Apple has set to double the contribution to Japan's rescue plan show

Apple is reportedly about to double its contribution to the rescue plan for one of its major display suppliers following the withdrawal of the China Investment Company.

Japan Display provides LCD screens for most iPhone models, including the iPhone 11, but financial difficulties have led it to seek fresh funding.

The Chinese fund's crop was set to provide more than half of the 80bn yen (£602m) but earlier this week. Apple itself plans to invest $100m (£81m).

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Apple Japan Display

Japan has been forced to look for new sources of funding and has reportedly said it expects to receive (£162m and $200m) from one of its clients.

This seems to be a thinly-veiled nod to the apple, given the relationship that exists between the two firms and the fact that the Cupertino-based company was part of the original bailout offer.

As much as 60 percent of Japan's display revenue is from Apple, making the former an important part of the iPhone's supply chain. However, ironically, one of the causes of Japan's problems display has managed to diversify its customer base.

Another reason is its inability to mass-produce the OLED displays used in the iPhone 11 Pro. These OLED displays are relatively expensive, contributing to the high cost of the device, with Apple currently sourcing these components from Samsung.

Wall Street magazine says that Japan hopes to be able to produce OLED displays for Apple in the next few years, while also ensuring a stable supply of LCD displays for the mid-range phone company.

Apple has already taken several steps to improve its supply chain in recent years, while it has also begun to develop several components itself in recent years in order to gain more control over price, development and timing. This allows you to differentiate against Android manufacturers who source from a pool of vendors.

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Through Wall Street Journal

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