Hon Hai on China Mobile collaboration list
By Ted Chen, The China PostTAIPEI, Taiwan -- Following the commencement of a cross-strait telecoms industries conference yesterday in Taichung, Lee Chung-mao (李正茂), an executive of China Mobile (中國移動), indicated that the company intends to seek collaborative initiatives with Hon Hai Precision Co.
August 28, 2013, 12:01 am TWN
Hon Hai, the world's largest electronics contract manufacturer, stands to gain orders for millions of China Mobile-branded smartphone handsets if the two companies come to an agreement, said Lee.
China Mobile's sales of smartphones reached 60 million units last year, with the company expecting that figure to be doubled this year, said Lee. In an effort to keep up with rapidly rising demand, the company is visiting a number of Taiwanese device makers including Delta Electroics (台達電) and HTC (宏達電), in addition to a number of Taiwanese telecoms carriers.
Lee stated that China Mobile has numerous successful precedents of collaborative efforts with Hon Hai, and commended the company's stellar performance in producing Apple's popular handsets, and Huawei's recent P6 smartphone model, which was well received by the market.
A China Mobile-Hon Hai smartphone is “likely” to hit the market soon, said Lee, adding that much like Apple, the mainland China-based telecoms giant intends to seek the most qualified partner for collaborative initiatives. If the two companies come to an agreement, Hon Hai stands to gain orders for millions of smartphones.
However, Hon Hai declined to comment on reports of a China Mobile collaboration, but stated that its subsidiaries command a leading technical edge in various precision manufacturing and assembly capabilities, and are well-equipped to cater to the needs of its clients.
Industry commentators expect Hon Hai to consent to China Mobile's offer, producing the handsets through its mainland-based subsidiary FIH Mobile Limited (富智康). According to industry observers, the Hon Hai Group is aggressively seeking non-Apple revenue sources, citing the example of heightened dealings with China's popular handset maker Xiaomi (小米), which is poised to be the contract manufacturer's fifth largest client by the end of this year. In addition, the business group's brand InFocus, which launched a number of smartphone and tablet computer models earlier in Taiwan, is poised to contest the China market in September.
Meanwhile, Lee also commended Quanta Computer (廣達), lauding the contract manufacturer's efforts in producing the world's first tablet computer equipped with time-division long-term evolution (TD-LTE) connectivity. Lee stated that China Mobile is currently promoting the MiFi portable personal Wi-Fi device. According to Lee, Quanta was awarded the contract to produce 200,000 units in the first half of the year. The figure is expected to expand to 800,000 units in the latter half of 2013, with Lee indicating support for Quanta in winning the contract bid to produce the remaining MiFi units.