According to Japanese media, Apple is expected to increase its aid by $ 100 million to JDI through investment firm Harvest Group of China and Oasis Management fund of Hong Kong. These two investors are planning to pour around 540 million USD for Japan Display (JDI) in the coming time.
Apple originally intended to cooperate with TPK Holding, an electronics supplier in Taiwan and once negotiated to provide a $ 230 million aid package for JDI. However, TPK then withdrew in June.
It is known that the amount of 100 million USD that Apple "pumped" for JDI is much lower than the initial requirement of JDI of 185 million USD. In exchange for this investment, JDI will repay the debt by securing a supply of LCD screens. Previously, Wall Street Journal also revealed that Apple promised to consider JDI's request but it is not sure if it can meet 100% of the requirements.
JDI has become a supplier of LCD monitors for years. However, JDI's mistake is too focused on producing LCD screens but forgetting the trend of OLED displays that are blooming. As a result, JDI lost a lot of orders just because it did not have a large production line for OLED displays such as Samsung Display and LG Display.
Over time, Apple is also a strategic partner of JDI. Apple Apples currently accounts for 60% of JDI sales. However, since Apple began to launch more than OLED iPhone models, JDI's revenue has tended to decline rapidly. The company can now only count on sales of iPhone XR and the next generation. Although there are sources that believe, Apple will use the entire OLED screen on the iPhone 2020 generation. This will certainly be very shocking news for JDI.
But not accepting the battle, JDI is said to be building an OLED screen production line. The company is expected to be selected as a supplier of OLED panels for the new generation Apple Watch.
However, during this time, JDI constantly faced many difficulties, especially the operation sharing business LCD and OLED monitors. That's not to mention because the new foot and feet entered the OLED screen market, so JDI is more difficult to face with competitors who have long-standing brands and experience like Samsung Display and LG Display.
Refer to Apple Insider