Recently, cash-strapped Japan Display cautioned it cannot promise a return to revenue in this year since the demand for smartphone screens is poor—and outcome in another quarterly loss—casting uncertainty over its planned bailout contract with a Chinese-Taiwanese group. The provider for Apple also stated it will slash around 1,000 jobs or a tenth of its workforce since it persists to bear the impact of its late move to organic light-emitting diode screens and disheartening iPhone XR’s sales, which is the only model having an LCD (liquid crystal display) screen. Seemingly, Japan Display’s net loss for the 3 Months concluding in March was 98.6 Billion yen versus 147 Billion yen loss in the past year, which is its ninth repeated quarterly loss.
At an earnings briefing, CEO Yoshiyuki Tsukizaki stated, “We took some reforming measures earlier, but the outcome to be not sufficient to offset a worse-than-anticipated decline in demand for smartphone screens. The hard environment in the smartphone domain is likely to persist through the first half. The company cannot assure it would return to profit in this year following five consecutive annual losses. Japan Display’s outcomes would be closely observed by its Chinese-Taiwanese suitors, who postponed an 80 Billion yen investment to reassess the company’s prospects this week. Nevertheless, as per to Takanobu Oshima—Japan Display’s CFO—the screen manufacturer is making stable progress in talks with the buyer group.
Recently, Apple was in news as analysts stated that the tech giant is the “poster child” for trade strains and if its stock bounces, so can market. With the escalating trade war, some traders think when Apple bounces back, so would the market. Apple is not only in the crosshairs of a trade spat between China and the U.S., but it has a rather important place as a Dow stock and part of NASDAQ and the S&P 500. Apple’s 1.6% earnings added up 20 points into the Dow’s 208 point earnings.