By Lorraine Luk
TAIPEI-- Hon Hai Precision Industry Co. is in talks to make
smartphones for a Chinese photo-editing application developer, as
the key assembler of Apple Inc. products seeks to broaden its
customer base.
Terry Gou, chairman of Hon Hai, also known as Foxconn Technology
Group, told shareholders at an annual meeting Wednesday that
discussions are under way with Xiamen Meitu Technology Co. Ltd. The
Chinese company has developed an application popular among China's
selfie-takers called "Meitu," which means "beautiful pictures" in
Chinese.
Meitu has launched two Android-based smartphones with another
hardware maker in China since 2013. Both models, which come
preinstalled with Meitu's photo-oriented apps, sell for about 2,000
Chinese yuan (US$325).
"We have also helped a client to make a smartphone designed for
e-commerce," Mr. Gou said, declining to name the client. "Many
Internet companies have asked Foxconn to help them make their own
hardware devices," he said.
Internet companies are keen on developing their own devices with
preinstalled software in a bid to attract more users to their
services. Amazon.com Inc. recently launched a smartphone with
three-dimensional displays linked to its online shopping platform.
People familiar with the matter said Hon Hai is assembling the
device.
As revenue from PCs and phone manufacturing slows, Hon Hai is
expanding its customer base and diversifying its business lines.
Hon Hai's revenue growth was just 1% last year, compared with a 53%
increase in 2010 when Apple's first iPad launched.
Such breadth is more important now that Apple has outsourced
some of its iPhone and iPad production to Hon Hai's smaller
Taiwanese rivals including Compal Electronics Inc. and Wistron
Corp., according to people familiar with the matter.
As it seeks new sources of growth, Mr. Gou said Wednesday the
company is also developing new technologies for wearable
devices.
Write to Lorraine Luk at lorraine.luk@wsj.com
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