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."

Re:SHARP AND AAPL: SHE IS A GOING DOWN MY CAPTAIN

[93 Escort Wagon]

The 24-month chart is probably more informative [yahoo.com] than your 3-month chart. I realize it kind of spoils your intended narrative, though.

Like any stock, Apple's shares have seen significant corrections before - especially in the modern market.

Great products, poor marketing

[guises]

My impression of Sharp may be anachronistic, I don't know if the company is still what it used to be, but I think of them as manufacturing really terrific products, particularly portable electronics (remember these? [wikipedia.org]), but hardly selling them or anything at all outside of Japan. Even within Japan I guess their marketing wasn't so good. Sorta the anti-Apple - poor marketing, but great and often pretty open products.

Japan's Big 3 TV Makers Struggling

[guttentag]

The #3 television manufacturer in the world, Sony, announced on Friday [ft.com] it's cutting its medium-term TV sales goals in half.

Four days earlier, #5 Panasonic (Matsushita) announced [ft.com] it's cutting its flatscreen TV production in half.

Sharp is ranked #4. Apparently all three of the Japanese manufacturers bet too big on TVs and are getting trounced by Korean rivals Samsung (#1) and LG (#2).

Re:They just need to...

[Anonymous Coward]

Ionizers literally drove The Sharper Image into bankruptcy. The Sharper Image produced the Ionic Breeze ionizer which Consumer Reports concluded [quackwatch.org] was "ineffective" as an air cleaner and produced "almost no measurable reduction in airborne particles."

Worse, all ionizing purifiers generate ozone. The EPA states [epa.gov], "Relatively low amounts [of ozone] can cause chest pain, coughing, shortness of breath, and, throat irritation. Ozone may also worsen chronic respiratory diseases such as asthma and compromise the ability of the body to fight respiratory infections".

So in reality not only are ionizers ineffective, they're actually bad for you.

They just need to...Yen & R&D.

[Anonymous Coward]

Part of Sharp's problem's are twofold. Their investment in R&D accounts for a lot of their debt. And of course Japans overall problem with the Yen.

Re:They just need to...

[elfprince13]

And Apple's comes with a webcam, built in 50 watt speaker, Firewire, and GigE connectivity. Not to mention Thunderbolt.

Re:They just need to...

[alexander_686]

It’s not volume – it is overcapacity. LCD manufacturing has high fixed costs – that is it is a capital intensive business.

A few years ago everybody built fab plants – and then the economy turned south so people stopped buying large screen TVs. (oversimplied, but.)

So, when there is overproduction one has 2 choices – mothball the entire plant (complete loss) or engage in a brutal wall of price cuts and attrition. The logical choice is price cuts and attrition (well, the logical choice would be to go back in time and not build the plant in the first place, but.)

translation is (partially) to be blamed

[Anonymous Coward]

http://blogs.wsj.com/japanrealtime/2012/11/05/sharp-statement-lost-in-translation/?mod=WSJBlog

Re:Lacking clarity

[bloodhawk]

Stores often calibrate displays according to what they are currently trying to push. using tricks such as lower res vs high res video, warm colours and poor calibration to guide you to what they want you to buy. Always check online before browsing displays for real agnostic reviews.

Re:They just need to...

[AK Marc]

Literally drove them to bankruptcy is correct in this instance. Though "drove" means "caused" in this statement, "literally" is not misused. If the Sharper Image had not declared bankruptcy, but instead de-listed and closed most of their stores, then you'd be right, but you are not right. Your pedant on "literally" is wrong.

Re:Time for Apple to go for the jugular

[antifoidulus]

Do you seriously know any history or are you just mouthing off because you somehow think it makes you sound smarter? You are aware that opposed to a 4 1/2 year war, Japan brutally occupied Korea, raping women(and not apologizing for it), stole massive amounts of resources, almost caused near famine towards the end of the war when they started shipping all the rice out of the country to Japan etc. Not to mention continued territorial disputes and a historical animosity that goes back millennia.

But yeah, your smart ass point about something I didn't even say negates all that. Kudos.