Static for iPhone Supplier Balda

Analysts slam the German touch-screen maker for losses and opaque accounting, but stakeholders laud its China outsourcing and Apple connection

Just as the Apple (AAPL) iPhone launches in Europe, a German company that analysts believe is the major supplier of its unique touch screen is under fire for its financial practices and lagging profitability. Balda (BADG.DE), which makes touch screens in Xiamen, China, via a joint venture with Singapore-based TPK Holding, raised eyebrows on Oct. 31 when it sold $50 million in "convertible profit participation rights" to unnamed institutional investors.

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