Apple Depending On Foxconn Getting Stake In Sharp For iPhone 5
Foxconn, the company most well-known for producing most of the Apple hardware on sale today (along with a lot of other equipment for other technology firms) is seeking a stake in the troubled display company Sharp.
According to BusinessWeek.com, Apple needs this deal to go ahead to help supply components for the next generation iPhone, which will use screens partially produced by Sharp. If Sharp goes bankrupt, it could cause supply problems for the iPhone, as Apple would need more display suppliers. This would be almost impossible given that the device should go on sale next month.
Foxconn is seeking to lower its bid for the 9.9% stake it is seeking in Sharp after the shares have been dropping consistently, making them the lowest they've been in 37 years.
Foxconn is pursuing the deal to help make Sharp more competitive against Samsung in the phone, flat-panels and flat-screen television market. Samsung is currently number one in the world in these markets, all of which are very profitable.
Apple depend on a strong Foxconn for production of the iPhone, and Foxconn need Apple - roughly 34% of their revenue is from the iPhone and iPad production.