athenian200
Circumspect
- Joined
- Jan 31, 2010
https://www.reuters.com/article/us-japan-display-results-idUSKBN1AP0NA
http://www.nintendolife.com/news/20...plier_japan_display_inc_is_facing_tough_times
To make a long story short, Japan Display, Inc. are in trouble because of losing orders from their main client Apple. They are cutting jobs, closing factories, and seeking additional investors to help the company catch up with competitor's OLED technology.
The company failed to predict the extent to which OLED would dominate the marketplace, and they are now in a position of playing catch-up.
Do you think that attempting to catch up on OLED technology now is a good move on their part, or is that a waste of resources that is unlikely to pay off at this point?
I think that perhaps they could have instead reorganized themselves as a provider of IPS panels and forgone the high-end market entirely. It's not as if the demand for those panels is going away, it's just not going to be a premium product going into things like iPhones anymore. On the other hand, that would have brought them into direct competition with foreign companies that likely have cost advantages over them. They could have also, perhaps, taken risks and experimented with developing something other than OLED that could potentially have a unique appeal. The weakness I see in their approach is that it seems unlikely to help differentiate them from their competitors, and will at best put them on an equal footing with them.
Interestingly, this very company provides the IPS panels used in the Nintendo Switch. This could put Nintendo in an awkward position, although I think they could probably just switch suppliers and be fine. It's not like there's a shortage of companies willing to provide the panels, as far as I know.
What are your thoughts on all this?
http://www.nintendolife.com/news/20...plier_japan_display_inc_is_facing_tough_times
To make a long story short, Japan Display, Inc. are in trouble because of losing orders from their main client Apple. They are cutting jobs, closing factories, and seeking additional investors to help the company catch up with competitor's OLED technology.
The company failed to predict the extent to which OLED would dominate the marketplace, and they are now in a position of playing catch-up.
Do you think that attempting to catch up on OLED technology now is a good move on their part, or is that a waste of resources that is unlikely to pay off at this point?
I think that perhaps they could have instead reorganized themselves as a provider of IPS panels and forgone the high-end market entirely. It's not as if the demand for those panels is going away, it's just not going to be a premium product going into things like iPhones anymore. On the other hand, that would have brought them into direct competition with foreign companies that likely have cost advantages over them. They could have also, perhaps, taken risks and experimented with developing something other than OLED that could potentially have a unique appeal. The weakness I see in their approach is that it seems unlikely to help differentiate them from their competitors, and will at best put them on an equal footing with them.
Interestingly, this very company provides the IPS panels used in the Nintendo Switch. This could put Nintendo in an awkward position, although I think they could probably just switch suppliers and be fine. It's not like there's a shortage of companies willing to provide the panels, as far as I know.
What are your thoughts on all this?