Apple supplier Hon Hai takes large stake in Sharp

Apple manufacturing partner Hon Hai—better known as Foxconn—has bought in to Japanese firm Sharp. According to a Reuters report, Hon Hai took around a ten percent share of the company, and may use its new stake as extra leverage in attempting to win orders of Apple’s rumored TV set. “Hon Hai is already the assembler of Apple’s iPhone and iPad, it needs the next driver, which is Apple TV,” said Yuanta Securities analyst Vincent Chen. “It’s something that [Hon Hai founder] Terry Gou cannot afford not to do. But this is a very big gamble.” The report goes on to note that the newly formed relationship between Hon Hai and Sharp may give the latter a leg up in bids for Apple display orders, as Hon Hai/Sharp may be in a position to offer superior pricing. Sharp currently supplies Apple with Retina Displays for the third-generation iPad.

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