Japan Display (JPDYY) , a manufacturer of device screens which generates more than half of its revenue from Apple,  (AAPL - Get Report)   is reportedly seeking financial support from its largest shareholder.

The Nikkei reported the news late on Friday, when the company slashed its earnings outlook for the first quarter.

(Apple is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings here.)

It said that the Tokyo-based manufacturer of liquid crystal displays for smartphones, tablets, wearables, and digital cameras, has asked its largest shareholder, Innovation Network Corporation of Japan, to guarantee its debt, as a slowdown in iPhone sales has forced the company to carry more inventories.

Japan Display shares closed down 6.5% to ¥174.00 ($1.70) in Tokyo on Monday.

An INCJ spokesperson said the organization had no comment to make. Japan Display said that it had nothing official to say at this juncture.

Late July, Apple said it sold 40.4 million iPhones in the third quarter, down 15% year-on-year but above the forecast figure of just over 40 million. Iphone sales dropped for the second straight quarter, pushing total revenue down 14.6%.

Apple is reportedly switching from LCD displays to organic light-emitting diode displays for its iPhones from 2017. OLEDs, which provide an advantage over LCDs in viewing angles and color contrasts, are already used in Samsung Electronics' Samsung Galaxy S7.

On Friday, Japan Display slashed its earnings outlook for the three months to June 30 from ¥195 billion to ¥174 billion in sales, and from a profit of ¥1.0 billion to a loss of ¥3.5 billion at the operating level. It said it expects a net loss of ¥11.8 billion. The company attributed the sales downgrade to lower-than-expected shipment volume, falling average selling prices in China, and a deterioration in product mix in Europe and America. A decline in gross margin and a stronger yen hurt earnings at the operating level, the company added.

Japan Display is scheduled to report is first-quarter earnings right after the markets close in Japan on Tuesday.

INCJ, backed both by the government and the private sector, was established in 2009 with an aim to provide support to the country's electronics and technology sector. Japan Display was established in 2012 through a merger of the LCD operations of Sony (SNE - Get Report) , Toshiba (TOSBF) , and Hitachi (HTHIY) , which INCJ financed.

As of March 2015, INCJ owned 35.6% of Japan Display, according to its annual report. UBS owned 7.5%, while Sony and Toshiba owned 1.8%.