Apple’s iPhone Display maker, Japan Display Inc is struggling due to the plummeting iPhone’s sales, said people close to the matter. The company who makes Liquid crystal display for iPhone XR and upcoming Series 5 watch is running out of cash due to the lower sales then the expected of the handset.
Last week, Japan Display Inc received bad news that TPK Holdings, a panel maker of iPhone won’t invest a proposed $230 Million after all. A rescue bailout of $723 Million was enough to get the company out of the cash crunch, but many of the members of the consortium backed out.
Apple previously had helped the display maker with an investment of ¥170 billion or nearly $1.6 Billion which the company agreed to pay ¥20 billion a year. As of now, the company has to pay about ¥100 Billion. According to Wall Street Journal, “While Apple has agreed to loosen the repayment terms, prospective investors in Japan Display are asking for further concessions, including waiving some of the debt outright, injecting new cash of up to ¥20 billion and guaranteeing orders to Japan Display for this year and next year, said people involved in the talks.”
A person close to the matter said that Apple is highly supportive than expected. The investors in the company say that they’re afraid that Apple will drop the company for their 2020 lineup as they will be using organic light-emitting diode panels, a newer technology already used in some iPhones. They want Apple to guarantee that they will purchase the display from the Japan company.
Recently, the industry insider Ming-Chi Kuo has leaked Apple’s grand plans for its 2020 iPhones. He said that it will be the company’s first design change after Apple iPhone X. “Apple will re-size its premium models, shrinking the 5.8-inch model to 5.4-inches and increasing the 6.5-inch Max to 6.7-inches. This will give fans the firstly truly pocketable and powerful iPhone since the iPhone SE. The 2020 iPhone XR will remain at 6.1-inches and skip 5G (coming in 2021) but step up to a premium OLED display for the first time,” he added.