Samsung Display has cut the production of its OLED panels by around 50%.
Japanese business daily Nikkei has reported Samsung Electronics Co will slash its output of organic light-emitting diode (OLED) panels in response to Apple Inc’s decision to cut production of iPhone X midst weak demand.
Apple Inc is Samsung Electronic’s customer.
Samsung Electronic’s subsidiary, Samsung Display, which makes OLED panels for Apple’s 20 million or less iPhones, at its South Chungcheong plant, is significantly lower than its initial target of supplying panels 45 million to 50 million iPhone panels.
With the news reaching the market, Samsung Electronics’ share fell by 2.3%.
As per Nikkei’s report which did not cite any sources, Samsung Display has yet to set a production target for the first quarter of this year and a cutback in production is possible.
Samsung Electronics was not immediately available for comment.