According to Japanese media reports, Apple’s upcoming iPhone 12 series, which will be released this year, will be difficult for JDI as it won’t be able to get any orders, mainly because Apple’s new 5G phones will adopt OLED screens.
Apple’s move is a big blow to JDI. The company has long been a major supplier of LCD panels for the iPhone, and about 60% of its revenue comes from Apple contracts.
By fully iterating the OLED panel for the iPhone 12, Apple is killing JDI.
Shares in TPK, a Taiwanese touch panel manufacturer that had long made panels for iPhones and iPads, soared to become the leader, but collapsed when Apple became increasingly insecure and spread orders among suppliers such as Sharp, Toshiba, LG and Samsung.
There are many more cases like this. So to speak, Apple has adopted Cook’s aggressive approach to suppliers. Today, JDI, once the world’s biggest LCD manufacturer, is starting a feud with Apple.The monitor maker, which was set up in 2012 by the Japanese government and integrated from the small and medium-sized display units of SONY, Toshiba and Hitachi, had a good relationship with Apple as a traditional LCD giant when Apple’s iPhone was using LCD screens a few years ago.
JDI has been in negotiations with Apple and Sharp to sell its Hakusan liquid crystal display plant in central Japan’s Ishikawa Prefecture. A portion of the facilities has remained idle since last July on poor sales of iPhone panels. Maybe Apple will continue to use the LCD in one of its iPhone 12 models. We might as well focus on the subsequent share price and acquisitions and see what happens afterwards.