Apple will shorten LCD panel maker Japan Display’s payment periods in an effort to improve JDI’s short-term financing situation, says Reuters, citing “sources familiar with the matter” tell them
JDI CEO Minoru Kikuoka told reporters on Wednesday that concerns about an immediate cash shortfall had been eased. However, Kikuoka, who took on the CEO role back in September, did not mention Apple specifically.
The agreement, which also includes agreements from other business partners to ease payment conditions, would improve its short-term financing situation by as much as 40 billion yen ($370 million), said Kikuoka.
Japan Display still owes Apple close to $900 million for the $1.5 billion cost of building a smartphone screen plant four years ago. The Cupertino firm will also allow JDI to slow the pace of those payments.
JDI recently lost investment funds from a Chinese firm that was leading a proposed bailout deal, but Apple has reportedly consented to double its own investment in the bailout deal.
Apple accounts for over half of its sales, supplying liquid crystal display panels for the iPhone 11. While Apple has helped keep them in business, the growing adoption of OLED panel technology has hit he company hard.