Samsung Takes 3% Stake in Sharp, Key Supplier of iPhone and iPad Screens

[Applefanboy8153]

Actually they would need more than 14.35% to get a majority stake.

No, they can always get a Front company such as FoxConn to invest into Samsung, they can also use Front companies that they acquired over the years to take over Samsung to avoid FTC.

 

[iSunrise]

Did Sharp/LG solve the screen issues they were having, e.x. with Macbooks/iMacs and iPads?

I am talking about ghosting on the Macbooks and color uniformity issues on the iPad. I also don´t like the yellowish tint on the iPad 4, I prefer my iPad 3.

Otherwise I´m not going to buy an iPad 5.

 

[Applefanboy8153]

World domination. It's a conspiracy, I tell ya.

The conspiracy of multi touch! The next best seller! Lol

 

[uknowimright]

Image

[maniacal laugh..] [maniacal laugh..] [maniacal laugh..]

man I love that bear

 

[Applefanboy8153]

Yes, sounds like that would be a smart way of securing the access. But I guess Apple would rather have full control (owning the whole process) - wonder if they some day might use their cash to build (or buy) their own factories for all/most the parts they need.

They could do it right away, with 100 Billion dollars you can a long...long way my son!
Did you know that Apple already make their own glass and shelf components for Apple stores? Thats for starters I guess!

 

[bobenhaus]

Apple's got 100 Billion dollars in reserves right? Well it's war! Buy out Samsung

LOL

You do know Samsung is bigger a worth more then Apple? Just because Apple has cash doesn't mean they are worth more. lol. Do some reading.

 

[Applefanboy8153]

Does this sound like a long term agreement to anyone else?

No sir not to me!

----------

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.

More like 4-5 years with their current rate of growth and rate of profitability.

 

[bobenhaus]

You do realize that in total assetts Samsung is twice as big as Apple and make twice as much in total revenue, right?

Yeah a lot of people praise Apple and have no clue what they are talking about. Samsung is HUGE and make lots of money. People see the Market Cap of Apple and they think its everything. Even Google has over 70 billion in cash. But they don't talk about it.

 

[Applefanboy8153]

Buy 10% of Apple shares.

They could not even if they wanna cause they dont have the cash for that!

 

[phillipduran]

Sounds like Samsung is trying to buy competition (Apple supplier). Playing their cards deviously but rewarding.

He who controls the screens, controls the universe.

The screens must flow!

 

[Applefanboy8153]

"Too big to fail." LOL what is this 2008?

Well according to the principle of Going Concern Concept a business entity exists indefinitely hence if Sharp fails, there are always buyers like Samsung in this case. Sharp is actually Too big to fail as they are a key supplier to many smartphone and tablet makers, hence these companies would never allow Sharp to fall.

 

[newdeal]

...

Not that I have any knowledge of making displays but it seems to me like Sharp is being poorly run if they can't turn a profit with the number of displays they sell.

 

[Lone Deranger]

First Samsung copies Apple's products and now they copy the strategy of securing parts. What next?

Monkey see, monkey do.

 

[spacepower7]

Hmmm

How soon people forget their history....

July 28th 1999, Apple announced that it was investing $100 million in Samsung Semiconductor Inc., to help expand Samsung's TFT capacity.

Hmmmm

 

[Newton70]

Apple is not going to do anything about samsung's 3% Sharp investment, since Cook and company are too busy watching their share price get crushed (now down over 40% from its peak and today's downgrade by Citi).

 

[Applefanboy8153]

Not that I have any knowledge of making displays but it seems to me like Sharp is being poorly run if they can't turn a profit with the number of displays they sell.

Sharp is like a 3rd world company... their need is being exploited by the larger companies like Apple and Samsung.

 

[Applefanboy8153]

Apple is not going to do anything about samsung's 3% Sharp investment, since Cook and company are too busy watching their share price get crushed (now down over 40% from its peak and today's downgrade by Citi).

Exactly..Apple needs someone with more guts than a chicken! Cook get out please!!!!

 

[Diode]

Don't see why Samsung would help a competitor.... even if it's due to financial issues.

Same could be asked about Microsoft investing in Apple. Truth be told - I'm sure it's to fight off cry's of monopoly if Sharp were to fail.

Well that's why M$ gave money to Apple.

 

[Skika]

Apple should pay fair prices for their components, if that would be the case then companies like Sharp amongst others would not have to cut 1000s of jobs.
Pays unfair low prices for components, sells for a premium.
Yes, yes, I know that's how businesses work, but still.

Based by what, or who?

 

[Solomani]

Why? 3% won't give them much say in it.

Exactly. A 3% stake is far from a "controlling stake" of a company.

 

[lazard]

Are you ****ing nuts? Do your homework for god's sake! THE Apple Inc. Brand is worth more than 10 Sharps put together! That is more than 2 times Samsung's brand value so ****ing shut up!

Edit: http://thingsappleisworthmorethan.tumblr.com/
Samsung has over 100-200 times the number of products apple has and yet they are valued at just over half of what apple is valued at.

Samsung Electronics is valued at just over half of what Apple is valued at. Samsung Group is worth more than Apple.

 

[Applefanboy8153]

Exactly. A 3% stake is far from a "controlling stake" of a company.

But it does open up a window for future investments to block Apple from gaining access to low cost high res screens. I would expect that to happen by 2015 as Apple's supply contract will be up for renewal then.

 

[Applefanboy8153]

Samsung Electronics is valued at just over half of what Apple is valued at. Samsung Group is worth more than Apple.

Apple inc 550 billion usd
Samsung group is not a traded company. Well bring together all Samsung companies and they are still at 350 billion
Apple inc is the world's second most valuable company. Get your facts straight.

 

[Solomani]

But it does open up a window for future investments to block Apple from gaining access to low cost high res screens. I would expect that to happen by 2015 as Apple's supply contract will be up for renewal then.

Of course. Even a 3% stake of a public company means that they have some kind of influence. No one is doubting that. And to be sure having even that much investment in a company means that Samsung can use it to "vote" on key internal decisions and strategic directions within Sharp. They can also wield it to buy or push influence to the other 97% investors. The reality is that the majority of those other investor-owners are most likely entrenched Japanese millionaires, and culturally they would frown on being "taken over" by a symbol of Korean industry.

But the point is, 3% is still nowhere near a controlling interest of a huge multi-national company. It would be different if (for example) Samsung suddenly attained 40% or 45% ownership of Sharp. Now THAT would be tantamount to (approaching) a takeover, and hence would be Panic Time for Apple (assuming they had not found alternate suppliers already).

 

[Applefanboy8153]

Of course. Even a 3% stake of a public company means that they have some kind of influence. No one is doubting that. And to be sure having even that much investment in a company means that Samsung can use it to "vote" on key internal decisions and strategic directions within Sharp. They can also wield it to buy or push influence to the other 97% investors. The reality is that the majority of those other investor-owners are most likely entrenched Japanese millionaires, and culturally they would frown on being "taken over" by a symbol of Korean industry.

But the point is, 3% is still nowhere near a controlling interest of a huge multi-national company. It would be different if (for example) Samsung suddenly attained 40% or 45% ownership of Sharp. Now THAT would be tantamount to (approaching) a takeover, and hence would be Panic Time for Apple (assuming they had not found alternate suppliers already).

Well a lot of these Japanese billionaires are ready to dump their stock so advantage Samsung.