LIFE Published February20, 2017 By Staff Writer

iPhone 8 Latest News: Foxconn Shares Rises Sharply Due to iPhone 8 Expectation

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Expectations for the upcoming phone iPhone 8 is boosting the value of Foxconn.

According to Bloomberg News, the share price of the Hong Kong Precision Industry, the core of the Foxconn Group, rose 29 percent in the past year.

Thanks to the optimism that the 10th anniversary iPhone will be upgraded this fall, Apple's share price has recently hit a record high and Honghua Precision's share price has risen to its highest level in a decade. It rose 8% this month.

Apple accounts for about half of Honghua's sales and has a big impact on the company's share price.

Analysts at Citigroup, Nomura and HSBC have raised their rating for Honghua to BUY this month.

Along with the iPhone halo effect, Foxconn is diversifying beyond the assembly business, which depends on cost efficiency.

Guo President Foxconn tries to go up in the value chain.

"Hunghai is likely to be a hybrid company in the long run because it is obvious that it is betting on new areas such as the robots and the Internet of things," said analyst Anabel Shu, an analyst at market research firm IDC.

He said that major businesses such as smartphones and tablets, where the company is working with Apple, are expected to slow down and say, "We need to find new areas to grow fast." He added that Honghua is good at this.

The Foxconn Group, together with Sharp, is considering investing $ 7 billion in the US to build a display plant. Terry Guo, chairman of Foxconn, is discussing with several states including Pennsylvania, he said last month that the plant would make 30,000 to 50,000 jobs in the United States.

Honghua and Sharp plan to co-construct a 61 billion yuan ($ 8.9 billion) LCD (liquid crystal display) plant in Guangzhou, southern China, to produce next-generation displays for TV by 2019.

The Japanese company Sharp, acquired by Foxconn last year, possesses valuable display technology and is well known as a consumer electronics brand. Sharp recently raised its annual operating profit forecast by 27%.

Sharp is investing 200 billion yen ($ 1.8 billion) in developing OLED (Organic Light Emitting Diode) displays that are expected to enter Apple's iPhone.

Foxcon has recently bid for a stake in Toshiba's NAND flash business in Japan, competing with Korean SK Hynix and Western Digital. Guo Timing said he would work with Sharp last year to produce semiconductors.

As Foxcon extends its business to the display and semiconductor markets, Korean companies that are leading this sector can be threatened.

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