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The industry has been watching hon hai's moves since it bought sharp in 2016.In 2017, sharp liquid crystal TV changed its traditional way and launched a series of LCD TVS that are close to the people, greatly increasing its market share.Other than that, it seems that hon hai's marriage to sharp doesn't take much action.

A real shot in the arm for sharp's acquisition by hon hai

After the acquisition of sharp, hon hai has been making use of sharp's brand power to push the volume of liquid crystal products.Foxconn has a cost advantage, combined with sharp's brand power, and won a large market share.But we have to see that this kind of behavior also seriously hurt the original brand tone of sharp.Sharp has always been known for its quality, and now, following a path of mass sales, introducing entry-level LCD TVS is clearly not a long-term solution.

Hon hai's marriage to sharp isn't just about LCD TV market share

Since hon hai's takeover of sharp has gone through several twists and turns, hon hai can't just be a low-margin LCD business. What's the point of such an acquisition?About hon hai's move.In my opinion, this is exactly the real value that the acquisition of sharp can bring to hon hai.

Hon hai's acquisition of sharp is really about OLED screens.Samsung now supplies 90 per cent of OLED screens for mobile applications.Although LG and Chinese brands are also actively expanding in this market, LG mainly focuses on large OLED screens, while other brands, such as China's wiesenor, are still not technically strong enough to compete with samsung in the global market.

But recently, the journal reported that hon hai's investment-led Sharp has set up an OLED panel specialist group, which consists of more than 400 r&d, design and production technicians.Sharp's camera parts are being supplied to Apple's iPhone.It is clear that hon hai is actively expanding its OLED panel business.

Hon hai has long been known as the world's workshop, and its technological edge is not obvious, but after its acquisition of sharp, OLED's talent pool should not be underestimated.Sharp itself has IGZO panel production technology, as the father of liquid crystal, sharp naturally has the ability to develop mature OLED panel products.Therefore, sharp is likely to develop OLED panel technology as the core in the future.

Domestic companies are also actively laying out OLED screen technology

The replacement of mobile phone screens has shown a clear direction, that OLED screens will become mainstream in the future.Although the LCD screen has more price advantage, as the head enterprise continues to launch the OLED screen flagship model, the procurement volume of OLED screen and the speed of technological development will have obvious development.If OLED screens are not laid out at this time, the future will be limited to the entry market for LCD mobile phone screens, which will struggle in the thin margins.

Hon hai's main industry is OEM. It can be said that the advantage of hon hai group lies in the assembly speed and cost control.Hon hai's development will be severely hampered if it is simply responsible for assembly in the future and cannot bring its own screen business into the mix.Although Mr. Gou has been working hard on branding over the years, he hasn't achieved much.Sharp's brand and technology are pillars hon hai must rely on.

Samsung now has the lion's share of the OLED mobile screen market but buyers do not want one to dominate

In addition, samsung and Chinese companies, such as vecino and jingdongfang, are constantly studying OLED screens, so the scale of OLED screens will be certain in the future.Samsung can't hold on to this market forever, and companies like apple don't want to see an OLED screen alone.As a result, many companies are expected to consider support if new forces emerge in the market.Monopoly, after all, means high prices, and OLED screen prices can fall fastest only when there is enough competition.

Mr. Gou actively seeks the transformation of hon hai group's single OEM model cannot meet the future development needs

Some argue that hon hai should sell sharp, arguing that its ownership would create a conflict with many of the electronics manufacturers.But a monopoly on contract manufacturing is not hon hai's future goal.Hon hai's behavior also illustrates that it relies on sharp to develop OLED and integrate its screen business into the assembly process to truly boost revenue.If the aim was to make cheap TVS in the first place, it would make too much sense to buy sharp.After this "fierce" operation, if the mobile panel supply business matures, OLED panels can go deeper into more industries, such as automotive display, Internet of things display and other markets.