Apple’s poor sales of iPhones have negative impacts on manufacturers of Apple’s peripherals. Earlier, it was reported that Japan Display that manufactures LCD for Apple was forced to lay off some 1000 employees following Apple’s shift to OLED screens and less-than-expected iPhone sales.
To save the dooming company, TPK Holdings and Harvest Group formed a consortium to give the ailing firm a lease of life. However, TPK Holdings has decided to back out from this consortium.
TPK Holdings Not to Support Japan Display with Proposed $230 Million
Notably, TPK Holdings is a panel maker working with Apple. The company has made a decision not to invest a proposed $230 million.
As mentioned above, TPK was one of the companies, along with Harvest Group, to inject $723 million bailout. Japan Display has been looking for investors to save the sinking ship.
Other two firms – Cosgrove Global and Topnotch Corporate – were also a part of the consortium with designs on bailing out the Japanese display manufacturer. However, it is reported that Japan Display was yet to receive confirmation of funds from the two companies. Notably, the two companies were to raise $130 million in exchange for a part of the business.
Reuters reports, “Harvest Group and new consortium member Oasis Management Company will decide whether to invest by June 27, Japan Display said.”
These developments have adverse effects of Japan Display’s share price, which saw an 11% decline in Tokyo morning trading.
Japan Display was established in 2012 by the joint efforts of Hitachi, Toshiba, and Sony. It was a government-brokered deal that includes the interests of liquid-crystal display business of all the three corporations.
In March 2014, Japan Display went public, and it was worth over 400 billion yen.
Apple’s shift to OLED screens forced Japan Display to venture in OLED research, and it seems that the company has a silver lining as the display maker will reportedly supply OLED screens for Apple Watch Series 5.
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