iPhone-maker Foxconn not gonna save Sharp
Sharp starts making plans to save itself without help
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iPhone-maker Hon Hai Precision Industry, better known as Foxconn, will not come to the rescue of floundering Japanese manufacturers Sharp, says Reuters.
Sharp will have to look to itself to save its wilting electronics manufacturing business, says Reuters' unnamed source.
Sharp had asked the Taiwanese bits-maker Hon Hai for a cash infusion in return for a 9.9 percent stake in the company, but it sounds like Hon Hai has been dragging its feet and the deal is now off.
"We cannot make a plan based on something that is uncertain. For us, it's over," said the source.
The cash formed an important part of a rescue package for Sharp that will be presented to shareholders in March. Sharp has already drawn in cash from Qualcomm in a package that will see Qualcomm invest in making smartphone screens using Sharp's IZGO tech – touted as having twice the resolution of normal screens with 90 percent power savings.
Sharp will have to find the cash elsewhere or significantly restructure to make up the shortfall. The company faces falling revenues as the markets contract in its core area of TVs and PC displays, and is reeling from stiff competition from rivals such as the rampantly successful Samsung.
Sharp has posted losses every half year since September 2011. ®
COMMENTS
WTF?
Japanese electronics company begging Chinese electronics company for cash? What's next - the prime minister of Britain trying to persuade India to create stronger business ties with the UK?
Re: WTF?
>"You are funny Andy and I don't think you know the prime minister of Britain very well. Perhaps you should have used the "Joke Alert"."
Yes - it was my poor attempt at a joke. Like saying, "What are you going to tell me next? That the US doesn't need any Middle East oil?" -- Which is true - the US now only gets 13% of its oil from the Persian Gulf, and could easily do without it altogether, as Canada, Latin America and the US' own supplies now account for 73%. (http://www.npr.org/2012/04/11/150444802/where-does-america-get-oil-you-may-be-surprised).
Just very interesting how radically times can change.
Whoops! There goes another ...
Apple screen supplier.
It might have to buy screens from Samsung yet. How humiliating would that be?
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