Layer Player

How they do it: Foxconn acts as component supplier to many OEMs. Here it focuses on mass production of specific parts used in electronic products. Through the focus on specific components it can achieve massive economies of scale making overall production cheaper.

Rent Instead Of Buy

How they do it: Foxconn also acts as contract manufacturer for companies such as Apple. This allows Apple to utilize Foxconn’s large production facilities and low cost facilities to mass-produce their products. By offering contract manufacturing Foxconn allows its customers to avoid building own production facilities which would require large investments.

Solution Provider

How they do it: Foxconn provides its customers with fully integrated solutions covering the whole manufacturing process when it acts as a contract manufacturer. Hereby it utilizes its low cost manufacturing expertise and scale of its production facilities to decrease production cost per unit. Through the whole service offering, it is able to produce its customers products such as the Apple iPhone for less than Apple itself could produce it.

Whitelabel

How they do it: Next to private label production such as Foxconn does through contract manufacturing for Apple, it also offers white label products. These are typically not branded with Foxconn’s but the distributor’s brand and sold to multiple distributors. This allows these typically low cost electronic products to be manufactured in a bigger scale and therefore at lower cost than it would be the case for one specific distributor as the underlying technology is indentical.