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Foxconn outfoxes Sharp’s sharpest

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DMcCunney
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re: Foxconn outfoxes Sharp’s sharpest
DMcCunney   8/19/2012 4:59:07 PM
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@WW Thinker: "The on-the-surface 1% profit is not what Hon Hai and Mr Gou actually are making. They have subsidiaries where the real money (lot of it) are being made." Money made by subsidiaries counts toward the parent's revenues and profits, unless you assume the books are being cooked and money is being concelaed. Hon Hai may actually be making 1% overall, but so what? Different industries have different business models, and different measures of health. The supermarket business makes about 1% profit, but supermarkets are going concerns. They may make a penny on the dollar, but they take in a *lot* of dollars, and the measuring sticks to apply are inventory turns and return on assets, not profit margins. Look at Hon Hai that way and a different picture may emerge.

WW Thinker
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re: Foxconn outfoxes Sharp’s sharpest
WW Thinker   8/19/2012 4:33:56 AM
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Rick, please remember one principle that is mostly true (rare exception occasionally but don't expect to see this once every 10 years :): successful business always involve a lot of untold dirty tricks and ethics. The on-the-surface 1% profit is not what Hon Hai and Mr Gou actually are making. They have subsidiaries where the real money (lot of it) are being made. For example, the owners of the DRAM manufacturers in Taiwan have subsidiaries who handle assembly, testing, logistics. They are all making handsome money while the DRAM factories are borrowing money from the banks to operate at loss. If you think about this, Taiwanese learnt all these market innovation created and invented by USA who has been at the fore-front of market economy for the past 50 years. The same kind of market innovation also brought us the collapse in CY2007!

DMcCunney
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re: Foxconn outfoxes Sharp’s sharpest
DMcCunney   8/18/2012 4:50:24 AM
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"The problem is, I think, that both companies have reached the point of no return, and yet there is little enthusisam left for each other." That lack of enthusiasm could be a major stumbling block. The del has changed from being something Shard reluctantly accepted to something a lot like an unfriendly takeover. Hon Hai may get what it wants and wind up calling the shots, but if it doesn't get the Sharp management and rank and file on board, it may have problems getting value from the investment.

DMcCunney
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re: Foxconn outfoxes Sharp’s sharpest
DMcCunney   8/18/2012 4:37:52 AM
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I saw it, and commented. It came as *no* surprise, and was about what I'd expect to happen.

junko.yoshida
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re: Foxconn outfoxes Sharp’s sharpest
junko.yoshida   8/17/2012 6:50:27 PM
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Well put. I agree. Unfortunately, Sharp is running out of both money and time. Hon Hai now wants 20 percent of Sharp. See the other story here: http://www.eetimes.com/electronics-news/4394255/Hon-Hai-now-wants-20-percent-stake-in-Sharp

DMcCunney
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re: Foxconn outfoxes Sharp’s sharpest
DMcCunney   8/17/2012 6:15:42 PM
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@Junko: "I am still wracking my brain why Sharp was not able to close the deal when the two companies announced the deal in March." Easy enough. Money. The business landscape is littered with the corpses of ventures like this that foundered because the economy changed and the value of one of the parties dropped substantially. the other party says "You aren't worth as much as you were when we made the deal, so we aren't going to pay as much!" Hon Hai certainly has an interest in getting a piece of Sharp, but they would arguably be getting a lot less for the money if they bought at the originally agreed upon price. I think the question is whether Sharp needs the deal badly enough to cut the price they are willing to accept.

BOMBOVA
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re: Foxconn outfoxes Sharp’s sharpest
BOMBOVA   8/16/2012 8:06:05 PM
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i came in, just by the Headline, n looking for the new tablets, with photo=realism, n Samsung's new 2 core processor of 2013, , going to be big changes "again" ten inch display GPS, Aps, n low power, n speed. every other portable devise, is going to be Junk , but isn't that the game that is being played here... i am in a good mood, Cheers readers. love this site. Thomas in Vancouver

junko.yoshida
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re: Foxconn outfoxes Sharp’s sharpest
junko.yoshida   8/15/2012 2:57:10 PM
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Yes, that's so true, Rick. The company puts itself in a constant rat race for cheaper labor. In theory, though, if Foxconn can work out a deal with Sharp, the Taiwan contract manufacturing giant could go up the food chain. Developing advanced displays with its parter... at least, from what I understood, that was Hon Hai's original intention of courting Sharp.

junko.yoshida
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re: Foxconn outfoxes Sharp’s sharpest
junko.yoshida   8/15/2012 2:51:54 PM
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Apple is always a factor. But the problem with Sharp today is much larger than that, I think.

rick merritt
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re: Foxconn outfoxes Sharp’s sharpest
rick merritt   8/15/2012 1:40:40 PM
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Hon Hai is a funny beast. At one level another great global success of Taiwan, next to TSMC, HTC and Asustek. At another level, a miserable failure stuck in the 1% profit zone of Taiwan's we-can-make-it-cheaper history, ironically tied like a poorly fed dog to one of the most profitable companies in electronics--Apple.

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