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Foxconn CEO: Next-gen iPhone will Take on Samsung Galaxy S III

Source: Foxconn Logo/ Wikipedia

Hon Hai Precision Industry Co. CEO Terry Gou told customers on Monday to ignore the Samsung Galaxy S III and wait for Apple’s next-generation iPhone instead. His bold statement came during the company’s annual stockholder’s meeting. In addition, the CEO mentioned a number of strategies that will enable them to beat the South Korean-based electronics company within the next three to five years.

Taking on Competitors with Strategic Alliance

Apple’s next-generation iPhone was only mentioned in passing, as Gou stated that “the new model will put Samsung’s Galaxy III to shame.” The main thrust of the message is Foxconn’s ambition to overtake the Galaxy S III maker in virtually every market that it competes.

Thus, the Foxconn CEO noted a strategic alliance with the Japanese electronics manufacturer Sharp. This will integrate Sharp’s cutting-edge technology with Foxconn’s production capacity to come up with a product that is three years ahead of anything that Samsung can muster.

According to China Times, it is Gou’s lifetime goal to beat Samsung. For him, the South Korean manufacturer has “a track record of snitching its competitors.” He is referring to the whistleblower role taken by Samsung during the 2010 European Commission flat-panel price fixing investigation of four Taiwanese companies.

I respect the Japanese and especially like their execution and communication styles. Unlike the Koreans, they will not hit your from behind.

Partnership with Sharp

Last March, it was reported that Foxconn became Sharp’s single largest shareholder after the Apple manufacturing partner bought 10 percent stake in the Japanese company worth $808 million.

This alliance is meant to boost demands coming from the 10th-generation plant in Sakai, Japan. The Sakai plant is said to manufacture 60-inch and 80-inch class LCD panels. There were also claims that it has an exclusive deal with Corning to use its Gorilla Glass in large format applications.

Starting July 1, Foxconn will start operating at Sharp’s Sakai plant. It was also speculated that the Taiwanese manufacturer is planning to buy more shares from the Japanese company, although no official statement has been released. However, Gou revealed that he invested on Sharp’s Sakai plant using his own money so it won’t affect Hon Hai’s stocks. Furthermore, the CEO has plans of listing the Japanese factory on the Taiwan stock exchange within three years.

The partnership between Foxconn and Sharp raised speculations that both companies are striving to get orders of Apple’s rumored HDTV. However, these claims are yet to be validated.

Terry Gou has been known from being outspoken. It should be recalled that he slipped the information that Foxconn is gearing up for an Apple television order. But the report was later denied by the company’s PR department.

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