Two major Apple partners from Asia have announced an alliance that has fired up analysts. Reports related to the Foxconn-Sharp partnership point out that the two companies are willing to join efforts to get the orders completed for Apple's highly anticipated TV.
The rumour started in Taiwan yesterday, when Sofia Wu reported that Hon Hai Precision Industry Co. (who owns Foxconn) plans to invest serious money in the Japanese electronics maker Sharp.
The latest report on this matter reveals that Foxconn bought 10 per cent of Sharp shares for $808 million. Sofia Wu wrote: "The two corporations have struck a deal to overhaul Sharp's division that makes LCD panels for televisions."
Foxconn already has a tight relationship with Apple, as orders from Cupertino account for 45 per cent of Hon Hai's revenue.
Now, by partnering with Sharp - which is one of the few companies able to produce large LCD panels integrating the latest technology - Foxconn is going to pile up even more orders from Apple.
Sharp, on the other hand, has just started its partnership with Apple by supplying small volumes of high-resolution panels for the new iPad, along with LG and Samsung. Sharp officials expect that the partnership with Apple's main supplier Foxconn, is sure to increase the demand for more orders.