As many of you will know, Sharp are a manufacturer of TVs based in Japan, but it's come to light this week that the company is in serious financial trouble and needs to take action ASAP or the company will be no more.
Even though the company supplies Apple and many other companies with LCD panels and other display devices, the company has announced that it just can't continue down its current path and that Sharp themselves doubt they can continue to operate.
To survive, the company needs to massively cut costs and secure credit to recover, basing most of its recovery plan on their IGZO mobile display technology, which uses less battery life than existing mobile screens. The question is, will this be enough?
Sharp have already started work on the usual cost cutting methods, which unfortunately means a reduction in staff, cutting employee salaries, taking out mortgages on their properties, factories and more. All this is to try to curb the net loss of $5.5 billion for the year, but also to cover the cost of restructuring to try turn the company back onto a profitable path.
It's said the company is looking toward companies like Apple and Intel for some funds since their stock was reduced to a junk status by ratings agencies. President of Sharp, Takashi Okuda said the company is working on negotiations with Hon Hai, although things aren't going too well in that regard at this time.
We'll keep you posted if there are any developments, but I have a feeling this is going to end badly for the company, as competition in the market is fierce and the vultures will already be circling Sharp's existing profitable markets.