Samsung to more than halve OLED production due to slow iPhone X demand, Nikkei says

Posted:
in iPhone
Piling on to its own rumors of slower than expected iPhone X demand, Nikkei on Tuesday said Samsung is drastically slashing OLED output in response to Apple's supposed decision to cut production of the flagship handset.




Samsung is ratcheting down OLED panel output from its South Chungcheong plant to cover 20 million or fewer iPhone X devices for the quarter ending in March, a drastic decrease from an initial goal of 45 to 50 million units, Nikkei reports without citing sources.

According to the publication, the new target reduces plant production to roughly 60 percent of original forecasts, the publication said. In particular, output at Samsung's plant dedicated to OLED-equipped Apple devices will drop by at least 50 percent.

The Korean tech giant has reportedly not set targets for the April-June period, but further cutbacks might be required to correct for what Nikkei in past reports has described as "weak demand."

As a result of the production cut, and reduction of OLED iPhone orders, Samsung's display business is expected to suffer revenue declines for the first half of 2018. Nikkei, again without citing sources, reports Samsung made a 13.5 trillion won ($12.6 billion) capital investment to prepare for what was expected to be a glut of OLED panel orders from Apple.

After claiming Apple was looking to halve iPhone X production in January, Nikkei last week continue to pushed its narrative further, saying weak demand for this year's flagship iPhone was causing a cascade effect on the supply chain. Specifically, Samsung was last Friday said to be in search of new customers after being "saddled with excess production capacity" of OLED panels.

Earlier this month, Apple CEO Tim Cook during the company's most recent quarterly conference call earlier this month said iPhone X was the top-selling iPhone model every week since it debuted in November. While iPhone shipments were down 1.2 percent year-over-year for the first quarter of 2018, in part due to an extra sales week last year, revenue was up thanks to a record-breaking average selling price of $796.42.
«134

Comments

  • Reply 1 of 79
    foggyhillfoggyhill Posts: 4,591member
    So, same shit as usual, halve from what exactly, Q3 numbers are already half Q1 normally.

    Like I said before, analysts should be prosecuted and jailed for stock manipulations.

    Notice how they didn't get traction on the 16th and now their shoveling it back out again for another go at shorting.

    Considering the S9 will likely tank hard and with overall smart phone sales going down from all other android oem, it's much more that Samsung is going to be in deep doo doo. If Apple decides to go with LG for the next X, it will be even worse.

    Basically, they shove Apples name in there cause saying Samsung will take a hit is not clickbait worthy, lets pull crap outta our ass and make a buck too they say.


    edited February 20 magman1979mwhitepropodradarthekatwatto_cobrachabigredgeminipalkruppsdw2001MacPro
  • Reply 2 of 79
    Rayz2016Rayz2016 Posts: 3,410member
    Folk ask why Tim Cook doesn’t do more to protect the share price. This is why. How many times have we heard that you cannot glean anything from Apple’s complex supply ch— Holy cow! Is that Jony Ive … smiling??
    watto_cobrachabiganantksundarampscooter63StrangeDaysedredjony0
  • Reply 3 of 79
    paxmanpaxman Posts: 4,534member
    Rayz2016 said:
    Folk ask why Tim Cook doesn’t do more to protect the share price. This is why. How many times have we heard that you cannot glean anything from Apple’s complex supply ch— Holy cow! Is that Jony Ive … smiling??
    Yup. Big grin.  It is actually a super nice photo. Such a happy bunch of people. :smile: 
    chasmwatto_cobrapscooter63jony0
  • Reply 4 of 79
    zoetmbzoetmb Posts: 2,258member
    Apple sold 77.3 million iPhones in the first fiscal for this year and had a record $88.3 billion in net sales and over $20 billion in net income.   The quarter is from 9/30 to 12/30.  The iPhone X was released on 11/3.  It's hard to believe that the iPhone X wasn't a large part of that record quarter. 

    So either the iPhone X is selling incredibly well or it's not and the iPhone 8 and 8+, which were released on 9/22 sold far better than previous models.   
    radarthekatwatto_cobrachabig
  • Reply 5 of 79
    "Supply chain checks" is like trying to project how busy the US rail network is based on the passenger count of one train pulling into Grand Central station. Flimsy doesn't even begin to grasp this method.

    So of course these projections are always comically wrong, sometimes they over project, often they project far below - likely the result of the various facilities that build each part prior to final assembly, often with many facilities working on varying batches.

    If making predictions (and not just headlines) we must also take into account seasonal change. If the drop is an accurate portrayal, is that the result of the transition from the holiday quarter, or a more meaningful dip? Or perhaps indicative that Apple has moved to other suppliers as already rumoured with LG.

    At this stage it's borderline stock manipulation.
    edited February 20 mwhiteradarthekatwatto_cobrachabigSpamSandwichpscooter63magman1979anton zuykovjony0
  • Reply 6 of 79
    I just had two failed Face ID authentications to log on to this forum and had to type in my passcode. That’s become the new norm. I miss Touch ID.
    After the hype people realized that the X is not a great phone. It’s good, but it’s not great. Apple charged $250 extra to provide a solution for a problem that didn’t exist.
    aknabilkrupp78Banditsaltyzip
  • Reply 7 of 79
    chasmchasm Posts: 510member
    I’m surprised r. Campbell didn’t get the memo the other AI writers seem to have gotten, which is that Nikkei pushes this narrative *every year* at this time, and every year they are wrong. The iPhone X is the top-selling model of smartphone in the world. FACT.
    watto_cobrachabigmagman1979jony0
  • Reply 8 of 79
    foggyhillfoggyhill Posts: 4,591member
    I just had two failed Face ID authentications to log on to this forum and had to type in my passcode. That’s become the new norm. I miss Touch ID.
    After the hype people realized that the X is not a great phone. It’s good, but it’s not great. Apple charged $250 extra to provide a solution for a problem that didn’t exist.
    blah blah blah.
    netmagewatto_cobraredgeminiparonnlkruppMacPropscooter63LukeCagemagman1979StrangeDays
  • Reply 9 of 79
    adybadyb Posts: 173member
    Samsung is ratcheting down OLED panel output from its South Chungcheong plant to cover 20 million or fewer iPhone X devices for the quarter ending in March, a drastic decrease from an initial goal of 45 to 50 million units, Nikkei reports without citing sources.

    So have I got this right - the flagship iPhone which was too expensive and was going to be a flop was expected to sell 45 to 50 million units in the March quarter (65% of the number of iPhones sold in the holiday quarter) and in a smartphone market that is contracting, this reduction in OLED output is only down to Apple??

    radarthekatwatto_cobraredgeminipamagman1979jony0socalbrian
  • Reply 10 of 79
    daito_hakdaito_hak Posts: 2unconfirmed, member
    Specifically, Samsung was last Friday said to be in search of new customers after being "saddled with excess production capacity" of OLED panels. 


    This is quite dubious. Apple does not use out of the shelf OLED screens from Samsung. Apple uses custom designed screens and get them produced by Samsung’s manufacturing. How can then Samsung just retarget those screens to any other customers? This would mean that they are violating Apple’s IP by giving it to competitors.

    Nikkei has had been for a while trying to spread fud about Apple for reasons that are obscure. Nikkei being a Japanese organization with close relations to Japanese corporations, it would not be surprising that they are trying this sort of manipulation to destabilize the competition of the local Japanese manufacturers which have been quite clueless on how to compete against Apple in terms of innovation.

    That’s why I am not sure it makes sense to even report what Nikkei says at this point. They come up with totally unverified figures, eg. where the 45-50 million units figure comes from? And even they were shown to be wrong on their doom predictions about Apple at last quarter results, they continue to come up with what can only be called bullshit. This is troubling to say the least. They are the same by the way that last year insisted that the iPhone X will have a Touch ID on the back of the phone. 
    edited February 20 Rayz2016radarthekatwatto_cobraredgeminipapscooter63StrangeDaysjony0
  • Reply 11 of 79
    adm1adm1 Posts: 721member
    zoetmb said:
    Apple sold 77.3 million iPhones in the first fiscal for this year and had a record $88.3 billion in net sales and over $20 billion in net income.   The quarter is from 9/30 to 12/30.  The iPhone X was released on 11/3.  It's hard to believe that the iPhone X wasn't a large part of that record quarter. 

    So either the iPhone X is selling incredibly well or it's not and the iPhone 8 and 8+, which were released on 9/22 sold far better than previous models.   
    I saw my 2nd ever "X" in public on Sunday and it was only because I had to set up iCloud on it for them (wife's uncle). I've seen literally hundreds of 8/8+ iPhones in public in the same space of time however Apple says they sold more X's than anything else so they must have went somewhere. Not to Scotland anyway.

    Incidentally, my wife's uncle didn't even ask the price before he bought the X. He saw the 8 was around £800 so assumed the X was maybe £100 higher, got his email receipt once home... over £1200! He's not a tech geek, doesn't even use the phone for anything other than calling/texting/betting so it's a waste but it's his money to throw away lol.
  • Reply 12 of 79
    Rayz2016Rayz2016 Posts: 3,410member
    daito_hak said:
    Specifically, Samsung was last Friday said to be in search of new customers after being "saddled with excess production capacity" of OLED panels. 


    This is quite dubious. Apple does not use out of the shelf OLED screens from Samsung. Apple uses custom designed screens and get them produced by Samsung’s manufacturing. How can then Samsung just retarget those screens to any other customers? This would mean that they are violating Apple’s IP by giving it to competitors.

    Nikkei has had been for a while trying to spread fud about Apple for reasons that are obscure. Nikkei being a Japanese organization with close relations to Japanese corporations, it would not be surprising that they are trying this sort of manipulation to destabilize the competition of the local Japanese manufacturers which have been quite clueless on how to compete against Apple in terms of innovation.

    That’s why I am not sure it makes sense to even report what Nikkei says at this point. They come up with totally unverified figures, eg. where the 45-50 million units figure comes from? And even they were shown to be wrong on their doom predictions about Apple at last quarter results, they continue to come up with what can only be called bullshit. This is troubling to say the least. They are the same by the way that last year insisted that the iPhone X will have a Touch ID on the back of the phone. 
    That is an excellent point, but production capacity could relate to the labour required to produce the screens, and not necessarily the materials or finished screens. Still, it’s Apple’s usual MO to supply the machinery and training, so you could very well be right. 
    watto_cobra
  • Reply 13 of 79
    Rayz2016Rayz2016 Posts: 3,410member

    adyb said:
    Samsung is ratcheting down OLED panel output from its South Chungcheong plant to cover 20 million or fewer iPhone X devices for the quarter ending in March, a drastic decrease from an initial goal of 45 to 50 million units, Nikkei reports without citing sources.

    So have I got this right - the flagship iPhone which was too expensive and was going to be a flop was expected to sell 45 to 50 million units in the March quarter (65% of the number of iPhones sold in the holiday quarter) and in a smartphone market that is contracting, this reduction in OLED output is only down to Apple??

    Yes, this is what they’re trying to tell us: Apple is the only company making phones with Samsung screens. Not even Samsung is using Samsung screens. 😱
    watto_cobrajony0
  • Reply 14 of 79
    daito_hakdaito_hak Posts: 2unconfirmed, member
    adm1 said:
    zoetmb said:
    Apple sold 77.3 million iPhones in the first fiscal for this year and had a record $88.3 billion in net sales and over $20 billion in net income.   The quarter is from 9/30 to 12/30.  The iPhone X was released on 11/3.  It's hard to believe that the iPhone X wasn't a large part of that record quarter. 

    So either the iPhone X is selling incredibly well or it's not and the iPhone 8 and 8+, which were released on 9/22 sold far better than previous models.   
    I saw my 2nd ever "X" in public on Sunday and it was only because I had to set up iCloud on it for them (wife's uncle). I've seen literally hundreds of 8/8+ iPhones in public in the same space of time however Apple says they sold more X's than anything else so they must have went somewhere. Not to Scotland anyway.
    I am sorry but I am not sure that you seeing or not iPhone X in public is a meaningful measure of how many iPhone X were sold. No?

    Apple already made clear that the iPhone X is a top seller. If you continue not to believe them, in fact Apple captured a record 51 percent share of revenue in the worldwide smartphone industry last quarter. This is clear that the iPhone X with a higher selling price is driving such massive revenues. 
    edited February 20 Rayz2016chabigwatto_cobraredgeminiparonnpscooter63StrangeDays
  • Reply 15 of 79
    Rayz2016Rayz2016 Posts: 3,410member
    I just had two failed Face ID authentications to log on to this forum and had to type in my passcode. 
    No one here believes you have an iPhoneX. 
    chabigwatto_cobraredgeminiparonnomasouandrewj5790pscooter63StrangeDaysjony0
  • Reply 16 of 79
    radarthekatradarthekat Posts: 2,218moderator
    zoetmb said:
    Apple sold 77.3 million iPhones in the first fiscal for this year and had a record $88.3 billion in net sales and over $20 billion in net income.   The quarter is from 9/30 to 12/30.  The iPhone X was released on 11/3.  It's hard to believe that the iPhone X wasn't a large part of that record quarter. 

    So either the iPhone X is selling incredibly well or it's not and the iPhone 8 and 8+, which were released on 9/22 sold far better than previous models.   
    Exactly.  With the X available only half the quarter the ASP rose by $100.  Should be interesting to see how that goes after a full Jan-Mar quarter.  
    edited February 20 watto_cobraredgeminiparonnjony0
  • Reply 17 of 79
    No new Macs in months.
    Fire these jokers and bring in Guy Kawasaki to restore the real Apple spirit.
    berndog
  • Reply 18 of 79
    Recycling Friday’s FUD - again -,which is in turn recycled FUD from Nikkei a month old? Poor show AI. If you’re going to carry this clickbait you should both put it in context and clarify. As I’ve written before, the only real take-away and truth in all this 'broohaha' is that Samsung was anticipating "other smartphone makers would also make the switch. In reality, however, manufacturers have stuck with LCD panels due to the price of OLED screens" and they're blaming Apple to their shareholders for having too much capacity. The is also a dead giveaway: "Furthermore, Samsung reportedly faces increased competition from Chinese OLED panel makers, who are rapidly expanding production capacity and putting pressure on Samsung to lower its pricing." Samsung have nobody but themselves to blame in reality. Apple are moving to acquire screens from LG as quickly as LG can ramp up production and expertise, and are cancelling their contracts with Samsung slowly but surely. These "component cutback" stories are providing to be a steaming pile of horse manure in terms of direct correlation with production cutbacks and more indicative of Apple changing suppliers amidst preparing for its new product line-up. Same story, different year. How long has this been going on? As for Samsung... lousy company, corrupt management, and terrible production management with a penchant for exploding batteries, battery factories, and washing machines which prefer to catch fire to dry your clothes than let them go into the tumble drier.
  • Reply 19 of 79
    aknabiaknabi Posts: 101member
    I just had two failed Face ID authentications to log on to this forum and had to type in my passcode. That’s become the new norm. I miss Touch ID.
    After the hype people realized that the X is not a great phone. It’s good, but it’s not great. Apple charged $250 extra to provide a solution for a problem that didn’t exist.
    Indeed... I'm typing my passcode more times per week than I did in the years with TouchID... my g-friend would love to upgrade to the X, but she sees the passcode hassle I've had and has decided on either an 8 or 8plus (still money for Apple :) )... I guess FaceID is optimized for white guys in warmer climates (without their caps and scarfs, jackets, face protection), who don't run around a lot and can stay still to point their phone at their face... oh and then after that still have to take my gloves off to swipe the phone up... :/
  • Reply 20 of 79
    Hmm... I wonder if Apple purposely exadurated expectations for the iPhone X so Samsung had to prepare to manufacture mass amounts of these displays. Now that they have invested so much into these the production of these displays, they might have to drop the selling price to entice more sales of the screen - meaning Apple can use the parts for a cheaper price, eventually gaining larger margins.

    Just a thought. 
    CheeseFreeze
Sign In or Register to comment.