What They Say
Nikkei published an article looking at the way that Sharp’s profits have risen partly because of success in supplying LCDs to Apple after Sharp bought the Hakusan factory of JDI last year and which started producing for Sharp in February. The article followed a news conference by Sharp’s management.
The paper quotes DSCC data showing Sharp as having a 10.4% share of the small/medium market, but also had a forecast from Mizhuo Securities which shows how Apple’s LCD sales have declined in recent years, so Sharp does need to have a strategy for the future. On the other hand, other firms dropping out of the market has given Sharp an advantage in supplying Apple at the moment.
What We Think
So, the Hakusan purchase looks tactically OK, but strategically? Sharp really has to become a significant OLED supplier to stay in the small display business. In the past it has shown very good and innovative samples and technology in OLED.
I have yet to see the mobile talks at the Business Conference, but I know the current state of play will be even clearer after that! (BR)
Sharp has maintained its volume of iPhoneLCDs but Apple is giving them up.
