Japan Display CEO Minoru Kikuoka says that Apple will further aid the company by shortening payment periods as the panel supplier seeks to stabilize its finances.
CEO Minoru Kikuoka, who took the helm in September, told reporters on Wednesday that concerns about an immediate cash shortfall had been allayed but did not mention Apple by name. The support, which also includes agreements from other business partners to ease payment conditions, would improve its short-term financing situation by as much as 40 billion yen ($370 million), he added…
Japan Display, which depends on Apple for around 60% of its revenue, has lost money for the last five years and its liabilities now exceed its assets…
Of the planned bailout funds worth at least $470 million, Apple intends to invest $200 million, double the amount it originally planned, sources with direct knowledge of the talks have said… Japan Display still owes Apple nearly $900 million for the $1.5 billion cost of building a smartphone screen plant four years ago and the U.S. tech giant is also allowing the supplier to slow the pace of those repayments.
MacDailyNews Take: Apple must believe Japan Display can turn the corner, hence the continued and heightened aid. Apple benefits from having multiple quality display makers to choose from – and pit against each other – as competition drives down component prices. Right now, as has been the case for years, there is far too much reliance on Samsung Display for Apple’s comfort.