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Following the company's CES presentation in Las Vegas this week HiSense US CEO Jerry Liu told reporters: "We will follow the contract to the dot", disussing the Sharp licensing agreement, Nikkei reported. Sharp's new owner HonHai Precision Industries better known as Foxconn, is looking for an early termination of the licence agreement to the Sharp Brand HiSense. Hisense acquired the five year license for use of the Sharp brand in Latin America and The US for $23.7 million, in 2015. When Sharp was struggling from high costs of Japanese production.
HiSense is keen to conquer the US market, as are othet major Chinese brands, like TLC and Vizio owner LeEco. HiSense will continue to follow a two brand strategy, Hisense aimed at the younger hipper crowd, with Sharp aimed at an older more settled and affluent audience.
Foxconn acquired Sharp in August and since has been cutting cost and promoting Sharp and its large TVs. Looking to expand its Sharp operations globally. Buying a majority stake in the company that acquired Sharp's brand and Polish assembly plant. That company made a one million euro loss in the first half of the year, but HiSense clearly sees more value in the Sharp brand.
Last week Hon Hai signed an agreement with the Cantonese regional government to develop an industrial park and new 10.5 Generation $8.8 billion manufacturing plant to gain a leading position for Sharp in the large 8K TV market.
Foxcomm leadership is scaling down to zero supply of LCD panels to HiSense. According to Nikkei Lui is not worried by this commenting: "We have many suppliers, and we have our own brand and our own technology. Foxconn is only a supplier, and they don't supply all that much to us, but again we still have a partnership with them".
HiSense is keen to conquer the US market, as are othet major Chinese brands, like TLC and Vizio owner LeEco. HiSense will continue to follow a two brand strategy, Hisense aimed at the younger hipper crowd, with Sharp aimed at an older more settled and affluent audience.
Foxconn acquired Sharp in August and since has been cutting cost and promoting Sharp and its large TVs. Looking to expand its Sharp operations globally. Buying a majority stake in the company that acquired Sharp's brand and Polish assembly plant. That company made a one million euro loss in the first half of the year, but HiSense clearly sees more value in the Sharp brand.
Last week Hon Hai signed an agreement with the Cantonese regional government to develop an industrial park and new 10.5 Generation $8.8 billion manufacturing plant to gain a leading position for Sharp in the large 8K TV market.
Foxcomm leadership is scaling down to zero supply of LCD panels to HiSense. According to Nikkei Lui is not worried by this commenting: "We have many suppliers, and we have our own brand and our own technology. Foxconn is only a supplier, and they don't supply all that much to us, but again we still have a partnership with them".