With Foxconn’s Help, Sharp is Poised to Re-enter Abandoned Tech Markets
A deal between Sharp and Toshiba will see the former purchase the latter’s PC business in a stock exchange valued at roughly $36 million. The low value of the deal may speak volumes about the current state of the personal computing market, but there’s a separate narrative that really needs to be talked about as well. And that’s the one about how Sharp is once again on stable ground nearly two years after being acquired by Apple supplier Foxconn.
For Foxconn, the decision to snatch up the floundering Osaka-based electronics manufacturer was seen at the time as a way for it to diversify itself. So much of its revenue is tied up in producing components for iPhones to the point that any downturn for that product could be seen as catastrophic for the company. Acquiring Sharp for $3.5 billion in August 2016 allowed the company to put itself into different tech markets in a way that was relatively low cost but had major upside.
And that upside is really starting to present itself.