War is Brewing Between Foxconn (Sharp) and Samsung and it Has Something to Do with LCD TV Panels [VIDEO]By Xien Palacios, UniversityHerald Reporter
Samsung is facing a great challenge recently as Foxconn-owned Sharp has reportedly halted the supply of LCD TV panels to the South Korean tech firm. Many believes that Foxconn Group is declaring a war against the world's leading TV maker. Will Samsung find another supplier of LCD TV panels?
Sharp Halt the Delivery of LCD TV Panels to Samsung
Just recently, Foxconn-owned Sharp has reportedly halted the delivery of LCD TV panels to Samsung. According to Japan Times, the move from Sharp has been allegedly caused by the disagreement between Samsung and Sakai Display Products (LCD TV panels makers owned by Sharp) regarding the product price raise because the latter is reportedly having difficulties by offering lower prices on their products.
Furthermore, the decision was also caused by the extreme desire of Foxconn to go on a head-to-head battle with Samsung when it comes to selling LCD TVs in the market. According to Asian Nikkei Review, the Chairman of Foxconn Terry Gou has a long standing sense of rivalry with the South Korean tech firm; thus, halting the delivery of LCD TV panels to Samsung is an act of declaration of War.
However, many have doubted if Foxconn (Hon Hai) will beat the world's leading TV maker of today's generation. They are maybe excellent when it comes to contract manufacturing but their ability in dealing directly with the consumers where Samsung excels is still questionable.
Sharp is reportedly delivering 5 million LCD TV panels to Samsung and thus, cutting ties with Samsung means losing half of their revenue. Meanwhile, Sharp is said to focus on their Aquos-branded TVs and targets to doubles their sales by 10 million units for 2018.
Samsung Partners with LG for LCD TV Panel Supply
Despite being unprepared, Samsung has displayed a spirit of sportsmanship and continues to seek for another LCD TV panels supplier. For this reason, Samsung has turned to their rival LG Display to fill-in for Sharp but there has no deal that has been signed yet according to GSM Arena.