Apple’s Problems With The iPhone X’s Low Demand Have Resulted In Samsung Cutting Down OLED Production For First Time In Years
Apple’s iPhone X woes are becoming commonplace everyday. While there was a lot of hype surrounding the device after its launch, now, things have cooled down. Looks like folks do not want to pay $1,000 for an iPhone with an OLED display and Facial recognition. Now that early adopters for the device start to fizzle out, the market is having a hard time adjusting to Apple’s tenth anniversary iPhone. While this decreased demand affects Apple directly, it also affects Cupertino’s supply chain partners. Today, we’ve got some news on Samsung’s troubles due to the iPhone X. Take a look below for more details.
Samsung Forced To Reduce A3 Plant’s Output By 10% After Years Of Operating At Full Capacity Due To Lackluster iPhone X Demand
At the time of its launch, Apple made sure that hype and marketing for the smartphone reached unprecedented levels. Last year’s iPhone launch was special because market attention focused only on one device: the iPhone X. Apple’s stores, which are famous for long lines prior to an iPhone release, didn’t exhibit the same level of consumer interest for the less trendy iPhone 8 and iPhone 8 Plus.
Soon, when pre-orders for the smartphone opened, we saw some ludicrously long waiting times. These were accompanied by reports of production problems, particularly with the smartphone’s True Depth camera. However, these went by pretty soon and shipments resumed delivery at normal times. But, things aren’t that good in the iPhone X world. While Apple might love its device, the market’s losing interest.
Now, looks like this will also cost Samsung. The Korean tech giant is Apple’s sole OLED supplier and after years of operating at full capacity, Samsung will decrease its operation rate for the A3 plant by 10%. In addition, the company will also halt construction on a new plant in Vietnam, as Apple’s orders for OLED panels decrease due to lukewarm market interest. A source talking to The Investor believes that unless Apple’s iPhone X sales pick up for the year, this reduced demand will impact Samsung’s earnings for the year negatively.
The latest talk in iPhone town points towards only one OLED smartphone this year. Another report which surfaced today believes that Apple will launch two LCD and one OLED iPhone this year. This move isn’t going to help Samsung at all, especially since Apple is also rumored to move its OLED orders to LG. Thoughts? Let us know what you think in the comments section below and stay tuned. We’ll keep you updated on the latest.
Source: The Investor