Apple Supplier Foxconn Makes $5.3 Billion Offer to Purchase Sharp

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Apple supplier Foxconn has reportedly offered around $5.3 billion (¥625 billion) to purchase troubled Japanese electronics maker Sharp, according to The Wall Street Journal.


The report claims that Sharp is also reviewing a competing offer from the Innovation Network Corporation of Japan (INCJ), possibly in the range of $2.5 billion (¥300 billion). INCJ already owns a controlling stake in Japan Display, a joint venture formed in 2012 by the display making divisions of Hitachi, Sony and Toshiba.

Foxconn is reportedly willing to shoulder all of Sharp's debt in an effort to persuade the company's creditors. Sharp must repay around $4.3 billion (¥510 billion) it borrowed by March, urging the company and its lenders to reach a decision by February 4, when it reports its latest quarterly earnings results, according to the report.

Sharp, which experienced a net loss of nearly $1.9 billion (¥222 billion) in the fiscal year ending March 2015, supplies Apple with LCD displays for current iPhones. The company is a leading television maker, and it also sells audio equipment, home appliances, interactive display systems for business use and more.

Foxconn could begin selling its own line of electronics if it purchased Sharp, but exactly how it plans to use the company if taken over remains unknown. Any possible implications for Apple may be short lived, as Japan Display, LG and Samsung are rumored to supply the company with OLED displays for iPhones as early as 2018.

In 2012, Foxconn chairman Terry Gou personally acquired a 38% stake in a Sharp display factory in Sakai, Japan.

Article Link: Apple Supplier Foxconn Makes $5.3 Billion Offer to Purchase Sharp
 

wikiverse

macrumors 6502a
Sep 13, 2012
568
402
Foxconn don't currently manufacture displays.
Evil companies like Foxconn should not be able to own anyone else, they're done enough bullcrap.
Extending that Logic, Apple must be equally evil for using them. Without Apple's business Foxconn wouldn't be able to be evil to anyone, and without Apple pressuring them to keep prices down, they wouldn't be incentivized to do so.
 

MacBH928

macrumors 68040
May 17, 2008
3,606
1,256
Ironic how once the Japanese were dominant in the electronics market. JVC, Panasonic, Sharp, and Toshiba are all disappearing. The mighty Sony survives only through the Playstation.

I guess the computer and the smartphone killed their markets
 

dumell

macrumors member
Aug 4, 2008
31
2
Finland
Ironic how once the Japanese were dominant in the electronics market. JVC, Panasonic, Sharp, and Toshiba are all disappearing.
Panasonic alone has twice as many employees as Apple and they make a profit so "disappear" might be a bit of an exaggeration.

But yes, in many consumer product areas these Japanese companies have lost ground to others but I think it is mainly to Korean companies making similar products such as Samsung and LG.
 

tito2020

macrumors 6502a
Oct 16, 2011
844
273
Panasonic is still strong they are the only company who make high quality electronic components
 

TheRealTVGuy

macrumors 6502a
Jul 21, 2010
643
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Orlando, FL
Ironic how once the Japanese were dominant in the electronics market. JVC, Panasonic, Sharp, and Toshiba are all disappearing. The mighty Sony survives only through the Playstation.

I guess the computer and the smartphone killed their markets
Sony and Panasonic's Professional divisions are still doing fairly well. See that HD sports or news broadcast? Chances are that was shot on either Sony or Panasonic Pro gear with lenses from Canon.

But yes, it's interesting to see how companies (d)evolve over time.
 
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Boulder

macrumors member
Jul 27, 2011
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This is not surprising many electronics companies are struggle in the post iPhone era. Sharp probably makes some good products but the margins on televisions and other home electronics are certainly not once they were (plus the fact that Samsung and LG are now massive players in a formerly Japanese dominated space). I hope to see the old guard Japanese companies continue on but they require a much tighter focus than what they had in the early 2000s (that many are only now starting to realize).
 

koruki

macrumors 65816
Aug 16, 2009
1,164
487
New Zealand
It's sad to see, I love Sharp's products. They don't really care for overseas customers and I think that's whats hurting them. They have a lot of interesting products I want to purchase but they don't even stock Sharp anything here. I have buy them in asia and take them back by plane.

At the same time, Korean companies like Samsung and LG are casting a net out to scrap the market over. Most of the products use cutting edge tech as marketing but are not well thought out. I prefer the Japanese approach to designing products. Given a choice I always pick Japanese over Korean brands. Even with Samsung, its hit and miss, when its a miss its off by miles.

In saying that, there is a Japanese pride involved which may prevent the sale to Foxconn if the other buyer is Japanese.
 

MagnusVonMagnum

macrumors 603
Jun 18, 2007
5,163
1,378
Foxconn don't currently manufacture displays.


Extending that Logic, Apple must be equally evil for using them.
I'm glad you understand. ;)

ALL corporations are EVIL by definition (GREED is their ONLY motivator and EVIL is defined as total self-interest; thus I'd say yes, Apple is EVIL and so is Microsoft and especially Walmart.)

You want to support non-evil companies? Support self-owned businesses with an actual demonstrated ability to actually CARE about their community and environment and not put GREED before humanity every single time for every single decision.
 

0970373

Suspended
Mar 15, 2008
2,727
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Sony and Panasonic's Professional divisions are still doing fairly well. See that HD sports or news broadcast? Chances are that was shot on either Sony or Panasonic Pro gear with lenses from Canon.
This. (I work in TV with emphasis on live & studio broadcasts.)
 
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