“Foxconn has made a 600 billion yen bid (about $5.1 billion) to purchase Japanese electronics maker Sharp,” Josh Horwitz writes for Quartz.
“The acquisition hasn’t yet been approved, and is merely the latest in a series of failed investment attempts from the Taiwan-based company,” Horwitz writes. “Behind Foxconn’s eagerness to buy Sharp is a desire to make more money from the companies it assembles phones for—and specifically, its most important customer, Apple.”
“LCD screens are expensive. They’re the most costly component in the iPhone 6 Plus, by about three times more than the next part,” Horwitz writes. “By purchasing Sharp, Foxconn can earn a greater share of the bill of materials for the iPhone, and potentially other devices too. Apple would also benefit, because less money from its component orders will go into direct competitors’ pockets.”
Read more in the full article here.
MacDailyNews Take: Hopefully, for Sharp’s sake, this deal finally goes through.
Apple supplier Sharp accepts Hon Hai’s $6.2 billion takeover offer; Hon Hai says deal on hold – February 25, 2016
Foxconn fast-tracks $5.5 billion Sharp takeover bid – February 4, 2016
State-backed Japanese fund in race with Foxconn to save Sharp – January 21, 2016
Hon Hai considering $1.7 billion stake in Sharp LCD business; to ask Apple to invest a ‘few hundred million’ – September 28, 2015
Hon Hai offers to buy Sharp’s LCD business, wants Apple funds – September 21, 2015
Apple suppliers Sharp, Foxconn in talks for LCD joint venture – August 24, 2015
Beleaguered Sharp’s problems present an opportunity for mighty Apple – May 15, 2015
Apple display supplier Sharp warns on ability to stay afloat after $1.9 billion loss – May 14, 2015
Apple iPhone display supplier Sharp boosts operating profit – August 1, 2014
Sharp dedicates entire LCD plant to Apple – June 30, 2014
Hon Hai in no hurry to finalize Sharp deal – June 26, 2013
Sharp to replace chairman, president after losses – May 14, 2013
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]