Sharp is finally giving up its struggle and calling it quits

Sharp has been struggling in the Americas for some time now, but rather than pushing through its financial losses and hoping that things turn around, the Japanese company has decided to abandon North and South America entirety so that it can focus on products that are still successful in these markets, such as office electronics and solar cells. The company will be selling its TV-related assets in the Americas to Hisense, a Chinese company that has been looking to expand its presence in some of these markets.  

Sharp Corp on Friday said it would exit the TV set business in the Americas and consider more steps to shore up its finances, after reporting a deeper-than-expected quarterly loss on weak sales of smartphone displays. The Japanese electronics maker said it would sell its TV manufacturing plant in Mexico and license its brand in the Americas to China’s Hisense Group. In a separate statement, Hisense said it would pay $23.7 million for the business. Osaka-based Sharp was once a highly profitable manufacturer of premium TVs and a favoured screen supplier to Apple Inc, but has struggled to innovate enough to fend off Asian rivals. In May, the company sought $1.9 billion in its second major bank-led financing in three years. In return, it promised to cut 5,000 jobs, or 10 percent of staff. “Sharp has not been able to fully adapt to the intensifying market competition, which led to significantly lower profits compared to the initial projections for the previous fiscal year, and has been suffering from poor earnings performance,” Sharp said in a statement explaining the TV business sale.