Japan Display Inc's new chief executive said on Thursday the screen maker's "biggest client", widely understood to refer to Apple Inc. (NASDAQ: AAPL) , is increasing orders ahead of the expected launch of a new iPhone this month.
Mitsuru Homma, who was appointed CEO in June, said weakness in China's smartphone market, the world's biggest, amid that country's broader economic slowdown was not affecting the orders for display screens it was getting from its top client.
Apple is expected to unveil the new iPhone at an event on Sept. 9. Some analysts have raised concerns that the planned introduction of a new feature called Force Touch, which distinguishes between light taps and presses, could cause production hiccups.
Asked about the new iPhone, Homma said: "There's difficult technology being used... But I think the ramp-up is going well."
Japan Display shares rose as much as 5.5% on Thursday after Homma's comments before finishing up 3.8% at 379 yen. The benchmark Nikkei 225 average index rose 0.5%.
Apple Chief Executive Tim Cook last week reassured shareholders about the strength of the Chinese market for iPhones after a slump in China's stock market and the devaluation of the yuan rattled investors.
It is unclear whether strong orders from Apple mean the U.S. company is more bullish about the prospects of its new iPhone than previous models, or whether it is placing more orders with Japan Display at the expense of other suppliers. Japan Display does not reveal the total size of its business with Apple.
Some analysts see Japan Display's dependence on Apple as a concern, particularly given a slowing Chinese market.
Apple shares, meanwhile, opened Thursday's trading down 26 cents at $112.08 U.S., in a 52-week trading range of $92.00 U.S. to $134.54 U.S.
Tech Insider
