Apple Inc. looks like it may put down close to $1 billion just to keep its devices at the leading edge.Japan Display Inc., one of its key providers of screens, said Friday morning it would get up to $400 million from bailout partner Harvest Tech Investment Management Co. Nestled into its two-page stock exchange statement was the revelation that the funding includes $100 million already pledged by a customer.
That customer is Apple, according to a Bloomberg News story published in late June. Taiwan’s TPK Holding Co., another long-time iPhone component supplier, had been in talks to join a $1.1 billion rescue package for Japan Display but pulled out. That left the company needing to look elsewhere, and Apple stepped in to help fill the void.
This development comes a week after Apple’s main screen supplier, Samsung Electronics Co., made a cryptic reference to a “one-time gain related to the display business” in its preliminary second-quarter earnings statement.
The U.S. company will pay as much as 1 trillion won ($850 million) to make up for a shortfall in purchases of organic light-emitting diode, or OLED, according to South Korea’s Electronics Times and analysts at Citigroup Global Markets. (Apple hadn’t replied to a request for comment by publication time Friday.)