Samsung Looking For OLED Panel Buyers As Apple Reduces iPhone X Production
The iPhone X is Apple’s latest high-end flagship device of the year 2017. While most of 2018, it will remain the company’s latest offering, the demand is said to lower following news that Apple is reducing iPhone X production. This gives way to a lot of aspects, in terms of the company as well as others around it. One of the beneficiaries which have taken immense advantage of the iPhone X’s peak demand was Samsung. The company was responsible to supply the OLED panels to Apple.
Since Apple is reducing the production of its iPhone X units, this ultimately means that Samsung would be receiving fewer orders from the company. While the OLED manufacturer has more potential up its sleeve in terms of production, it is now looking for other buyers to fill the empty space.
iPhone X Demand Lowers, Leaves Samsung Looking For Other OLED Panel Buyers
Samsung had to boost its production before the iPhone X was launched. The excess stock is making the company look for more buyers. Last year, Samsung was Apple’s sole provider of the iPhone X OLED panels. With that said, Samsung had hoped that with Apple shifting to OLED, the entire industry would gradually follow as well. However, it was not the case so.
In the end, with production ramped up and a high volume of stock still resting in the company’s possession, the company is now looking for more companies. According to reports, Apple is also looking to cut down its iPhone X production in half in Q1 of 2018. This is mainly due to the reason of slowing down sales. It was imminent that Apple will slow down production of its iPhone units as it had done in the past in the same time period. The move takes place mainly due to weak demand.
“Samsung is increasingly selling OLED panels to outside clients,” said an official at an electronics trading company in Tokyo. Production of the iPhone X, whose sales have been sluggish, is expected to drop by half in the first three months of this year from the initial estimate of over 40 million units.
OLED panels from Samsung cost over $100 to make. This with respect to the competition is a little too expensive for some smartphone manufacturers to bear. This is one of the reasons smartphone manufacturers are opting to use an LCD panel that costs $40. So there’s quite a bit of a difference in the price.
What do you think about Samsung’s decision to look for other OLED panel buyers? Share your thoughts in the comments.