BREAKING NEWS

One of Apple's suppliers receives a $ 636 million bailout to offset losses



One of the providers of iPhones, Japan Display, reportedly will receive a $ 636 million bailout from its largest shareholder (Innovation Network Corp).

Japan Display has gone through a rough patch in recent times, partly because of its heavy reliance on Apple, which saw its first annual decline in iPhone sales this year, but also due to price competition and the growing importance Of OLED technology instead of LCD.

In fact, the company revealed that it plans to spend the money on the development of its OLED business. This includes the purchase of a majority controlling stake in Joled, a development center created from the merger of departments previously regulated by Sony and Panasonic. Innovation Network Corp (who paid the bailout) currently owns 75 percent of Joled, but Japan Display is increasing its share of 15 percent to 51 percent.

CEO Mitsuru Homma said his company will also reduce its reliance on mobile orders by increasing sales in other categories such as vehicles, laptops and VRs to more than 50% of its business.


Switching to OLED, Japan Display expected to adapt to industry trends and specifically attract future orders from Apple. Next year you should see the launch of the first OLED iPhone, and it is likely that other Apple products follow the same trend. For now, the company only device with an OLED display is the Apple Watch.

A recent report suggests that Samsung Display may be one of the company's suppliers to Cupertino, or rather, the only panel supplier for the OLED iPhone models.

If this is true, Japan Display may have to wait a while to make the most of any new OLED capability.
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