iPhone X production drop hurting Samsung Display OLED orders
Samsung Display could be losing its fist hold on the mobile OLED panel market thanks to the poor sales performance of the iPhone X.
While Apple has been able to generate record growth with help from the $999 iPhone, banks have been dropping their unit sales forecasts week after week. And with word that the company itself had cut parts orders for the model, that has left Samsung Display concerned. While it has promised to provide tens of millions of OLED displays for the device, the cuts now leave it stuck with excess stock.
Instead of initial forecasts pushing 40 million shipments this quarter, the iPhone X is now only expected to range around half that number.
Nikkei Asian Review reports that Samsung has come up against resistance from potential clients who are either opting to buy cheaper LCDs or sourcing their panels from Chinese competitors. A typical completed touch screen unit costs over $100 per unit whereas LCDs can cost as low as half that. And while Samsung also supplies LCDs for Apple, there’s stronger competition in that technology. Furthermore, longtime LCD producers LG and Sharp are well on their ways to full-time OLED output.
There’s doubt as to whether Samsung can keep its massive market share in the mobile OLED display field for the next three years.