Apple to benefit from Foxconn's business move

Rumors about Apple’s electric car are growing. We have already talked about forecasts of the big financial analysts and also those made by others like Kuo, indicating the departure date of the supposed Apple Car. Apple depends on its suppliers to carry out its strategy. Foxconn has decided to enter the electric car business. Does this mean that Foxconn is preparing for the future?

We do not know if the rumors about Apple’s electric car will finally come true in the stipulated deadlines or mentioned by analyst Kuo. What we do know is that the company and one of Apple’s main suppliers, is going to take over the Byton electric car business. A company that has had very good financial results until July 2020, in which it suspended operations and had to dispose of most of the staff.

According to reports plans to invest around 200 million dollars in the company to begin mass manufacturing the Byton M-Byte car planned for the first quarter of 2022.

Tech companies are investing more and more money in the next generation car development. Including fully electric vehicles and the smart technologies that go with them, such as autonomous driving and car-to-car communication systems.

Now we have two options, in my opinion where to fit this news:

  1. Foxconn wants diversify your business in light of Apple’s announcement that it will split its supply chain. On the one hand China and on the other, the rest of the world. This diversification may end up affecting Foxconn and its business as a supplier to Apple.
  2. That the company wants to start get experience in the field of electric cars. This way you will be very well prepared for when Apple wants to start creating its own Apple Car.