undergroundnewsroom.com March 23, 2018

Samsung sharply reduced its OLED display production

21 February 2018, 07:49 | Clyde Nash

There's plenty of bezel-busting potential in Samsung's midrangers still

There's plenty of bezel-busting potential in Samsung's midrangers still

Global smartphone makers are increasingly adopting OLED displays - both flexible and rigid types - for more models this year, following the suit of Apple that launched its first OLED iPhone last year.

However, it also carried a premium price tag, as Apple opted to add the iPhone X to a new position at the top of its smartphone line-up.

Apple, meanwhile, sold 15 million units of its iPhones in the same quarter, with its market share reaching a record 28.3 per cent.

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With the wider adoption of the full-screen design, Samsung Display, which dominates more than 95 percent of the mobile OLED market, plans to further improve profitability overall and widen the gap with fast-growing Chinese runner-ups.

It is worth noting that while Samsung has reportedly cut back the number of OLED displays it intends to provide for Q1, the company has not yet set production targets for the April to June period. For the facility dedicated to making panels for Apple, the rate will fall to 50 percent or lower. And Samsung, the only manufacturer of OLED screens good enough for Apple's iPhone, is now forced to slash its OLED panel production. That's expected to not only include an update to the existing iPhone X, but see at least one more OLED handset join the line-up. Samsung invested $12.6 billion past year in anticipation of large OLED panel orders from Apple.

Samsung did not immediately respond to our request for comment and Nikkei's report did not cite specific sources.

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