Foxconn is joining the HomePod supply chain to help assemble Apple’s delayed smart speakers, a new report claims.
Hon Hai Precision Industry Co. — to use Foxconn’s full name — is currently the sole manufacturer of Apple’s iPhone X. However, despite the massive demand for that device, various manufacturing issues with the iPhone X recently caused Foxconn to report its biggest decline in profits in nearly a decade.
That evidently isn’t putting it off working with Apple, however.
An unexpected boon for Amazon
The HomePod Siri-powered smart speaker was originally set to launch in December 2017, which would have made it one of the hottest gifts of the 2017 holiday season. Recently, though, Apple released a statement saying that the device will now not be shipping until early next year — although it did not specify why.
As a result of the delay, today’s report suggests that the Amazon Echo will see stronger smart speaker sales over the holidays, which will benefit Foxconn rival Compal Electronics, since this is the company manufacturing the devices for Amazon.
Compal is reportedly working with Amazon to develop new Amazon Echo models for 2018.
Digitimes also notes that other HomePod supply chain manufacturer Inventec will likely see disappointing shipment performance in the fourth quarter of this year, due to Apple’s decision to move back the HomePod release date.
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