Samsung Cuts OLED Production Thanks to Poor iPhone X Sales

Samsung reports plans to cut production of their OLED screens due to mediocre sales of the iPhone X. “Samsung Cuts OLED Production” Article

Samsung Cuts OLED Production Thanks to Poor iPhone X Sales

iPhones X sales weren’t as high as expected for the $1000 phone and this lead to Samsung reducing their output of OLED screens from a projected 45 to 50 million panels to just 20 million (or maybe even fewer), according to Nikkei Asian Review.

In the past year (ending in January), Apple sold 77.3 million phones which is actually one percent less than the year before, all thanks to the home-button less phone. Though, it is fair to point out that the phone was also  the reason for Apple to hit record-breaking profit numbers.

Samsung has yet to set a target record for their April-June production period, but that number is reported to reduce production at Samsung’s plant to around 60 percent of the original plan and when it comes to the facility dedicated to making panels for Apple, the rate will fall to 50% or lower, according to Nikkei.

When it comes to stocks, Samsung Electronics stock fell as much as 2.3 percent in morning trade, while shares of Japanese OLED component makers, such as Hodogaya Chemical Co (4112.T) and Hirata Corp (6258.T), also declined, adds Reuters.

If you aren’t sure what makes OLED screens so special, here’s why: Samsung’s OLED screens are organic light-emitting diode panels. These screens are better than LCD since they don’t produce a backlight which means it can then produce deeper levels of black with more clarity and texture.