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Sharp offers Apple $293 million to claim equipment in Kameyama plant

updated 04:25 pm EDT, Fri July 11, 2014

Firm looks to become more independent

Sharp is offering Apple 30 billion yen, or about $293 million, to buy the equipment in the former's Kameyama Plant No. 1, says Nikkei. In 2012, Apple contributed about half of the 100 billion yen ($986.7 million) that was necessary to switch the factory from producing TV panels to iPhone displays. As a part of the deal, Apple claimed ownership of the plant's hardware.

The aim in buying back the equipment is reportedly to diversify Sharp's customer base, for instance targeting Chinese smartphone makers as well. Apple is said to be insisting that Sharp not supply any panels to South Korea's Samsung, which produces a number of devices competing with the iPhone.

Kameyama is currently said to be operating at 90 percent capacity as it churns out displays for the iPhone 6. That may give Sharp some leverage in negotiations, since any slowdown could hurt the number of units Apple has ready for launch this fall, and subsequently the company's vital holiday sales.





by MacNN Staff

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  1. iphonerulez

    Dedicated MacNNer

    Joined: 11-28-08

    No soup for you, Samsung!

  1. thinkman

    Fresh-Faced Recruit

    Joined: 01-04-05

    If Sharp slows down production as a means of leveraging a better buyout, Apple, who it sound like has ownership of the equipment, should take it and set up their own shop! Sharp is scum, anyway!

  1. ZinkDifferent

    Fresh-Faced Recruit

    Joined: 01-07-05

    Sounds like Sharp actually has less leverage, by being a primary maker of displays for Apple at a factory, the equipment of which Apple owns, and under a contract, the violation of which could cost sharp dearly.

    If anything, this buyback offer sounds like tax shenanigans. Not that macnn editors would be able to grasp that.

  1. chimaera

    Dedicated MacNNer

    Joined: 04-08-07

    So Apple paid half the cost of the equipment, $493 Million. Sharp is offering $293 M for that equipment, or 60 cents on the dollar. I don't know about tax shenanigans. Sounds like a heck of a deal. For Sharp anyway.

  1. Stingerster

    Fresh-Faced Recruit

    Joined: 08-16-10

    Apple did the same for Samsung, but Samsung used the equipment Apple invested in to compete against Apple. Apple was burned in that deal, they won't make the same mistake twice. I'm sure Sharp will not get the equipment.

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