Japan's Sharp to buy Toshiba PC business for $36 million

As per news reports, Sharp Corporation of Japan will buy Toshiba Corp’s personal computer business for 4 billion yen ($36 million). The Sharp brand is under the control of manufacturing giant Foxconn, the world’s biggest contract manufacturer and major Apple Inc supplier, to produce PCs more cheaply, just as it was able to do in TVs. According to another, Foxconn is also promoting the Sharp TV to start marketing in India, which has kick-started from this year IPL (Indian Premiere League). With this Sharp marks a return to business in India.

Earlier Sharp was a known brand in terms of technology, but it’s position became negligible with the technology upgrades and pricing structure of SAMSUNG, LG and Sony. But with the manufacturing capability of FOXCONN, Sharp is now trying to enter the Asian market. The recent deal of PC business will see Sharp take an 80.1 percent stake in Toshiba’s PC unit on Oct 1.

The demand for PCs has come down in past two years at the global layer. Earlier Foxconn has also come out with their own laptops (Low and high end models) to try entering the market for OGM bundling, but didn’t get any significant success. Now FOXCONN, who is the contract maker of PCs for other global PC brands, is expected to produce PCs for Sharp brand and turn a profit.

With the technology know-how and Sharp being a champion in the  production capability with help from FOXCONN, it could sustain in the Indian market but the question is how to fight with the existing leaders in the industry like HP, DELL, Lenovo, Apple, Acer and Asus, which enjoy about 98% market share in the country.

.

Tags: Sharp to buy Toshiba PC business for $36 mln, sharp to buy toshiba pc business, Sharp TV, Indian Premiere League, ipl, FOXCONN, apple inc, Asian market, varindia