Analysts claim that the move will allow Hisense to compete in the premium end of the TV market with the Sharp brand positioned as the premium brand and the Hisense brand positioned to grow market share in the “value” market.
At this stage Hisense has acquired the rights to the US market they have also confirmed the purchase of “all equity and assets of Sharp’s TV factory in Mexico for $23.7 million with rights to use the Sharp brand name and all its channel resources in both North and South American regions.”
While Hisense is a strong contender in the Chinese TV market, it has struggled to make gains in select Western markets which is dominated by brands such as Samsung, LG and Sony.
In Australia Hisense has bucked the trend and is one of the few TV Companies to report consistent growth.
Sharp’s presence in various markets has been shrinking in recent years but the brand is a familiar one, and Hisense has been aggressive in its development of 4K and OLED models.
Analysts said that Hisense is well-positioned to make a splash outside of the Asian market, especially in the lower-priced models it specializes in.
Hisense is also a major global player in appliances, computers and projectors. Its products sell in 130 countries.
Sharp released a statement: “As announced earlier today, Sharp Corporation has agreed to sell its stake in its TV manufacturing facility in Mexico and enter into a brand licensing agreement with Hisense for consumer TVs in the Americas beginning January, 2016.