(AP)
The chairman of Foxconn, the company that assembles most of Apple's iPhones in China, gave some remarks at a holiday party over the weekend suggesting that Apple could partner with his company to build a new factory in the US.
But most interesting is which parts that factory might produce: large flat-panel screens, which at least one analyst believes could be an indication that Apple is planning to build a TV set.
The Foxconn chairman, Terry Gou, said his company was considering building a $7 billion flat-panel screen factory in the US. Part of that $7 billion could come out of Apple's pocket, Gou said, according to Nikkei.
Previous reports suggested that the US plant would make large LCD panels and Gou has previously observed that it's expensive to ship large-screen TVs from Asia.
But why would Apple need large-size displays? Its iPhones need small, dense next-generation OLED screens.
Bank of America Merrill Lynch analyst Wamsi Mohan speculated in a note distributed to clients on Monday (emphasis ours):
"Setting up a large panel display facility for LCD would also require the setting up of an LCD glass facility (several $bn incremental) from the likes of Corning or its competitors ... Setting up a large panel display factory in the U.S. could signal Apple's intent to make its often speculated about TV. Setting up an OLED factory seems less likely despite new iPhones headed that way as Foxconn does not have much experience in this area relative to Samsung and LG Display."
Apple has developed a 4K TV set in its research-and-development labs, but it gave up the plans to build it years ago. There are currently no rumors that Apple is developing a television set. Apple also needs bigger LCD panels for some of its other products, like its iMac desktop.
Analyst Tim Bajarin says that while Foxconn may make televisions, "Apple's investment has no interest in TVs." He thinks it's more likely that a US-based Foxconn display plant would be more geared to building next-generation OLED screens for smartphones.
(FoxconnKin Cheung/AP)
'Buy American and hire American'
Trump has put continual pressure on Apple to move some of its manufacturing operations to the US, and during his inauguration speech he promised that his government would "buy American and hire American."
Forcing Apple to make a US plant was a frequent campaign promise, and as recently as a week ago Trump said that Apple CEO Tim Cook would "like to do something major here," referring to building a big manufacturing plant, apparently based on a short congratulatory call made shortly after he was elected.