There have been conflicting reports about the sales of the iPhone X, the first OLED smartphone from the company. It was revealed at the beginning of this month that during the fiscal quarter, the average revenue generated by the sales of each iPhone unit indicated that Apple may sold impressive number of iPhone X units. However, it was also reported recently that Apple has cut down the productions of the iPhone X by 50 percent. Fresh information revealed by Japan’s Nikkei states that Samsung had ramped production of the OLED panels to the meet iPhone X’s demand initially. However, the South Korean company is now left with excess capacity of OLED panel as the Cupertino company has reportedly reduced the production of the iPhone X.
Samsung had reportedly hoped that other smartphone manufacturers would also approach it for OLED panels after Apple had struck a deal for OLED panels for iPhone X. Along with the touch sensors, each OLED panel is priced at $100. This cost is double the amount of Samsung’s LCD panels for iPhone 8 Plus. Because of the high pricing, other smartphone manufacturers have not switched to OLED panels and they are still using LCD panels.
Moreover, Samsung is now facing competition from OLED manufacturers from China that are rapidly expanding the production of cheaper OLED panels. Coming to iPhone X, Nikkei’s report claims that its production will be slashed to half by this quarter. In the previous month too, it had forecasted that Apple will be reducing the iPhone X production in half. It was reported that the company has taken such a decision because of the disappointing sales during the holiday season.
Another matter of concern for Samsung is that LG is likely to supply OLED displays for the rumored 6.5-inch iPhone arriving later this year. The Cupertino company has been trying to rely less on Samsung. With other options available, it is likely that Apple may strike deal with LG or OLED panel makers from China for its upcoming iPhones.