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Nikkei: Sharp Considers Buying Toshiba PC Business

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Sharp is looking to return to the PC market, Nikkei reports-- specifically through the purchase of the ailing Toshiba PC unit, as well as help from parent company Foxconn.

SharpThe Japanese newspaper says talks have already begun "at the working level," while analysts suggest the price for the unit totals around ¥10 billion (or $91.9 million). Previously Toshiba considered selling the PC unit to Taiwan's Asus, but the deal failed to materialise.

As mentioned earlier, the Toshiba PC unit is a loss maker. In fiscal 2016 it saw operating losses reaching ¥500m on sales of ¥191.8bn, the result of competition from the Asian mainland, not to mention the generally shrinking PC market. As a result it has already scaled back operations by pulling out of consumer PCs in emerging markets.

On the other hand Sharp appears to be bullish about its PC prospects, even if it had already made an exit from the market back in 2010. This is surely due to  backing from the mighty Foxconn. The Taiwanese parent company already manufactures PCs for major vendors, including HP and Dell, meaning it knows the ways around high-volume PC making. Meanwhile Sharp makes LCD displays for smartphones and notebooks, making a PC operation a guaranteed customer for the panels.

That said, nothing is set in stone as yet, and Nikkei concludes Toshiba is "keeping doors open to other potential buyers."

Go Sharp Weighs Bid for Toshiba's Struggling PC Business (Nikkei Asian Review)