Friday, September 14, 2012
Why Not Sharp!
Just today another Rueters report stated that the talks with Hon Hai (Terry Gou aka Ming the Merciless) has stalled! Hon Hai in March of this year agreed to purchase a 10% stake in Sharp for 500 yen per share. Hon Hai is now holding out for a management role in return for it's investment.
Sharp is seeking 3.87 billion worth of capital from two Japanese vendors by September 20th. The report also went on to state that Sharp has now mortgaged nearly all of it's domestic offices and factories, even the factory that makes the coveted Apple iPhone.
In light of the new development where Hon Hai now wants a management role in Sharp is quite the turn of events. I've read other reports that state their would be quite the culture clash with Taiwanese and Japanese Management
Sharp just reported today through a bloomberg report that they will return and post a fiscal profit next year.
For our industry, some have high hopes that Sharp will sell their MFP business and some state that Sharp will keep the profitable MFP business. Here in the states, I'm hoping they end their misery of low market share and sell. For an industry where many say print is on the decline means that there are still too many players. We see it everyday with eroding MFP hardware and supply pricing. Taking another player out of the industry in the US marketplace will help Dealers, Direct and Manufacturers to at least stay profitable.
As the MFP industry shrinks, it will also affect jobs, and I hate to see anyone lose their job in this economic climate, but for the good of the industry someone has got to go.
Why not Sharp!