Samsung is the only supplier of the iPhone X’s OLED display at the moment, but it’s not exactly reaping the benefits of that right now. It seems the brand’s profits were affected by slowing demand for the handset.
Samsung said as much in its latest earnings report, stating that profits in its display business were affected by slowing demand for flexible OLED panels. The division’s sales spiked by 3.4% in the last quarter, much lower than the 20% rise by Samsung as a whole.
Apple uses flexible OLED panels in the iPhone X, although it’s not Samsung’s only client. Earlier rumors had alleged that the former had been forced to cut screen orders because of lower-than-expected demand. This in turn has lead to overcapacity at the South Korean manufacturer’s plant.
Some believe this will eventually come to Apple’s advantage as it’ll be able to negotiate a better price for this year’s iPhone OLED panels. It’s apparently been seeking a price cut from $110 to $100, but the pair has failed to reach an agreement on this.
Apple is said to be seeking $100 million OLED displays from Samsung in 2018. 25 million is apparently going to devoted to the iPhone X (2017), and the remaining 75 million to the iPhone X (2018) and iPhone X Plus. However, there are some who think the firm is going to kill the current iPhone X completely since it’s doing so badly.
It’s not just Samsung which is reporting poor sales. Other component makers have released gloomy outlooks as well. Still, the second half of the year might prove to be a turning point as Apple ramps up to release its latest batch of iPhones.