. For every IPAD produced, Foxconn's revenue is $6.50. And Apple sells an IPAD for $360. Therefore, it is not difficult to understand the determination of Guo Taiming to build the LED brand in the deep rules of the distribution of interests in the industrial chain.


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