First, Sharp began licensing its low-end TVs in the USA; next, it licensed its entire European TV business to UMC (Sharp ‘Leaves’ TVs in Europe). This move was followed by a complete withdrawal from Australia (Sharp Quits Another TV Market), and now yet another step in the process of getting out of TV: Sharp is exiting the North American TV market.
During an earnings call in late July, Sharp reported a Q1 loss of $231 million. To cut losses and recoup some of its investment, the company has decided to sell its TV assets in the region to China’s Hisense. Hisense will take over Sharp’s TV factory in Mexico, and gain permission to use the Sharp brand name – and all of the company’s channel resources – in North and South America.
Hisense is to pay the Sharp group $23.7 million.
Analyst Comment
This gives the company a premium brand in the US to go with Loewe, which it already has in Europe. (BR)
