Samsung Cuts OLED Production (for iPhones, not TVs)

Did you buy an iPhone X, Apple’s new end-all, be-all phone? We didn’t think so.

Demand for the $999 phone is so low that Samsung, which produces OLED displays for Apple, has slashed its production to more than half of what it had originally planned due to weak demand for the new phone, according to a recent Nikkei report.

Samsung Display is planning to make OLED panels for 20 million or fewer iPhones in the January-March quarter, which is radically lower than its initial plan of supplying 45 to 50 million panels, according to the report, which said further cutbacks were possible, as production targets for the April-June period have not yet been established.

The report said “Apple's struggle with the iPhone X is affecting production of other parts as well, bringing down memory-chip prices,” but noted that many stock analysts believe orders from Apple will recover in the second half of the year.

Meanwhile, production of OLED TV panels are on a roll, having risen 49 percent on a revenue basis in 2017 over the previous year, according to Display Supply Chain Consultants (DSCC), which said OLED TV panels were the second largest OLED application on a revenue basis followed by smart watch panels.

LG was the leading OLED TV brand at every size and resolution in 2017 on a unit and revenue basis, enjoying an overall unit share of 72 percent for the year followed by Sony at 14 percent, the DSCC added.

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