Apple has agreed to invest $100 million in Japan Display, sending the company's shares up by as much as 32%, reports Reuters.
Japan Display has been struggling due to Apple's shift to OLED and disappointing sales of the iPhone XR. Apple accounts for 60% of the company's revenue.
It's believed that Apple fronted most of the $1.5 billion cost to build Japan Display a new plant four years ago. The display manufacturer was supposed to repay Apple with a percentage of screen sales but it purportedly still owes about 100 billion yen.
Last month, a report claimed that Apple had agreed to half the pace of repayment for two years as Japan Display pursued a bailout deal with a Chinese-Taiwanese consortium. That deal was delayed in order to reassess the company's prospects.
The consortium may decide on whether or not it will make an investment by Thursday. Please follow iClarified on Twitter, Facebook, or RSS for updates.
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Japan Display has been struggling due to Apple's shift to OLED and disappointing sales of the iPhone XR. Apple accounts for 60% of the company's revenue.
It's believed that Apple fronted most of the $1.5 billion cost to build Japan Display a new plant four years ago. The display manufacturer was supposed to repay Apple with a percentage of screen sales but it purportedly still owes about 100 billion yen.
Last month, a report claimed that Apple had agreed to half the pace of repayment for two years as Japan Display pursued a bailout deal with a Chinese-Taiwanese consortium. That deal was delayed in order to reassess the company's prospects.
The consortium may decide on whether or not it will make an investment by Thursday. Please follow iClarified on Twitter, Facebook, or RSS for updates.
Read More