Feeds

Foxconn overlord seeks cheap Sharp stake to cope with Apple fanbois

Shuffling, moaning hordes clamour for more SCREENS

Intelligent flash storage arrays

Foxconn daddy Hon Hai wants a piece of Sharp so it can improve the moribund telly biz's production of Apple iPhone displays - but it will only do the deal if talks on how to boost Sharp's earnings pan out.

Hon Hai executive Tai Jen Wu told reporters in Sakai, Japan, that discussions about sharpening Sharp's profits were central to the investment deal.

The Foxconn overlord had promised to fork out ¥66.9bn (£547m, $853.8m) for a 9.9 per cent stake in Sharp and another ¥66bn (£539.58m, $842.3m) for a 46.5 per cent stake in the display maker's joint venture telly business with Sony. But when Sharp announced a massive billion-yen net loss in the second quarter that sent shares tumbling, Hon Hai said it wanted a new, cheaper agreement.

"Our alliance with Sharp will raise our profile and help us as a supplier to Apple," Tai Jen Wu said, but he added that whether or not the investment goes ahead depends on Sharp taking Hon Hai's advice on how to sort itself off.

Both Hon Hai's Foxconn and Sharp make screens for iPhones and iPads, designed by Tim Cook-led Apple.

Like most telly businesses, Sharp has been suffering from a global lack of demand, leading to the firm's worst ever annual loss in the last business year. Its descent into the red was accelerated by the strong yen that put South Korean rivals LG and Samsung in a stronger position as well as reducing its own earnings.

However, Hon Hai still seems to be interested in the firm and it's expected to announce a deal with Sharp as early as this Friday. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.