Samsung to slash OLED panel output as iPhone X slumps

Nikkei Samsung wil slash OLED production because of poor demand for the iPhone X

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And Samsung, the only manufacturer of OLED screens good enough for Apple's iPhone, is now forced to slash its OLED panel production. A new report coming out of Asia claims that Samsung is cutting the OLED panel production by more than 50% for the January-March quarter.

Samsung did not immediately respond to our request for comment and Nikkei's report did not cite specific sources.

Additionally, while Samsung's Display division has yet to set a production target for the April-June quarter, Nikkei reports that a further cutback may occur. Anticipating a demand surge from Apple, the company made a 13.5 trillion won ($12.6 billion) capital investment a year ago, resulting in a 1.5 trillion won increase in depreciation costs in 2018, the Nikkei reports.

KitGuru Says: While the iPhone X might be selling slower than expected, the $1000 price tag will keep it profitable over the course of the year.

According to reports back in mid-2017, indeed, Apple was investing in LG Display's OLED production to bring the technology up to speed for its needs. For the facility dedicated to making panels for Apple, the rate will fall to 50 percent or lower. Earlier reports had indicated that, rather than continue to rely exclusively on Samsung Display for OLED supplies, the Cupertino firm was looking to hedge its bets and source panels from multiple providers.

Some analysts have also flagged disappointing demand. Do you guys think Apple will soldier on with the iPhone X design? With the 2018 iPhone range likely to double-down on that strategy, Apple's goals will only further diverge from those of component providers like Samsung Display.

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