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

Bill Rogers
February 21, 2018

The total average daily sales of iPhone 8 and iPhone X is 120 percent the sales of iPhone 7.

Apple typically retains the ability to buy older models, and even the iPhone 6S can be purchased from 2014 on the website.

Nikkei first reported in January that Apple was halving its iPhone X production for the quarter, with a follow-up report a few days ago saying that this left Samsung scrambling to find alternative customers for the excess capacity.

With the wider adoption of the full-screen design, Samsung Display, which dominates more than 95 percent of the mobile OLED market, plans to further improve profitability overall and widen the gap with fast-growing Chinese runner-ups. That's a significant drop compared to the initial goal of 45 million to 50 million iPhone panels.

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Samsung has yet to decide if it will curb its production target for the April to June quarter, but it's possible that a "further cutback" is in store, Nikkei noted.

Samsung has been a top choice for Apple when it comes to OLED displays, with the Korean company looking to continue supplying the components for new iPhones this year as well.

The company had expected other smartphone makers in and outside of China to be making devices that require OLED display, Nikkei noted, but it appears that many are still using cheaper LED screens instead. For the October-December quarter of 2017, the company had registered an operating profit of 1.41 trillion won, which was down from 1.7 trillion won in April-June quarter of the previous year.

To make matters worse, the Samsung display business is expected to see a year-on-year profit decline.

Other reports by TheSundaySentinel

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