Foxconn acquired Sharp earlier this year and formed a joint venture, Sakai Display Products. Sakai (and Sharp before that) used to deliver LCD TV panels to Samsung (to the tune of 5 million units a year, 11% of the global production), but the Foxconn-owned company just cut ties with Samsung. The Korean maker still stands to receive a total of 2-3 million 40” and 60” panels this year.
Declining prices of LCD panels has been hurting Sharp’s bottom line and the company’s new owners plan a return to profitability by Q1 of 2018. Reportedly, Sharp attempted to negotiate higher prices, but failed.
Instead, the company will focus on Sharp Aquos-branded TVs and plans to double sales to 10 million units in 2018 by targeting emerging markets that are hungry for large-screened TVs.
Interestingly, there’s talk that Samsung will turn to rival LG Display to fill its LCD TV panel needs. No deal has been signed yet, though.