Sharp is considering strengthening its partnership with South Korea's Samsung Electronics and plans to expand its cooperation from the current LCD panel business to the business. According to reports, Sharp plans to provide business aircraft to Samsung in the form of OEM (that is, for Samsung OEM production of Samsung branded business machine products), and in order to strengthen their cooperation, Samsung may also make additional funding for Sharp.
According to the report, Sharp's current business products are mainly sold in advanced countries, and the layout of emerging markets with strong demand is still insufficient. Therefore, if Sharp can supply office products in the form of OEMs, it will have a strong sales network. Samsung is expected to boost the explosive growth of Sharp's business volume. According to reports, according to data from the survey company Data Supply, the global market share of Sharp's business in 2012 was 12.5%, ranking second in Japanese manufacturers such as Canon and Ricoh, and rushing into high-end business in 2012. The market share of Samsung in the machine market is only 1-2%.
Sharp and Samsung concluded a capital/business cooperation contract in March this year, and Samsung has invested about 10.4 billion yen in Sharp to obtain about 3% of the shares, becoming Sharp's major shareholder.
According to the Sankei Shimbun, Samsung Electronics and Sharp had investigated the possibility of acquiring their business in Sharp Capital during the capital cooperation negotiations, but they were rejected by Sharp.
Sharp: Will increase Samsung's small-size panel supply
Japan's LCD panel maker Sharp said it plans to increase the supply of small-size panels for Samsung Electronics, while continuing to provide panels to Samsung's rival Apple to increase factory shipments and keep the company alive.
Sharp's increased cooperation with Samsung Electronics is at a time when Apple's growth is slowing and screen orders are decreasing. Analysts expect Apple's average profit growth in the next decade to be less than 5%, far below the average of 60% in the past five years.
Sharp was forced to cut production of the 9.7-inch iPad display panel earlier this year. People familiar with the matter said Sharp also began to limit the supply of panels to Apple's next-generation iPhone, which will begin mass production in June this year.
It is understood that Sharp will announce the latest performance target when it announces its latest results: the operating profit forecast for the fiscal year ending March 2016 is raised to 1.5 billion US dollars, and the revenue is expected to be 30 billion US dollars.
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