Struggling Apple supplier Japan Display looks to raise $990M as it moves into OLED
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.
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.
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
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.
Now they are taking money from China. In the end, Japan will lost all the LCD, OLED trade secrets to China. It might save the company for now but lost the whole industry later. Smart move.
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.
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.