The move by the Foxconn Group to take up control of two global technology brands, Sharp and Nokia, in less than two months has raised concerns that the EMS/OEM giant will eventually transform itself into a brand operator - a title which Foxconn has long dreamed for but has to deny.

Foxconn previously claimed that its spending of over NT$110 billion (US$3.356 billion) to acquire a 60% stake in Sharp is purely an investment project rather than an acquisition deal and that Sharp will continue to keep its brand and operate independently.

But such a claim seems to have been undermined by Foxconn appointing its vice chairman Tai Jeng-wu as Sharp's new president. Additionally, Foxconn chairman Terry Gou also said in a letter that there is a "very regrettable need to reduce workforce" at Sharp after the Japan-based electronics giant reported heavy losses for fiscal year ended March 2016.

In short, Foxconn will eventually take over the management of Sharp and implement a series of restructuring programs to restore the aging company. Or, in other words, Foxconn is to manage the Sharp brand onwards by itself.

The recently arrangement under which FIH Mobile, an OEM handset subsidiary of the Foxconn Group, and Finland-based HMD Global to jointly acquire Nokia's previous entry-level feature phone business and assets from Microsoft for US$350 million is further indication that Foxconn is about to break its promise that it would not build itself as a brand operator.

A Chinese-language Commercial Times report indicates that HMD Global will contribute a token of US$20 million to the deal, while FIH Mobile will commit the remainder of US$330 million to complete the planned transaction.

It is then obviously that the Foxconn Group, which will handle design, manufacturing, logistics and after-sale service of Nokia-branded feature phones, will play a decisive role on how to operate the Nokia brand in the future.

The arrangement to focus on feature phones will allow Foxconn to avoid the conflict of interest with its major clients including Apple in the smartphone sector, while enabling the group to continue to tap the vast market for feature phones in India, Africa and other emerging markets.

Optimizing the sufficient supply of display products from Sharp to make Nokia-branded feature phones for global sales seems to be a safe and lucrative, as well as an inexpensive investment for Foxconn.