Apple should buy Sharp... and expand the company
$4000 TVs minimum.
Apple should buy Sharp... and expand the company
Not true.For Processor TSMC is the only source. Got rid of Samsung. Amazon is planning to buy TI.
this is how real bailouts should happen.. business helping business.. not tax money wasted.
Why not just buy Sharp at a steep discount?
They will. Apple winning $1 billion by suing Samsung and loosing $2 billion because it had to prop Sharp to get the components they could easily get from Samsung. That makes perfect economic sense (and APPL trend proves it).
What do you mean by "had they played nice" when only referring to Apple? Or was the "they" all encompassing (Apple & Samsung)?
I may have mistaken your wording on that last post.
It also makes perfect economic sense for Apple, with $121 billion in the bank, to sit there and let Sharp fail, removing competition for Samsung, a major supplier of parts, allowing Samsung to take Apple to the cleaners in the future.
Nice to see Apple playing nicely for once rather than suing!
Someone mentioned "Sharp"'s HDTV market "dried up".
Not entirely true. "Pioneer", which was arguably one of the best plasma TV manufacturers, closed their "Elite" plasma division a few years ago. "Panasonic" and "Sharp" bought most of "Pioneer"'s tech, with "Sharp" securing the rights to "Kuru" technology.
"Sharp" has released an amazing LED LCD that rivals the blacks on plasma's (most videophiles prefer plasma display's for their deeper blacks that LED LCD's have difficulty in displaying due to the nature of the tech). I'd wager "bailing out" "Sharp" may be due to Apple's use of "Sharp" technology in the rumored television. Remember, Apple stores used "Pioneer" plasma's for their "AppleTV" displays (now "Sony" is their goto manufacturer). Since "Sharp" owns "Pioneer"'s "Kuru" tech and is making strides in that market, it's a rather safe wager.
http://elitelcdtv.com
Notice "Sharp" isn't branded any where on the product, however the company is the manufacturer.
Suing for good reason is hardly being mean. How would you like it if someone came along and stole your designs that you work on all year round.
LG has been primary source for LCDs for years now, even before Apple got into spats with Samsung. Also Apple now has Sharp, Japan Display, AUO, and CMI all supplying various displays.
Both Hynix and Elpida have been supplying RAM for years now. Ditto for Hynix and Toshiba for NAND Memory.
TI has nothing to do with Apple here. TI's OMAP division relies on others to make chips for them. It's more of the nature of the business though. You effectively have to make two versions of the chips if you're getting two fabs involved.
Basically I don't see anywhere Apple has "cornered" itself to a single primary source because of the fight with Samsung. In almost all areas they have been multi-sourcing for years.
Just playing the other side here but why didn't the reporter of this story go the extra step to check Sharps annual or quarterly reports for a loan or cash in flow not related to sales for the same amount? If Apple invested or loaned Sharp cash it has to show.
And no wonder so many people are broke in this world. Stop with the Apple should just buy x company. That is not how things work. Just because you have cash in the bank does not mean you need to spend every penny on any company you complete with or do business with.
I think Apple wants Sharp's display technology for another reason: Sharp will provide the big display panels for the much-rumored Apple television set, one that Apple may have already prototyped using older display technology to demonstrate the software and interface of such a future set.
Imagine a beautiful IGZO-based AMOLED panel in the 55" to 65" range that will be used on a real Apple television set, one that integrates control of a DVR, Blu-ray player and online video sources from a singular control interface based on iOS.....
Well, I think people are forgetting something
A company called Apple got some investment of $150 million from Microsoft &
stayed afloat for some time. Later on , because of its own innovations & strategies became most valued company in the World.
I'm not sure how the money should show up on their financials based on accounting rules. But it isn't a loan and it might not be required to show up separately in cash flow though it might be baked into the total number in a way that can't be figured out..
The obvious reason Apple doesn't want to buy Sharp, is that it doesn't want to get in a bidding war with an equally deep pocketed Samsung... who know that without Sharp, Apple falls into their arms.
Well, I think people are forgetting something
A company called Apple got some investment of $150 million from Microsoft &
stayed afloat for some time. Later on , because of its own innovations & strategies became most valued company in the World.
Say somebody breaks into your house and steals all of your gadgets and gets caught. If you pursue legal action against them you are being nice following the socially accepted way to resolve the issue. If you wack them over the head and dispose of their bodies in a swamp you aren't being so nice. Either path can be effective in dealing with a thief but one can get you into more trouble.
Honestly, Apple is hurting for it's childish behaviour with Samsung. Samsung has been the best and most reliable supplier and stopping relations with them was the dumbest idea ever.
Here is the chart of over/under capex vs projected. It is in tick-tock mode.Dediu has much more on the spending and his analysis at Asymco.
Holy quotations batman!
Probably under current liability -> deferred revenue. It is a very common occurance when a company receive payment in advance of goods delivered. e.g. insurance company collect premium once every 6 month or a year in advance, so they have a lot of deferred revenue. Apple has some of deferred revenue as well. As Sharp start to deliver product to Apple, the amount they deliver each quarter will show up in the income statement and the amount in deferred revenue will be reduce by the exact same number.
The risk here is that if Sharp fold, the $2B prepayment for product is very low in the claim priority and more than likely Apple will be out most of the 2B. But if Sharp can maintain their operation, the 2B prepayment is money good. The key is whether Sharp really get the IGZO production problem fix. If they do, Apple demand for the product will be hugh and Sharp will probably make it.
http://www.sec.gov/cgi-bin/viewer?a...sion_number=0001193125-12-444068&xbrl_type=v#
Thanks. Yeah, that makes sense. I wonder if this prepayment could be applied to a variety of items beyond just the screens. Sharp can probably make something that Apple can use, so as long as it stays in business, it can repay this payment even if the screens don't work out.
You can sugar coat what they are doing all you want. They still paid 2B out of pocket which they may or may not ever see again.
If Sharp can stay in business long enough. Who knows.
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Apple isn't infallible. Companies make poor purchasing or business deals all the time. Time will tell.