Struggling Apple supplier Japan Display looks to raise $990M as it moves into OLED

Posted:
in iPhone
An Apple supplier, Japan Display, announced on Monday that it's seeking to raise up to $990 million in new financing as it looks to cope with Apple's switch from LCD iPhones to OLED.

The LCD-based iPhone XR.
The LCD-based iPhone XR.


Most of that, about $720 million, should come through external stocks and bonds via an agreement that could conclude by April 5, Reuters said. Earlier rumors pointed to a group led by China Silkroad Investment Capital.

The rest of the money will come through preferred shares to refinance existing debt, held by the existing largest shareholder, INCJ. That firm is backed by the Japanese government.

Japan Display has needed multiple cash infusions in the past, including ones in 2016 and 2018, the latter to secure orders for the iPhone XR. The company is facing intense competition from display makers in China and Korea and has been slow to switch from LCD to OLED.

Apple began its transition with 2017's iPhone X. The iPhone XS and XS Max both use OLED, and it's thought that the iPhone line will go all-OLED by 2020.

Compounding Japan Display's problems are weak iPhone sales. The XR is believed to be the bestselling model at the moment, but Apple may not resume overall iPhone growth until 2019 models ship this fall.

Comments

  • Reply 1 of 9
    /moves further into LCD

    The world moved on to OLED

    /tries to move into OLED

    The world will have moved on to mLED.

    Maybe propping up Japan Display isn't the best idea that's come down the pike.
    boltsfan17viclauyycmcdave
  • Reply 2 of 9
    wood1208wood1208 Posts: 2,006member
    Often better off moving to the next big in screen tech like MicroLED than catching up competitor in current tech. Unless you can produce same quality at cheaper price and capture the market to make money.
    mcdave
  • Reply 3 of 9
    wood1208 said:
    Often better off moving to the next big in screen tech like MicroLED than catching up competitor in current tech. Unless you can produce same quality at cheaper price and capture the market to make money.
    MicroLED is many many years away. Even after it arrives, it will take many many more to bring the price down. Insane to put all stocks into them now.
  • Reply 4 of 9
    boltsfan17boltsfan17 Posts: 2,175member
    /moves further into LCD

    The world moved on to OLED

    /tries to move into OLED

    The world will have moved on to mLED.

    Maybe propping up Japan Display isn't the best idea that's come down the pike.
    Makes you wonder why Japan Display keeps getting bailed out. They are obviously not making very wise business decisions. 
  • Reply 5 of 9
    viclauyycviclauyyc Posts: 366member
  • Reply 6 of 9
    mcdavemcdave Posts: 1,178member
    viclauyyc said:
    /moves further into LCD

    The world moved on to OLED

    /tries to move into OLED

    The world will have moved on to mLED.

    Maybe propping up Japan Display isn't the best idea that's come down the pike.
    Makes you wonder why Japan Display keeps getting bailed out. They are obviously not making very wise business decisions. 
    P.S. When people buy an expensive Sony XBR tv now, they are actually buying a tv with Chinese or Korean panel, the most important/expensive component.  
    Wrong blog for that nonsense comment.  We all know that extra 10-20% of design/components/software is the difference between a Mac & a PC.
  • Reply 7 of 9
    mcdavemcdave Posts: 1,178member

    wood1208 said:
    Often better off moving to the next big in screen tech like MicroLED than catching up competitor in current tech. Unless you can produce same quality at cheaper price and capture the market to make money.
    MicroLED is many many years away. Even after it arrives, it will take many many more to bring the price down. Insane to put all stocks into them now.
    They’ve got no choice or they’ll always be picking up the scraps.  Get Apple on board (with Watch), license the Plessey process and  microLE(A)D the way.
  • Reply 8 of 9
    gatorguygatorguy Posts: 21,095member
    mcdave said:

    wood1208 said:
    Often better off moving to the next big in screen tech like MicroLED than catching up competitor in current tech. Unless you can produce same quality at cheaper price and capture the market to make money.
    MicroLED is many many years away. Even after it arrives, it will take many many more to bring the price down. Insane to put all stocks into them now.
    They’ve got no choice or they’ll always be picking up the scraps.  Get Apple on board (with Watch), license the Plessey process and  microLE(A)D the way.
    Bringing Apple on board is what lead to this particular money problem at Japan Display isn't it? Japan Display built a factory and ramped up production to serve Apple only to have them reduce their orders and change their future display plans, and so the factory not being needed after all. 
    muthuk_vanalingam
  • Reply 9 of 9
    mcdavemcdave Posts: 1,178member
    gatorguy said:
    mcdave said:

    wood1208 said:
    Often better off moving to the next big in screen tech like MicroLED than catching up competitor in current tech. Unless you can produce same quality at cheaper price and capture the market to make money.
    MicroLED is many many years away. Even after it arrives, it will take many many more to bring the price down. Insane to put all stocks into them now.
    They’ve got no choice or they’ll always be picking up the scraps.  Get Apple on board (with Watch), license the Plessey process and  microLE(A)D the way.
    Bringing Apple on board is what lead to this particular money problem at Japan Display isn't it? Japan Display built a factory and ramped up production to serve Apple only to have them reduce their orders and change their future display plans, and so the factory not being needed after all. 
    Clearly not on board.
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