This iPhone manufacturer is now making electric cars…

We end today with a story about the electric vehicle (EV) industry. Foxconn, the largest contract manufacturer of consumer electronics, just unveiled three electric vehicle prototypes. Some readers may recognize the name. 

Foxconn is Apple’s largest contract manufacturer. It also makes a range of products like laptops, rice cookers, e-readers, gaming consoles, and other electronics. The company has enjoyed great success, as seen by its nearly $100 billion market cap. Now Foxconn is looking to compete with automotive manufacturers with its release of SUV, bus, and sedan electric vehicles. 

These are not small cars or niche products. These are popular vehicles we see on roads each day.  As an example, here’s the bus design. Similar buses shuttle commuters around metropolitan areas.

What is interesting here is the obvious – Foxconn is not an automotive company. It has never manufactured internal combustion vehicles or engines. And what this announcement shows is how similar an EV is to our computing devices. 

They all have semiconductors, circuitry, and batteries in them.  Without the complexities and expertise to work with internal combustion engines and so many more moving parts, Foxconn is in a unique position to become a serious player in the EV race.  And the timing of its announcement is no coincidence…  

Last month, Foxconn acquired a factory in the U.S. formerly owned by Lordstown Motors. The startup ran out of cash, and Foxconn stepped in. And it is now planning to build EVs for two U.S.-based automotive companies. It is a major strategic move for a company like Foxconn and will bring in a wave of new revenue.  

And what is clear here is that the auto industry is not moving fast enough. It is years behind the great work Tesla is doing. A new entrant like this makes the incumbent carmakers’ lack of innovation even more noticeable.  

And with Apple being Foxconn’s No. 1 manufacturer for its consumer products, I can’t help but wonder… Is there a bigger play here? I think there might be