Troubled electronics manufacturer Sharp may have only one way to survive, become a component maker for major Apple assembler and supplier Foxconn.
Over the years, Sharp has served as one of the key suppliers to Apple for several parts. Sharp’s president even said late last week that the company will begin shipping displays for the sixth-generation iPhone next month. The device is expected to be announced and to ship around the same time. You would think that Sharp would be well off with a contract from Apple, but that does not look to be the case.
Foxconn announced that it had bought a stake in Sharp back in May. Last week, the company announced it was seeking a lower price for the purchase, but it would continue to back the company. Reports say Foxconn wants to secure the stake in the company to secure parts for its large client, Apple.
Without a key supplier such as Sharp, Apple could face delays when shipping a product. Over-and-over, Apple Chief Executive Officer Tim Cook has iterated the need to keep up with demand on the company’s quarterly earnings call. Sharp is reported to be a key supplier for the much rumored Apple television set. Apple needs Sharp.
Reuters reported this morning that Sharp’s only option for survival may be to close its consumer division, and accept its fate as a component manufacturer.