iPhone screen makers have to be sold, why is it so hard to pick up big orders?
Japanese government officials recently issued a fiery warning to Japan Display Inc (JDI) because it was dragged down by Apple. According to the "Wall Street Journal", if the company that produces screens for Apple cannot "prove itself not just Apple's supplier," the Japanese government-led investor "Japan Innovation Network Inc. (INCJ)" will consider selling The JDI shares no longer support the company's development. Last month, INCJ also promised to continue investing in JDI. In 2010, Jobs said: "I think Apple's best thing to do in the industry or even in all industries is to understand the state of supply chain production." Reprinted from: Curiosity Daily Rack Trolley,Rack Trolley For Kitchen,Rack Baking Trolley,Kitchen Rack And Trolley Jiangmen Junerte Stainless Steel Kitchenware Co.,Ltd , https://www.jetkitchenwarejm.com
In 2011, the official background INCJ invested approximately US$2 billion to integrate the LCD screens of Sony, Toshiba and Hitachi, and established JDI. At present, INCJ is JDI's largest shareholder and owns 35.6% of the company's shares.
However, the recent situation of JDI is worrying. According to the financial report released in August, JDI had a net loss of US$115 million during the April-June period of this year. At this time last year, this figure was only US$4.55 million.
The reason for the decline in performance was mainly due to the downturn in the iPhone. Unlike Samsung, JDI has more than half of its orders from Apple, and the iPhone has seen sales decline for two consecutive quarters. In the next three months, JDI predicts that revenue will drop by 20%, and iPhone 7 will not bring a better future.
“As opposed to being committed to doing OEM, Japan should focus on the development of sophisticated technologies. This is beyond the reach of other countries and will bring us more solid revenues.†Japanese Minister of Economy, Industry and Trade Seo Gengcheng said that JDI should Get rid of dependence on Apple as soon as possible.
JDI also wants to break away from the embarrassment as soon as possible. Recently, they are preparing to produce AMOLED panels in advance. This will be a new screen for the iPhone in 2018. JDI hopes to seize the opportunity to compete with Samsung and Xia LG.
The suppliers that are dragged down by Apple are actually more than JDI. Processors, flash memory, cameras, various sensors... There are several fixed manufacturing companies for each component of the iPhone. Some of them rely on Apple to survive. Apple's sales can even account for more than 80% of the company's total revenue. .
Apple is still demanding from its suppliers. Even if the iPhone does not decline, it is very difficult to get a little more profit from Apple.
Since the beginning of the Jobs era, Cook has established a strict cost control system and strictly controls all aspects of the industrial chain, from product design to retail store operations. 
This makes suppliers and Apple tight and nervous. According to a report in The New York Times four years ago, Apple has provided very limited profit margins for most suppliers.
Apples will ask suppliers to tell them about specific costing, including how many workers they need and what their wages will be. Apple then calculates a quotation — Apple, not the supplier, decides how much profit the production part should have. The following year, Apple will continue to demand lower prices. If it does not drop, Apple will reduce the orders that the factory can get.
At the same time, Apple’s control over operators was fruitful. Piper Jaffray analyst Gene Munster pointed out that this strict operation allows Apple to produce a large number of new hardware products, while eliminating the need for costly inventory pressure. This also explains why Apple can maintain a profit margin of more than 25%. In the shrinking smart phone industry, an Apple company has split more than 90% of its profits.
Only the effective operation of this mechanism depends on the year-on-year increase in iPhone sales. When the sales of the iPhone 6s series fell from the previous year, the profit for its parts production was even thinner.