iPhone X

Report: Samsung Display slows down OLED production after weak iPhone X sales

According to the report, Samsung Display utilization rate for the A3 line, which produces 6G-generation flexible OLED, has fallen more than 10% from the previous year. It seems that the panel production to supply to Apple this year has decreased.

As the result, Samsung Display seems to be slowing OLED production largely due to lackluster sales of the iPhone X, Apple’s first OLED model. Sources attributed the rare move to the reduced supplies to its largest client Apple.

According to the source, The A3 plant produces 135,000 units of the sixth-generation OLED panel per month, of which 105,000 panels are supplied to Apple. The industry is noticing whether capacity utilization will recover in February and March. This is because the capacity utilization rate will change depending on the volume of panel production for new products and the volume of iPhone X’s volume recovery.

After this slack on iPhone X sales, Samsung’s expansion plans for its Vietnamese plant have also been put on hold amid growing uncertainties regarding Apple’s OLED iPhone strategy.

Source

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