PRINT.IT
17
Q & A
PrintIT:
Why does Sharp refer to
Foxconn’s investment as an alliance
and not a take-over?
Jun Ashida (JA)
:
Because it is an
investment of
€
3.1 billion by Foxconn
in Sharp. We continue to be Sharp,
an independent company. We are the
ones who decide our strategy, our
direction and also how we maximise
the power of that investment.
PrintIT:
Do you have a specific
figure on what is being invested in
the Business Solutions Group?
JA
:
Roughly
€
310 million. But this
is not an investment from Foxconn;
it is Sharp’s investment. Foxconn
is investing
€
3.1 billion to become
a major stakeholder in Sharp.
Thereafter, what we choose to invest
in is up to us. Sharp’s investment
plan is divided into several product
categories – display technologies,
consumer electronics and so on –
including Business Solutions Group,
our B2B business, which is getting
a total of
€
310 million. How we
invest that is something we are now
discussing.
PrintIT:
What does Foxconn bring
to Sharp, other than cash and
stability?
JA
:
This collaboration, this alliance
obviously brings stability to Sharp
Corporation – there is much less to
worry about in our global day-to-day
business operations and Foxconn’s
financial backing lets us pursue our
investment goals more positively.
Another major benefit is the
opportunity for synergy. Foxconn has
the most advanced manufacturing
technology and massive purchasing
power, which offers major
possibilities for Sharp. Then, there
are things that we have that they
don’t, like the Sharp brand and
product innovation and technology.
The synergy of those ingredients
gives us major opportunities, which
both parties want to pursue.
PrintIT:
Foxconn is reported to want
Sharp’s expertise in displays. Does
the alliance make it more or less
likely that Sharp Business Solutions
Group will be sold?
JA
:
(laughing) Business Solutions
Group has been, and continues to
be, one of Sharp’s core businesses.
In fact, it is probably becoming
more important. That’s also how
Foxconn sees it. They view this as
a big opportunity as well. So, there
are no such discussions. Rather,
we are having very positive talks
with them about what the synergy
between the two companies can
do for Business Solutions, as part
of Sharp. Of course, in their joint
press conference, our President Mr
Takahashi and Mr Terry Gou [founder
and CEO of Foxconn] emphasised
the technology synergy of the display
areas. This will benefit Sharp overall
and should also benefit Business
Solutions Group.
PrintIT:
Will Sharp Business
Solutions Group continue to be
run as a separate business, in
line with your recent corporate
restructuring?
JA
:
Yes. Inside the Sharp Corporation
we have created five internal, virtual
companies, one of which is the
Business Solutions Group. That
structure remains the same. The
direction remains the same.
PrintIT:
Last autumn, you said you
were focusing very much on the
B2B market and withdrawing from
some consumer markets in Europe.
Yet Mr Gou wants to make Sharp a
massive consumer brand again.
JA:
You are right. Sharp Corporation
has been restructuring the consumer
electronics (CE) business, starting
in Europe. Apart from the Italian
and Russian markets, we basically
ceased our Sharp brand CE business
in Europe. At this stage, there have
been no particular discussions
about the European CE business.
But you are right, Mr Gou wants to
invest in the consumer electronics
and home appliances areas. I am
not sure if you are familiar with our
latest product, the Robohon, an AI-
integrated smart mobile phone and
robot lookalike. That is one area of
consumer electronics in which Sharp
will want to go further and where
Foxconn is willing to help Sharp
invest.
PrintIT:
Mr Gou also mentioned an
air purifier.
JA
:
I don’t know about that
specifically. But Sharp’s ideas already
include investment in the consumer
electronics area, particularly where
internet of things technology can
contribute to the smart home, and
that could include air conditioners or
refrigerators or microwave ovens.
PrintIT:
Has uncertainty over
Sharp’s future been damaging to
Sharp Business Solutions Group
globally and in the UK specifically?
JA
:
I don’t believe it has been
a major problem, as Business
Solutions’ performance has been
strong and steady. But I would like to
personally thank all our partners and
customers, because they will have
heard reports that Sharp’s overall
situation hasn’t been great, even if
Business Solutions has been OK.
That might have concerned some
partners and customers. Yet they
continued to do business with us.
I think that’s a really good thing for
us, because we can now go back
to them and say ‘Thank you. Sharp
Corporation has been going through
some difficult times. However, our
business is stable and strong and
with this alliance we can now do
even better. I want to say thank you
for your continuing support for Sharp
Business Solutions. Now we want to
go even further’.
On March 30, Sharp announced a strategic
alliance with Foxconn, the contract electronics
manufacturer best known for its relationship
with Apple. The Taiwanese company took a
66% stake in Sharp in return for an investment
of
€
3.1 billion. Following the announcement,
PrintIT
spoke to Jun Ashida, President of Sharp
Information Systems Europe, about what the
agreement means for Sharp and its Document
Solutions Business in particular.
A springboard for growth
Sharp’s
investment plan
is divided into
several product
categories
– display
technologies,
consumer
electronics and
so on – including
Business
Solutions Group.
Jun Ashida,
President,
Sharp Information
Systems Europe
