Japan Display Incorporated (JDI) has been the major supplier of LCD panels to Apple. But the Silicon Valley company’s shift to OLED panel beginning with the iPhone X unsettled JDI’s finances. Although Apple still uses JDI’s LCD displays on the iPhone 11, the orders are short of what it used to be and just won’t be enough to prevent the company from going down. Perhaps, in a bid to prevent the Japanese display maker from closing down, Apple is said to have concluded plans to pump in much-needed cash.
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Japan Display has disclosed that a major client intends to invest $200 million, double the amount it originally planned to invest in the Japanese company. This was hinted by the company’s CEO Minoru Kikuoka who expects the deal to be completed this month. Although the “major client” wasn’t named, sources with direct knowledge of the talks have said it is Apple. The CEO also disclosed that Hong Kong-based Oasis Management will also contribute $150-180 million.
JDI’s collapse would hamper Apple’s ability to deliver competitive pricing for its new iPhone 11 base model which comes $50 cheaper than last year’s base model – iPhone XR. The collapse may also force the Apple to turn to rival suppliers for liquid crystal displays (LCD) as well as increase its reliance on Samsung Display for organic light-emitting diode (OLED) screens as JDI isn’t even planning a transition to OLED manufacture just yet.
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