14 DAY TRIAL // The world’s primary manufacturer of small to mid-size screens, Japan Display, has confirmed plans to take on new phone vendors, as orders from top partnering companies have been substantially reduced as of late.
Japan Display’s biggest client is known to be Apple Inc., which sells the popular iPhone.
And, while many of the panels used in the manufacturing of its iPhones come from Japan Display, the firm’s CEO said the business hasn’t exactly been flourishing. Which can only mean one thing – a cut in orders from Apple.
“Before the fourth quarter, we thought we were going to have quite a loss... It was quite a drastic cut (in orders),” said Otsuka quoted by Reuters.
In the interview carried out today, April 15, Otsuka wouldn’t identify any clients as responsible for the cuts. However, what it would confirm was that it “boosted productivity at its plants […] with sales to other smaller clients,” the report notes.
“We must continue to aggressively chase the big clients... but we continue to talk to clients whom we think hold great possibilities,” Otsuka said.
This is not the first time components cuts have been reported amid low demand of the Apple iPhone.
A few months ago, the Wall Street Journal highlighted a similar situation which reportedly caused quite a bit of backlash at Foxconn, the key assembler of Apple iDevices.
Ever since, Apple has been scrutinized by Wall Street analysts who continue to erode at the company’s stock price with rumors and speculation about how the iPhone’s magic is wearing off.
Such rumors are only partially unfounded, as Apple indeed has to answer back to its top competitor, Samsung Electronics, with a compelling new version of the iPhone this year.
Some say Apple will try to weasel its way into the hearts of the mainstream consumers by rolling out a cheaper version of the iPhone, amid a lack of inspiration to create a revolutionary new version of the smartphone.