Apple display maker losses blamed on sluggish iPhone 8 sales

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iPhone
iPhone 8 sales aren't great, Japan Display claims.
Photo: Ste Smith/Cult of Mac

Apple supply maker Japan Display has announced disappointing quarterly earnings, based in part on Apple’s shift to using OLED displays for the iPhone X.

While Japan Display still makes the LCD screens for the current generation iPhone 8 and iPhone 8 Plus, the “sluggish” sales of these devices have meant that its earnings have continued to fall. The company posted a net loss of 68 billion yen ($596 million) for the first half of fiscal 2017, an increased loss from the 16.7 billion yen it posted for the same period in 2016.

According to Chief Financial Officer Takanobu Oshima, iPhone 8 sales are predicted to remain disappointing for the remainder of the fiscal year.

Despite Apple’s increased focus on OLED, however, Japan Display isn’t heading down that path. Instead, it’s reportedly pouring its efforts into developing full-screen LCD panels called “Full Active” displays, which it hopes will gain Apple’s attention. Full Active displays are already being used by several Xiaomi handsets.

Nikkei Asia Review writes that:

“LCD panels will remain the company’s main product over the next few years. Japan Display’s success depends on whether it can retain a big share of Apple’s business, despite its OLED shift, with full-screen LCD panels and attract demand from a changing Chinese market.”

Japan Display’s losses were also based on restructuring costs, which Japan Display claims will be completed by March 2018. It is also looking for a capital injection from outside investors, and is in talks with several companies about this.

Source: Nikkei Asia Review