Sharp's after Foxconn acquisition -- smartphones

The news here is in the headline. 

WHY would Foxconn take what is now an ailing division of their company (Sharp) and focus it on something that has been declining in their market place and been a relatively dog-eat-dog market, where profit margins continue to become thinner? This doesn't seem like a smart move. They didn't acquire this company to lose money on it --- maybe Sharp has some kind of something new they can incorporate in their smart phones...

Sharp's Post-Foxconn Acquisition Plan Is To Dive Into Smartphones

ChinaTechNews

Even though rivals Coolpad and Xiaomi are showing declining smartphone numbers, Sharp has deviced to jump into the mobile phone market.

A few months after being acquired by Taiwan-based Foxconn, Japan's Sharp has launched two new phone products Sharp C1 and Sharp A1 in Beijing.

Now that it's in the Foxconn and Hon Hai family, Sharp is targeting young consumers born after 1990 and both of the two smartphones will be sold at CNY1,499.

Sharp C1 features a 13-million-pixel camera and rear camera with autofocus function. It has 64GB storage, 3D curved glass back shell, and 5.5-inch screen. Meanwhile, Sharp C1 has ideep cooperation with Chinese online video website Iqiyi and Sharp users can gain a six-month Iqiyi VIP membership.

Sharp A1 features Helio X20 flagship 10-core processor with strong performance and high speed. This product has a curved metal design, 16-million-pixel rear camera and eight-million-pixel front camera. It also carries LeEco's EUI system and supports all mobile networks. In addition, users will gain a six-month LeEco membership.

Both Sharp C1 and A1 will be sold at CNY1,499. E-commerce website JD.com already opened a booking channel for the two products, which will officially open for sale on September 7, 2016.

As Sharp wades in the swamp of smartphone businesses in China, others are not faring so well. Chinese smartphone maker Coolpad recently published its semi-annual performance for the first half of 2016, stating that the company's operating revenue was HKD5.277 billion, a year-on-year decrease of 39.9% from HKD8.783 billion, and it reported net losses of HKD2.053 billion, a year-on-year decrease of 173%.

During the first quarter of 2016, China's smartphone shipment reached about 104.9 million units, representing a decrease of 5% compared with the 109.8 million units in the same period of last year. During the first quarter of 2016, OPPO exceeded Xiaomi to become the second largest smartphone maker in China, behind Huawei.