Intel may take a 30 billion yen investment in Sharp by the end of the month, the 30 billion yen is less than 10% of what Sharp expects to lose this year.
There was also a report that Qualcom may also do something in the near future.
In another report Ming the Merciless aka Terry Guo is providing a personal guarantee for HonHai to move forward with the purchase of Sharp's 10th gen LCD plant. It's reported for about 19 billion yen. Keep in mind that Sharp is expected to lose 450 billion yen this year. Thus that's 5.6 billion US dollars!
Money from Intel and Hon Hai is only 49 billion yen. That's a mere 10% of the expected losses for this year.
Another report states that Sharp will raise production at it's Kameyama No. 2 plant to near 100%, this plant produces the IGZO screens for Apple's Ipad tablet.
Sharp is banking on IGZO as the revival of it's fortunes.
The Sharp debacle has now many months under it's legs since a Nikkei Analyst stated that "Sharp May Sell it's Copier Business" .
There are those of us in the copier industry that believe that the rhetoric from Sharp USA is correct and others that believe that the silence from Sharp Corp JP may tell the true story. I try to read every press release to try and make sense of what Sharp Corp will do with their copier business unit. On one hand I believe it is a valuable resource to them, however on the other hand I see how deep they are with the likes of Apple, and their IGZO displays. Those of us in the industry know that the herd of copier manufacturers needs to be culled, the industry as a whole will be stronger if Sharp decides to get out of the copier/mfp business.
I think Sharp needs to pull the plug and get out while the getting is good, page volumes don't look good for the future, while screens for tablets, mini tablets, and phones will continue to expand. So, why why hold on to a business unit that may wither away in the near future. The likes of Kyocera, and Toshiba are probably chomping at the bit to swallow the existing Sharp dealers, Sharp direct and their base.
What would you do if you were Sharp Corp?
-=Good Selling=-
No comments:
Post a Comment