Samsung to Slash OLED Panel Production as iPhone X Demand Disappoints

Apple will halve its iPhone X production target for the first three months of the year

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.

It is worth noting that while Samsung has reportedly cut back the number of OLED displays it intends to provide for Q1, the company has not yet set production targets for the April to June period.

The iPhone X, notch and all, is now not as hot a commodity as Apple would like it to be. When it comes to the facility dedicated to making panels for Apple, the rate will fall to 50% or lower. It means we could see more mid-range Android smartphones with OLED screens in the near future. Unofficially dubbed the iPhone X Plus, the smartphone is believed to keep the overall design of the current model but increase in both physical and screen size, replacing the iPhone 8 Plus in the process.

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The local carriers sold discounted iPhones, particularly iPhone 6 and 6s, to clear the inventory and to be honest, these devices came with a lot of value attached to them. That's expected to form the entry-point into Apple's 2018 iPhone range as the cheapest model. Earlier reports had indicated that, rather than continue to rely exclusively on Samsung Display for OLED supplies, the Cupertino firm was looking to hedge its bets and source panels from multiple providers. The issue of battery throttling did not impact the iPhone demand in Korea and this was in Apple's favor by a huge margin. The total average daily sales of iPhone 8 and iPhone X is 120 percent the sales of iPhone 7.

What may be bad news for Samsung Display, therefore, isn't necessarily bad news for Apple.

On Average, in 2017 Samsung had a market share of 56.2 percent, Apple 17.7 percent, and LG 17.4 percent.

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