Japan Display is reportedly seeking investment to ease its financial burden to Apple over the construction of an LCD factory, with reduced demand for the iPhone and a shift towards OLED making the future tougher for the iPhone display panel supplier.
A report into the misfortunes of LCD supplier Japan Display claims that the company is in trouble because of slow sales of the iPhone XR and will not recover because Apple is moving to OLED for all its phones in 2019.
Several prominent news sources are again blowing a cloud of speculative rumor-mongering that claims Apple's iPhone sales are — perhaps! — in desperate straits. Revised revenue reports from just five firms—out of Apple's 200 primary suppliers—are at the core of these reports, so take a look at how flimsy these conclusions are.
In a rush to retain Apple as a smartphone display customer, Japan Display on Friday said it plans to raise more than $500 million that will be put towards manufacturing LCD panels for a next-generation iPhone.
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Analysts predict that recent reorganizational efforts and a financial assist by the Japanese government for Apple supplier Japan Display, the prime supplier of iPhone screens, may not matter much if Apple does in fact shift to OLED screens in the "iPhone 8" and future models.
Apple is said to be exploring more than 10 potential prototype models in anticipation of next year's 10th anniversary of the iPhone, with the company eyeing an OLED-display curved "iPhone 8" for launch in 2017.
Japan Display, a major Apple LCD display supplier, is reportedly in advanced talks to receive a 75 billion yen ($703 million) bailout from the government-backed fund Innovation Network Corp. of Japan, one of its biggest investors.
Apple iPhone supplier Japan Display might lose backing from its top investor, the government-backed fund Innovation Network Corp. of Japan, if it fails to prove capable of turning a profit independent of Apple's market performance.
LCD manufacturer Japan Display is struggling financially after orders have decreased, and is looking for a secured loan to migrate to new, power efficient, OLED panel production for potential future iPhone use and to preserve the company's future.
Amid slowing sales from a stalling smartphone market, Apple supplier Japan Display is apparently hopeful that future iPhone models could use OLED display technology, helping to once again reignite sales growth.
Component manufacturer Japan Display on Friday officially unveiled plans for a new $1.4 billion display plant in central Japan, with Apple reportedly investing in the facility to secure supplies of advanced LCD panels for its products.
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