At the end of last month we learned that Foxconn, Apple’s largest supplier, had made an investment of $5.3 billion to buy Sharp. Well, today their purchase is official, which has finally amounted to 6.2 billion dollars , according to the official source.
Now, under the auspices of Foxconn, Sharp intends to restructure its line of operations, although details of what exactly they will do have not yet been given. Let’s not forget that before Foxconn showed interest in the Japanese company, they received a purchase offer from Japan’s Innovation Network Corporation , a foundation that would have injected them with $2.7 billion and offered a $1.8 billion credit line.
Sharp currently manufactures the iPhone LCD panels, as well as being a leading manufacturer of consumer televisions, where they can be proud to have the best picture quality on the market. However, they have never enjoyed the popularity and luck of other manufacturers; that is why they have been declaring constant losses for years, and it was in 2015 when they declared losses of almost 2,000 million dollars , making the situation unsustainable.
That is why they had to be adopted by Foxconn, as they were unable to stay alive for a long time by themselves . They are very good, but their problems have been constant over the last few years. Let’s remember when the first Retina screens came out of the iPad, that Apple had many supply problems because those manufactured by Sharp were almost all defective on the production line, and had to be scrapped. This resulted in millions of dollars in losses for Sharp.
It is not yet very clear what Foxconn will do with Sharp, but the Chinese could sell their electronic components under the Sharp brand, which would be a commercial success . The impact of this change for Apple could be short lived, as they are expected to change display manufacturers before 2018, with Japan Display, LG and Samsung for OLED displays, as suppliers.