Samsung to reduce production of OLED panel

Source Apple

The total average daily sales of iPhone 8 and iPhone X is 120 percent the sales of iPhone 7. Apple itself saw a stock fall of 0.89 percent in pre-trading.

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. The company has ramped up their OLED screen production capacity to meet what was the projected demand for the iPhone X back then, and now with Apple looking to drastically cut back on production output, Samsung is now left with a glut of OLED panel production capacity. Previously, it has been estimated that Samsung itself makes $110 off of each iPhone X sale.

The situation hasn't developed entirely according to plan for either company, however. Unofficially dubbed the iPhone X Plus, the smartphone is believed to keep the overall design of the current model but increase in both physical and screen size, replacing the iPhone 8 Plus in the process.

Samsung Display, the panel-making unit of Samsung Electronics is now planning to make OLED panels for 20 million or fewer iPhones at the South Chungcheong plant in the January-March quarter. This number is significantly lower than its initial goal of supplying panels for 45 million to 50 million iPhones during the same quarter.

Samsung's display business is expected to see a year-on-year profit decline for the first half of 2018.

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Apple's struggle with the iPhone X is affecting production of other parts as well, bringing down memory-chip prices.

The problem is that OLED displays are expensive. To offset the impact, Samsung Display is trying to secure more orders from Chinese vendors. At $110, it's estimated to account for almost a third of the iPhone X build cost. Infinity Display is a marketing term used by Samsung to denote what are commonly called "bezel-less" displays.

Maybe the company should be lobbying Google.

Samsung Electronics sharply reduced its OLED display production.

As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.

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