Sharp Corp is aiming to supply both Apple and Samsung with screens for phones and tablets. The discrepancy here is that Japan’s leading maker of liquid crystal display is planning to supply to two great rivals in the same time.
The surprise is not that big. Multiple electronic supply chains tend to provide components and parts for many companies in the same time. For example, Foxconn, one of Apple’s largest suppliers seems to supply just about everyone.Liquid crystal display maker will rely on expanding supplies of small panels to Samsung Electronics while shipping screens for phones and tablets to its rival Apple.
This represents the company’s plan to remain viable after it has encountered various problems in the past. Japan’s TV pioneer avoided failure during the previous year with a $4 billion bailout from lenders. The company plans also to borrow another $1.47 billion in order to repay a 200 billion yen convertible bond due in September.
After revealing the last year’s results, Sharp is going to set a goal of raising annual operating profit to $1.5 billion until March 2016 on revenue of $30 billion. In the same time, the company will take serious measures.
Sharp will also reduce its number of directors by 12 people while the number of workers will decrease with 10,000 people. The company also seeks buyers for overseas assets including its TV assembly plans in China, Malaysia and Mexico. Back in October 2012, Sharp mortgaged its offices and factories in Japan, including the location that manufactured screens for Apple iPad and iPhone.
The decision to include Samsung in its list of buyers came along after Apple has dropped the orders for screens for their devices. At that time, Sharp has reduced the number of 9.7-inch screens for Apple’s iPad with a significant percent.
On the other hand, Samsung has announced that the company will inject $103 million into Sharp for 3 percent stake in the Japanese Company. The incoming deal will provide small LCD screens for Apple’s rival. Samsung has also tried its luck in buying its copier and printer business, but Sharp rejected the proposal.
Through a plan to expand sales of household appliances, the Japanese company took a bid to underpin earnings over the next three years. Compared to the black period experienced in November, Sharp is expected to report a 500 billion yen net loss for the first quarter, more precisely at the end of March 31.