Disappointing iPhone X Sales Prompt Samsung To Slash OLED Panel Production

Disappointing iPhone X Sales Prompt Samsung To Slash OLED Panel Production

Reuters/Stephen LamAn attendee checks out a new iPhone X during an Apple launch event in Cupertino, California, U.S. For now, Samsung Display is the sole supplier for the current iPhone X. Samsung Electronics uses OLED for nearly 70 percent of smartphone models.

The iPhone X, notch and all, is now not as hot a commodity as Apple would like it to be. Analysts have previously suggested that lower-than-expected demand for the flagship iPhone has already been priced-in to the stock price.

Samsung apparently plans to make 20 million iPhone X OLED screens at most during the March quarter.

Samsung has yet to confirm production targets for the April-June period. At the facility dedicated to Apple, the decline will be roughly 50%. That's expected to not only include an update to the existing iPhone X, but see at least one more OLED handset join the line-up.

Samsung did not immediately respond to our request for comment and Nikkei's report did not cite specific sources. However, the news of production cuts has given some investors cold feet. The issue of battery throttling did not impact the iPhone demand in Korea and this was in Apple's favor by a huge margin. Higher sticker prices compared to other iPhone models mean that each iPhone X sale is worth more to the company's bottom line; indeed, the premium pricing of the OLED smartphone meant that Q1 2018 sales revenue set records, even if shipment numbers did not.

Samsung isn't the only Apple OLED display provider to be hit by falling shares either.