TEHRAN, June 05-Japan’s Sharp Corp said it will buy Toshiba Corp’s personal computer business for 4 billion yen ($36 million), highlighting its recovery under the control of Foxconn and marking a return to a business it quit eight years ago.
TEHRAN, Young Journalists Club (YJC) -Japan’s Sharp Corp said it will buy Toshiba Corp’s personal computer business for 4 billion yen ($36 million), highlighting its recovery under the control of Foxconn and marking a return to a business it quit eight years ago.
Sharp was once known as a major supplier of high-end TVs and smartphone displays but struggled to compete with Asian rivals and was bought by Taiwan’s Foxconn, or Hon Hai Precision Industry Co Ltd, two years ago. It exited the PC market in 2010.
The deal will see Sharp take an 80.1 percent stake in Toshiba’s PC unit on Oct 1.
Sources said the Osaka-based electronics maker will be able to use the scale of parent Foxconn, the world’s biggest contract manufacturer and major Apple Inc supplier, to produce PCs more cheaply - just as it was able to do in TVs.
While global demand for PCs has weakened in recent years, the partnership with Foxconn, the contract maker of PCs for other global PC brands, is expected to help Sharp produce PCs at low cost and turn a profit on the deal.
Toshiba told Reuters it outsourced PC production until 2015, and currently builds PCs at its own plant in China. The company declined to identify its previous contract manufacturer.
Source: Reuters
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