Shenzhen Enrich Electronics Co., Ltd

Favorite  |  Set Home
skype: cassie_1191
QQ: 2850818618
FACEBOOK: Cassie Huang
E-mail: 黄露
Company News >> JDI: 2021 OLED screen smartphone will become mainstream 7th,Nov,2019
                                            According to foreign media reports, Apple's mobile device screen supplier Japan Display Corporation (JDI) recently predicted that 2021 smart phones with OLED screens will be popular.

Jino's new CEO, Minoru Kikuoka, said in an interview that although OLED panels are thinner, more energy efficient and have higher contrast, JDI's LCD screens will continue to have a price advantage, making them competitive in the smart phone field. force.

However, Kikuoka expects that by 2021, this situation may change due to a more determined transition to new technologies, but he declined to elaborate on specific customer plans.

When Apple introduced its first OLED screen iPhone in 2017, it was seen as the beginning of the end of LCD's long-term dominance. For JDI, whose revenue is largely dependent on Apple, this means big trouble because the company is behind in new screen development.

However, the sales of iPhone X using Samsung's OLED screen were not as good as expected. Apple added a product with LCD screens in the iPhone XR lineup a year later, which gave the Japanese manufacturer some breathing space.

However, Kikuoka said that as the growth of the smartphone market tends to stagnate, more gorgeous screens cannot improve the needs of users who have already satisfied with existing equipment. For those considering purchasing new products, the price/performance requirements are rising again.

The new JDI director said: "We have seen consumers pay more attention to the quality of their smartphones. The industry is now gaining a new understanding of the price competitiveness offered by LCD screens."

Apple's 2019 mobile phone lineup includes the iPhone 11 with an LCD panel. The starting price is $50 lower than last year's model. Apple also plans to add a second LCD screen phone in the first half of next year to replace the outdated iPhone 8.

But the company based in Cupertino, Calif., may be able to fully adopt OLED screens on new phones by 2020. Although Apple will still sell some older LCD screen phones, the time left for JDI is obviously not much.

Kikuoka said that after repeatedly delaying mass production of OLED screens, JDI finally approached the level of launching its first OLED product. But in addition to confirming that the screen will not be used on smartphones, he declined to give more details.

A person familiar with the matter said earlier that JDI's first OLED screen would be used for Apple Watch. However, competition in the smartphone space will require billions of dollars in additional investment, and JDI lacks this funding.

Kikuoka said: "There was a time when we felt it necessary to rush to the OLED screen. But without a partner who can invest in capital, we can hardly do this."

In 2012, due to the improper timing of JDI's large-scale investment in LCD production capacity and the fact that it was struggling to compete with rivals from South Korea and China, the Japanese display manufacturer's many unsettled assets were carried out. Reorganization.

The loss of five consecutive years has allowed JDI to start seeking overseas capital injections, but the list of potential investors has been decreasing. When Kikuoka was at the helm in September, the company had just fallen to a new low and warned that if it could not raise new funds, it might face a dilemma that the business could not sustain.

JDI said last month that the company lost another potential investor as China Harvest Technology Investment Management Co., Ltd. withdrew from its rescue plan. This is the latest blow since June, when Cosgrove Global, Topnotch Corporate and TPK Holding announced their withdrawal from a consortium that agreed to inject 117 billion yen ($1.1 billion) into JDI in April.

JDI still hopes to get investment from Oasis Management and plans to raise 50 billion yen by the end of this year. Earlier reports said that an unidentified customer might invest $200 million.

Chinese screen makers BOE and Tianma Microelectronics also showed interest in JDI's OLED technology, but both companies have since focused on developing their own technology. Kikuoka said that the actual record of mass production of OLED panels may bring these companies back to the negotiating table in the future.

He said that the establishment of a joint venture at JDI's Hakusan plant in central Japan would be the easiest way to achieve it, but exporting its manufacturing technology to China is also an option. In addition, JDI may be open to quotes from private equity and other sources of financing.

The 57-year-old Kikuoka was employed by Industrial Bank of Japan and Merrill Lynch. After more than a decade of working with electronic components and materials suppliers Nitto Denko and Nidec, he joined the JDI finance department in 2017. He was appointed Chief Financial Officer of JDI in May and was promoted to the top position last month.

In August of this year, JDI announced that its quarterly sales were the lowest since the company's listing in 2014. The reason is that the demand of smartphone manufacturers has dropped sharply and there is no prospect of recovery in the short term. The company cut about 1,200 employees through a voluntary retirement plan, sold some of its display manufacturing equipment, and suspended production at a factory.

Kikuoka said that over-investment in the factory during the peak of the demand cycle is just one of the reasons why JDI is currently in trouble. The company also became a victim of complacency because it was supported by the Japan Innovation Network. Japan Innovation Network is a state-owned fund and it remains the largest shareholder of JDI.

He said: "This has led to a culture that allows losses to continue to exist and creates a feeling that someone will always save us. What JDI lacks is a real desire for struggle."

Online service

Skype: cassie_1191 2850818618