Hon Hai Group is the parent company of Foxconn, the main foundry of Apple iPhone and iPad, and the world's largest foundry of electronic products. Recently, this Taiwanese company's revenue growth in the computer and mobile phone manufacturing industry is slow, and it is urgent to develop new businesses and customers-applying for Taiwan 4G licenses is to achieve business diversification.
On Monday, Taiwan ’s “National Communications Commission†issued a statement saying that the agency is undergoing eligibility reviews for seven companies applying for 4G licenses. These seven companies include Hon Hai Group ’s Guoqi Electronics (which is a manufacturer of routers, Modems and other wireless products). Applicants who meet the requirements will be announced at the end of August and bid on September 3. The committee will issue four to seven licenses based on the bid results.
Compared to 3G, the fourth-generation wireless technology called 4G can provide faster data download speeds, allowing users to watch TV smoothly, operate interactive games, and conduct high-quality video conversations. Taiwan ’s mobile phone penetration rate exceeds 100%, but the island ’s telecom operators only provide 3G services.
Hon Hai Group not only applied for 4G licenses, but also invested in the media and software industries. At the same time, the group also plans to sell its own brand of electronic accessories products to increase profit margins. Prior to this, Hon Hai had shown a strong interest in basic network construction and invested in a number of local network infrastructure companies.
In May this year, the group agreed to pay NT $ 260 million (approximately RMB 53 million) in exchange for a 28% stake in Taiwan ’s optical fiber service provider Taifo.
In addition to assembling Apple products, Hon Hai Group also assembled HP computers, Sony PlayStaTIon and Nokia phones. However, the sales of these customers were unsatisfactory this quarter, which caused Hon Hai Group's revenue to fluctuate. Affected by Apple ’s recession, Hon Hai Group ’s total revenue in the first quarter of this year was 809.1 billion TWD (about 165.8 billion yuan), a decrease of 19%; net profit was 16.35 billion TWD (about 3.35 billion yuan), an increase 2.9%.
HuiZhou Superpower Technology Co.,Ltd. , https://www.spchargers.com