By BizLED Bureau
Mar 17, 2016: In an official announcement from Japan Display, the company is planning to invest US$ 123 million and shut down its liquid Crystal display (LCD) production lines to boost strategies and profitability for next-generation technologies. Currently, Japan Display provide display screens for Apple iPhones.
The top brass decided to consolidate the revenues, received after partially selling their Chinese manufacturing subsidiaries company. The company is also planning an early retirement plan for employees in Japan aged 45 and over, and shall book an impairment loss of about US$ 123 million for the financial year through March from restructuring costs.
The move came into effect after smartphone giants, Apple, forecasted its first revenue decline in 13 years. It also reported it’s slowest-ever increase in iPhone shipments, raising concerns about its exponential growth period may be ending.
Japan Display, South Korea’s LG Display Co Ltd and Sharp are three major display suppliers for the iPhone. Japan Display’s domestic rival Sharp Corp may return to the game after its planned takeover by Taiwan’s Foxconn, who could provide the troubled electronics maker with required funding and distribution power.
A senior official at Japan Display stated that the consolidation process has been initiated to stay profitable regardless of any variance in the smartphone market. He further stated that the move is not influenced by any particular changes in the industry.
Japan Display is the pioneers in manufacturing and refining the organic light emitting diode (OLED) technologies.
A mass production line is being prepared and Japan Display is expected to start mass production of OLED panels by 2018. Some media reported pointed that Apple Inc may adopt OLED panels for future iPhone models. The team at Japan Display believes that future is promising and technological-friendly.