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Foxconn moves into e-distribution

Apple supports move, will help with startup costs

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Apple’s controversial Chinese manufacturer Foxconn is moving into e-commerce distribution and opening new headquarters in Shanghai.

Foxconn CEO Terry Gou announced that the new operation would be a one-stop shop for services that range from manufacturing to logistics and reselling and be up and running within two years.

Foxconn, which has an estimated global 40 percent share of manufacturing smartphones, computers and gadgets has had long held ambitions to enter distribution but failed at its first attempt in 2009 with online site feihu.com.

The company has also shelved plans to establish a 10,000-store retail network.

At a press conference Gou conceded the prior failure but said "failure is the mother of success".

Gou said that Apple supported the move and would “split the initial costs" but would not be drawn on numbers.®

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