Latest News:  

English>>Business

Foxconn shifts from contractor to branded televisions

By He Wei in Shanghai (China Daily)

08:25, January 25, 2013

CyberMart, the retail business unit of Taipei-based Hon Hai Precision Industry Co Ltd, the parent company of the electronics maker Foxconn Technology Group, began offering its branded television sets on the mainland on Thursday.

The 60-inch sets have been developed with the US-based electronics retail marketplace RadioShack Corp, according to CyberMart's website.

"CyberMart has its own marketing agenda. The rollout of the TV is closely related to CyberMart's collaboration with RadioShack," Foxconn spokesman Liu Kun said.

The RadioShack-labeled TV sets are priced at 8,999 yuan ($1,447), and are available through CyberMart's outlets and its authorized online store on Tmall.com, China's largest business-to-customer website.

To drum up consumer interest, CyberMart has been offering rebates of up to 1,000 yuan to select online customers that follow the company's micro blog.

Sales of the TVs in Taipei since late December have been brisk. The first 500 were sold in half a day, the Taipei Times reported.

CyberMart has been promoting the device by highlighting its advanced LCD panels, according to its website.

Hon Hai made an investment last year in Sharp Corp's LCD panel plants in Japan, giving Hon Hai access to 60-inch flat LCD panels from the world's only 10th-generation panel plant at a lower cost.

The move sped up Hon Hai's ambition to move up the value chain by integrating its manufacturing and sales resources, said Luo Qingqi, an appliances expert at Pale Consulting, a market research firm on electronics retail.

"Foxconn's product rollout marks the company's first step up the value chain, rather than hiding behind the scenes as an original equipment manufacturer as it had done before. Regarding its new TV, Foxconn can take advantage of its ability in mass-production and design," Luo said.

Zhang Bing, China research director of NPD DisplaySearch, a consultancy specializing in the display supply chain, said the price is higher than market expectations, given that similar TVs produced by Foxconn for North America sell for $999.

"Plus, RadioShack has yet to establish its name on the Chinese mainland. TVs are durable goods, so it takes time for people to discard old ones and accept new brands," he said.

But Luo added the TV offers great value, considering its world-class screen.

However, CyberMart is limited in its sales ability, he added, because the retail chain is not doing as well as expected.

"For example, the first CyberMart store in Shanghai's downtown Huaihai Road has shut down. And due to the overall slump in the retail sector, the company's goal of expanding to 50 stores nationwide by 2015 is unlikely to be met," he said.

Still, Foxconn is likely to be using the 60-inch TV to test the waters for future branded products, Luo said.

"I'm sure Foxconn is poised to roll out a collection of homegrown products. It's just a matter of time," he said.

hewei@chinadaily.com.cn

We recommend:

Report on the rich in China released

Sales boosting measures for Spring Festival

1st express sleeper train starts operation

Top 10 most transparent multinational companies

Top Ten Economic Events in 2012

Beijing leads nation on rich list

Email|Print|Comments(Editor:梁军、厉振羽)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. PLA hold actual-troop campaign exercise

  2. Carrier-based aircraft unit in tactical training

  3. The happiest places in the world

  4. Time to stop waste on dining table

  5. Photos: Amazing China in 1950s

  6. Building on bridge triggers debate

  7. 'Nine Songs' swan song

  8. Heartfelt gifts of life

  9. Davos 2013: Building confidence

  10. Whisks us away into a surreal dream

Most Popular

Opinions

  1. Obama's second term: A road covered with thorns
  2. Talk is fine, but how about some changes?
  3. Foreign banks optimistic about Chinese economy
  4. Will Americans be fans of Chinese TV drama?
  5. US should not put new burden on itself
  6. The fiscal cliff and the 'gun cliff'
  7. New measurement may reshape Sino-U.S. trade ties
  8. Warning issued on global economy
  9. The 'artificialness' in Chinese movies
  10. China to ensure appearance of witnesses in court

What’s happening in China

Beijing fantasy emerges in dense fog

  1. Who cares for me after only child died?
  2. Can Chinese save face and save money?
  3. Overseas funding for nursing homes welcomed
  4. Police suspended amid official's property scandal
  5. Mummified bodies found in Beijing flat