Apple iPhone X is facing weak demand from consumers post the holiday quarter and it looks like this is bad news for Samsung. The reason: Samsung is supplying the OLED panels for the iPhone X and a weak demand has meant lower production for the company’s display plant. According to a report in Nikkei Asian Review, Samsung Display is now manufacturing around 20 million or lower iPhone OLED panels for the January-March quarter. The report says the earlier supply demand was for 45 million to 50 million iPhones.
The report adds that Apple has not yet decided the production target for April-June period, but that there could be more cutback. Samsung Display is the world’s largest supplier of OLED panels and Apple is relying on it for the display on the iPhone X. Apple’s new flagship has an edge-to-edge display which is 5.8-inches in size and comes with the an OLED panel. This is the first iPhone to ditch the LCD display for an OLED one.
While reports have talked about low consumer interest in the iPhone X, Apple in its quarterly results for the first quarter of 2018 had revealed, their flagship was the best selling device. According to Apple CEO Tim Cook, the iPhone continued to remain as the top revenue puller for the company with the iPhone X, iPhone 8 and iPhone 8 Plus being the best sellers in the quarter.
Apple shipped 77.4 million iPhones in the quarter, but with the increased pricing of the iPhone X, revenues for the segment rose nearly 13 per cent. “The iPhone X was the most popular and that’s particularly noteworthy given that we didn’t start shipping until early November, and we’re constrained for a while,” Apple CEO Tim Cook had said in the company’s earnings call. Other reports and analysts had predicted the iPhone X was not selling well. Nikkei had also reported that Apple slashed iPhone X production by nearly 50 million for the January-March quarter.
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