IPhone Apple is trying to trace Japan's goals



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TOKYO (Reuters) – When Japan Display Inc broke a new Japanese factory in 2015, the future was looking well for one of the world's leading retailers on liquid crystal display panels (LCD). ).

PHOTO FILE: The Japan Display Inc badge is visible on the company's new production line for LCD panels in its factory in Mobara, Chiba prefecture, June 3, 2013. REUTERS / Toru Hanai / File Photo

The plant would strengthen the company's position as the leading screen provider for Apple Inc as it was promoted for iPhone 6. And the chief executive noted. most of the $ 1.5 billion (£ 1.2 billion) of costs was incurred, with the Japanese demonstration being rolled back by a percentage of screen sales, according to two company companies.

Four years later, Apple's moveable fortune has forced Japan to its knees and threaten to have Japan's long running run as head of display technology.

There has been a drop in iPhone sales, along with new iPhone modules – many of which use organic flame lamp (OLED) emission displays – to fail the new Japan Japanese factory.

But most of his building costs still exist in Apple, one of the company's stores said. He refused to give the same amount.

Urgent for capital, Japan Display looks at an investment group, led by China Silkroad Investment Capital, for securities, two sources of knowledge just for the matter. The Chinese treaty would provide a major part as an investment exchange of $ 500 million to $ 700 million, the sources said.

The group plan to build an OLED panel plan in China using the Iapan Show technology, according to these two sources.

The company's shoes show how iPhone's weak sales and wider reductions in the smartphone industry are causing pain over an Asian electricity supply chain.

“Looking back, the new gadget wasn't needed,” said one of the sources with direct knowledge of the discussions about trust. “But the decision was not back then. Japan's appetite began to fly with Apple at the time, and Apple wanted the new plant. '

Japan Display alone was not in a promise to grow strong in the iPhone sales, which looked particularly appealing with Apple's strategy now by offering a few changes in all fruit walk.

“We were all so pleased to be seeing sales of an iPhone model reaching 100 million units,” said a source to another Apple provider.

“Providing parts for only one model is in a hugely cost effective mass,” he said. “At the same time we might be exposed to quite large risks. ”

A Japan Exhibition has created relationships with vendors of other telephones, including Chinese Huawei, Xiaomi, and OPPO.

But they lose their orders as growing sales are growing and the Chinese players move to home panel makers such as BOE Technology and Tianma Microelectronics, which have improved the quality of their screens.

Japan Exhibition ranked nearly a third of the Huawei mobile screens in 2015, but its share had fallen to 4 per cent in last quarter three and the Chinese company went to BOE and Tianma. , according to the researcher IHS Markit.

Japanese Wells The exhibition and other Apple suppliers interviewed for this time are to be celebrated because they are not allowed to speak to the media. It is seldom that providers talk about business with Apple on the record of strict non-distribution agreements.

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Japan Display was created in 2012 to merge with the fragile display units of Corp Corp, Toshiba Corp and Hitachi Ltd. t

Thin-film filmmaking (TFT) technology is strong, vital for producing high resolution images of both LCD and OLED panels. Besides their Apple industry, which was producing more than half of the company's income over the last four years, it is a leading provider of dashboard panels. for large car share companies such as Continental.

But Japan Display has difficulty in getting into the rapidly changing display industry.

His new LCD factory was still under construction when Apple contacted Japan Show in autumn 2015 that he was planning to move quickly from the LCD to new OLED technology, two former company members said. Leaving the semi-finished plant was then too expensive, one of which said.

The Japanese Display administration at the time, led by Mitsuru Homma from Sanyo Electric's chief executive, promised to start making major exhibitions of OLED panels by 2018.

In the meantime, operators managed to produce older, incompatible LCD lines to relocate facilities to OLED, but main investment, a state-supported fund, put plans to cut shortages into fear. According to community fear, one of the old officials said.

Unclear iPhone 6s sales led to a silver cash crunch in 2016, and Homma resigned early the following year after the company received help from state-aided funds.

The new chief, Nobuhiro Higashiiriki, announced a full-time transfer to OLED. But the company was already behind competitors, especially Samsung Electronics, and they still needed more money for OLED investment. A new sale of the iPhone XR, the only LCD model for Apple's device in 2018, was another blow.

Slideshow (3 Photos)

“The company is now tired, with many engineers leaving,” said one former employee.

Some members of the economy have expressed concerns about the transfer of technology that may follow the proposed China property, which are familiar to the speeches. But government funding has vanished from patience.

“We don't have any other choice,” said one of the entrants, saying that the government is silent on the savings plan. 'They could argue that Japan is not a preservative that should be retained and protected, when Chinese panel manufacturers put up more display plants. ”

Recitation with Makiko Yamazaki; a further report by Yoshiyasu Shida; Edited by Jonathan Weber

Our Standards:Principles of the Thomson Reuters Trust.
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