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Sharp Warns That It Might Collapse
angry tapir writes "Japan's Sharp, a major supplier of LCD displays to Apple and other manufacturers, has warned that it may not survive if it can't turn around its business. The Osaka-based manufacturer said there is "material doubt" about its ability to continue operating in its earnings report filed Thursday. Sharp added, however, that it still believes it can cut costs and secure enough credit to survive. Its IGZO technology for mobile displays is likely to be a key element of its business strategy."
This would be an opportune time for Apple to buy Sharp....
This would be an even more opportune time for Samsung to buy Sharp.
The problem, from Apple's perspective, is that Samsung is the only viable producer of top-quality displays. Only Samsung and LG can produce the volume necessary, and Samsung is openly hostile now that Apple's been trying to bend them over one too many times. So now they're stuck with crap SSDs (Toshiba) and crap IPS panels (LG) unless they pull a rabbit out of the hat. Keeping Sharp afloat with purchasing agreements would be the Microsoft move (a la the investment in Apple, early 90's) but Apple is more likely to buy Sharp and try to keep the entire supply chain in-house. It would take years for this one to bear fruit but, hasn't Apple been patient before? And they've got the cash to build out in a hurry.
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because then Apple tells them to get bent, buys all their displays from someone else and Sharp goes under instantly.
An electronics manufacturer I talked to was in a similar situation where a large customer pretty much said that they wanted things made cheaper or they would take their business elsewhere. Instead of shitting his pants he went over the numbers and regrettably informed the customer that he couldn't build things at the price they demanded. A few month later they got back and accepted his original price.
Moral of the story?
If you can't produce at the demanded price then chances are that your competition can't either.
The customer is only right as long as he is willing to pay, if he doesn't want to pay he is no customer and you should spend your time on those who appreciate your services.