Sharp eyes buying from Apple production facility for iPhone LCDs
(Japan Economic Newswire Via Acquire Media NewsEdge) Struggling electronics maker Sharp Corp. is in talks to buy from Apple Inc. of the United Sates the equipment to produce liquid crystal displays for iPhones at a Sharp plant in Kameyama, Mie Prefecture, industry source said Saturday.
Through the purchase, possibly for 30 billion to 40 billion yen, Sharp envisions using its Kameyama Plant No. 1 not only to supply Apple but also Chinese and other communication device makers, they said.
Sharp, however, still plans to maintain the flexibility to produce LCDs upon request from Apple, they said.
The Japanese firm is apparently worried that the factory operating rate will fall below the profitability line of 90 percent if Apple products become less popular, they said.
Sharp began negotiating last year behind the scenes hoping Apple would allow production of panels for other makers at Kameyama Plant No. 1.
It decided to buy the facility at the plant instead after Apple apparently did not agree with the proposal, they said.
Sharp has sold LCDs made at other plants to other companies including Chinese firms, notably Igzo panels from Kameyama Plant No. 2.
(c) 2014 Kyodo News
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