Japan Display reported a strong rise in quarterly profit amid higher demand from Apple and Chinese smartphone makers. The company said on Thursday operating profit for October-December climbed 80 percent from a year earlier to 14.7 billion yen ($122 million).

Plagued by the competition from Asian rivals that has also hit Sharp, Japan Display had reported steep losses in the previous two quarters, before sales to Apple for the iPhone 6 kicked in. As a result, the Japanese firm still expects an operating loss of 6.5 billion yen for the year through March.

"During the third quarter, sales to a major Western customer grew 2.5 times the year-ago quarter," Japan Display said in a statement, without naming Apple.

"Shipment of smartphone displays to China also grew, as did sales of high-resolution models," the company said. Last year Xiaomi Inc identified itself as a Japan Display customer.

Japan Display was formed in a government-backed deal in 2012 from the ailing display units of Sony, Toshiba and Hitachi.

The company hopes to attract more business by marketing the benefits of his firm's "in-cell" displays - touch-screen panels that are easier to assemble than other types of screens.