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Sharp Settles Branding Dispute with Hisense
May 27, 2019
 
Sharp posted a $2b (today’s dollars) loss on sales of $12.3b US, for 2014, and despite being the technology leader in 2009 when they opened the world’s 1st Gen 10 LCD fab, they were hemorrhaging cash as the Gen 10 was not configured to meet the TV panel sizes most in demand, the cost of polysilicon ruined their solar panel business, and they failed to get shelf space in U.S. big Box Retailers limiting Sharp TVs sales. By concentrating their sales of flat panel TVs in Japan, they alienated most of the prime retailer outlets in both Europe and the U.S. In order to recover some capital, Sharp stopped selling its TVs in North and South America, sold its Mexican TV factory to Hisense, and licensed use of theSharp (Aquos) brand in both regions. Hisense paid only $23.7m for the factory and the 5 year license (TV only), which was an indication of how desperate the situation was for Sharp.
 

But the indeterminant actions didn’t work and company was forced to sell a 66% stake to Hon Hai/Foxconnfor $3.8b US in August 2016.  Hon Hai changed Sharp’s focus, reviving the Sharp TV brand, stopped selling TV panels to Hisense without advanced notice as a tactic to end the brand license. Last week, Sharp issued a very short statement.  “Sharp Corporation announces it agreed to establish a new form of partnership with Hisense International America Investment Company Limited.  With this agreement, Sharp will re-enter television business in the U.S.A. market after the second half of 2019.” 
 
Sharp is beginning OLED panel production and recently previewed a 6.1” foldable and a 12.3-inch panel for on-board vehicle displays. The company will supply these panels, which can be formed into curved shapes, as soon as fiscal 2021. Sharp intends to sell them to automakers that already procure its LCD panels.
The new OLED panels will be produced at the company's display factory in Sakai. The Osaka Prefecture plant already manufactures OLED panels in limited volumes for Sharp's Aquos Zero smartphones.
 
Figure 1: Sharp’s Flexible OLED Prototypes

Source: Company