Japan Display to Raise $517 Million to Supply Apple With LCDs for 2018 Low-Cost iPhone

by

Japan Display is planning to raise $517 million through third-party share allocations and asset sales so it will have the funds to supply LCD screens for new iPhones, reports Nikkei.

Last year, Japan Display lost business because of Apple's shift to OLED, so the company sought partnerships to begin producing OLED displays, but with Apple planning to continue to use LCDs for some devices, Japan Display is in need of working capital to purchase inventory and to begin production on the LCDs Apple now needs.


Rumors have suggested Apple is planning on introducing two OLED iPhones (5.8 and 6.5 inches) and one 6.1-inch LCD iPhone next year, with the LCD device to be positioned as a low-cost option alongside the two more expensive OLED devices.

With Japan Display again planning to invest in LCDs, it could be in trouble in the future should Apple opt to abandon LCD technology for OLED technology entirely, says Nikkei.

Expecting the U.S. tech company to keep shifting toward OLEDs, the supplier began exploring capital partnerships to obtain the massive funds necessary to invest in producing the advanced tech.

However, the iPhone X has proven a flop, and Apple appears to be sticking with LCDs for some models due out this fall, leaving Japan Display in need of working capital to secure inventory and production capacity to supply those screens.

Previous rumors have suggested Apple is interested in Japan Display's Full Active LCDs, which are said to match or exceed some of the advantages of OLED at a lower cost.

Full Active panels have a smaller bezel around the screen than traditional LCDs and they have enough flex that they can be used in curved or angled designs.

All three of Apple's rumored 2018 iPhones are expected to adopt full-screen designs with minimal bezels, much like the iPhone X. The Home button will be eliminated in each, with Apple adopting Face ID across its 2018 iPhone lineup.

Related Roundup: iPhone XS

Top Rated Comments

(View all)
Avatar
33 months ago
"However, the iPhone X has proven a flop"

Lol what?
Score: 19 Votes (Like | Disagree)
Avatar
33 months ago
The iPhone X officially flopped? By what measure? Its notchy design spawned an entire generation of Android clones, much to my dismay as someone who also appreciates Android hardware for its differences from iPhones.

I had an X and I don’t think Apple got the best OLED displays Samsung is capable of making. I don’t know if it was Apple’s specifications at fault or something Samsung did, but the pwm flicker did my eyes in. And I saw some ugly variances in display color temperature and quality among different X’s. Owning the refined S9+, I know OLED quality doesn’t have to be that varied anymore. Every S9+ I’ve seen so far has been uniformly excellent and without the weird flaws I noticed when the S8’s were first released. Nor does OLED have to cause migraines and eye strain.

I don’t plan to get one, but I do hope the next generation of IPhones get some spectacular displays that truly show off the best that their respective technologies are capable of.

And even though I personally didn’t get along with it, nor the cost, I find it hard to believe the X flopped. I think people are just holding onto their phones longer. A lot of people I talked to don’t want to give up their 6 and 6s models because it means giving up the headphone jack. Those are excellent phones and with new batteries in them, many owners I chatted with seem quite happy.
Score: 7 Votes (Like | Disagree)
Avatar
33 months ago
All I read was the home button will be iliminated, it’s just my opinion and it’s a strange one to have I guess but if I can’t get an iPhone with a home button then my iPhone 8 better last me a while. I love the home button and Touch ID
Score: 5 Votes (Like | Disagree)
Avatar
33 months ago
It’s sad that the iPhone X doesn’t receive the appreciation by buyers that it deserves. It’s a truly amazing iPhone!
But then again I’m glad that it flopped, hopefully forcing Apple to bring that ridiculous price down again!!!
Score: 5 Votes (Like | Disagree)
Avatar
33 months ago



* Apple had to slow down production of the X after sales didn't meet expectations. They scaled back their orders for OLED displays from Samsung after previously making Samsung expand their OLED production capabilities.

We’ve read the rumors. But they’re completely at odds with the facts.

On November 2, 2017, Apple provided guidance for FY18Q1 (Oct-Dec 2017) of between $84-87 billion. They announced this past February that they beat that estimate, posting record sales of $88.3 billion.

That doesn’t sound like a company that is incapable of estimating their demand and needs to scale back orders. That’s a company that nailed their sales projections and knows exactly how many displays they need.

There’s always a production cut in the second quarter, since sales are much, much higher in the Oct-Dec quarter vs the Jan-Mar quarter. That’s true every year, and is well known. Completely expected; iPhone sales are highly seasonal. In FY2017 for example, Apple’s FY1Q iPhone revenue dropped from $54 billion to $33 billion in FY2Q.

So what’s important is the magnitude of the production cuts. It could very well be that they’re lower than last year, i.e. X sales might actually be holding up better than did iPhone 7 sales.

In February, Apple guided for $60-62 billion for their Q2 (Jan-Mar) revenue. This is 13-17% higher than the year ago quarter of $53 billion, which in no way supports the Nikkei narrative of an iPhone X “flop”. (The record $88.3 billion Q1 revenue was 13% higher than the same quarter revenue last year, $78.3 billion.)

Tl;dr: No unanticipated production cuts, both last quarter’s 13% revenue increase and this quarter’s projected 13-17% revenue increase clearly indicate Apple is expert at predicting their demand. And disproves any “flop” narrative.
Score: 5 Votes (Like | Disagree)
Avatar
33 months ago
This seems so counterintuitive. If OLED is going to be the technology of the future, why on earth is Japan Display investing $500+ million in previous generation LCD technology lines? If they had been Apple's LCD supplier in the past, they ought to have the technology and capacity to keep LCD production going. In fact I would have expected them to invest this money in OLED research.
Score: 4 Votes (Like | Disagree)

Top Stories

Leaker: 'iPhone 12 mini' and iPhone 12 Storage Capacities Start at 64GB, Pro Models at 128GB

Tuesday September 29, 2020 2:31 am PDT by
Rumors suggest Apple's iPhone 12 launch event will be held on October 13, with the more affordable 5.4 and 6.1-inch devices set to ship out ahead of the more expensive 6.1-inch and 6.7-inch Pro devices, and this morning hit-and-miss leaker Jon Prosser has further committed to that date by providing alleged details on Apple's first shipment of finalized iPhone 12 units. Prosser claims the...

Hands-On With iOS 14.2's New Shazam Music Recognition Toggle in Control Center

Monday September 28, 2020 2:35 pm PDT by
Shortly after launching iOS 14, Apple introduced an upcoming iOS 14.2 update, which is now available to developers and public beta testers ahead of a public release that could come at some point in October. Subscribe to the MacRumors YouTube channel for more videos. The iOS 14.2 update mainly focuses on the Control Center, introducing a new Music Recognition toggle that deepens the Shazam...

Top Stories: iOS 14 Feature Tour, 'iPhone 12 mini' Rumors, Apple Watch Band Controversy

Saturday September 26, 2020 6:00 am PDT by
Things started to calm down a bit this week following last week's rush of media event, Apple Watch and iPad launches, and the release of iOS 14 and other operating updates. But that doesn't mean there wasn't still a lot of news, from digging deeper into iOS 14 to more iPhone 12 rumors to the uproar over trying to exchange band sizes on the new Apple Watch. On top of all of that, we heard...

DigiTimes: 12.9-inch Mini-LED iPad Pro Arriving Early 2021, Mini-LED MacBook Coming Later

Tuesday September 29, 2020 4:18 am PDT by
Apple will launch a 12.9-inch mini LED-backlit iPad Pro in early 2021 and a mini LED-backlit MacBook in the second-half of next year, according to DigiTimes. The Taiwan-based industry publication claims Epistar will supply the over-10,000 mini LEDs used in each iPad Pro tablet. Meanwhile, Apple is expected to recruit Osram Opto as another supplier of mini LEDs for use in a new "high-end"...

iPhone 12 May Launch Earlier Than Usual in South Korea

Monday September 28, 2020 5:24 am PDT by
The upcoming iPhone 12 lineup may launch earlier than usual in South Korea, reports The Korea Herald. South Korean telecoms firms speaking to The Korea Herald have said that the iPhone 12 lineup will launch ahead of its usual schedule. Normally, the release of new iPhones in South Korea comes about one month after launch in the United States. Last year, the iPhone 11 arrived in South Korea ...

iOS 14: 'Phoenix 2' Space Shooter Delivers Playable Demo via App Clips

Saturday September 26, 2020 2:08 pm PDT by
One of the new features that arrived in iOS 14 is called App Clips. App Clips is described by Apple to be a "small part of your app" that can be available to users at just the right moment.App Clips focus on finishing one task quickly. An ideal App Clip experience allows users to open and complete a task in seconds. Instead of requiring an App Store download, they can be loaded and run via...

Epic Games Unlikely to Win Injunction in Ongoing Fortnite Battle With Apple, Jury Trial Possible

Monday September 28, 2020 1:14 pm PDT by
The ongoing legal dispute between Apple and Epic Games continued on today, with a preliminary injunction hearing taking place this morning. We're still waiting to hear the judge's official ruling, but it looks like Epic is not going to be granted an injunction to allow Fortnite back into the App Store as the case unfolds. Many of the arguments that lawyers for Apple and Epic Games made were...

iPhone 12 Production Lines at Foxconn's Zhengzhou Factory in China Running '24 Hours a Day'

Tuesday September 29, 2020 3:38 am PDT by
Apple contract manufacturer Foxconn is running its massive Zhengzhou factory in China 24 hours a day to produce the new iPhone 12, according to Chinese media reports. Apple's main iPhone manufacturer in China is said to be cancelling workers' holidays and introducing mandatory overtime with additional bonuses for longer-serving staff, according to information garnered from employees,...

'iPhone 12 mini' Name Reappears in Leaked Apple iPhone 12 Case Stickers

Friday September 25, 2020 1:58 am PDT by
Earlier this week a proven leaker claimed that the iPhone 12 lineup would be named "iPhone 12 mini," "iPhone 12," "iPhone 12 Pro," and "iPhone 12 Pro Max," and today the same nomenclature has appeared again in a photo depicting alleged stickers from unreleased Silicone iPhone cases originating from Apple's international distribution center in Ireland. The photo shows three stickers with the...

Apple Releases iOS 14.0.1 With Fix for Bug That Resets Default Apps After Rebooting

Thursday September 24, 2020 10:12 am PDT by
Apple today released iOS 14.0.1, the first update to the iOS 14 operating system that was released on September 16. Today's update is a bug fix update addressing issues that weren't able to be fixed in the initial iOS 14 launch. The iOS 14.0.1 update is available on all eligible devices over-the-air in the Settings app. To access the new software, go to Settings > General > Software Update. ...