Samsung Slashing Production Of OLED Screens Due To Poor iPhone X Sales

Nichole Vega
February 21, 2018

This follows another Nikkei report from last month that states Apple will halve its iPhone X production target for the first three months of 2018 to around 20 million units.

According to a report in the Nikkei Asian Review, Samsung is looking for new buyers who could potentially use the OLED panels on their own handsets. On a facility that Samsung Display had dedicated to producing panels exclusively for Apple's use, it could see production rates drop to half or less.

Still, many stock analysts see the business' earnings starting to grow in the July-December half, as they believe orders from Apple will recover by then.

Samsung has not decided its production target for the June quarter, but the company envisions further cutbacks in the second quarter. That's expected to not only include an update to the existing iPhone X, but see at least one more OLED handset join the line-up.

According to market research firm IHS, Samsung Display made up 97.8 percent of the smartphone OLED market globally in the third quarter a year ago.

Apple's struggle with the iPhone X is affecting production of other parts as well, bringing down memory-chip prices.

The iPhone X was the first phone to get a major design overhaul since the launch of the iPhone 6 in 2015, and many expected it to lead to blockbuster sales.

Samsung Display is extending its marquee full-screen display design to mid-range smartphones as part of efforts to further improve profitability, according to industry sources on February 20. For Apple, however, the focus is less on numbers of devices and more on the profit margin on each device.

Other reports by AllAboutTopnews

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