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Foxconn eyes digital film sector as smartphone demand weakens

iPhone assembler outlines plans for Shanghai IPO of major unit to finance expansion

Foxconn's Chairman Terry Gou said his company will increase presence in India and Southeast Asia this year.

TAIPEI -- Major iPhone assembler Hon Hai Precision Industry, better known as Foxconn Technology Group, said on Sunday that it plans to team up with premium camera maker RED Digital Cinema to make professional-quality and affordable film cameras for the general public, while expanding into the manufacture of semiconductors for displays and cameras.

Those moves come as the Taiwanese company is building facilities to make large-scale display panels in the U.S. and China. It is seeking new revenue sources to compensate for weakening smartphone demand. It wants to reduce its business dependence on Apple, which accounts for more than 50% of its sales. Foxconn assembles iPhone mobile phones and MacBook computers among other products for Apple, but profit margins are razor thin. The manufacture of more electronics equipment and components could improve the company's earnings.

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