Samsung Electronics is casting about for new customers for its organic light-emitting diode panels, now that its top client Apple has slashed production of the iPhone X due to weak demand. Nikkei Asian Review is deemed to be an expert in providing accurate information on the supply chain.
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When the iPhone 5 was first released, it took a while before apps were updated to fit its larger display, and the same was the case with the iPhone 6 and 6 Plus, so as you can imagine, this is a similar situation the iPhone X is facing at the moment.
Samsung has been left with more OLED panels than it needs, but other potential customers have been slow to switch from traditional liquid crystal displays.
The industry tracker said there was robust demand for the iPhone X, though global iPhone volumes have been on the decline on an annual basis for five of the past eight quarters. The last report coming out of the California-based company cited that they had sold 77.3 million iPhones (not just the iPhone X, this figure includes all iPhone models sold during the last quarter of 2017), a mere 1% drop from the same period the previous year but still very telling. The lower than expected - wonder what the expectations were because the iPhone X has seemingly sold well in the Q4, 2017 - sale of the phone is hurting Samsung because the company is not making enough money from supplying OLED panel for the Apple phone.
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Another problem for Samsung is the competition from Chinese OLED makers, who are expanding their production capacity and forcing down the prices of OLED screens.
Manufacturers have elected to stick with cheaper LCD units, however, which Samsung also manufacturers and sells for almost half the price of its OLED panels.
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