Samsung Slashing Production Of OLED Screens Due To Poor iPhone X Sales
Samsung will be cutting down production of its OLED screens due to poor sales from the Apple iPhone X.
According to Nikkei Samsung will be making OLED panels for less than 20 million iPhones, 30 million less than what the initial goal was. This move will reduce production at the plant by 60 per cent.
Samsung is hoping to gain back revenue through Chinese customers.
Reuters reports Samsung stock dropped 2.3 per cent after the news broke.
To make matters worse, the Samsung display business is expected to see a year-on-year profit decline. Anticipating a demand surge from Apple, the company made a 13.5 trillion won ($12.6 billion) capital investment last year, resulting in a 1.5 trillion won increase in depreciation costs in 2018, the Nikkei reports.
Apple has been getting mostly negative reviews from its 10th anniversary device with many users unhappy with the notch. Sales for the iPhone were better than expected for the tech giant for its Q1 report with 77.3 million phones sold.
Apple is rumoured to kill off the iPhone X once three new devices are launched in spring this year.