Display

Samsung needs new OLED buyers as iPhone X production cut causes supply glut

The iPhone X is the first smartphone from Apple to feature an OLED display. Given Samsung’s dominant position in the market, it’s the only company that could provide Apple with OLED panels in the quality and quantity that the company desired, which is why it’s the sole supplier of the iPhone X’s OLED display. Analysts had predicted that Samsung would make billions of dollars by supplying OLED panels to Apple but it seems that the company may end up having to manage a supply glut instead.

Nikkei reports that Samsung has been left scrambling to find new customers for its OLED displays after it ramped up production to ensure smooth supply of panels for the iPhone X but Apple ended up cutting iPhone X production by half.

Left high and dry by Apple

It was reported earlier this month that Apple has cut iPhone X display orders from Samsung Display, the conglomerate’s display-making affiliate. Samsung downplayed the potential impact, saying that its business “will not be affected much by a certain customer.”

According to a report, Apple has been forced by weak demand to cut iPhone X production in half from the initial estimate of 40 million units to 20 million units in the first three months of 2018.

Samsung has reportedly been left saddled with supplies and it doesn’t help that there are still many smartphone manufacturers that have yet to make the switch to OLED. It now needs to find new buyers for its OLED panels or the supply glut would start to eat into its margins.

However, it doesn’t seem to be easy for the company, because OLED panels haven’t been adopted for the vast majority of mid-range and entry-level handsets. That’s because they’re more expensive than LCD panels and manufacturers, particularly those in China, choose to stick with LCD because of cost considerations.

8 Comments

Sign in »

8
Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

kfzhu1229
kfzhu1229

Well, I guess it is Apple that’s taking more impact that Samsung does.

Biransahin
Biransahin

Samsung haven’t actually made 40 million iPhone X screens. They just have over capacity in production that they would hope to fill with new customers. I think Samsung, lıke most of us have guessed correctly the iPhone X would be a dud particularly because of the notch. It was Samsung themselves that made so much fun of it, it helped depress iPhone X sales. They knew what they were doing! LOL

JSH1973
JSH1973

that’s so strange for a ground breaking innovative product full of must have emojis 🙂

Shenoysiddhant
Shenoysiddhant

Why don’t they use it in their own midrange and entry level phones

Paul Wehbe
Paul Wehbe

Because the display has the ugly notch in the middle. Can’t be used on Samsung phones :/

Biransahin
Biransahin

What they’re talking here is about the additional production capacity glut they have , not actual iPhone screens. smh…

o0MHJ0o
o0MHJ0o

I know it looks bad for Samsung, losing on all these units, but I bet behind the scenes they are laughing at Apple for completely over estimating their product. literally by 100%!

NotReallySamsungFan
NotReallySamsungFan

I doubt it. Samsung obviously care more about the $2bn that they’re missing out on because iPhone sales don’t really impact galaxy sales. I’m not sure it was an overestimation either, 40M units in the 2nd quarter of the iPhones release is very optimistic, really too optimistic so it makes me wonder if Apple did this deliberately in case the iPhone X was selling much better than expected and to avoid shortages.