Samsung Sharp Alliance: Will Apple Lose Flat Screen Partner?

The always plugged-in IT Technology publication Digitimes has issued a new report that turns the tables on Samsung's recent investment in floundering Sharp Electronics.

The report says that while Japan's Sharp sought out a potential $100 million investment as one of several moves in an effort to stave off bankruptcy, Samsung's motives may not be altogether altruistic.

The deal will give Samsung a minor 3-percent stake in Sharp. More importantly, the deal gives Samsung access to Sharp's flat-screen technology while providing a potential wedge between Apple and its key Asian display supplier. Asian manufacturing sources say Samsung will become the main customer for Sharp's liquid-crystal-display panels.

The move could pave the way for Samsung to control the market for flat panel televisions, particularly in emerging countries. According to the report authored by Ton Huang, Samsung's investment will allow it to decrease its reliance on Chinese LCD makers, all while putting pressure on Apple to firm up its own supply chain if it wants to enter the business with the much-rumored Apple TV.

Sharp is Apple's main supplier of LCD screens. Sharp also has a mutual financial position with Hon Hai Precision Industry's (Foxconn) Japan-based LCD manufacturing unit.

For decades, the tech manufacturing industry was dominated by Japanese firms, but Samsung's mobile dominance has set the stage for an Asian power shift from Japan to the Korean mainland.  

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