They don't, but when they find it tough to blend in, they simply reinvent.

That's why it's interesting to see Apple's iPhone manufacturer, Foxconn, agree to acquire Belkin and its Linksys and Wemo brands for around A$1.1 billion. 

This horizontal product extension indicates a potential business model transformation.

This is because it is adding a customer-facing, or business to consumer (B2C) model, and it is doing so for a value that represents around 25% of its current equity capitalisation.

In other words, a big and decisive bet.

On top of that, it will move into retailing branded electronics and compete with Apple, perhaps not in 'luxury' brand terms, but in alternative products in some cases. 

Brave, but it may not stop there for Foxconn, given its reliance on Apple and the ever-growing competition for 'food'.

Stay tuned.

Mike

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