Samsung Takes 3% Stake in Sharp, Key Supplier of iPhone and iPad Screens

Samsung has paid $112 million for a 3% stake in LCD screen manufacturer Sharp, a key supplier of LCD screens to both Samsung and Apple, reports The Wall Street Journal.

sharp
Sharp currently holds the technical lead in the manufacture of large-screen LCD panels, enabling it to produce TV screens bigger than 60 inches at a lower cost than other manufacturers. Despite this advantage, the company has been struggling financially over the last 18 months, laying off 11,000 staff and mortgaging key assets.

Sharp has been desperately seeking external financing to keep itself afloat, having received bank bailouts and receiving a $120 million investment from Qualcomm late last year. Foxconn was also set to make an investment in Sharp, but that deal has fallen apart as Sharp's financial picture has continued to deteriorate.

Sharp supplies LCD panels to both Apple and Samsung, including both iPhone and iPad screens, and a WSJ blog suggests that Samsung may gain priority in future supply deals.

Monex market analyst Toshiyuki Kanayama said a Samsung-Sharp tie-up could "help Sharp to at least raise the efficiency of its panel-producing plant, as it will ship products to Samsung, whereas it had prioritized supplying components for Apple."

Samsung’s bid to turn Sharp, once a major competitor, into an ally, shows how serious it is in winning a global battle with Apple for dominance in the lucrative market for mobile devices.

Samsung has been focusing its own screen manufacturing efforts on OLED technology, with analysts observing that closer ties with Sharp would help the company outsource more of its LCD production.

Top Rated Comments

notthedark Avatar
120 months ago
Picturing bald Samsung CEO sitting in a giant leather chair stroking a white cat.
Score: 31 Votes (Like | Disagree)
639051 Avatar
120 months ago
Apple's got 100 Billion dollars in reserves right? Well it's war! Buy out Samsung :D

LOL

I don't think you know how this works. I don't know how it works, but I still think you know less. :(
Score: 17 Votes (Like | Disagree)
notjustjay Avatar
120 months ago
First Samsung copies Apple's products and now they copy the strategy of securing parts. What next?

Yeah, cause Apple invented business strategy. I hope they patented it too!
Score: 17 Votes (Like | Disagree)
furi0usbee Avatar
120 months ago
I don't understand why Apple doesn't take, say, a 30% stake in Sharp... done.
Score: 13 Votes (Like | Disagree)
0815 Avatar
120 months ago
Don't see why Samsung would help a competitor.... even if it's due to financial issues.
They probably need some competition to be alive and somewhat healthy so that they don't get in trouble for having a monopoly and getting in potential trouble for being accused of abusing it.

Same way as it was back in the days a smart move of Microsoft to inject some money into failing Apple - they needed that competition to be alive and breathing to protect themselves from possible law suits.
Score: 11 Votes (Like | Disagree)
turtlez Avatar
120 months ago
Sounds like Samsung is trying to buy competition (Apple supplier). Playing their cards deviously but rewarding.
Score: 8 Votes (Like | Disagree)

Popular Stories

iPhone 14 Purple Lineup Feature

Will the iPhone 14 Be a Disappointment?

Saturday May 21, 2022 9:00 am PDT by
With around four months to go before Apple is expected to unveil the iPhone 14 lineup, the overwhelming majority of rumors related to the new devices so far have focused on the iPhone 14 Pro, rather than the standard iPhone 14 – leading to questions about how different the iPhone 14 will actually be from its predecessor, the iPhone 13. The iPhone 14 Pro and iPhone 14 Pro Max are expected...
apple ar headset concept 1

Apple's Headset Said to Feature 14 Cameras Enabling Lifelike Avatars, Jony Ive Has Remained Involved With Design

Friday May 20, 2022 6:50 am PDT by
Earlier this week, The Information's Wayne Ma outlined struggles that Apple has faced during the development of its long-rumored AR/VR headset. Now, in a follow-up report, he has shared several additional details about the wearable device. Apple headset render created by Ian Zelbo based on The Information reporting For starters, one of the headset's marquee features is said to be lifelike...
sony headphones 1

Sony's New WH-1000XM5 Headphones vs. Apple's AirPods Max

Friday May 20, 2022 12:18 pm PDT by
Sony this week came out with an updated version of its popular over-ear noise canceling headphones, so we picked up a pair to compare them to the AirPods Max to see which headphones are better and whether it's worth buying the $400 WH-1000XM5 from Sony over Apple's $549 AirPods Max. Subscribe to the MacRumors YouTube channel for more videos. First of all, the AirPods Max win out when it comes ...
apple music

Apple Increases Apple Music Subscription Price for Students in Several Countries

Sunday May 22, 2022 1:57 am PDT by
Apple has silently increased the price of its Apple Music subscription for college students in several countries, with the company emailing students informing them their subscription would be slightly increasing in price moving forward. The price change is not widespread and, based on MacRumors' findings, will impact Apple Music student subscribers in but not limited to Australia, the...
iPhone 13 Face ID

'High-End' iPhone 14 Front-Facing Camera to Cost Apple Three Times More

Monday May 23, 2022 7:05 am PDT by
The iPhone 14 will feature a more expensive "high-end" front-facing camera with autofocus, partly made in South Korea for the first time, ET News reports. Apple reportedly ousted a Chinese candidate to choose LG Innotek, a South Korean company, to supply the iPhone 14's front-facing camera alongside Japan's Sharp. The company is said to have originally planned to switch to LG for the iPhone...