Apple Supplier Foxconn to Acquire Sharp for $6.2 Billion [Updated]

by

In late January it was reported that Apple supplier Foxconn made a $5.3 billion bid to purchase Japanese electronics maker Sharp. Today, Sharp has decided to accept an updated $6.2 billion takeover offer from Foxconn, reports Nikkei Asian Review.

sharp
Sharp intends to restructure its operations under the umbrella of Foxconn, although arrangements of the purchase have not yet been revealed. Sharp was facing either a buyout offer from Foxconn or support from the Innovation Network Corporation of Japan, a state-backed fund that offered a roughly $2.7 billion injection and a $1.8 billion credit line.

Currently, Sharp supplies Apple with LCD displays for iPhones in addition to being a leading television maker and selling audio equipment, home appliances and more. The company has fallen on hard times recently, incurring a net loss of nearly $1.9 billion in the fiscal year ending March 2015. It also must repay $4.3 billion it had borrowed by March; Foxconn reportedly was willing to take on the debt.

It's unclear what Foxconn's plans for Sharp are, but the company could sell Foxconn-made electronics under the Sharp brand. The acquisition's impact on Apple may only be near-term, as Apple is rumored to be turning to Japan Display, LG and Samsung for OLED displays in iPhones as early as 2018.

Update: Shortly after the its acquisition of Sharp was announced, Foxconn put the deal on hold after "discovering previously undisclosed liabilities." Foxconn said it would not sign off on the deal until terms had been clarified. At issue is hundreds of billions of yen in liabilities which Sharp will need to resolve before the deal is finalized.

Tags: Foxconn, Sharp

Top Rated Comments

Tubamajuba Avatar
64 months ago

Foxconn should just make their own phone and cut out Apple. They're getting middled.

Yep. Poor Foxconn, making money from a phone that just keeps selling and selling.
Score: 12 Votes (Like | Disagree)
rulymammoth Avatar
64 months ago

Foxconn should just make their own phone and cut out Apple. They're getting middled.

Well, they're doing what any company with their resources would do. Move down the supply chain where the margins are higher.
Score: 4 Votes (Like | Disagree)
macs4nw Avatar
64 months ago

Oh boy, how times have changed

That's for sure! Being big or well entrenched, by itself doesn't cut it anymore. At 103 years old, Sharp is one of the oldest consumer-electronics manufacturers around.

This just goes to show how intense and cut-throat the tech industry has become. Unless you're continuously moving forward, you risk becoming irrelevant and falling on hard times, no matter who you are.
Score: 3 Votes (Like | Disagree)
R3k Avatar
64 months ago
Sharp. Thanks for all the memories.
Score: 2 Votes (Like | Disagree)
Crosscreek Avatar
64 months ago
Interesting acquisition with interesting possibilities for all parties.
Score: 2 Votes (Like | Disagree)
ryuworks Avatar
64 months ago
Apple is partly behind this takeover, some years back there were reports that Apple wanted a proxy takeover of Sharp via Foxconn when this whole thing started. This move can only be beneficial to Apple, as its number one contractor now has rights to IGZO and other display techs that Sharp owns, when in previous years Apple had to content and negotiate with a not-so-friendly Sharp to make them license IGZO tech to other Apple contractors.
Score: 1 Votes (Like | Disagree)

Top Stories

iphone 5s black slate

Images of Unreleased iPhone 5s in Black and Slate Shared Online

Sunday January 17, 2021 9:47 am PST by
Twitter user @DongleBookPro has today shared images of a prototype iPhone 5s in an unreleased Black and Slate color. The iPhone 5s was launched in September 2013. The device featured Touch ID, a 64-bit processor, and a True Tone LED flash for the first time. Other new features included a five-element lens with an f/2.2 aperture, a 15 percent larger camera sensor, Burst Mode, and Slo-Mo...
iP12 charge airpods feature 2

Hidden iPhone 12 Hardware Feature Could Still be Unlocked

Thursday January 14, 2021 2:51 am PST by
All iPhone 12 and iPhone 12 Pro models purportedly have a hidden reverse wireless charging feature, according to an FCC filing. The feature has not yet been activated, but could yet be unlocked for an upcoming Apple accessory. The FCC filing suggests that iPhone 12 models contain the hardware for Wireless Power Transfer (WPT) to accessories: In addition to being able to be charged by a...
Top Stories 43 Feature

Top Stories: MacBook Pro, iMac, Mac Pro, and iPhone Rumors, Best of CES 2021

Saturday January 16, 2021 6:00 am PST by
This week was sure a busy one in the Apple world, with a flurry of announcements out of CES early in the week followed by a rash of Mac- and iPhone-related rumors later in the week. The new rumors this week included details on updated MacBook Pro, iMac, and Mac Pro models, as well as a few other tidbits, so make sure to read on below to get caught up! Kuo: New MacBook Pro Models to...
foldable iPhone concept feature

Apple Testing In-Display Fingerprint Sensor for iPhone 13, Foldable iPhone Also in the Works

Friday January 15, 2021 1:46 pm PST by
Apple has started "early work" on an iPhone that has a foldable display, according to a new report from Bloomberg's Mark Gurman. Though testing of a foldable iPhone has begun, Apple has not committed to releasing a device that has a foldable display. Development has not yet expanded beyond a display and Apple does not have full foldable iPhone prototypes in its labs. Like foldable...
16inchmacbookpromain

Kuo: New MacBook Pro Models to Feature Flat-Edged Design, MagSafe, No Touch Bar and More Ports

Thursday January 14, 2021 9:32 pm PST by
Apple is working on two new MacBook Pro models that will feature significant design changes, well-respected Apple analyst Ming-Chi Kuo said today in a note to investors that was obtained by MacRumors. According to Kuo, Apple is developing two models in 14 and 16-inch size options. The new MacBook Pro machines will feature a flat-edged design, which Kuo describes as "similar to the iPhone 12" ...
macbook pro flexgate

Apple Extends 13-Inch MacBook Pro Backlight Repair Program

Sunday January 17, 2021 10:31 am PST by
Apple this week extended its worldwide 13-inch MacBook Pro Display Backlight Service Program, authorizing coverage for eligible notebooks for up to five years after the original purchase date or up to three years after the start date of the program, whichever is longer. The previous cutoff was four years after the original purchase date. Apple launched the program on May 21, 2019 after...
iphone x camera close

iOS 14.4 Will Introduce Warning on iPhones With Non-Genuine Cameras

Thursday January 14, 2021 8:07 am PST by
In the second beta of iOS 14.4 seeded to developers and public testers this week, MacRumors contributor Steve Moser has discovered code indicating that Apple will be introducing a new warning on iPhones that have had their camera repaired or replaced with aftermarket components rather than genuine Apple components. "Unable to verify this iPhone has a genuine Apple camera," the message will...
Apple TV Ray Light 2 Triad

Apple Extends Free Apple TV+ Trials Until July

Friday January 15, 2021 10:50 am PST by
Apple is once again planning to extend its free Apple TV+ trial subscriptions, this time until July. When Apple TV+ launched in November 2019, Apple offered free Apple TV+ subscriptions to those who purchased a new Apple device in or after September 2019. Those free subscriptions were set to expire in November 2020, but in October 2020, Apple announced that it was extending free trials...
mac pro mini feature

Apple Working on Two New Mac Pro Desktops, One of Which Will Be Reminiscent of Power Mac G4 Cube

Friday January 15, 2021 10:23 am PST by
Apple is developing two versions of the Mac Pro to succeed the Mac Pro that was first released in December 2019, according to a new report from Bloomberg. The first updated Mac Pro is a direct successor to the current Mac Pro and it will use the same design. It may also be equipped with Intel processors rather than Apple silicon chips, and it could be one of the sole machines in the Mac...
macbook pro magsafe

MagSafe is Coming Back to the Mac: A Look Back at Apple's Original Magnetic Charging Technology

Friday January 15, 2021 12:16 pm PST by
Surprise late night rumors last night provided us with our first in-depth look at what we can expect from the new MacBook Pro models that are coming in 2021, and there are some significant changes in the works. Along with additional ports, a new flat-edged design, and the removal of the Touch Bar, Apple's updated MacBook Pro machines will readopt MagSafe. MagSafe in the 2021 MacBook Pro...