Apple had reported a surprisingly good revenue from its 10th Anniversary iPhone, the iPhone X during the first quarter. But Apple seems to have cut down on the production of the X, owing to the poor sales during the holiday season. This has affected Samsung in a negative way, as was reported by Japan’s Nikkei.
Samsung supplies the OLED panels for the iPhone X. Considering the amount of business it will receive from Apple, Samsung built up its production coaccapa accordingly. But since Apple might have cut down on the production of the X, Samsung is now left with an excess of OLED panels. Since lol other phones by Apple use LCD displays, this move by Apple is quite discomforting for the Korean manufacturer. Each OLED panel costs $100 which twice as much as their LCD counterparts.
The huge price difference between the OLED and LCD displays is the main reason why manufacturers prefer to use LCDs. Moreover, the ones employing OLED displays on their smartphones are now increasing their own production capacity. With Samsung themselves choosing LCD over OLED for most of their smartphones, it has led to only 50-60% use of its production capacity. With companies like LG gearing up on their production lines, and a few Chinese companies offering cheaper OLED displays, the situation seems quite bad for the South Korean smartphone maker.