In a follow-up story, Nikkei says that Samsung chose to cut OLED screen production in response to Apple's decision to reduce iPhone X orders.
According to a new Korean report published today, Apple did far better than expected.
The new target will reduce production at the plant to around 60% of the original plan.
Instead of producing 45 to 50 million panels between January and March, the South Korean tech giant will be making closer to 30 million, Nikkei reported Tuesday.
The iPhone X's OLED screen is made by Samsung Display.
A new Korean analytical report published yesterday noted that Samsung Electronics shipped 2.4 million units in the Korean smartphone market in the fourth quarter of a year ago and recorded a market share of 46.0 percent while Apple, 1.5 million units and a market share of 28.3 percent. The rise of ASP (average sale price) to more than make up for disappointing volume appears to be helping out significantly.
Samsung did not immediately respond to our request for comment and Nikkei's report did not cite specific sources.
The Samsung group unit is looking to offset the impact by securing more orders from Chinese and other customers. Early predictions for 2018 profits were to beat the 6-year high of Q2 last year, but now its looking like Samsungs display business may be in for a slump.
The problem is that OLED displays are expensive.
Samsung has big plans for its mid-range smartphones, it seems. That limits the potential customers to those selling premium, flagship smartphones.
Maybe the company should be lobbying Google.
According to market research firm IHS, Samsung Display made up 97.8 percent of the smartphone OLED market globally in the third quarter past year. If it could convince Google to dump LG as the sole supplier of the Pixel 2 XL, that could solve Google's poor display woes and help Samsung unload some now surplus OLED panels...
As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.
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