As Japan’s Sharp struggled in the technology sphere amid stiffer competition, Samsung (SSNLF.PK) saw an opportunity to invest in its own production pipeline.
For 10.4 billion yen, or about $111 million, Samsung bought a 3 percent stake in Sharp. The television and electronics maker had forecast a record 450 billion yen loss for this year, so Samsung’s investment may help somewhat, but it could be even more beneficial for Samsung.
Apple (NASDAQ:AAPL) has recently been Sharp’s biggest customer, as Sharp makes screens for iPhones and iPads. And, Apple has always been somewhat controlling over suppliers, ensuring that it can get its demands met and beat the competition.
However, Samsung is also a customer of Sharp’s screens, and this investment deal may bump Samsung up on the queue for getting its supply needs fulfilled. It may even be able to take Apple’s priority seat away…