Samsung looks to be dramatically reducing production of OLED panels following reduced demand from Apple. The South Korean giant is the main supplier of display panels for the iPhone X; which has recently seen its own production numbers cut back after lackluster demand.
Production of Samsung’s OLED panels are set to go from 45 million down to 20 million for the current quarter. A decision that will undoubtedly affect its profits for the beginning of 2018. Additionally, the company has not yet set production targets for the next quarter; but it is expected to have tempered its outlook accordingly.
Samsung was said to be shopping around for new OLED panel customers, and it’s unclear how that has turned out. It could be that any additional production for new customers will be moved to the second quarter; seeing that we are now already in late February.
Limited demand for the iPhone X looks to be affecting more than just Apple, as the company has long engaged multiple other companies for manufacturing purposes. That said, Apple still managed to set record profits despite selling fewer iPhones than ever. Which means even this hasn’t quite slowed it down.