Quote:
Originally Posted by fjtorres
Normally, Foxconn builds stuff and ships it to their customer who is responsible for sales, distribution, and support. They take their money up-front, no risk of getting stuck with warehouses of non-selling gadgets.
This time, Foxconn is doing all three, and get paid when it sells, so it is really their tablet. They are using Nokia's name to sell it, but the bulk of the risk and money is theirs.
They are moving up the value-add chain. Next step would be to put a brand they own on the gadget.
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Except, as I mentioned before, Foxconn is not just sticking Nokia's name on a generic tablet (which is how this usually works) -- Nokia came to Foxconn with the design and Foxconn is manufacturing and selling
Nokia's tablet. Nokia does not -- currently -- having the ability to manufacture or market their
own product (they were gutted in the sell-out to Microsoft). Yes, Foxconn is taking a risk, but they're taking a risk with a Nokia designed product. I'm guessing this is the most expedient way for Nokia to keep their brand name out there before re-entering the mobile phone market in 2016.
I'm not a huge tablet fan, but at $249 with the specs this Nokia tablet has, I think this one is going to be successful. And I'm guessing this is just the first of several (down the line). I'm also guessing the nature of Nokia's partnership with Foxconn will change as Nokia recovers.