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Samsung to cut OLED panel production on low iPhone X demand
21 February 2018, 07:47 | Ruben Fields
Samsung to slash OLED panel output as iPhone X slumps
In a follow-up story, Nikkei says that Samsung chose to cut OLED screen production in response to Apple's decision to reduce iPhone X orders. Analysts have previously suggested that lower-than-expected demand for the flagship iPhone has already been priced-in to the stock price.
Samsung has yet to confirm production targets for the April-June period.
However, it also carried a premium price tag, as Apple opted to add the iPhone X to a new position at the top of its smartphone line-up.
Samsung Display is extending its marquee full-screen display design to mid-range smartphones as part of efforts to further improve profitability, according to industry sources on February 20. That's expected to form the entry-point into Apple's 2018 iPhone range as the cheapest model.
Samsung did not immediately respond to our request for comment and Nikkei's report did not cite specific sources.
Last year, Samsung invested $12.6 billion to boost its OLED production capacity in anticipation of an iPhone X boom that never came. However, the news of production cuts has given some investors cold feet.
Of course, "weak demand" for iPhone X doesn't necessarily translate to disappointment within Apple. The total average daily sales of iPhone 8 and iPhone X is 120 percent the sales of iPhone 7.
In a bid to fend off the challenges by Chinese competitors, the Korean display maker aims to diversify its client base for smartphone OLED displays this year while putting focus on large-sized premium products in the TV segment, according to the official. For a supplier, the more components you can sell, the more profit you make.
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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