Samsung to reduce production of OLED panel


The smartphone, launched in late 2017, is Apple's first handset to use OLED rather than LCD for its display, allowing the iPhone X to dramatically slim its bezels compared to earlier phones. As well as the iPhone X, Apple also introduced the iPhone 8 and iPhone 8 Plus, which flank the OLED handset in terms of physical size. This move will reduce production at the plant by 60 per cent.

The report states Samsung now plans to cover 20 million or fewer iPhone X devices for the quarter ending in March, a large decrease from the expected 45 to 50 million units. At the facility dedicated to Apple, the decline will be roughly 50%.

In January, leading Wall Street analyst firm Longbow Research predicted that Apple will sell less iPhones in 2018 than previously thought.

Samsung has not decided its production target for the June quarter, but the company envisions further cutbacks in the second quarter. It means we could see more mid-range Android smartphones with OLED screens in the near future.

Conflicting answers of iPhone X sales have rippled through the smartphone industry. Despite Apple claims of iPhone X sales that surpass expectations and top the charts week after week, the numbers don't seem to add up for Samsung.

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

Weaker-than-expected sales forced Apple to revise its iPhone X parts orders, these reports say.

On Average, in 2017 Samsung had a market share of 56.2 percent, Apple 17.7 percent, and LG 17.4 percent. Since launch, Samsung has been a supplier of OLED screens for the iPhone X and in anticipation of higher sales, Samsung reportedly made too many of them.