Interesting to read the speculation in those articles on just what Foxconn is up to here. It's plain these people think strategically ...and it's a quite remarkable coup for LAT/mig33 to be a part of those plans:
What does the Fox say?
Foxconn's investment in mig33 could be geared towards developing a software ecosystem of its own. It announced plans to embark on an "eight screens, one network, and one cloud strategy", which simply means it will play a greater role in both the hardware and software design of the devices it makes.
With its dependence on Apple and Samsung, the manufacturer will certainly not risk antagonizing its biggest partners by selling its own branded phones.
But it has some leeway to develop software, and that could explain its investment into mig33. Last year, it employed 3,000 engineers for a software development facility to build Firefox OS HTML5 apps, and we shouldn't be surprised if it starts getting mobile app developers on board.
Foxconn is also diversifying away from its low-margin consumer hardware business. It is transitioning into making machine-to-machine devices and big data, and that could explain its involvement in a $3.2 million round in smart video surveillance startup KAI Square.
It has also jumped into providing equipment and design services for data centers, and started a hardware startup accelerator, a move that could help it spot a future billion-dollar company.
Hardware manufacturing will continue to be the mainstay for Foxconn though, as it is currently deliberating whether to build more factories in US and Indonesia.
Foxconn, the world's largest contract manufacturer of consumer electronics, has been expanding into the corporate market. Demand for servers and storage used in data centers has been on the rise, and Foxconn has formed a partnership with a Beijing-based company to expand into China's nascent online-computing market.
Earlier this month Foxconn launched an online platform called Kick2real to assist global entrepreneurs in turning their creative ideas into prototypes at no cost. FIH Mobile has also set up a division called InnoConn to make new devices with the goal to support early-stage hardware innovation.
Mig33 focuses on Africa and Southeast Asia, and the investment will allow FIH to "gain exposure in mobile ecosystem in emerging markets," allowing it "to reach out to more end users in this fast-growing region," FIH said in the statement.
