Apple’s iPhone assembly partner Foxconn is reported to be looking to make the move beyond the assembly of iPhones, and into the more lucrative area of high-end component manufacturing, says a report today from The Wall Street Journal.
Apple Inc.’s major assembler Foxconn is in preliminary discussions with a provincial government in northern China for an investment in a new factory that would make high-end screens for iPhones and other mobile devices, people familiar with the talks say.
While Foxconn currently manufactures some iPhone components, they are low-margin items such as casings and cables.
Foxconn hopes to join, or supplant recent Apple display partners, who have included Sharp, LG, and Samsung.
The WSJ notes that Foxconn chief Terry Gou is known for publicly discussing his company’s prospects before consulting with partners, such as Apple. So, this could just be Gou testing the waters.