Foxconn bets on the sector of premium accessories for smartphones. The company, which you surely know because it manufactures Apple devices, surprises with this decision. For it, have announced that they will acquire Belkin for $ 866 million. They do so through their sub-company Foxxcon Interconnect Technology (FIT). This agreement also involves Linkys and Wemo (Belkin brands).
Both companies have announced the purchase. Although the United States Foreign Investment Committee give your approval to this operation. So it could happen that it ends up being rejected. But we will have to wait for more news about it.
With this operation Foxconn hopes to establish itself in the market for premium phone accessories. In addition to the smart home market. The purchase also includes the more than 700 patents Belkin owns to his credit today. So many projects can be born thanks to this operation.
Among the patents we find the Linksys home routers, plus Belkin wireless accessories and Wemo smart home products. So this way Foxconn expands the market in many different segments. A strategy that will make them one of the market leaders.
Due to the purchase, Belkin and its brands will operate as subsidiaries of FIT. What's more, Belkin CEO has been confirmed to join FIT's management team. What has not been discussed is whether there will be workers who will lose their jobs or not. There are no comments on this at the moment.
Belkin has 1.400 employees worldwide. The American company achieved sales of 789 million dollars last year. So Foxconn knows the potential of the company. It remains to be seen whether the purchase operation gets the go-ahead and how its products develop in the immediate future.