Why iPhone X "weak demand" hits Samsung more than Apple

Why iPhone X

Why iPhone X "weak demand" hits Samsung more than Apple

Samsung Display, the division of the technology giant responsible for display industry, is now planning to prepare screens for a 20 million or less iPhone units at its southern South Korean factory in the first quarter of 2018. Do you guys think Apple will soldier on with the iPhone X design?

The company has ramped up their OLED screen production capacity to meet what was the projected demand for the iPhone X back then, and now with Apple looking to drastically cut back on production output, Samsung is now left with a glut of OLED panel production capacity. This translates into a 60% overall drop in production for the plant, and a 50% drop for Apple-dedicated OLED production.

The company has yet to decide its production target for the April-June period, but a further cutback may be in store.

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Samsung Display now plans to offset the impact by winning more orders from Chinese and other customers. Anticipating a demand surge from Apple, the company made a 13.5 trillion won ($12.6 billion) capital investment previous year, resulting in a 1.5 trillion won increase in depreciation costs in 2018.

Samsung did not immediately respond to our request for comment and Nikkei's report did not cite specific sources.

A fresh report today says that the reduction in iPhone X production may be even greater ... For the October-December quarter of 2017, the company had registered an operating profit of 1.41 trillion won, which was down from 1.7 trillion won in April-June quarter of the past year.

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