“Japan’s cash-strapped Sharp Corp may end up with only one option to survive – dump its consumer business and submit to a future as a component maker for Taiwanese partner and fellow Apple supplier Hon Hai Precision Industries,” Reuters reports.
“The struggling pioneer of LCD televisions is relying for backing on its main banks, Mizuho Financial Group and Mitsubishi UFJ Financial Group. A source at one of Sharp’s main banks told Reuters those lenders may insist on closer ties to Hon Hai and the sale of non-LCD businesses to raise cash in return for help,” Reuters reports. “Battered by foreign competition and waning demand for its TVs, and too few customers to buy its LCD panels, Sharp’s shares have lost nearly three-quarters of their value since the start of the year. The cost of insuring its debt against default has been widening since February. A major stake in Sharp would give Hon Hai, whose shares jumped on Monday, some control over another piece of Apple’s supply chain. Sharp supplies screens for the U.S. company’s iPhones and iPads, some of which are assembled in the Taiwanese company’s factories.”
Reuters reports, “Local TV rivals Sony Corp and Panasonic Corp , have also been hurt as overseas competitors, particularly South Korea’s Samsung Electronics, steal market share… Before revealing expanded losses on Thursday, Sharp had been relying on a cash injection of 66 billion yen from Hon Hai, the flagship of Taiwan’s Foxconn Group, in return for giving it a 10 percent stake. The deal was agreed in March but has not yet been paid… The choice for Sharp is to accept less money or agree a bigger stake for Hon Hai – and with it greater management say that may urge it to close down its TV assembly plants and sell off its solar panel and appliance units.”
Read more in the full article here.
Related articles:
Hon Hai to renegotiate investment in Sharp after losses – August 3, 2012
RUMOR: Apple to launch upgraded 9.7-inch IGZO iPad this summer; displays to shift from Samsung to Sharp – June 29, 2012
Apple supplier Hon Hai in talks to buy more Sharp shares; Terry Gou says Sharp alliance will beat Samsung in HD – June 18, 2012
Sharp to supply technology to Hon Hai’s China plant for Apple iPhone display production – May 24, 2012
Sharp announces production of world’s first IGZO LCD Panels – April 13, 2012
After using Apple’s new iPad with Retina display, old iPad screens become absolutely unacceptable – March 30, 2012
Apple ‘iTV’ beckons as jackpot in Hon Hai’s Sharp gamble – March 28, 2012
Foxconn-Sharp partnership likely targeting Apple orders – March 28, 2012
Taiwan Apple supplier Hon Hai becomes Sharp’s largest shareholder with 10% stake – March 28, 2012
Apple to unveil smaller 7.85-inch iPad this year, says anonymous Samsung official – March 13, 2012
Wow, Sharp sure is ramping up IGZO display production for some reason – March 2, 2012
That’s bad news for Apple. They were hoping to have Sharp be a large alternative to Samsung for supplying components like displays. I imagine they have already committed cash to ensure primary supply so aside from buying a stake in the company they have to wait and see how Sharp do in the next 6 months.
This seems like a potential acquisition for Apple. Panels, and a LED manufacturer in one. Apple can streamline and focus te operation, bringing stability to Sharp’s business enterprise, and controlling manufacturing process for future Apple products.
Home power systems using plug and play solar would be a disruptive area for Apple. They have the industrial scale knowledge, consumer scale sources would be good. The thing is, Apple owns next to no actual production capability, they hire it all done, so maybe a backer is their role.
There are few problems Apple’s stash ‘o cash cannot solve.
Sharp tv’s don’t sell we’ll because they are pretty crap. Even though I hate Samsung. I regretfully own a Samsung 32″ LCD for computer monitor. Samsung 50″ bedroom tv. Samsung 55″ loungeroom 3d tv. All of which have issues.
32″ suffers burn in. Yes it’s an LCD with burn it from icons on the desktop.
50″ plasma has jittery coloured pixels for 1 minute after turning on
55″ 3D LED tv has white blotches on screen and terrible ghosting when using the 3D function. I estimate the refresh rate to be closer to 35ms than the stated 2ms
Have to agree, I have not seen a Sharp I would pay for yet. I have not bought a Samsung and won’t be any time soon. I have 4 Sony’s and love them and never had a problem with any of them. My XBR4 has been perfect since I got it, no problems and the picture still rocks and I still think the glass bezel design if cool. Yes, I pay more for the Sony’s but they have always been worth it.
I have a Panasonic Viera 42″ plasma that has worked well for over a year. Based on a quick visual comparison of large HDTVs at Sam’s Club the other day, there are a lot more good sets available than there used to be. For instance, I would not have touched a Vizio HDTV a few years ago, but the Vizio 60″ on display looked very good. I did not take the time to check out the settings. In past HDTV comparisons, I noticed that many of the low-end sets were pegged at the maximum brightness and contrast limits in an attempt to look as good as the Sony, whose default settings were closer to mid-range.
With respect to 3-D HDTV, my understanding is that plasma is better, in general, than LCD technology. Based on some research about six months ago, even the best 3-D LCD sets were only rated good for 3-D viewing, while several of the plasma sets were rated very good. The key appears to be the plasma refresh rate of 600Hz combined with higher potential brightness. The ultimate HDTV will be direct LED technology, not just LED backlighting behind LCD shutters. But a cost-competive true LED HDTV is still some years in the future, I suspect.
Quite a shame. I just last fall bought a 60″ LCD Internet TV and it is really really nice. When you eliminate Samsung, and the poor quality Panasonic brands, it leaves a pretty limited choice.
Frankly, the Sharp price was below Samsung and I would have likely bought it anyway because the picture was very good.
SHARP needs to dump its smartphone business ASAP!
” thats funny comment, the samsung haters wont by samsung but will buy sony” Who do u think supplys sony their panels morons. Sony stopped tv lcd production 8 mohths ago and use samsung.
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