Foxconn Technology (OTCMKTS:FXCOF) is raising the stakes in the Chinese smartphone as it brings refurbished iPhones come to market in a fashion that could spoil the party for Android phones. Foxconn is offering second-hand official iPhones through its e-commerce marketplace at lucrative rates, which look geared at ruining the chances of Android smartphones in the Chinese mid and lower-tier markets.
Android vendors like Samsung Electronics and Xiaomi, which has gained ground targeting lower spenders, are expected to feel the pinch of competitively-priced refurbished iPhones.
Foxconn giving one-year guarantee
Although Apple Inc. (NASDAQ:AAPL) is also offering the refurbished iPhones at its stores in China, it seems Foxconn is spearheading the iPhone trade-in program. The company is reportedly in charge of remaking and reselling the second-hand iPhones in addition to backing a one-year warranty on the refurbished handsets.
Foxconn reputation fueling demand
Foxconn is a major Apple Inc. (NASDAQ:AAPL) supplier. The company is also a partner of BlackBerry Ltd (NASDAQ:BBRY), currently in charge of BlackBerry’s handsets business. Robust demand has been reported for the refurbished iPhones, a development that looks clearly linked to the reputation of Foxconn for quality hardware products.
Foxconn Technology (OTCMKTS:FXCOF) is offering the refurbished iPhones at competitive prices with a 16GB iPhone 5S model costing $338, far less than the half of the phone’s official price tag of $692 from Apple Store. The older iPhone models like the iPhone 5 and iPhone 4S cost $226 and $145, respectively. Foxconn is offering even a much better deal on iPhone 4 at $80.
Foxconn focuses on internals
The major difference between the second-hand iPhone Foxconn is providing and those from private stores in China is that Foxconn is making serious quality claims about its refurbished iPhones. The company is taking care of the internal components of the second-hand iPhones to ensure that consumers are able to get what is closest to a new iPhone.
However, the major drawback for Foxconn Technology (OTCMKTS:FXCOF) is that its iPhone reformed leave the phone casing largely unattended, leading to some devices coming out with what have been termed serious casing flaws. At the end of the day, Foxconn is running a crucial market campaign for Apple in China.