Japan Display considering to sell Apple its smartphone screen factory for over $700 million USD

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Nikkei business reported on Friday that Japan Display, the main supplier for displays in the iPhone is highly considering selling its business to Apple and Sharp for 70- billion yen, or $730 million to $820 million USD.

Japan Display has been at the center of financial struggles, earlier this month the company received $200 million in financial support by a “customer” which according to sources is said to be Apple.

As of right now, Japan Display owes Apple more than $800 million USD for the construction of its $1.5 billion USD main Hakusan plant. The offer of purchase may be the only option for Japan Display to pay back its debt to the $1.3 trillion company. Sharp, another possible buyer confirmed that they are carefully considering the purchase and will make a decision after reviewing the impact on its own business:

“We are carefully considering it, reviewing the impact that any purchase would have on our earnings, and whether and how much risk it would entail.”

Alongside the $200 million USD that Japan Display received, it also received 90 bullion yen from Ichigo Asset Management, ultimately handing over property control to the management company.

If the purchase does go through, it would represent a shift in Apple’s supply chain, the company itself would then have a direct supply of a main part of the iPhone.

The motive is clear and confirmed, Japan Display is looking for ways and considering all business options for its Hakunsa plant. The company has been losing money for the past 5 years and reported its 11th consecutive net loss this month, it’s clear, it’s struggling and a purchase by APple or Sharp may be the only way out.

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Apple Terminal Team