Apple Slashes iPhone X Production – Samsung Seeking OLED Partners to Maintain Market Share
As expected, Apple is going to be slashing the iPhone X production by half, indicating that demand for the $999 flagship might have been strong to allow the tech giant to record its highest quarterly revenue ever, but not enough to meet targets.
The iPhone X production also means that the company’s only OLED manufacturer and supplier Samsung is going to be feeling the sting of this decision, so the company is going to be doing something about it.
Report Claims That Samsung’s 95 Percent Smartphone OLED Market Share Will Be Lost in the Future as Newer Players Are Emerging
As Apple has cut the 40 million iPhone X production target to 20 million, Samsung is going to be running frantically in all directions seeking newer clients since now it has lots of unsold OLED production that needs to be given away. The company also produced IPS LCD panels for the iPhone 8 and iPhone 8 Plus, which costs far less than the iPhone X’s OLED panels, hence the reason for that $999 price tag.
Now here is where the problem lies. Manufacturers of mid-range smartphones are unable to use OLED panels; not because of the benefits that they feature, but because of the price attached per component.
Only 5-10 percent of smartphones made by OPPO and Vivo, China's major smartphone makers, use OLED panels. The interesting thing here to note is that these panels cost around 40 percent more than LCD panels.
Nikkei has also reported that as more OLED manufacturers are emerging, such as LG Display and BOE, Samsung is expected to lose its 95 percent market share.
No doubt, Apple is going to be hiring Samsung for providing a major portion of OLED supply for the iPhone X Plus and iPhone X successor, but this time Samsung might not be able to generate a substantial revenue from this opportunity because Apple will be commanding better leverage thanks to other suppliers added into the foray.
News Source: Nikkei