Apple Manufacturer Foxconn to Start Selling Apple Products in China

Hon Hai Precision, which owns the massive Apple manufacture Foxconn, is making a move into retail. The company announced it'll spend $1.6 billion to open up hundreds of stores in China that will sell Apple products.

This is one of these news tidbits that you could skim by, but it seems like a very big deal. With this vertical integration, Hon Hai will soon have the ability to make and sell massive amounts of Apple products in China. They will become materially more significant for Apple now and certainly seem like they could become a competitor down the line, too. But symbolically, it's even more important. It says to me: Foxconn doesn't just want to be a contract manufacturer forever. They have bigger plans and that should make electronics makers wary.

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