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  • One of Apple's Key Display Suppliers, Sharp, Posted an Annual Net Loss of $1.9 Billion

    Sharp, one of Apple’s main display suppliers recently posted an annual net loss of roughly $1.9 billion. The situation as a whole appears to be casting doubt on the company’s ability to operate. Although the company will continue to live on in the short-term, mainly due to investments by banks, its long-term outlook doesn’t seem too bright unless the company figures out a solution to their problems.

    The company ended up blaming the large loss on competition from cheaper Chinese smartphone LCD panels along with its part restructuring charges. The company has in fact announced a new set of restructuring efforts including laying off 10% of its workers, including 3,500 people in Japan and the sale of its head office in Western Japan.

    Furthermore, Mizuho and the Bank of Tokyo-Mitsubishi UFJ, both have agreed to give Sharp 200 billion yen (which comes out to roughly $1.7 billion) in a debt-for-equity swap, with the company getting an additional 25 billion yen ($209.9 million) from a fund backed by the banks. In its next fiscal year, Sharp is hoping and projecting an operating profit of 80 billion yen ($671.8 million) with a return to a net profit in the fiscal year of 2017. The projections appear to be a little optimistic as the company doesn’t seem to have a real answer to their competition but only time will tell.

    As far as Sharp’s role as an Apple display supplier, the Cupertino California company also sources displays from LG and Samsung. It has even been credited as the first company to build LCD panels using IGZO (indium gallium zinc oxide) technology back in 2012. The Cupertino California company may swap to an IGZO display for its upcoming 12.9-inch iPad though panels would likely be produced by LG and Samsung as well. Apple could use IGZO displays to help improve the response, thinness and power consumption associated with device displays but nothing has been revealed as concrete information. We’ll just have to wait to find out.

    Source: The Financial Times
    This article was originally published in forum thread: One of Apple's Key Display Suppliers, Sharp, Posted an Annual Net Loss of $1.9 Billion started by Akshay Masand View original post
    Comments 1 Comment
    1. iBwizzle's Avatar
      iBwizzle -
      There will never be true competition until they create a single radio chip to work flawlessly on every Carrier. Until then, manufacturers will be dependent on giant corporations such as Apple, Microsoft, and Samsung to direct the masses.