Apple’s leading supplier of LCD screens, Japan Display, is facing dire consequences after TPK Holdings decided not to invest proposed $230 million.
Earlier, the display manufacturer was disappointed following unsatisfactory Apple orders. But now, the LCD maker can breathe a sigh of relief as Apple can provide some assistance to the struggling display maker.
Apple Plans to Inject $100 Million into Japan Display
The iPhone maker has finally decided to pump in some money in the ailing display maker. Reportedly, Apple is likely to invest $100 million in Japan Display, which is going through restructuring.
Notably, Japan Display is getting 60% orders from Apple, and after the deal, the company can get even more.
However, industry insiders believe that Apple wants its suppliers to move out of China following bitter trade relations between the United States and China. This will benefit Japan Display.
To protect the interests of Japan Display, Apple is giving it additional orders at the expense of LCD orders from China. It is not yet confirmed which LCD supplier would stop shipping products to Apple.
If readers refresh their memory, Apple helped Japan Display in establishing a factory to manufacture iPhone panels. To pay back, Japan Display was willing to make yearly increments of 20 billion yen ($184 million)
The Japanese display maker is still under the financial obligations of Apple as it owes Apple 100 billion yen. It will be a tough challenge for Japan Display to make full repayments.
Apple is switching to OLED displays as it has already started to roll out iPhone X, XS, and XS Max with OLED screens. Even as Apple continues to manufacture older LCD models, how long Japan Display survives only by producing LCDs.
That’s all folks!
Do you think Japan Display will survive with financial support from Apple? Leave your comments below.