Tokyo-based Apple supplier Japan Display is reportedly considering an initial public offering which could raise up to $2bn. The firm makes screens for the iPhone 5C as well as the 5S. It was created by a government-backed fund which integrated screen-making businesses spun off from Japanese firms Sony, Toshiba and Hitachi after …
I wonder if....
Apple should buy them outright?
Unless Samsung get in there first that is...
Re: I wonder if....
Apple will help with financing of new/additional production line capacity for their suppliers (I presume in exchange for guaranteed capacity), but they don't seem interested in buying manufacturers per se. Samsung have to be careful in buying other companies in this field or they may find themselves in a monopoly position, and will have all sorts of restrictions dropped on them if they do.
Re: I wonder if....
>Apple will help with financing of new/additional production line capacity for their suppliers
According to their CEO - in the press release to Reuters - it was the Apple contract which nearly sunk them [much higher volumes had been assumed] - he also said they were only able to recover from a 1% margin by getting other (non-Apple) work.
Not sure why everyone assumes it's such a Golden Chalice - many, if not most, of Apple OEMs have struggled rather than profited.
Re: I wonder if.... @random handle
The 1% OPERATING margin (i.e. after costs are subtracted) they were talking about was due to a cut in orders from Apple. It's the same in any business, if you have a large customer who cuts their orders then you're going to see a cut in profits. It doesn't matter WHO that customer is.
A margin of only 1% is still a profit, not being "nearly sunk". Foxconn run almost permanently on not much more. What we don't know is why Apple reduced orders as their sales numbers weren't as bad as the pundits were predicting and they also source from 2 other display manufacturers (AU Optronics and Samsung). It's possible they were struggling to reach quality standards or volume.
but they don't seem interested in buying manufacturers per se
well if you exclude semi-conductor makers, computer makers and flash memory makers.
Re: but they don't seem interested in buying manufacturers per se
Sorry, which company that Apple bought were actual manufacturers rather than design houses? They are interested in designs/IP but not so much with physical manufacturing.
So $8 billion
Would someone be so kind as to please explain how a Twitter can be worth more?
Re: So $8 billion
To Tweet is cool thus the IPO is Red Hot
by contracst, actually making stuff is close to absolute zero.
So the Japanese govt could actually make a *profit* on the deal?
Sounds like a pretty good idea to me.
works for the competition too
JDI also makes the hi-res display for the Nexus 7 (2013), Apple's strongest competition in the tablet market.
Re: works for the competition too
Of course - but if a company occasionally supplies bog rolls to Cupertino, El Reg will tie in Apple in any report, to feed the rabid anti-Apple trolls - unless they're all back at school, of course...
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