Smartphone Sales Affect JDI Result

Japan Display Inc. recorded losses of ¥67.2 billion ($592 million) for the first half, up from losses of ¥16.2 billion ($143 million) a year earlier, on turnover which rose to ¥373.9 billion ($3.29 billion) from ¥371.0 billion ($3.27 billion). The company cited the change in smartphone display aspect ratio from 16:9 to 18:9 and the impact of high-end OLED display smartphones for its almost flat YoY sales to Europe and the USA. Chinese sales were down, although revenue from the rest of Asia was higher.

Analyst Comment

I have huge respect for the technology that JDI has, and has shown, but the lack of OLED means that unless it gets acquired by Sharp (or BOE, perhaps) or someone with deep pockets, it’s hard to see how the company avoids being squeezed down into just being a specialist supplier. (BR)