Weak demand for iPhone X hurt the sector responsible for the screens in the Samsung. While Samsung is seeking to get new clients, they will reduce production rate by up to 20 million units. The original goal is the manufacture of 45 to 50 million screen for iPhone X, at least according to a new report released recently from the news agency Nikkei.
This is only for the first quarter of this year, there may be reduced further in the second quarter of this year. Reportedly, Samsung is looking for new customers in China and other countries to compensate for the difference. However, it may be difficult for Samsung to find new customers to provide them with screen OLED because most manufacturers are not willing to move on the use of OLED screens in smart phones, because of the high cost, this means that Samsung may face a decline in profits.
Most of the Chinese manufacturers working to find ways to cut the prices of its smart phones, and so they will continue to use LCD screens, which is cheaper by 40 percent compared with OLED screens. Only 5 to 10 percent of the phones Oppo and Vivo is that use OLED screens.
Stating reports that Apple itself is committed to using the LCD screens in one of its smart phones new triangular which will be issued later this year. Finally, witness the display Division at Samsung known as Samsung Display increased competition from Chinese manufacturers and the company LG Display, this means that she will face more challenges to maintain its leading position.
Last year, Samsung invested $ 12.6 million USD to enhance its production capacity for OLED in anticipation of the great demand for the iPhone X. the expectations of the first profits for the year 2018 are very encouraging, but now it seems that the display Division at Samsung has been suffering from recession for a while.
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