Nikkei first reported in January that Apple was halving its iPhone X production for the quarter, with a follow-up report a few days ago saying that this left Samsung scrambling to find alternative customers for the excess capacity. Others say the reason lies in the company's decision not to produce more iPhone X after the release of the new three models in late September this year. Do you guys think Apple will soldier on with the iPhone X design? As the recent reports claim that Apple has cut the iPhone X orders by 40 percent for this quarter, leaving Samsung with an overcapacity of OLED panels.
Less than a month after Apple reportedly told suppliers that it was slashing production targets for its $999 phone in half, the squeeze is being felt further down the supply chain.
Evidence is mounting that the iPhone X is a bust.
Samsung did not immediately respond to our request for comment and Nikkei's report did not cite specific sources.
Thus, Samsung can use those panels to differentiate its mid-rangers from the flat screened devices and justify the cost of the products compared to the dirt-cheap Chinese smartphones. Not only would that secure Apple's supply chain - given the terms of the deal apparently earmarked it all the panels it wanted - it would have a side-benefit of reducing its dependence on arch-rival Samsung.
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.
The Cupertino, Calif. -based company reported a decline in iPhone sales in its last earnings report, but hit a revenue record thanks to the X's stratospheric price tag. 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.