The company has ramped up their OLED screen production capacity to meet what was the projected demand for the iPhone X back then, and now with Apple looking to drastically cut back on production output, Samsung is now left with a glut of OLED panel production capacity. Samsung invested $12.6 billion a year ago in anticipation of large OLED panel orders from Apple. That accounts partially for why iPhone X sales have been weak.
Apple's latest installment for the iPhone lately has been on a steady decline, and it seems Samsung has taken note of that. A new report coming out of Asia claims that Samsung is cutting the OLED panel production by more than 50% for the January-March quarter.
Reuters reports Samsung stock dropped 2.3 per cent after the news broke. However, Apple will increase its market share by six percent this year. Japanese companies like Hodogaya Chemical Co and Hirata Corp also saw shares fall.More news: USA Women's Hockey Team Is Now the Great American Olympic Hope
KitGuru Says: While the iPhone X might be selling slower than expected, the $1000 price tag will keep it profitable over the course of the year.
The Korean company is yet to decide its production target for the April-June quarter, but Nikkei speculates that a "further cutback may be in store". And Samsung, the only manufacturer of OLED screens good enough for Apple's iPhone, is now forced to slash its OLED panel production. This does make me wonder about Apple's plans for September though.
Demonstrating the fecal feature at the iPhone X's unveiling past year, Apple's Craig Federighi said: "If you were by chance wondering what humanity would do when given access to the most advanced facial tracking technology available, you now have your answer".