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

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

This low demand has caused Apple to reportedly reduce its iPhone X production by half, leaving Samsung with a surplus of OLED panels which the South Korean company is now unable to sell. Samsung has yet to confirm production targets for the April-June period. The total average daily sales of iPhone 8 and iPhone X is 120 percent the sales of iPhone 7.

For the second time in a matter of days, a report from Asia claims that Apple's iPhone X is seriously hurting Samsung.

Apple's instructions to developers add fuel to the rumors that its next batch of iPhones - likely to be introduced next fall - will have notched screens similar to that of the iPhone X. 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. Of course, the iPhone X does cost a hefty $1000.

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Samsung did not immediately respond to our request for comment and Nikkei's report did not cite specific sources.

The production cut was reportedly prompted by slower-than-expected sales in the holiday shopping season in Europe, the USA and China. Not only would that secure Apple's supply chain - given the terms of the deal apparently earmarked it all the panels it wanted - it would have a side-benefit of reducing its dependence on arch-rival Samsung. But sales of the iPhone X haven't exactly gone to plan.

In late January, Nikkei reported that Apple was halving its production target from 40 million units during the first three months of the year to 20 million. For a supplier, the more components you can sell, the more profit you make. With Chinese display manufacturers expected to challenge Samsung in the OLED market down the line, it would make sense for the company to cater to more companies who want to make the switch to bezel-less OLED panels for their mid-range smartphones. For Apple, however, the focus is less on numbers of devices and more on the profit margin on each device. Made by the Samsung Display division, these panels have given Samsung an enviable edge in premium smartphone design.

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