Over the last week, there have been many reports on a slow demand for parts purchased by Apple for the iPhone X. Now, Samsung is joining in, stating that it has seen lowering demand for the OLED panels they supply for the iPhone X.
It has been reported by Bloomberg that Samsung’s earnings for its display sector grew by 3.4%, very low compared to the rest of the company (which had 20% growth). This small amount of growth was supposedly due to the low demand of iPhone X OLED display panels. Samsung mentioned in their earnings report that their display business had been “affected by slow demand for flexible OLED panels”. They also wrote that increasing profits in divisions other than its memory business “will be a challenge” as of increased competition.
A separate report has also said that Apple will likely be forced to continue with Samsung as their only OLED supplier for the coming iPhone lineup. Initial reports had suggested that LG could become a second supplier, but after the companies manufacturing problems Apple were left to decide whether or not LG would become its secondary supplier. This would be a good option economically for Apple as it would allow them to get lower OLED panel prices. Apple is set to report its earnings tomorrow, on May 1st, which will offer a closer look at how numbers compare to Apple’s earnings in previous quarters – though there will not be a specific model centered iPhone earnings report.