The Economist Questions Wisdom of Foxconn’s Acquiring Sharp

choi

Foxconn | Pointed Questions; Foxconn’s bid for Sharp is a risky attempt to reinvent its business model. Economist, Feb 13, 2016
http://www.economist.com/news/bu ... l-pointed-questions
(Apple "provides around half its [Foxconn's] revenues. * * * About two-fifths of Foxconn’s revenues come from making networking equipment and servers for just a handful of Western firms, such as Cisco and HP. Foxconn assembles handsets for many firms, including Xiaomi")

Note:
(a) "AT FACE value, there is little sense in the $5.6 billion proposal by Foxconn * * * to buy Sharp of Japan. It seems an extravagant price"

extravagant (adj, etymology)
http://www.oxforddictionaries.co ... english/extravagant
(b) "Why is he now so keen to spend lavishly on something that may prove a millstone around his neck?"

millstone (n):
"1 : either of two circular stones used for grinding (as grain)
* * *
2b : a heavy burden"
www.merriam-webster.com/dictionary/millstone
(c) "buying Sharp may help Mr Gou with his grand 'eleven screens' strategy, by which he hopes his firm will become the dominant maker of displays for all sorts of devices, from computers to cars to smart watches."

Thompson Wu and Julianne Lu (analysts), Hong Hai Precision. Credit Suisse, May 18, 2015 (under the heading "Equity Research"), at page 11
https://doc.research-and-analyti ... CplKAtIT%2fSAEGw%3d
("Hon Hai will host its annual general meeting (AGM) on 25 June [2015]. * * * Update on 11-screen, 3-network, and 2-cloud strategy [section heading]. In Hon Hai's 2013 annual report, Chairman Terry Gou outlined a broad plan to expand on its IIDM (Integration-Innovation-Design-Manufacturing) manufacturing base for components, modules, and product assembly capabilities into integrated services. To deliver on integrated services, Hon Hai will move into cloud services, wireless 4G-LTE networking services, and e-commerce. The blue-print of Hon Hai's future is captured in its catch phrase, which at its AGM this year expanded to 'eleven screens, three networks, and two clouds 11屏3網2雲 [expanded from 8屏1網1雲 he advanced at the 2013 AGM].' These are the components of its transformation strategy: [Fig 18]")

AIO stands for "All-in-One PC" which a mouse plus everything else (keyboard, server, touch-screen monitor) condensed into one. Both components are wireless. In some cases, a separate (wireless) keyboard.