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Apple might have propped Sharp with a cool $2 billion to ensure future screen tech supply

Posted: , by Daniel P.

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Apple might have propped Sharp with a cool $2 billion to ensure future screen tech supply
There were rumors in the summer that Sharp was the laggard when it came to producing the displays in Apple's yet-unannounced gadgets. and that Apple is fronting it some cash for tools and equipment to ensure yields rise up. Sharp had been in dire straits this year, and was desperately seeking investments to keep it afloat, with its TV business down in the dumps.

Meanwhile, other rumors emerged that Apple's chief assembler Foxconn's parent company is trying to build stakes in Sharp, to ensure future supplies of its innovative screen technologies like IGZO, with the knowledge that Apple is betting on the Japanese for the long term. The deal dell through as creditors were giving Sharp the stink eye. Then all of a sudden, Sharp stopped having problems, and said all is well with screen production for Apple's gadgets.

Apple might have propped Sharp with a cool $2 billion to ensure future screen tech supply
Now Horace Dediu from Asymco is putting two and two together, analyzing where did the $2.3 billion extra CapEx money Apple reported go, and concludes that the unusual outlay for "product tooling and manufacturing process equipment" might have gone straight to Sharp. 

The analyst thinks that Apple might have snatched a whole display production line, and secured it in the form of component prepayments, thus taking it on the balance sheet without alarming Sharp's creditors.

If so, Cupertino kills a few birds with one stone - it ensures continuous supply of screens for its new iPhone and iPad models, diversifies from Samsung and LG as display suppliers, and gains access to Sharp's screen tech, which is at the forefront of LCD development, and might come in handy if/when Apple decides to go ahead with a TV business.

source: Asymco

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1. jove39 posted on 08 Nov 2012, 03:18 1

Lucky Sharp!

2. nobelset posted on 08 Nov 2012, 03:22 1

lucky Apple*

7. Mxyzptlk posted on 08 Nov 2012, 04:16 1 2

Good for business.

3. MeoCao (unregistered) posted on 08 Nov 2012, 03:25

It would be a good job from Apple if it doesn't restrict Sharp relationship with Apple's competitors as condition for the investment.

4. _Bone_ posted on 08 Nov 2012, 03:37

Did that $368M fine reported yesterday really happened, if so, where's the big media coverage?

5. Mxyzptlk posted on 08 Nov 2012, 03:49 1 5

The fine from that FRAND patent case regarding FaceTime?

6. _Bone_ posted on 08 Nov 2012, 03:52

Yeah. Doesn't seem to cause any media buzz.

8. anywherehome posted on 08 Nov 2012, 06:21

now we see that their arrogance is more powerful than their brain :-D
this was the peak Hitl*er started falling :)

9. Aeires (unregistered) posted on 08 Nov 2012, 07:22

There's also rumors Apple is considering buying Sharp as a whole. Hopefully it's just a rumor with absolutely not truth to it.

10. ryq24 posted on 08 Nov 2012, 09:36

investing in sharp is a good move for apple. you scratch my back i scratch yours.

11. downphoenix posted on 08 Nov 2012, 18:01

Sharp has some great displays. I considered getting a TV from them next time I get one. However, if Apple buys them, I'll look elsewhere :)

12. pikapowerize (banned) posted on 08 Nov 2012, 21:54

good for sharp...coz they are actually dying... i pity them! they have good TVs but then again, samsung ate all the shares! :(

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