Apple decided to use an OLED (organic light-emitting diode) display for all of its three new iPhones planned for 2019, as Electronic Times of South Korea reported. This has immediately impacted the shares of Japan Display, which went down by 10% already.
Japan Display is one of the chief suppliers of iPhone’s LCD (liquid crystal display) screens. While it is supposed to produce a small volume of OLED displays in the next year, it is presently lagging behind its competitors.
Shares for the Japanese company even went down to 21% at one point. After the morning session on Tuesday, May 29, it was down 10%, providing a market value of about 105 billion Yen or $965 million.
Samsung provides OLED for iPhones too, and its shares were off 1.5% after the Tuesday session. Interestingly, LG Display is to join the herd of supplying OLED to Apple, and its shares were up by 5%.
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The company has planned mass production of OLED smartphone panels starting in 2019. Facing cash crunch, it is looking for new investors to finance and launch the production line.
Masayuki Otani, the chief market analyst for Securities Japan, has pointed out that the government will continue helping Japan Display, but the company itself has been slow as compared to its South Korean rivals in OLED production.
Japan Display, formed in 2012, combines the display businesses of Hitachi, Sony, and Toshiba. The deal was brokered by Innovation Network Corp of Japan (INCJ), backed by the state.
OLED screens are thinner and lighter as compared to LCD screens. Additionally, OLEDs do not require backlighting, rather can generate light themselves. This further ensures that less battery life is spent.
In the mix, a representative of Apple at its South Korean office wasn’t available for comment. Also, a spokesman for Japan Display declined to comment on the matter. So did LG Display and Samsung Display as well.
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