What They Say
Nikkei reported that Sharp CEO Tai Jeng-Wu will step down at the end of March after 6 years in the post following his appointment by Foxconn founder Terry Gou. His successor will be Robert Wu Po-Hsuan, head of Sharp’s global brand products division, who will also serve as deputy chairman. Wu comes from Foxconn. Tai will stay on as Chairman.
Sharp expects to report black ink this year, with a forecast of $738 million in profit.
Sharp “hasn’t come out with a medium-term plan, and it hasn’t been able to lay out a strategy to grow its businesses,” said Yasuo Nakane, consumer electronics analyst at Mizuho Securities (and a frequent reference on Display Insider).
Sharp has talked about buying the balance of shares in Sakai Display Products (SDP), its panel fab. Nikkei said that it currently has 20%. Nikkei said that it has vacillated on plans for the subsidiary, with a plan to divest failing last year after a previous plan to completely acquire it. The company would like to secure its panel supply for TVs, it said.
What We Think
Given that Sharp looked as though it might go completely belly up at one point, Tai has seemed to have done a job although Nikkei pointed to the firm’s low margin as a risk factor. (BR)
