Samsung sharply reduced its OLED display production

Source Apple

This week, Nikkei reported that Samsung is now set to make 20 million displays for the iPhone X, but that number could end up falling.

Nikkei first reported in January that Apple was halving its iPhone X production for the quarter, with a follow-up report a few days ago saying that this left Samsung scrambling to find alternative customers for the excess capacity. This is significantly less than initially planned between 45 and 50 million units. The reason is Apple's decision to reduce production of its iPhone X model. When it comes to the facility dedicated to making panels for Apple, the rate will fall to 50% or lower. Samsung certainly has a lot of competition to tackle and it is going to be doing this with the release of more mid-range devices that are rocking the Infinity Display.

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According to market research firm IHS, Samsung Display made up 97.8 percent of the smartphone OLED market globally in the third quarter previous year. Currently, Samsung Display dominates the mobile OLED market with a market share of more than 95%. With Chinese display manufacturers expected to challenge Samsung in the OLED market down the line, it would make sense for the company to cater to more companies who want to make the switch to bezel-less OLED panels for their mid-range smartphones. Anticipating a demand surge from Apple, the company made a 13.5 trillion won ($12.6 billion) capital investment a year ago, resulting in a 1.5 trillion won increase in depreciation costs in 2018.

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