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iPhone Maker Foxconn’s Entry Into Solar May Cut Industry Margins
http://www.businessweek.com/news/2011-12-26/iphone-maker-foxconn-s-entry-into-solar-may-cut-industry-margins.html[font face=Times,Times New Roman,Serif][font size=5]iPhone Maker Foxconn’s Entry Into Solar May Cut Industry Margins[/font]
December 26, 2011, 8:06 AM EST
By Bloomberg News
[font size=3]Dec. 24 (Bloomberg) -- Foxconn Technology Group’s decision to start making solar power modules may speed the rate at which margins are narrowing for Chinese manufacturers, another blow for an industry already coping with a plunge in prices.
The Taiwanese company that’s the world’s biggest contract maker of electronics including Apple Inc.’s iPhone started work on a solar-module plant in China’s eastern province of Jiangsu near the headquarters of Suntech Power Holdings Co., the largest silicon-based module manufacturer.
“Foxconn plans to build new factories with undreamed-of scale and lower cost,” Jenny Chase, who leads a team of six solar analysts at Bloomberg New Energy Finance, said yesterday. “It will push capacity higher and prices lower.”
Prices for solar cells have skidded 62 percent this year as Chinese companies led by Suntech boosted production and won market share from European and Japanese rivals. Foxconn’s gross margin of 5.6 was less than half Suntech’s in the third quarter, according to data compiled by Bloomberg.
…[/font][/font]
December 26, 2011, 8:06 AM EST
By Bloomberg News
[font size=3]Dec. 24 (Bloomberg) -- Foxconn Technology Group’s decision to start making solar power modules may speed the rate at which margins are narrowing for Chinese manufacturers, another blow for an industry already coping with a plunge in prices.
The Taiwanese company that’s the world’s biggest contract maker of electronics including Apple Inc.’s iPhone started work on a solar-module plant in China’s eastern province of Jiangsu near the headquarters of Suntech Power Holdings Co., the largest silicon-based module manufacturer.
“Foxconn plans to build new factories with undreamed-of scale and lower cost,” Jenny Chase, who leads a team of six solar analysts at Bloomberg New Energy Finance, said yesterday. “It will push capacity higher and prices lower.”
Prices for solar cells have skidded 62 percent this year as Chinese companies led by Suntech boosted production and won market share from European and Japanese rivals. Foxconn’s gross margin of 5.6 was less than half Suntech’s in the third quarter, according to data compiled by Bloomberg.
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