According to BlackBerry gives great chance to Foxconn - R7

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By Poornima Gupta and

Clare Jim

TAIPEI / SAN FRANCISCO, Dec 26 (Reuters) – The agreement with Foxconn BlackBerry marks the biggest step the Taiwanese company to strengthen its presence in the supply of higher value-added chain, with a chance to not only assemble smartphones but help design them too.

according to design and put in the phone market starting with Indonesia – the fourth most populous country in the world, but with low mobile penetration – is a boon for a megafabricante trying to grow its margins, while you can help the company get a bigger slice of the global market for mobile devices.

Best known for assembling iPhones, Foxconn has improved to meet the exacting standards and rigor Apple’s supply chain. The company has a workforce of over one million and scale to negotiate prices cheaper components than the BlackBerry could get alone.

Last Friday, the BlackBerry has announced that Foxconn will help design the hardware for their future devices low, as part of a five-year agreement. The BlackBerry will remain focused on software technology.

A Canadian company wants to produce many of the new phones in Indonesia – the first new model has codenamed “Jakarta”. By then, Foxconn has been able to navigate the bureaucracy for more than a year to establish a factory in Southeast Asia’s largest economy.

Foxconn – trade name of Hon Hai Precision Industry -. expects an agreement with local authorities in February, and plans to create joint ventures with local private companies to exploit the vast potential market in the region

Pending the establishment of production facilities in Indonesia, Foxconn will make BlackBerry phones in their Chinese factories.

Indonesian government officials said Foxconn wants to gradually invest up to 10 billion dollars over five years with the local partner Erajaya Swasembada and Indonesia will offer Taiwanese company for a package of tax incentives.

Foxcoon has yet to confirm these details.

“The BlackBerry wanted to develop new products in Indonesia, while we are also entering the market place there. they saw our ambition, then we started talking,” spokesman Simon Hsing, Foxconn said. “This partnership gives us mutual benefits to explore existing and emerging markets together,” he added.

The first BlackBerry

resulting partnership with Foxconn – a 3G low cost model based on software and BlackBerry directed to Indonesia – can be launched by April

.

(Additional reporting by Randy Fabi in Jakarta and Michael Gold in Taipei)

Copyright Thomson Reuters 2011