Foxconn major production to low-cost regions, such as Taiyuan, Langfang

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Shenzhen face of rising labor costs and low-price strategy Apple iPhone market turbulence triggered by the world leading mobile phone manufacturing Foxconn International (02038. HK) quietly shift.

Yesterday, the "First Financial Daily" from Foxconn International Investment sector was informed by the relevant responsible person, Foxconn Shenzhen headquarters are in transition research and development base, to retain the original production, and Foxconn International next major production will shift to more low-cost The region, such as in Langfang, Hebei and Shanxi, Taiyuan, and so on. Based on the iPhone to lead the smart phone market optimistic about the future of the space, Foxconn International smart phones will increase R & D personnel, increased input in the budget about 50 percent. And in the service of international giants such as Nokia, while the mainland phone dished out the "hydrangeas."

Foxconn International relevant responsible person that the future will be the focus of the company's production in North China, is expected to Langfang and Taiyuan in the new plant will be put into production in the third quarter, the future capacity will be expanded. If Langfang and Taiyuan are the formal operation of the new plant, the maximum capacity compared to the Shenzhen headquarters will increase by 50%.

"Vietnam's new plant will also be the end of a small number of trial production, Yantai, Shandong Province also have expansion plans, expected in 2009 than the company's overall capacity will increase 20 percent now to 30 percent." Foxconn relevant international officials said. In addition, Foxconn International Hungary is still low-cost markets such as India and the creation of the new plant, located in Hungary's new plant will be commissioned in August this year.

"3G version of iPhone as long as 199 U.S. dollars, this decision of the future to the price of smart phones." Foxconn International relevant responsible person pointed out, this year has increased by 700 to 800 smartphone R & D personnel, the next will be increased, including China Taiwan , Korea are looking for smart phones talents.