TOKYO— Apple Inc. AAPL -0.61% is looking at doubling its planned investment in a financially strapped display supplier in Japan under a revised bailout deal, people with direct knowledge of the matter said.
Japan Display Inc. 6740 4.69% said Thursday it received notification from a Chinese investment fund, Harvest Fund Management Co., that Harvest wanted to pull out of a previously announced bailout plan. Harvest had been slated to supply more than half of a ¥80 billion ($742 million) package to rescue Japan Display, and its pullout, if confirmed, would force the display maker to reopen its search for investors.
Japan Display is a major supplier of liquid crystal displays for iPhone models such as the new iPhone 11. About 60% of Japan Display’s revenue comes from Apple, according to the display maker’s financial documents.
On Thursday, Japan Display’s chief executive said the latest product from its major customer is selling more quickly than expected, suggesting momentum for the latest iPhone models is robust.
“We’ve been getting a lot of orders from our customer, who is seeing demand for its new products is strong,” Yoshiyuki Tsukizaki said at a news conference. Japan Display also makes organic light-emitting diode panels for the latest Apple Watch.
The Japanese company has run into financial trouble because it has had difficulty branching out into products beyond the iPhone and because it doesn’t yet commercially produce the OLED screens for smartphones. OLED screens are used in the high-end iPhone 11 Pro.
Japan Display said it was in line to receive a $200 million investment from one of its customers, which people familiar with the matter identified as Apple. The customer will also offer more favorable payment terms, Japan Display said. Under the earlier bailout plan, Apple had been prepared to invest about $100 million, the people said.
Japan Display said another previously announced investor, Hong Kong hedge-fund manager Oasis Management Co., is sticking to its earlier commitment.
An Oasis spokeswoman declined to comment. An Apple spokesman in Tokyo declined to comment. Representatives of Harvest couldn’t immediately be reached for comment.
One reason for the high cost of the iPhone 11 Pro—$999 for the regular model and $1,099 for the iPhone Pro Max with a larger screen—is the limited number of suppliers for the screen, the most expensive component of the phone. Apple relies on Samsung Electronics Co. for much of its supply, making it hard to bargain down the price.
Japan Display is hoping to mass-produce OLED panels for Apple in a few years, people familiar with its plans said.
The company’s liquid-crystal displays are also important for Apple’s plan to offer affordable midrange phones next year. Minoru Kikuoka, who is set to become chief executive of Japan Display at the end of this month, has said orders from “a major smartphone client” will increase next year for that client’s lower-end models.
Harvest had hoped to bring Japan Display’s technology to one of the major Chinese display makers, but talks with those Chinese companies weren’t making progress, leading Harvest to reconsider its planned investment in Japan Display, said one person familiar with the talks.
China’s government has been concerned about a possible oversupply of displays and is trying to limit the number of new factories, which might make any investment in China using Japan Display’s technology more difficult.
—Kosaku Narioka in Singapore contributed to this article.
Write to Takashi Mochizuki at takashi.mochizuki@wsj.com
Copyright ©2019 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
https://www.wsj.com/articles/apple-weighs-doubling-down-on-bailout-of-iphone-display-supplier-11569493948
2019-09-26 14:04:00Z
CAIiEFpa8q1Ex5h2-em0-ydtu44qGAgEKg8IACoHCAow1tzJATDnyxUwmK20AQ
Bagikan Berita Ini
Related Posts :
The Apple Watch Series 3 is back down to $199, its lowest price yet - The Verge- Apple AI accused of leading to man's wrongful arrest - BBC News
- Qualcomm's surprising settlement with Apple is going to send the stock soaring even higher, Morgan Stanley says - CNBC
- The Apple Watch Series 3 is back down to $199, its lowest price yet - The Verge
- Qualcomm's surprising settlement with Apple is going to send the stock soaring even higher, Morgan Stanley says - CNBC
0 Response to "Apple Weighs Doubling Down on Bailout of iPhone Display Supplier - The Wall Street Journal"
Post a Comment