Apple will shorten Japan Display's payment periods in an effort to improve the panel supplier's short-term financing situation, reports Reuters, citing a source familiar with the matter.

topimg 3
JDI CEO Minoru Kikuoka, who took on the role in September, told reporters on Wednesday that concerns about an immediate cash shortfall had been allayed but did not mention Apple by name.

Japan Display still owes Apple nearly $900 million for the $1.5 billion cost of building a smartphone screen plant four years ago and the U.S. tech giant is also allowing the supplier to slow the pace of those repayments.

The agreement to ease payment conditions, which also includes agreements from other business partners, would improve JDI's short-term financing situation by as much as 40 billion yen ($370 million), said Kikuoka.

JDI recently lost out on Chinese funds from a key investment firm leading a proposed bailout deal, but Apple reportedly agreed to double its own investment to aid in the LCD panel maker's restructuring.

JDI relies on Apple for more than half of its sales, and supplies the liquid crystal display panels for the iPhone 11, which has helped support its bottom line. However, its mainstay LCD business has been hit heavily by the growing adoption of OLED panel technology.

Top Rated Comments

69Mustang Avatar
75 months ago

Wouldn’t slowing the pace of repayments increase payment periods instead of reduce them?
You're combining two separate processes.
Process 1: Shortening the payment periods to JDI. Apple will lessen the time between product delivery and payment. Example: JDI normally delivers product to Apple and expects payment within 30-45 days. Now JDI delivers product and gets payment within 14-20 days. They get their cash quicker to help in the short term.

Process 2: Extend repayment schedule from JDI. Example: JDI has a quarterly repayment schedule. Apple and other suppliers let them hold onto that money and allow them to make biannual or yearly payments. They keep more of their cash to help them in the short term.
Score: 4 Votes (Like | Disagree)
PickUrPoison Avatar
75 months ago

Wouldn’t slowing the pace of repayments increase payment periods instead of reduce them?
Though the Reuter’s article isn’t very clear, it looks like payments from Apple to JDI for panels they buy and repayments from JDI for a loan Apple made to them are being modified.

60% of JDI’s revenue comes from Apple, and it seems like Apple is shortening their payment periods, e.g. even though Apple might contractually have 60 days to pay for panels it buys from JDI, they might be paying in 7 days instead.

Separately, Apple is delaying JDI’s repayments due to Apple for a loan Apple gave them to build a manufacturing facility some years ago.
Score: 3 Votes (Like | Disagree)
cocky jeremy Avatar
75 months ago
Option 1) Take longer to be paid
Option 2) Have your vendor that owes you a lot of money potentially go out of business while unable to pay you back.

Yeah, this looks like a good choice.
Score: 2 Votes (Like | Disagree)
69Mustang Avatar
75 months ago
Curiosity says that I want to see the pics that JDI must be using to blackmail Apple to force them to keep helping. The sheer amount of effort Apple expends to keep JDI afloat says that I really don't want to see those pics. :eek::eek:
Score: 2 Votes (Like | Disagree)
now i see it Avatar
75 months ago
convinces Japan Display that a larger LCD manufacturing plant is needed for future iPhones... then switches to OLED displays
Score: 2 Votes (Like | Disagree)
junior Avatar
75 months ago

Curiosity says that I want to see the pics that JDI must be using to blackmail Apple to force them to keep helping. The sheer amount of effort Apple expends to keep JDI afloat says that I really don't want to see those pics. :eek::eek:
They really really want competition to exist in the display business so they can stop their over reliance on a couple of brands (Samsung in particular). Well that and the 900 million they’re owed.
Score: 1 Votes (Like | Disagree)

Popular Stories

iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 14 New Features

Friday July 4, 2025 1:05 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are just over two months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models. Latest Rumors These rumors surfaced in June and July:Apple logo repositioned: Apple's logo may have a lower position on the back of the iPhone 17 Pro models, compared to previous...
iphone 16 pro models 1

Here's How the iPhone 17 Pro Max Will Compare to the iPhone 17 Pro

Saturday July 5, 2025 1:00 pm PDT by
Apple should unveil the iPhone 17 series in September, and there might be one bigger difference between the Pro and Pro Max models this year. As always, the Pro Max model will be larger than the Pro model:iPhone 17 Pro: 6.3-inch display iPhone 17 Pro Max: 6.9-inch displayGiven the Pro Max is physically larger than the Pro, it has more internal space, allowing for a larger battery and...
airpods pro 2

AirPods Pro 3 to Help Maintain Apple's Place in Earbud Market Amid Increasing Low-Cost Competition

Thursday July 3, 2025 7:25 am PDT by
Apple's position as the dominant force in the global true wireless stereo (TWS) earbud market is expected to continue through 2025, according to Counterpoint Research. The forecast outlines a 3% year-over-year increase in global TWS unit shipments for 2025, signaling a transition from rapid growth to a more mature phase for the category. While Apple is set to remain the leading brand by...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Max Battery Capacity Leaked

Thursday July 3, 2025 5:40 am PDT by
The iPhone 17 Pro Max will feature the biggest ever battery in an iPhone, according to the Weibo leaker known as "Instant Digital." In a new post, the leaker listed the battery capacities of the iPhone 11 Pro Max through to the iPhone 16 Pro Max, and added that the iPhone 17 Pro Max will feature a battery capacity of 5,000mAh: iPhone 11 Pro Max: 3,969mAh iPhone 12 Pro Max: 3,687mAh...
Apple Watch Ultra Night Mode Screen

Apple Watch Ultra 3 Launching Later This Year With Two Key Upgrades

Wednesday July 2, 2025 1:13 pm PDT by
The long wait for an Apple Watch Ultra 3 appears to be nearly over, and it is rumored to feature both satellite connectivity and 5G support. Apple Watch Ultra's existing Night Mode In his latest Power On newsletter, Bloomberg's Mark Gurman said that the Apple Watch Ultra 3 is on track to launch this year with "significant" new features, including satellite connectivity, which would let you...
apple silicon mac lineup 2024 feature purple m5

Apple's Upcoming Macs Listed in New Report

Thursday July 3, 2025 9:09 am PDT by
AppleInsider's Marko Zivkovic today shared a list of alleged identifiers for future Mac models, which should roll out over the next year or so. The report does not reveal anything too surprising, but it does serve as further evidence that Apple is seemingly working on new models of every Mac, including the MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, and Mac Pro. Apple is...
Future M5 Chip Devices

M5 Chip Rumored to Debut in These Five Apple Products Later This Year

Friday July 4, 2025 9:14 am PDT by
Apple's next-generation M5 chip is expected to debut in five new products later this year, including the iPad Pro, Vision Pro, MacBook Pro, Mac mini, and iMac. M5 chips will reportedly be manufactured with TSMC's latest third-generation 3nm process, which should result in slight performance and power efficiency improvements over M4 chips fabricated with its second-generation 3nm process. ...