Anyone Need OLED Panels? Poor iPhone X Sales Leave Samsung with Surplus

Nikkei Samsung wil slash OLED production because of poor demand for the iPhone X

Anyone Need OLED Panels? Poor iPhone X Sales Leave Samsung with Surplus

The iPhone X was one of the most expensive handsets launched in 2017, and its costly OLED displays were a part of the reason why - Samsung's OLED panels cost over $100 each, which is more than twice the cost of the company's liquid crystal displays.

Essentially, Apple approached its South Korean competitor to order a large bulk of OLED panels, which led it to increase production.

And while Apple stock has the rapidly growing iPhone ASP to help reduce the sting of lower than expected iPhone X sales, Samsung stock is already feeling the effects of the letdown.

Samsung has big plans for its mid-range smartphones, it seems.

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.

The Korean company is yet to decide its production target for the April-June quarter, but Nikkei speculates that a "further cutback may be in store".

Conflicting answers of iPhone X sales have rippled through the smartphone industry.

Today Nikkei Asian Review reported that Samsung is slashing OLED production at the plant that manufactures displays for Apple. But sales of the iPhone X haven't exactly gone to plan. While individual device sales may not have been the greatest in number out of recent flagship iPhone launches, Apple's strategy arguably looked elsewhere to measure overall success.

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.

Samsung is looking to offset the iPhone X losses by selling OLED screens to Chinese and other customers. For a supplier, the more components you can sell, the more profit you make.

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

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