The Japanese Electronics Corporation Sharp founded in 1912, sold its TV plant in Mexico to Hisense Electric Co Ltd in July 2015. The former highly profitable manufacturer of premium TVs and screens, licensed its brand and all channel resources in North and South America to the Chinese company for $23.7 million. The weak sales of smartphone displays caused a big loss for Sharp which can be a reason for the TV-business sale. Based on the Sharp’s statements, the company could not adapt itself to the intensifying market competition that led it to the significant lower profits compared to the initial projections for the previous fiscal year.
Since 1969, Hisense has developed itself as a TV-market leader in China and currently is the fourth largest TV manufacturer worldwide. It expects 2 billion US dollars growth in revenue through the acquisition. Let’s see how Hisense will compete in US TV-market with the dominant brands like Samsung, LG and Sony. To read more about this topic please follow MediaPost.com