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7-Eleven strikes deal with Hon Hai to sell tablets and notebooks in Taiwan
The stars have aligned in such a way that two of our favorite, yet disparate interests are crossing paths: gadgets and Slurpees. Hon Hai Precision Industry (better known as Foxconn's parent company) has struck a deal with 7-Eleven, and will manufacture slates for the latter to sell in Taiwan. Details are slim on the 7-inch (7.11-inch?) tablet, but it's now up for pre-order, and the pair hope to give 3,000 units new homes in the first three months of sales. As absurd as it sounds, this isn't the first partnership between the unlikely couple. In June, a similar deal resulted in 7-Eleven-branded TVs (in 40-, 60- and 70-inch flavors), and over 15,000 have been sold since. Now, a 50-inch set has been added to the mix, and between five and ten new products -- which include smartphones and laptops -- will be available by years' end. Rather than crowding the inside of shops with the gadgets, the televisions were up for order through the convenience store's 7net website as well as brick and mortar locations, and it appears the other hardware will follow suit. We don't expect the gas station to dabble in electronics stateside, so you might as well make the most of a trip to Taiwan and pick up a Honey Lemon Slurpee while you're at it. [Image credit: Nicky Fernandes, Flickr]
Foxconn chairman discusses struggle to build iPhone 5
Citing incredibly high demand for the iPhone 5 and quality control difficulties, Foxconn Chairman Terry Gou told Reuters that his company's Hon Hai Precision Industry unit is struggling to assemble enough of the devices to meet Apple's requirements for the latest iPhone. Talking to reporters after a business forum, Gou said, "It's not easy to make the iPhones. We are falling short of meeting the huge demand." Some brokerage firms have reported that another Foxconn subsidiary, Foxconn International Holdings (FIH), is now beginning to build the units. Gou declined to comment. FIH normally assembles phones for manufacturers such as Huawei and Nokia. Several weeks ago, an anonymous Foxconn official told the Wall Street Journal that "the iPhone 5 is the most difficult device that Foxconn has ever assembled." Specifically, the aluminum chassis and in-cell touch panel displays have created production headaches. The anodized chassis has sometimes shown wear or scratches right out of the box, while yield rates for the displays were initially low. Failing to meet demand for the iPhone 5 during the critical holiday buying season could have a negative impact on Apple's earnings and share price. [via AppleInsider]
Hon Hai Precision sees profits surge in Q3
The two-headed beast that is Foxconn / Hon Hai has just released its latest financials, showing that the oft-troubled manufacturer has seen profit margins jump around two percent. It brought in $24 billion (NT$ 711.0 billion) in net sales, generating a net profit of $1.3 billion (NT$ 30.2 billion). At the end of September, it had $1.4 billion stashed in the bank, and the company has said it is striving to enforce "social and environmental responsibility," as it should, really.
Sharp takes out $4.6 billion loan while it continues restructuring
Much of the business news out of Japan from Sharp hasn't been good, but for now at least it's worked out a loan agreement to keep rolling. It's still pursuing a deal with manufacturer Hon Hai Precision Industry / Foxconn that would provide a much-needed injection of capital, but those talks have reportedly stalled. Until something happens there it has a 360 billion yen ($4.6 billion) syndicated loan worked out with a couple of Japanese banks that runs until June 30th 2013. We're still not sure how Sharp will proceed with all this, but hopefully an agreement can be reached that brings its sweet IGZO LCD tech and any other new screens it will be showing off at CEATEC next week to more devices.
Sharp mortgages itself to the hilt just to keep going
Sharp has mortgaged its offices and factory buildings in order to raise the cash it needs to stay in business, according to Reuters. It's cut a deal with banks for nearly $2 billion in short-term credit secured on its assets -- including the factory that reportedly produces displays for the iPhone. Sharp had pinned its hopes on cash from Hon Hai, but the Chinese giant is apparently delaying the money with the aim of gaining more control over Sharp's business. In response, Sharp has pledged to send president Takashi Okuda to meet Hon Hai's Terry Gou in Taipei -- just as soon as it's scraped together the air-fare.
Foxconn investment in Sharp looking less likely due to LCD manufacturer's shrinking stock value
Foxconn's parent, Hon Hai Precision Industry, partnered up with Sharp earlier this year, taking a stake in Sharp's Sakai LCD manufacturing plant and investing another $850 million in the company. Unfortunately, that latter investment deal is in danger of dissolving due to Sharp's financial troubles. The Wall Street Journal reports that Sharp's shares have fallen enough in the months since the aforementioned agreement was consummated in March -- due to flagging sales and excess inventory -- that Sharp's given Hon Hai the option to back out of the deal. However, Hon Hai's still interested in buying ten percent of the Japanese company, and has expressed an interest in renegotiating the terms of the investment. So, it seems we'll have to wait and see if Sharp accepts Hon Hai's continued advances, but you can read more about the company's financial woes right now at the source below.
Sharp reportedly getting cozy with Hon Hai Precision, helping to make phone and tablet LCDs in Chengdu
If we believe Japan's Nikkei, the decision by Hon Hai Precision Industry (that is, Foxconn's daddy) to buy a stake in Sharp was really just the start of a long, torrid love affair in LCD production. While Hon Hai is getting the rosy side of the deal for Sharp's TV-oriented Sakai plant, it's now thought to be paying Sharp for display technology that would go into a new factory in Chengdu for small- and medium-sized LCDs used for smartphones and tablets. If all dovetails as nicely as the two would like, the joint venture would see advanced mobile displays manufactured on the cheap -- the best of both worlds. Suffice it to say that there's a few companies that might be interested, as clients like Apple are no strangers to Chengdu. Before you let visions of IGZO-based LCDs on every iPad and iPhone dance through your head, though, remember that neither Hon Hai nor Sharp has confirmed anything -- and that the plant wouldn't be up and running until 2013 at the earliest, even if everything's in sync.
