Samsung is apparently planning to cut down the production of the OLED panel. According to Nikkei Asian Review, Apple has decided to produce fewer iPhone X. Related with this cut-down, Samsung has decided to produce organic light-emitting diode panels for maximum 20 million iPhones instead of supplying panels for 45 to 50 million iPhones diode.
The company hasn’t planned its production target for April to June quarter. Apple is cutting production of iPhone X up to half of the target, due to lower consumer demand than expected. Samsung has extra production capacity and for other customers rather than Apple. It is not concluded yet about the results of those new clients of Samsung for a diode.
Weaker demand for iPhone X is blamed on lack of a home button and high price. Samsung was suffered from the problem of back or home button, in case of Samsung Galaxy S6. To overcome this problem Apple has developed a new swipe-based navigation system that closes apps by swiping up from the bottom of the screen and navigate between apps by swiping to left or right.
Apple sold about 77.3 million iPhones in last quarter up to January, however, it is reduced by 1 percent. Price of iPhone X which is $1,000 – that is way higher than others is a major reason behind this shortfall. Although, the company has made its profits from iPhone X.
Samsung is a South Korean multinational company, have invested about US$ 12.6 billion to produce expected a number of an OLED panel from Apple. Nonetheless, Samsung has cut down its production up to 60 percent due to the downfall of demand for iPhone X. This cut down is expected to influence in a negative way on the revenue of 2018. Additionally, Samsung stock fell up to 2.3 percent in morning trade along with other OLED component makers share.