What you need to know
- Apple is investing $100 million in Japan Display.
- Japan Display create LCD and OLED panels for the iPhone XR and Apple Watch.
- The invest keeps the struggling display maker afloat to continue making panels for the Cupertino company.
Apple is doubling down support for struggling display maker as it reportedly will invest an additional $100 million into the company per a report from Asahi.
Apple has decided to invest US $ 100 million (approximately ¥ 10.7 billion) in liquid crystal panel major Japan Display (JDI), which is undergoing restructuring . For JDI, Apple is a large customer that accounts for 60% of the latest sales. As the framework of financial support by the China-Taiwan business alliance breaks down, we will seek the support of major customers and establish a course of reconstruction.
Japan Display was recently going through a restructuring as it moved to expand its OLED panel output, but one of its backers backed out at the last second putting the fate of the company in questions. In the ensuing days, Apple agreed to invest an additional $100 million company.
It's still not exactly clear how the deal is structured, but Apple still seems intent on seeing Japan Display stay in business.
The two companies work closely together as Apple accounts for 60% for Japan Display's orders, so it is easy to understand why Apple is keen on seeing the company stay afloat. Japan Display supplies Apple with OLED panels for the Apple Watch and LCD panels for the iPhone XR and older iPhone models.
As Apple pivoted towards OLED panels, it had to rely on other companies such as Samsung. That partnership hasn't exactly worked out the way either company envisioned. This could be another reason why Apple wants to see one of its long time business partners stay around as it continues to shift its products around with newer and more complicated display designs.