Apple supplier Japan Display turning to smaller companies as iPhone demand weakens

One of Apple's two Japenese display providers, Japan Display, has announced that it will be looking to smaller clients to make up for falling demand for the iPhone.

One of Apple's two Japenese display providers, Japan Display, has announced that it will be looking to smaller clients to make up for falling demand for the iPhone.

 
The company, which began in April 2012 as a merger of the display divisions of Sony, Hitachi and Toshiba, said that it is looking to increase sales for the year ahead by up to 60 percent, thanks to targeting smaller companies.
 
Shuichi Otsuka, CEO of Japan Display, announced the plans to increase revenue from 500 billion yen in the fiscal year ending March 2013 to 800 billion yen in the fiscal year ending March 2014.
 
 Apple supplier Japan Display turning to smaller companies as iPhone demand weakens
 
The company experienced a rocky fiscal third quarter, from October to December 2012, a time when orders are traditionally high as shoppers flock to stores in the run up to Christmas. Otsuka revealed that Japan Display received a “drastic cut” in orders for this period, however, resulting in the company believing it would end up posting a loss. It managed to work around the problem through a series of cost-cutting measures and improved productivity.
 
Now it seems Japan Display is unwilling to put itself in the same “eggs all in one basket” situation again. It said it will continue to “aggressively chase the big clients,” but it is also talking to smaller clients which it said “hold great possibilities.” It did not reveal the names of any of the companies it is in talks with.
 
The relatively new company is expected to go public on the stock market within the next year or two.
 
Source: Reuters