Apple supplier Sharp to boost Samsung business in bid to stay viable

News / Smartphones

Apple supplier Sharp to boost Samsung business in bid to stay viable

  • 2013-05-12 19:43:19
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News / Smartphones Apple supplier Sharp to boost Samsung business in bid to stay viable
It aims to release on Tuesday when it announces its latest earnings results, Sharp will set a goal of raising annual operating profit to $1.5 billion by March 2016 on revenue of $30 billion on their middle term business plan , the sources familiar with the plan told Reuters on condition they remained anonymous. Japan’s TV pioneer avoided failure last year with a $4 billion bailout from lenders including Mizuho Financial Group (8411.T) and Mitsubishi Financial Group (8306.T).

To repay a 200 billion yen convertible bond due in September, Sharp will borrow another 150 billion yen to help it, the sources said. Those banks will dispatch personnel to take up senior management positions at Sharp, including a financial officer, which will also reduce its number of directors by 12 people, the sources said.

Sharp in October had to mortgage its offices and factories in Japan, including the one that makes screens for the Apple iPad and iPhone. It also had to agree to trim its workforce by 10,000 people and seek buyers for overseas assets including TV assembly plants in China, Malaysia and Mexico. Deepening its ties with Apple's South Korean competitor, Samsung Electronics, comes as growth at Apple slackens and orders for screens slow. Analysts project profit growth at the smartphone pioneer to average less than 5 percent for the next decade compared with an average of 60 percent over the past five years.
Categories: Smartphones

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