Samsung to slash OLED panel production as iPhone X demand disappoints: report

Tokyo: Samsung Electronics Co. Ltd will slash output of its organic light-emitting diode (OLED) panels in response to its customer Apple Inc.’s decision to cut production of iPhone X amid weak demand, the Nikkeireported on Tuesday.

Samsung Display now plans to make OLED panels for 20 million or fewer iPhones at the South Chungcheong plant in the January-March quarter, significantly lower than its initial goal of supplying panels for 45 million to 50 million iPhones, the Nikkei reported.

Samsung Electronics stock fell as much as 2.3% in morning trade, while shares of Japanese OLED component makers, such as Hodogaya Chemical Co. and Hirata Corp., also declined.

Samsung Display has yet to set a production target for the April-June period, but a further cutback is possible, the Nikkei reported, without citing sources.

Samsung Electronics was not immediately available for comment.

Apple will halve its iPhone X production target for the first three months of the year to around 20 million units, the Nikkei reported last month, adding to growing concerns about weak sales of the $999 phone. The iPhone X was the first phone to get a major design overhaul since the launch of the iPhone 6 in 2015, and many expected it to lead to blockbuster sales. livemint