Foxconn buys 10% share of Sharp to help boost LCD business

Posted:
in General Discussion edited January 2014


Sharp is looking to shake up its money-losing LCD business by selling a 10 percent stake to Foxconn, Apple's overseas manufacturing partner.



Foxconn will buy $808 million worth of shares in Sharp Corp., The Wall Street Journal, giving it a major stake in the Japanese LCD manufacturer. Sharp said the partnership was necessary as it and other LCD panel manufacturers continue to be unprofitable.



Sharp's losses in the LCD business are expected to contribute to its biggest annual loss in the company's 99-year history. It plans to use funds from Foxconn's investment to focus on building smaller displays for smartphones and tablets, which have seen continued strong demand as HDTV profits weaken.



Officials at Sharp said the partnership with Foxconn will create demand for products from the state-of-the-art Sakai LCD factory it opened in 2009. Until now, Sharp has struggled to find demand, but Foxconn is expected to take about half of the panels produced at the plant by the end of this year.



The partnership is noteworthy for Apple, as Foxconn is its primary device assembler, and Sharp has been a significant supplier of LCD panels for devices like the iPhone and iPad.











The news comes as Sharp is said to have recently begun shipping small volumes of high-resolution Retina Displays to Apple for its third-generation iPad. Initial Retina Display shipments have largely come from Samsung as LG and Sharp have worked to improve their output.



There have been claims that Sharp, along with LG, has struggled to meet Apple's quality requirements for the new iPad's Retina Display. Earlier reports claimed that Sharp was attempting to sell Apple on its own IGZO display technology for the new iPad, but Apple reportedly passed on the technology and opted instead to stick with traditional LCD screens.



[ View article on AppleInsider ]

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Comments

  • umrk_labumrk_lab Posts: 550member
    Brilliant ! not even necessary for Apple to do it !
  • mstonemstone Posts: 11,510member
    Quote:
    Originally Posted by umrk_lab View Post


    Brilliant ! not even necessary for Apple to do it !



    I don't know. Foxconn may become the next Samsung. Next thing you know they will be designing and building their own devices.
  • gatorguygatorguy Posts: 15,065member
    Quote:
    Originally Posted by mstone View Post


    I don't know. Foxconn may become the next Samsung. Next thing you know they will be designing and building their own devices.



    They already are claiming to do their own design work. I wouldn't be at all surprised to see some branding at some point.



    "Foxconn boasted that it leaves only the marketing to the brands that hire them: "Our customers can now focus on product positioning, marketing, sales and distribution while leaving us to take care of their product design and supply chain" said the report."

    http://www.theregister.co.uk/2012/03...hone_division/
  • blastdoorblastdoor Posts: 1,284member
    I know Foxconn loves low margin businesses, but negative margin is really a bold step.
  • tooltalktooltalk Posts: 766member
    I see it's many steps up for Foxconn, but with everyone losing money in LCD business (and bleak outlook), I don't know how this is going to change anything for Sharp.
  • paxmanpaxman Posts: 4,162member
    Quote:
    Originally Posted by AppleInsider View Post


    Officials at Sharp said the partnership with Foxconn will create demand for products from the state-of-the-art Sakai LCD factory it opened in 2009. Until now, Sharp has struggled to find demand, but Foxconn is expected to take about half of the panels produced at the plant by the end of this year.



    Apple TV
  • gtrgtr Posts: 3,179member
    Quote:
    Originally Posted by AppleInsider View Post


    Sharp is looking to shake up its money-losing LCD business



    Excellent use of grammar.



    Very gooder.
  • addaboxaddabox Posts: 12,667member
    Quote:
    Originally Posted by GTR View Post


    Excellent use of grammar.



    Very gooder.



    ? What would you prefer?
  • irontedironted Posts: 121member
    Foxconn is going to own Sharp. Plain and simple.
  • gtrgtr Posts: 3,179member
    Quote:
    Originally Posted by addabox View Post


    ? What would you prefer?



    Financially-challenged.
  • flaneurflaneur Posts: 3,915member
    Quote:
    Originally Posted by GTR View Post


    Financially-challenged.



    Sorry, G, but you would never use a hyphen with an adverb. Money-losing is standard usage.
  • gtrgtr Posts: 3,179member
    Quote:
    Originally Posted by Flaneur View Post


    Sorry, G, but you would never use a hyphen with an adverb. Money-losing is standard usage.



    Humour on the Internet.



    It is a lost art.
  • flaneurflaneur Posts: 3,915member
    Quote:
    Originally Posted by GTR View Post


    Humour on the Internet.



    It is a lost art.



    I guess so. I don't get it. But I've missed Down Under humour before. I don't know whether it's you guys or me. Some time I gotta get down there and see if things look different.
  • macky the mackymacky the macky Posts: 4,622member
    Hmmm...this way Apple can enter the TV business without tipping their hand by buying tons of huge LCD displays.
  • macky the mackymacky the macky Posts: 4,622member
    Quote:
    Originally Posted by Flaneur View Post


    I guess so. I don't get it. But I've missed Down Under humour before. I don't know whether it's you guys or me. Some time I gotta get down there and see if things look different.



    It does look different.



  • myapplelovemyapplelove Posts: 1,515member
    Quote:
    Originally Posted by Macky the Macky View Post


    Hmmm...this way Apple can enter the TV business without tipping their hand by buying tons of huge LCD displays.



    This guy got it. Kudos.



    Would someone care to tell me btw why is LCD such a losing business? Is the market over saturated or something?
  • peter236peter236 Posts: 254member
    Quote:
    Originally Posted by myapplelove View Post


    This guy got it. Kudos.



    Would someone care to tell me btw why is LCD such a losing business? Is the market over saturated or something?



    The better manufacturers are moving to AMOLED tecnology. LCD is outdated.
  • myapplelovemyapplelove Posts: 1,515member
    Quote:
    Originally Posted by peter236 View Post


    The better manufacturers are moving to AMOLED tecnology. LCD is outdated.



    Amoled panels at such large sizes? Is that possible?



    Edit:ignore question, googles my friend.
  • jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by peter236 View Post


    The better manufacturers are moving to AMOLED tecnology. LCD is outdated.



    Really? So which manufacturers are making a 60" TV with AMOLED panel. Or even a 50" TV?



    Read and learn:

    http://www.oled-info.com/amoled
  • gatorguygatorguy Posts: 15,065member
    Quote:
    Originally Posted by jragosta View Post


    Really? So which manufacturers are making a 60" TV with AMOLED panel. Or even a 50" TV?



    Read and learn:

    http://www.oled-info.com/amoled



    ...and this is a good read too. Much more informative.

    http://reviews.cnet.com/8301-33199_7...at-is-oled-tv/
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