Purchased a new television lately? Unfortunately for Sharp
, most people aren't upgrading their TVs, hence part of the reason why the struggling electronics maker doubled its full-year net loss forecast to $5.6 billion. Speaking to its second quarter financial results, Sharp noted a "worse than expected drop" in LCD TV sales in Japan and China. This caused overall LCD TVs sales to drop "drastically" compared to the same period last year, Sharp said.
Sharp used the word "drastic" quite a bit in its financial report, referring to "drastic price drops of products and devices," and the need to institute a "drastic structural reorganization" within the company. Sharp also complained of production delays.
According to Yahoo News
, Sharp is now looking for outside help just to stay afloat. The company is reportedly in talks with Hon Hai Precision (Foxconn
) to become Sharp's biggest shareholder. Sharp hopes to have an agreement in place by March, but said it's also considering other alliances.
Sharp is Japan's biggest producer of LCDs, and thus relies heavily on their sales. To keep its head above water, Sharp has taken out new loans, is cutting jobs, and is selling off some of its assets. All this comes in addition to mortgaging most of its facilities in Japan.