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Friday, 26 April 2013 09:35

Hon Hai heads to Indonesia

Written by Nick Farrell



Cutting dependence on Apple drug

Hon Hai is desperate to escape the clutches of Apple after the toymaker’s success has become stunted.

According to Reuters the company is hoping to sign an agreement with Indonesia next month to make and sell handsets in the Southeast Asian country's huge domestic market. At the moment he company makes about 60 to 70 percent of its revenue assembling iPhones and iPads and other work for Apple.

Hon Hai is chatting to a few Indonesian phone companies and they will decide the form of investment and sign partnership agreements after a memorandum of understanding with the government is secured, Reuters reported. Apparently Hon Hai has no plan to export phones from Indonesia and will not make Apple products there, Hsing said.

It is the first time that the company has decided to invest in Indonesia. It would only manufacture phones for local brands and sell them in Indonesia. Hon Hai did not say how much it would invest. But government officials think that it will be about $5 billion and $10 billion. Hon Hai planned to build a plant in an industrial zone near Jakarta to assemble three million handsets a year.

Nick Farrell

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