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

[ekim]

Apple should thank Samsung

Apple has so much money but, not willing to help Sharp who desperately needs "investors" to stay in business.

Samsung took the risk by investing in Sharp so that Sharp can keep supplying LCD panels to Apple and other customers.

Otherwise, Sharp would be out of business, and Apple would not have enough LCD panels to produce enough iDevices and price of APPL would continue to slide.

Apple owes Samsung mucho gracias, right?

 

[Applefanboy8153]

Apple may not even have enough money for 10% of Samsung.....Samsung build just about anything you can think of.


South Korean government would never let Apple get a foothold in Samsung either.

Apple has enough to take over Samsung (51%). Samsung is valued at 164 billion dollars according to Forbes.Apple has cash reserves amounting to 100 billion dollars. 10% of Samsung is like 18billion at the very most.

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Apple has so much money but, not willing to help Sharp who desperately needs "investors" to stay in business.

Samsung took the risk by investing in Sharp so that Sharp can keep supplying LCD panels to Apple and other customers.

Otherwise, Sharp would be out of business, and Apple would not have enough LCD panels to produce enough iDevices and price of APPL would continue to slide.

Apple owes Samsung mucho gracias, right?

Lol you have got to be kidding me. Samsung invested in sharp so that they could get a foothold there. I think Samsung wants to disrupt LCD display supply to Apple. Also a few hundred million dollars are nothing for these companies.

 

[ekim]

Apple has enough to take over Samsung (51%). Samsung is valued at 164 billion dollars according to Forbes.Apple has cash reserves amounting to 100 billion dollars. 10% of Samsung is like 18billion at the very most.

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Lol you have got to be kidding me. Samsung invested in sharp so that they could get a foothold there. I think Samsung wants to disrupt LCD display supply to Apple. Also a few hundred million dollars are nothing for these companies.

APPLEFANBOY8153,

You seem to be smarter than rest of us, and have a deep insight into why Samsung invest in Sharp.

Do you know why Apple did NOT invest in Sharp with their seamingly unlimited surplus money, and risk losing LCD supply which is already in short supply???

 

[Applefanboy8153]

APPLEFANBOY8153,

You seem to be smarter than rest of us, and have a deep insight into why Samsung invest in Sharp.

Do you know why Apple did NOT invest in Sharp with their seamingly unlimited surplus money, and risk losing LCD supply which is already in short supply???

Apple has no reason to, Apple has long term contracts with Sharp for supply of these parts!

 

[thekev]

Lol you have got to be kidding me. Samsung invested in sharp so that they could get a foothold there. I think Samsung wants to disrupt LCD display supply to Apple. Also a few hundred million dollars are nothing for these companies.

You're fabricating reasoning here as if their entire strategy somehow revolves around Apple and a 3% stake grants them the power to somehow disrupt sales. If you bothered to put any thought into it, you would notice the failure in your own logic.

 

[ekim]

Apple has no reason to, Apple has long term contracts with Sharp for supply of these parts!

Apple's long term contract with Sharp is good only if Sharp could stay in business which was unlikely without Samsung's investment.

Samsung's investment saved Apple's supply contract with Sharp. It is about time for Apple and their fanboys to thank Samsung, right?

 

[iphoneclassic]

What I am speculating is that Apple owns some of the machines in a Sharp factory. They are owned by Apple NOT Sharp.

Sharp's creditors can't touch those machines, they are legally owned by Apple. Apple has every right to move those machines out of Sharp's factories at anytime, even if Sharp goes bankrupt. It's not like repoing cars on TV shows.

I don't understand what is illegal.

You must be working at Wall Street. This is the most creative idea after Mortgage Backed Securities. A customer can install their own equipment at a supplier location without investing and pickup the assembly line ie., recoup 100% of their (non) investment even if supplier goes bankrupt.

 

[maxosx]

I don't understand why Apple doesn't take, say, a 30% stake in Sharp... done.

I don't understand most of Apple's failures to move on what appears to be some common sense decisions. After many years as a satisfied, loyal Apple customer who's a serious tech enthusiast, I'm disappointed in how they're acting these days.

 

[Samtb]

Apple's long term contract with Sharp is good only if Sharp could stay in business which was unlikely without Samsung's investment.

Samsung's investment saved Apple's supply contract with Sharp. It is about time for Apple and their fanboys to thank Samsung, right?

Why are many of the large Japanese electronics companies struggling ATM? Is it the strong yen?

 

[Solomani]

Why are many of the large Japanese electronics companies struggling ATM? Is it the strong yen?

Lots of reasons. Japan tsunami and Fukushima nuclear meltdown. Last year's Chinese mass-boycott and mass-rioting and attacks/protests on Japanese factories in China (thanks to 18 zillion nationalistic Chinese being upset about the disputed Islands). Nikon of Japan even admitted that their recent "crap quarter" performance was greatly affected by the Chinese boycotts crippling their sales/revenue/profits. Many other large Japanese corps have suffered as much. A strong yen (which paradoxically hurts their overseas business). Many other factors too.

Japan's economy and business sector has simply had a string of bad luck, along with some genuinely lackluster management (e.g. Sony). They simply can't get a break.

 

[ekim]

Why are many of the large Japanese electronics companies struggling ATM? Is it the strong yen?

Other countries with strong leadership learned "know how" from Japan, and are offering even higher quality products and/or better prices/values than Japanese who did the same to Americans decades ago.

 

[Samtb]

Other countries with strong leadership learned "know how" from Japan, and are offering even higher quality products and/or better prices/vales than Japanese who did the same to Americans decades ago.

What kind of "know how"? Business strategy?

 

[ekim]

What kind of "know how"? Business strategy?

Business strategies/processes, technologies, infrastructure, management, marketing, politic ... anything and everything that helps.

 

[lazard]

Why are many of the large Japanese electronics companies struggling ATM? Is it the strong yen?

Yes, the Yen was historically strong against the Dollar and Euro for the past 3 years. Basically a double whammy in terms of higher price for their goods and a considerable forex hit when they repatriate their overseas profits.

 

[spacepower7]

You must be working at Wall Street. This is the most creative idea after Mortgage Backed Securities. A customer can install their own equipment at a supplier location without investing and pickup the assembly line ie., recoup 100% of their (non) investment even if supplier goes bankrupt.

This "creative idea" is perfectly legal and has been in use around the world for decades before MBS's were invented.

If I own a factory, I can rent out my unused space to another company to set their own production line. I can charge rent and even allow them to pay my employees to run their machines. If I go bankrupt, my creditors can't take the other companies machines. This has been happening for decades.

Many small companies can't afford to rent or buy entire buildings. One company A I currently work with subleases 3 office rooms in their building to another company B. If company A goes bankrupt, their creditors can't take the computers that company B owns in those 3 rooms.

In regards to Apple and Sharp, they could easily and legally form a joint company where Apple owns 99% and Sharp owns 1%. This company could own the $2 Billion equipment and be located in one of Sharp's factories. This company can use current Sharp employees or hire new ones. This new joint company can pay the mother Sharp company for labor, utilities etc....

This is all legal and is in no way a new "creative idea".

 

[Samtb]

Other countries with strong leadership learned "know how" from Japan, and are offering even higher quality products and/or better prices/values than Japanese who did the same to Americans decades ago.

So am I correct in thinking that many of these Japanese companies are now relying heavily on Apple and other large manufacturers to buy parts from them?

 

[ekim]

So am I correct in thinking that many of these Japanese companies are now relying heavily on Apple and other large manufacturers to buy parts from them?

I believe Apple and most other companies buy components from any supplier who offer the lowest price for a defined set of quality requirements with NO regard to future health of their suppliers and their home countries.

Japan appear to lost their edges from changing generations while other nations are following footsteps of Japan's previous generation.

 

[cjmillsnun]

A 3% stake and this is news?

FFS They own 3/100 of the company. It's not even close to a controlling share.

IT'S NOT NEWS

BTW you know Coke has a minority stake in Pepsico right?

 

[Applefanboy8153]

You're fabricating reasoning here as if their entire strategy somehow revolves around Apple and a 3% stake grants them the power to somehow disrupt sales. If you bothered to put any thought into it, you would notice the failure in your own logic.

A 3% stake opens up a window for future stock options. Please read all the posts.

 

[grkm3]

Apple has enough to take over Samsung (51%). Samsung is valued at 164 billion dollars according to Forbes.Apple has cash reserves amounting to 100 billion dollars. 10% of Samsung is like 18billion at the very most.

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Lol you have got to be kidding me. Samsung invested in sharp so that they could get a foothold there. I think Samsung wants to disrupt LCD display supply to Apple. Also a few hundred million dollars are nothing for these companies.

Samsung market cap is over 220 billion and is growing faster than anyone right now

That 160 billion from Forbes is from way back in April before the galaxy s3 came out and Samsung has been netting 20billion 1/4 ever since.I have no doubt that Samsung will break 300 billion and pass Google in less then 2 years with the galaxy s4 and note 3.Samsung is expecting to sell 100 million gs4s this year alone.

 

[thekev]

A 3% stake opens up a window for future stock options. Please read all the posts.

You're still suggesting that their sole purpose is to disrupt supply. There isn't any real basis for that. Is it somehow inconceivable that Samsung wants to ensure future access to technology Sharp has in their pipeline? It annoys me when people always spin the news as someone working in or against the interests of Apple. It may be an Apple interest site, but not everything works that way.

 

[iphoneclassic]

Why are many of the large Japanese electronics companies struggling ATM? Is it the strong yen?

Their focus was on designing the best hardware. Even when Samsung introduced software/services/apps to Television, they just ignored for few years. By the time they realized they are loosing market share, it was too late. Even though they make several electronics, bulk of their sales was from televisions, which took a major hit.

Here is a good article from WSJ.

http://online.wsj.com/article/SB10000872396390444840104577551972061864692.html