OLED panel glut looms as Apple slashes iPhone X production

OLED panel glut looms as Apple slashes iPhone X production

The iPhone X, according to Display Mate, a website that analyses screen quality in gadgets, has the best display ever in a phone.

"Lastly, it doesn't help Samsung's odds that its national rival, LG, struck a deal with Apple that would see the former supplying the latter with OLED displays for its yet-to-be announced 6.5" iPhone, which is rumoured to be making an appearance later this year.

The company was hoping other smartphone makers would also adopt OLED panels, but that was not the case.

Slowing demand for the expensive iPhone X isn't just bad for Apple.

It has been found that Apple accounted for more than half of the global smartphone market sales in the fourth quarter of a year ago thanks to the popularity of the iPhone X.

Samsung Electronics is casting about for new customers for its organic light-emitting diode panels, now that its top client Apple has slashed production of the iPhone X due to weak demand. With production of that model cut, Samsung is left with excess capacity.

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But the price is almost twice that of LCDs used in the iPhone 8 Plus, also supplied by Samsung.

One problem is price. Such panels cost 40% more than LCD panels made of low-temperature polysilicon, which can show colors clearly. That's partly why the iPhone X costs $1,000 / £1,000, and why you won't find many other phones on the market at that price.

Manufacturers have elected to stick with cheaper LCD units, however, which Samsung also manufacturers and sells for almost half the price of its OLED panels. And numerous Chinese handset producers who do use the higher priced display are said to be increasing their own production capacity.

Apple's lowered targets will probably hit Samsung's bottom line substantially too.

For Samsung, the dominant OLED market player, it is also hard to expand sales of its smartphones equipped with expensive panels. This led to Apple occupying more than half of the global smartphone shipments.

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