Analysts are suggesting that Hon Hai's unlikely investment in Sharp makes sense if an Apple television is on the way.
Alberto Moel, a senior research analyst in Hong Kong with Sanford C. Bernstein & Co. says the factory is "a massive hole in the ground. It's too large and it makes too many panels that nobody wants to buy."
"Maybe Gou is betting on 60-inch TVs seeing a renaissance," says Moel. "Or maybe on the yen depreciating. Or maybe on Apple TV."
Daiwa Capital Markets tech-team analysts thought similarly. "We expect Apple to debut the iTV by the end of this year, and it is likely to adopt Sharp's 10th generation TFT production line to product TFT LCDs for iTVs," they wrote. "We believe Hon Hai will have better vertical integration for the Apple iTV following its stake acquisition in Sharp's plant in Sakai."
Since Hon Hai (Foxconn) is such an important manufacturer for Apple, it's likely that if anyone knows what Apple's plans are for the future, it's them.
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Alberto Moel, a senior research analyst in Hong Kong with Sanford C. Bernstein & Co. says the factory is "a massive hole in the ground. It's too large and it makes too many panels that nobody wants to buy."
"Maybe Gou is betting on 60-inch TVs seeing a renaissance," says Moel. "Or maybe on the yen depreciating. Or maybe on Apple TV."
Daiwa Capital Markets tech-team analysts thought similarly. "We expect Apple to debut the iTV by the end of this year, and it is likely to adopt Sharp's 10th generation TFT production line to product TFT LCDs for iTVs," they wrote. "We believe Hon Hai will have better vertical integration for the Apple iTV following its stake acquisition in Sharp's plant in Sakai."
Since Hon Hai (Foxconn) is such an important manufacturer for Apple, it's likely that if anyone knows what Apple's plans are for the future, it's them.
Read More