Why Foxconn Is Funding Wearable Tech Incubator

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Dec. 10 (Bloomberg) -- Foxconn Technology Group, maker of Apple iPhones and iPads, is launching an investment fund to finance startups developing new kinds of wearable computers, according to two people familiar with the project. Tim Culpan reports on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Want to go to someone who helped to break this story.

First of all, tell us what you know about the actual fund.

Good morning from taipei.

Well, the key is really for foxconn to look into the future.

They do make the apple devices.

Apple is their largest investor.

Apple has only been a lien for about one decade.

What they need to do, -- apple has only been a client for about one decade.

They are investing in this incubator.

That is going to be one of the major points, that it is going to be an incubator, so they want to bring in new ideas and grow those ideas, and they want to bring it to taiwan, and they want to be able to offer the technologies.

Air is a lot of technologies involved in things such as wearable devices -- there is a lot of technologies.

We know they are involved in the google glass project.

We want to make sure they have the technologies available to offer them to companies like google or apple or microsoft, and those companies that will be developing in the future, so that will be key, offering extra things to their clients going forward in the future to keep up the prophet margins, because in pure manufacturing, -- to keep up their profit margins, because in pure manufacturing, the margins are not that high.

Some sort of wearable device, what does this mean for apple?

Is this a conflict of interest?

Yes, at first, people would think so, and the chairman of foxconn in june this year at the annual shareholders meeting showed off.

It was a smartwatch that he had, and he was very proud of it because it could measure somebody's heartbeat and transfer it, and iphone, of course, and so he was proud to show off this technology, but it is not exactly a conflict.

Until now, foxconn has not gone out to compete with any of their clients.

They have been very clear about that.

They are not going out and doing branded work.

What they are trying to do is anticipate what their clients need, so when a company like apple or google or microsoft comes to them and says, we want to develop this, they do have their offices in cupertino, but apple does develop a lot of their own technologies, but they work very closely with their manufacturing partners, such as foxconn, to figure out how to bring it to market and mass market, and that is one of the key things, mass production, so it foxconn is trying to anticipate the needs, and they can actually fulfill them.

What do you think foxconn will be looking at other than wearable technology?

Well, one of the things that we can assume, and we certainly have not seen necessarily any evidence is things that go further, such as medical devices, and that is similar to wearables and connected devices, but the thing with medical devices, we have aging populations in the u.s. and japan and even in china.

Inc.

That can measure vital signs is certainly an area that foxconn would be interested in -- things that can measure vital signs is certainly an area that foxconn would be interested in.

In southern taiwan, to build software, to build the cold negativity -- the conductivity, they are looking on that -- the connectivity.

There is not a lot of growth or new ideas left, is certainly the believe in taiwan.

They will be looking at areas

This text has been automatically generated. It may not be 100% accurate.

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