2015: Hisense Accrues Sharp America’s Assets and Brand
In what was a major development in the consumer electronics industry, Hisense, one of China’s largest TV makers, acquired the North American manufacturing assets of Japan-based Sharp and secured brand name rights for the U.S. market. In 2015, Hisense began manufacturing all TVs bearing the Sharp brand name in the U.S. This license for Hisense to use the Sharp brand name had a five-year term with an option to extend.
This Deal’s Significance
This deal was significant because Hisense gained a stronger foothold in the U.S. market. It also revealed the weakness of Japan-based TV makers as they faced off against companies like Korea-based LG, Samsung, and China-based TV makers. At the time, Japan’s TV makers were struggling, while Korea and China-owned TV brands were increasing their dominance.
A Sad Moment for Sharp
The Hisense-Sharp 2015 deal wasn’t unexpected. Sharp’s TV business had faced financial difficulties. Still, it was a sad moment for Sharp because of the company’s legacy as an LCD technology pioneer. It was the first TV maker to introduce LCD TVs to the consumer market.
Sharp’s Dramatic Turnaround
In 2016, Taiwan-based Foxconn took over Sharp, and Sharp began a dramatic comeback and financial turnaround. In 2017, Sharp sued Hisense because Sharp was upset about the quality of the TVs that Hisense manufactured that bore the Sharp name. Sharp felt strongly that its name and brand license rights were used inappropriately. While Sharp dropped the lawsuit in 2018, it quietly continued its comeback plans. In 2019, Sharp regained its licensing and brand, buying back its assets from Hisense. Sharp-manufactured Sharp TVs have been back on the market since late 2019. The company is promising to incorporate new technology into its Smart TV line as it enters more markets.
