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Samsung Takes 3% Stake in Sharp, Key Supplier of iPhone and iPad Screens
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nope, but it opens the door to further investments should it be deemed necessary. now they have their foot through the door.
On the other hand, I really liked your thought process below
If that was their goal then maybe it could be accomplished in 3-4 years with the amount of cash they are raking in right now.
Except there are now competition concerns: Samsung is already pretty dominant when it comes to LCDs.
The way it should work is customers like Apple and other smartphone vendors who would prefer a non-Samsung screen supplier should take a bigger interest in the company. Their own orders would improve the fortunes of the company.
Sharp's value to Apple is as a supplier that won't compete with them (seriously). An investment by Samsung doesn't immediately change that, but it does hedge Samsung's business by allowing them to profit from any shift in Apple's supply chain away from them.
Apple is too conservative these days. They're almost paralysed. A hoard of gold that would make Smaug envious and they don't have the imagination to do anything with it.
I think I'd feel slightly better about Apple if they were even making bad decisions; right now they seem to be making no decisions.
With all this competition for parts and supplies I just can't help but think if the U.S. could figure out a way to make it attractive for Apple and other American companies to build and maintain their own factories here in the U.S. it would help them keep a competitive advantage over other companies. Its hard to keep a advantage when you all use the same parts.
Mr. President, I didn't know you frequent these boards. Best of "duck" in your next term.
All is NOT fair in business. If Apple can force a company to sell it a component for 90% discount, good for them. If they markup their prices too high, customers can choose not to buy from them. Good for us.
Have you noticed the stock market is at an all time high? Business is feeling kind of good. But what happened to all the jobs lost and the high unemployment? Business doesn't actually need the workers. Outsourcing, better technology in manufacturing...
The problem is, as Wal-Mart has found out, at some point, even buying all your crap from China then selling it to low-income buyers, even now this model is breaking for Wal-Mart, as the people they employ can't even afford to buy stuff at Wal-Mart anymore.
Not to get political or anything.
Apple's got 100 Billion dollars in reserves right? Well it's war! Buy out Samsung
LOL
You do realize that in total assetts Samsung is twice as big as Apple and make twice as much in total revenue, right?
Actually not, they could get a majority stake holding at less than 10% so all they need would be a seller willing to part with stock, a front company to cover up aggression and about 30-40 Billion dollars.
Did you forget Microsoft invested in Apple for $150 million in 1997?
http://news.cnet.com/2100-1001-202143.html
Well Apple has twice as much in profits! So if apple want to take over Samsung they can as Apple would need less than 10% stake in Samsung to gain control destroy and then just destroy Samsung!
I see he didn't mean that now, but at first I assumed he just meant to buy an even larger portion of Sharp than Samsung.
Apple has given Sharp a new lifeline in all practicality, they manufactured screens for the early iPods and this saved them from bankruptcy, Sharp owes it's life to Apple. So does SanDisk who had no takers in 2001 and apple gave them a new lease of life by taking their flash storages into the iPods. These companies have a lot to payback to Apple. So do the music companies and so do the movie studios! For the first time in over a decade the music industry has seen positive growth in sales, why? thanks to Apple.
But if Apple uses FoxConn as a front company to infuse capital into Sharp then Apple maintains control over Sharp without actually risking bad name for unhealthy business practices.
I hate double standards...
Isn't that the same behaviour that you most Apple fan hated Microsoft for in the 1990s?
I'm not sure why the FTC would be concerned if a TV brand vendor actually made their own TVs. It's been done before.
But they could use front companies like say FoxConn or one of their own subsidiaries.
Well if Apple takes over Sharp, they could say that they are saving Sharp and also at the same time reduce Sharp to a menial supplier. I guess Samsung will take control of Sharp soon and cut of Apple from low cost displays hence gaining an upperhand in the market in terms of price and profitability.
