The success of the iPhone and iPad was supposed to do great things for Sharp. As Apple’s profits have gone up, Sharp has seen an increased amount of orders from Cupertino as Apple tries to distance itself from buying supplies from Samsung.
Even though Sharp supplies Apple with displays for the iPad and iPhone, their stock price has been falling lately, and its investment deal with Foxconn might be in jeopardy.
Sharp’s talks with Foxconn over an investment in the company might end on March 26th without an agreement. The two companies have been discussing an investment in Sharp from Foxconn to help prop-up the company’s business. If the deal goes through Sharp said it might invest $1billion in their plant to help boost Apple’s display supply.
The negotiations in the deal have stalled because the two companies can’t agree on a price after Sharp’s shares have steadily decliend recently. Foxconn also wants to have more control in the company’s management and strategy if a deal goes though, according to a report by Bloomberg.
Even though the share sale with Foxconn has stalled though, Sharp is in talks with other companies who are interested in making an investment. iPhone chipmaker Qualcomm agreed to buy as much as 9.9 billion yen of new shares in Sharp in December of 2012.
- Source Bloomberg