Why buy Foxconn Sharp?

Finally, it appeared to confirm an agreement had been brewing for some time: Foxconn has been made ​​with Sharp, why pay a total of 6,200 million dollars.

Sharp has long going through a difficult stage operational and financial level and after several offers by the famous Taiwanese manufacturer, the agreement finally was reached. Now Foxconn is made ​​with Sharp technology especially in the field of panels for mobile devices, and if there is a great additional benefit of the deal, this is Apple. Maybe this has been precisely the main motivation of Foxconn when investing this huge amount of money in the operation.

Foxconn Sharp
Image Source: Google Image

Screens, screens and more screens

Sharp leading technology highlighting the mobility segment time, but actually its panels take advantage in many other devices. A good example is the Dell XPS 13 and 15, the IGZO screens with Infinity Display technology and those frames such small dimensions are precisely the responsibility of the Japanese company.

We said in our analysis of the newly refurbished Dell XPS 13 how curiously those tiny frameworks had not been used by any other manufacturer on the market, and the agreement of Foxconn and Sharp precisely indicates that in a hypothetical future also could see them for example in MacBook future, something unlikely if we consider the design obsession that usually govern this manufacturer devices.

But where it is clear that Sharp has a very important position is in the in screens for mobile devices. While Apple attempts to introduce significant improvements in these components, and for example saw as his interest in sapphire screens it ended up costing occasional disgust after the failure of its alliance with GT Advanced Technologies.

The Cupertino Company did not stop there, however, and precisely presented the technologies 3D Touch and Touch Force as key to their smart watches and their new smartphones over the past year. However, the next step seems to be equally ambitious, and there is talk of Apple’s intention to integrate OLED technology on the screens of the iPhone.

Foxconn Samsung gaining ground as Apple component supplier

This ambition seems that Apple could not have one, but two girlfriends : in charge of making this type of OLED displays could be both Foxconn now that has the resources of Sharp as Samsung, which has also been known that it has invested heavily to also be able to develop this technology on mobile devices.

Apple, however, seem unwilling to rely on the South Korean manufacturer for producing various components in their smartphones: the latest rumors suggest that the strategic alliance that Apple and Samsung held on microprocessors such even if they are bitter enemies in the field highly mobile range could be doomed to an end. The Electronic Times revealed just days ago that Apple would have chosen as the only manufacturer TSMC chips Apple A10 future.

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That would lift a Samsung equation that had been previously, since it was jointly responsible with TSMC manufacture the Apple A9. It did not happen the same with the Apple A8, yes were produced single, massively by TSMC, and although we mayhave two partners in manufacturing can be a good idea to have a plan B in case one of the two fails to meet requirements, it seems that Apple wants to close the door to any alliance with Samsung.

This strategy would be consolidated with the purchase of Sharp, and indeed the rumors that appeared to be disclosed that Foxconn would acquire Sharp included data on potential equity stake Apple and / or participation of Apple executives in the board of Sharp post operatively.

We have not confirmed anything about it, but the reality is that the number 1 in Kameyama plant Sharp is specifically designed to make the screens of mobile devices Apple. The firm has already invested nearly 1,000 million dollars to convert that plant-where HDTV- panels were manufactured in a factory producing LCD screens, and now seems clear that the movement of Foxconn is directed to both talent Sharp as production capacity of the Japanese giant give a new competitive advantage to an Apple that certainly seems involved in the operation.

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