Apple assembler Foxconn bids $5.3 billion to take over iPhone display maker Sharp

Posted:
in General Discussion
In a potential merging of two key Apple suppliers, Foxconn has officially bid $5.3 billion to take over Sharp -- a move that would resolve the display maker's considerable growing debts.




Foxconn is said to have significantly outbid other contenders for Sharp, according to The Wall Street Journal, putting it in a strong position to take over the Japanese company. A competing bid from Innovation Network Corp. of Japan was less than half Foxconn's offer.

Any deal must be approved by local officials, who may prefer the INCJ bid because it is a Japanese company. But Foxconn's bid is said to be particularly compelling because the Taiwanese company has agreed to take on all of Sharp's debt.

Reports from last year suggested that Apple could contribute to Foxconn's purchase of Sharp. But Thursday's report gave no indication whether Apple played any part in Foxconn's $5.3 billion bid.

Apple already has a major stake in Sharp's LCD business -- the company's Kameyama plant No. 1 in Japan solely produces displays for Apple's iPhone. Apple is said to have supplied more than half of the 100 billion yen, or $987 million, needed to transition the plant from HDTV panels to smartphone LCDs, giving the Cupertino company operational control of the facility.

In addition to iPhones, current iPads, and other Apple devices, Sharp is also believed to be the main supplier of Retina displays for the iPad Pro.

Comments

  • Reply 1 of 13
    MacProMacPro Posts: 17,835member
    "Thursday's report gave no indication whether Apple played any part in Foxconn's $5.3 billion bid."  While technically that may be true, Foxconn's ability to make the bid stems directly from their business with Apple.  
  • Reply 2 of 13
    Apple should have bought Sharp. They should also buy Foxconn. They should buy every company in their supply chain so the rampant rumors and outright false narratives from wall street analysts can be put to bed once and for all. By completely putting these clowns in the dark, maybe the manipulation through pie-in-the-sky numbers can stop, leaving only the guidance by Apple to go on.
  • Reply 3 of 13
    "Thursday's report gave no indication whether Apple played any part in Foxconn's $5.3 billion bid."  While technically that may be true, Foxconn's ability to make the bid stems directly from their business with Apple.  
    You sound pretty sure about that. I've never seen anything that says that Apple is responsible for Foxconn's size.
  • Reply 4 of 13
    Foxconn's businesses goes beyond just Apple.  ;)

    Apple is just one of the many though a bigger piece but not big enough to cause Foxconn to fold if Apple is to totally withdraw its business with Foxconn.
  • Reply 5 of 13
    jax44jax44 Posts: 78member
    Maybe Apple is buying, using Foxconn.
  • Reply 6 of 13
    irelandireland Posts: 17,491member
    One reason for Apple to not buy these companies is to have them fight it out amongst themselves for Apple contracts thus giving Apple a better deal. Also, the Chinese government probably would not approve a purchase bid on Foxconn from Apple. It's much better Apple doesn't buy these guys.
    jbdragonanton zuykov
  • Reply 7 of 13
    Apple should have bought Sharp. They should also buy Foxconn. They should buy every company in their supply chain so the rampant rumors and outright false narratives from wall street analysts can be put to bed once and for all. By completely putting these clowns in the dark, maybe the manipulation through pie-in-the-sky numbers can stop, leaving only the guidance by Apple to go on.
    Big business is all about receiving money yet deferring all liability. Therefore Apple will always subcontract; forever. 

    Perhaps Tim and Jony play this game the best.

    I'd like to see an ol' fashioned "throwback" scandal; for old times sake. Say: a iPhone 7 prototype is found in an obscure bar in Singapore and local police are investigating. See this image of Tim Cook pumping gas? Is that the iWatch 2.0 he's wearing??? Or, found within the pages of a tech journal nobody has ever heard of, when translated from it's native Australian; is this a CAD sketch of the Apple iCar driver interface?   


  • Reply 8 of 13
    jax44jax44 Posts: 78member
    ireland said:
    One reason for Apple to not buy these companies is to have them fight it out amongst themselves for Apple contracts thus giving Apple a better deal. Also, the Chinese government probably would not approve a purchase bid on Foxconn from Apple. It's much better Apple doesn't buy these guys.
    Makes sense. Investing in tooling and plant expansion as they currently do is a smart strategy.
  • Reply 9 of 13
    melgrossmelgross Posts: 31,261member
    A couple of years ago Samsung made a big investment in Sharp. I wonder what happens to that.
  • Reply 10 of 13
    igorskyigorsky Posts: 422member
    ireland said:
    One reason for Apple to not buy these companies is to have them fight it out amongst themselves for Apple contracts thus giving Apple a better deal. Also, the Chinese government probably would not approve a purchase bid on Foxconn from Apple. It's much better Apple doesn't buy these guys.
    Very astute analysis, especially considering that your average person is under the belief that Apple should buy every company under the sun because they have $180 billion in the bank.
    anton zuykov
  • Reply 11 of 13
    slurpyslurpy Posts: 5,076member
    Apple should have bought Sharp. They should also buy Foxconn. They should buy every company in their supply chain so the rampant rumors and outright false narratives from wall street analysts can be put to bed once and for all. By completely putting these clowns in the dark, maybe the manipulation through pie-in-the-sky numbers can stop, leaving only the guidance by Apple to go on.

    How the fuck would buying Foxconn alleviate these issues? If anything, it would exasperate them, and Apple would TRULY be held responsible for any incident that happens in these massive manufacturing plants. 
  • Reply 12 of 13
    Is this for the entire company? If it is, the mighty sure have fallen. Only a couple of decades ago, Sharp was one of those invincible Japanese companies that was set to take over the world.
  • Reply 13 of 13
    MacProMacPro Posts: 17,835member
    "Thursday's report gave no indication whether Apple played any part in Foxconn's $5.3 billion bid."  While technically that may be true, Foxconn's ability to make the bid stems directly from their business with Apple.  
    You sound pretty sure about that. I've never seen anything that says that Apple is responsible for Foxconn's size.
    I would think the current market place in which they thrive, particularly in mobile, is strongly connected to the invention of the iPhone.  I also suspect that going forward Apple's interest in Sharp's technology is a motive for their interest in Sharp. 
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