Japan Display and Sharp turn up the heat against China-based smartphone display makers

Japan Display and Sharp turn up the heat against China-based smartphone display makers
The manufacturing juggernaut that is China is the reason why we see an increasing number of device makers tipping their hat on the world stage, from Huawei to Xiaomi, Oppo to ZTE. Apple, with its Taiwan-based manufacturing partners, Foxconn and Pegatron, would not be able to sell the iPhone at the prices it already does were it not for large China-based workforces to assemble the goods.

The cheap labor is the reason why we see, “Made in China” stamped or engraved on nearly every consumer good sold en masse. Such developments were arguably economically unavoidable, but that does not make the results any less telling. Where there used to be swaths of high-quality electronics made in Japan, and a heavy manufacturing base in the United States, there is now a largely service-based economy and manufacturing firms simply cannot compete outside of highly-specialized areas.

Japan Display (JDI – a joint venture of Sony, Toshiba and Hitachi) and Sharp, two leading manufacturers of smartphone panels, found themselves in a situation where they had to adapt to the competition coming out of China from shops like TPV, Hisense, and Haier, or risk getting crushed.

According to industry sources in Taiwan, JDI and Sharp are getting into a price war on bids to smartphone manufacturers like ZTE, Huawei, and TCL (makers of Alcatel-branded mobile phones) who continue to expand their reach out of China and into other developing markets with ever increasing higher-quality smartphones. JDI and Sharp are aggressively courting the companies and have apparently scaled for production and have cut prices on TFT LCD panels for use in high-spec devices.

source: DigiTimes

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19 Comments

1. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

I'm expecting that hugo barra cyanogenmod guy to post something political and racist here.

4. HugoBarraCyanogenmod

Posts: 1408; Member since: Jul 06, 2014

I'm afraid I have to halt this Japan hate for a while and save my Russian pals from iStates... Besides, I failed to feel the heat from this article, Sharp will eventually failed

5. jackson_kaeluen

Posts: 87; Member since: Mar 12, 2013

Are you sure on what you're commenting your reply? Don't waste your time here and Please, leave. Thank You

8. pulkit1

Posts: 354; Member since: Jul 03, 2014

it won't ,these companies actually taught you people how to manufacture .

14. DeusExCellula

Posts: 1390; Member since: Oct 05, 2014

Like you failed in India?

16. simpleas

Posts: 196; Member since: Apr 30, 2014

Cyanogen is a joke, featureless and boring.

2. jackson_kaeluen

Posts: 87; Member since: Mar 12, 2013

JDI's Display always have Yellow Band/Hue/Tint Issues. I'm not sure did JDI had aware on this issues already or not? JDI is a really great Display panel which is one of my favourite Display Panel Company, its Japan best display for smartphones, They are really good. Anyone has the info? Is JDI aware on this issue already? They make great Display Panel Very Well. Thanks in advance.

3. Settings

Posts: 2942; Member since: Jul 02, 2014

Japan quality > China quality. We all know that.

6. Felix_Gatto

Posts: 942; Member since: Jul 03, 2013

Japan = High Quality China = High Quantity

7. Deicide

Posts: 82; Member since: Jul 02, 2011

"TFT LCD panels for use in high-spec devices." This sentence makes me cringe. Nothing with a TFT in this day and age should be considered "high-spec".

9. Felix_Gatto

Posts: 942; Member since: Jul 03, 2013

Thera are many types of TFT LCD, IPS is included. So l think it would be IPS panel.

11. Genza

Posts: 576; Member since: Mar 12, 2014

Usually before I talk about something I will be looking for as much information as I could, so I do not sound like a fool. I suggest you read this.http://en.m.wikipedia.org/wiki/Thin-film-transistor_liquid-crystal_display

10. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Price wars will not end well for Japan Display and Sharp. They are to invest in OLED or even higher display tech to get better margin.

12. Genza

Posts: 576; Member since: Mar 12, 2014

Lol...i don't agree with you because In May 21, 2013 JDI Announces Development of 5.2-inch Full-HD OLED Display Investment Planned for OLED Manufacturing Pilot Line in Ishikawa, Japan.http://www.j-display.com/english/news/2013/20130521.html May 29, 2014 JDI Announces Development of LCD Module Which Applies Local Dimming Backlight Technology to its WhiteMagic. http://www.j-display.com/english/news/2014/20140529.html July 17, 2014 JDI Announces Start of Mass Production of the most advanced IPS display (IPS-NEO) for Mobile Products.http://www.j-display.com/english/news/2014/20140717.html October 23, 2014 JDI Develops Quick Response LCD That Produces Clear Video Images at Low Temperatures.http://www.j-display.com/english/news/2014/20141023.html Plus in Jul. 31, 2014 Innovation Network Corporation of Japan (“INCJ”), Japan Display Inc. (“JDI”), Sony Corporation (“Sony”), and Panasonic Corporation (“Panasonic”) announced that they have reached final agreement on the establishment of a new company, JOLED Inc. (“JOLED”), to integrate Sony and Panasonic’s R&D operations for organic light-emitting diode (“OLED”) display panels. Through this collaboration the four companies aim to accelerate the development and rapid commercialization of OLED display panels.

17. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Strange fellow don't agree but show links that support what I said. Invest on technology rather than price war. And the hate group went along. Attention is attention good or bad. LOL!

18. Shamoy

Posts: 112; Member since: Dec 28, 2013

They've already investing in OLED R&D since 2013.

13. ryq24

Posts: 872; Member since: Oct 17, 2011

This is what all Japanese companies should be doing if they want to survive. Japan still think if they built it the consumers will buy it even if they are way too expensive something that is no longer true except for cars, for now. Chinese made goods are improving in quality and soon will catch up to the Japanese .

15. mixedfish

Posts: 1542; Member since: Nov 17, 2013

As long as phones remain the hottest gadget on the planet, slave labor will always exist. They need to be 'hand made' because phone models are released so rapidly that the cost and technology available for automated production make it impossible. Which is why China has the biggest factories, they offer the largest workforce for customized production lines.

19. Shamoy

Posts: 112; Member since: Dec 28, 2013

Not 100% true. CNC milling is eliminating a huge amount of labor.

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