Sharp Lays Off 5,000, Shipping iPhone Screens To Apple This Month
Japanese electronics company Sharp will start shipping screens for the new Apple iPhone this month to prepare for a release in October, just ahead of the pre-Christmas shipping season. “Shipments will start in August,” Sharp’s new president, Takashi Okuda. This is an indication that Apple will announce the new iPhone in September and ship to shelves in October. Unfortunately, Sharp is dealing with some financial difficulties, which led to major job cuts.
Last year, Sharp reported $4.7 billion in losses. The company reported a first quarter operating loss of 138.4 billion yen ($1.76 billion). This is almost triple of 2011’s first quarter loss of 49.3 billion yen ($628 million).
Now Sharp is cutting 5,000 jobs by March of next year. This is Sharp’s first major job cut since 1950. Sharp is planning to set up voluntary retirement plans for their older workers. Management will take pay cuts of between 20-50% as well.
Other Apple panel suppliers include LG Display and Japan Display.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry