Hon Hai's Sharp will mass-produce OLED panels. Not only will smartphones with homemade OLED panels be sold this fall, but also hope to break into the Apple iPhone supply chain and compete with Samsung and LG for OLED panel orders.
At the financial report briefing held on July 31, Sharp Vice President Nomura said that Sharp has started producing OLED panels in June, and Sharp smartphones with homemade OLED panels will be sold this fall.
According to the Asahi Shimbun, Sharp has invested tens of billions of yen in the OLED manufacturing line at the Mie Plant and the Handan Factory. The OLED panel will be mounted on the high-end model of its own brand AQUOS, and it is expected to demonstrate the quality of the OLED panel. In the future, it will be sold to Apple, mainland smartphone manufacturers and other external companies.
Sharp expands Apple's iPhone supply chain strength
Hon Hai has always been the main manufacturer of Apple's iPhone products. If Sharp can successfully enter the Apple supply chain after mass production of OLED panels, it can help Hon Hai achieve the goal of one-stop iPhone production, which will help reduce Hon Hai's assembly costs and improve Gross profit margin.
In fact, Apple is also interested in supporting new suppliers outside of mainstream suppliers to increase bargaining power and spread risk.
Samsung has been the main supplier of OLED screens for Apple's iPhones. The global market for small and medium-sized OLED panels is over 90%. However, market rumors, Apple is also constantly contacting LG and Chinese manufacturer BOE to ensure the supply of OLED panels.
However, according to Korean media reports, although LG's small and medium-sized OLED panels have passed Apple's initial certification, but due to the current low yield, it may not be able to supply for this year's new iPhone. In the case of Apple's growing demand for OLED panels Next, Sharp's mass production of OLED panels will benefit the 'go to Samsung' in the Apple supply chain.
In fact, in addition to the OLED panel, Sharp's strength in camera modules is not to be underestimated.
Kantatsu, a subsidiary of Sharp, is the leading manufacturer of smartphone camera lenses in Japan. In order to develop new optical technologies, Apple began to interact with Kang Dazhi in 2013. Apple announced the business activities in the Japanese market on August 2, 2016. Many Japanese suppliers mentioned at the time, including Kang Dazhi.
Taiwan media analysis said that in the current smart phone camera lens field, Da Liguang's shipments in high-end lenses accounted for about 60%. After Sharp's acquisition of Kang Dazhi as a subsidiary, in addition to the impact on other second-line optical lens manufacturers, Hong The sea can also use this with Taiwan's Da Liguang to grab iPhone orders to strengthen its position in the Apple supply chain.
Sharp has previously pointed out that it has purchased lenses from Kangdazhi and made camera modules for sale. The cooperation between the two will enable Sharp's camera module business to achieve a one-stop production system from parts production to finished product manufacturing.
Revenue for six consecutive quarters of growth August share price is booming
Sharp’s first quarter (April-June 2018) earnings report released on July 31st showed that consolidated revenues reached 533.8 billion yen, up 5.4% year-on-year, and revenue growth has been achieved for six consecutive quarters; Consolidated operating profit of 24.8 billion yen, a 45% increase over the same period last year, has been making money for eight consecutive quarters.
Specifically, Sharp's advanced display system division (TV, large-size LCD panel and small and medium-sized LCD panel) reduced its revenue by 15.4% to 211.1 billion yen, and its profit increased by 55.6% to 10.5 billion yen. IOT electronic components Revenue (Department of Camera Modules and Electronic Components) increased 33.6% to 111.2 billion yen, and profit fell 43.5% to 900 million yen. Smart Home Division (Energy Solutions, IOT Communications and Health Environment) Revenue Growth 15.6% to 150.5 billion yen, operating profit increased by 19.9% to 11.8 billion yen; Smart Business Solutions revenue increased by 8.9% to 78.6 billion yen, and profit increased by 20.7% to 3.6 billion yen.
Sharp's performance for the year (April 2018-March 2019) is expected to remain unchanged. The consolidated revenue is expected to increase by 19.1% year-on-year to 2.89 trillion yen, and the combined profit will increase by 22.1% to 110 billion yen (1 The trial value of the dollar against 102 yen).
It is understood that after Sharp released its earnings report, its share price soared 7.16% on August 1 and closed at 2,770 yen, setting a new high in a month and a half.
It is understood that in addition to mass production of OLED panels and financial news, the Sharp mobile phone's results also added a fire to the stock price.
According to data released by Japan IT Research Corporation, Sharp, who defeated Sony in 2017 as the brother of Japanese Android mobile phone, continued to lead the way in 2018. In the first half of 2018, Sharp’s market share in the Android machine market in Japan reached 25.9%. With a 6.1 percentage point advantage, Sony (19.8%) ranked first in the league. The third-ranked Huawei market share in the Android machine market in Japan was 18.4%.