Apple vs Samsung

Samsung reducing operations at its OLED plant because of weak iPhone sales

Samsung Display is slowing down production.

Apple originally hoped to sell 40 million iPhone X units in the first quarter of 2018, but the prediction was revised to 20 million, which has influenced all Apple supplies including Samsung. The Korean giant is producing OLED panels for the first iPhone with such a display technology, but after many years of full-capacity production, Samsung Display is lowering production capacity for the first time in January by 10% , compared with 2017. According to a report by The Investors, the A3 plant has reduced capacity because of its largest client – Apple, and its dull iPhone X sales.

It’s a rare move for Samsung, whose OLED production in this plant is around 135k units a month, from which around 100k are for Apple. Despite the lower-than-expected iPhone X sales, Samsung will increase its capacity in the next months in this and other plants, when many major manufacturers will announce new flagship smartphones with OLED panels.

However, the A3 plant has been designed exclusively for Apple, and the order cut will result in weaker earnings in 2018.

via The Investor

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