Japanese consumer electronics manufacturer Sharp is in a spot of bother, having recently announced quarterly losses of ¥138.4 billion (£1.1 billion).
Resultantly, the iPhone display provider (and occasional Android dabbler)’s stock price fell to its lowest point in 38 years. Cripes.
The news comes as Sharp reportedly begins churning out displays for the imminent iPhone 5, which is of course still entirely unofficial, and will remain so till Apple says otherwise.
But don’t expect to see the back of Sharp any time soon. Hon Hai Precision Industry Co Ltd, better known as Foxconn, says it’s not bailing, but will reassess its investment in the Japanese manufacturer.
“We plan to discuss the investment again, but for sure it won’t be at the original 550 yen-per-share,” explains spokesperson Simon Hsing. “Sharp has agreed to us taking at least the same size of stake, with the possibility of an even larger stake.”
It doesn’t look like things will get much better in the immediate future, though Sharp has reportedly asked lenders to formulate a “back-up structure” to help raise long-term funds.
“We’re in a situation where we can’t avoid taking job cuts and I’m torn up inside,” says Takashi Okuda, Sharp’s relatively new president. Presumably he’ll be falling on his sword if things go from bad to worse.
via: Bloomberg
