Apple is paying up faster to help struggling display-maker

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iPhone XR
Apple won't give up on JDI.
Photo: Apple

Apple has reportedly agreed shorter payment terms with struggling display-maker Japan Display (JDI). It is part of a plan to help stabilize the company following years of financial troubles.

The deal comes after Apple agreed to cough up as much as $200 million as part of bailout to keep JDI afloat.

JDI continues to manufacture LCD panels for Apple — you’ll find them inside iPhone 11. But it took a massive hit when Apple decided to use OLED technology instead for iPhone X and its successors.

After recording losses for the last five years, JDI’s future was beginning to look very bleak. But Apple has been by its side throughout, and is now stepping up efforts to save its partner.

Apple helps keep JDI in business

Reuters reports Apple recently agreed to pay JDI faster. The time it takes the company to pay for iPhone displays that have been delivered is now shorter.

New JDI CEO Minoru Kikuoka would not confirm the deal with Apple, but he did reveal that the company’s immediate cashflow shortfall has been allayed.

Kikuoka also confirmed other partners have eased their payment terms, improving Japan Display’s short-term finances by as much as ¥40 billion ($370 million).

Apple part of a bailout deal

This agreement with Apple is separate to the bailout deal Cupertino is also a part of. Recent reports revealed Apple has agreed to cough up $200 million to secure JDI’s long-term stability.

Kikuoka was hoping the bailout, which will total at least $470 million, would be finalized this month after an earlier deal fell through. But it seems negotiations are still ongoing for now.

Japan Display still owes Apple almost $900 million for a smartphone display plant built four years ago. Apple has agreed to slow the pace of its repayments while JDI is struggling.