Samsung stock falls as Apple cuts iPhone X display orders twofold

Samsung stock falls as Apple cuts iPhone X display orders twofold
When Apple sneezes, suppliers catch a cold, and the rumored 50% reduction in iPhone X orders for the current quarter is reverberating through the supply chain, tip Nikkei's Japanese sources, bringing down memory chip prices across the board, for instance.

Even an industry juggernaut like Samsung is scheduled to feel the iPhone X production cut pains, as Nikkei reports it is now scaling back to make just 20 million 5.8" flexible OLED display panels for Apple's newest handset, instead of the initial order for 45-50 million that was scheduled for the January-March period. Analysts expect the iPhone X demand to remain tepid next quarter as well, but Samsung Display's orders to gradually recover in the second half of the year, as Apple ramps up for the rumored iPhone Xs and Xs Plus, or whatever it names them.

Still, for the January-June period Samsung will eventually be facing overcapacity of OLED display production capabilities, as it invested billion in factories and equipment to produce those on a mass scale, expecting Apple to switch to OLED ahead of schedule, and the iPhone X to sell in larger quantities. Not only are people apparently content enough with other iPhones than the X, but Apple seems to have bet on LCD for its iPhone 9 this year, and that is the one analysts expect to sell a 100 million units, not the OLED-laden iPhone Xs and Xs Plus, which will likely be much more expensive than the 9.

All this commotion resulted in a slump of Samsung's stock price yesterday, joined by smaller OLED component makers like Hodogaya Chemical Co and Hirata Corp. Samsung Display earned $1.3 billion last quarter, riding 30% higher than analysts expected on Apple orders, but the expectations that it will hit $1.7 billion profit this current quarter, were made without accounting for iPhone users' hesitancy to jump on the $999 X bandwagon, it seems.

source: Reuters & Nikkei

Related phones

iPhone X
  • Display 5.8" 1125 x 2436 pixels
  • Camera 12 MP / 7 MP front
  • Processor Apple A11 Bionic, Hexa-core, 2390 MHz
  • Storage 256 GB
  • Battery 2716 mAh(21h 3G talk time)

FEATURED VIDEO

12 Comments

1. Tommy1960i

Posts: 144; Member since: Oct 11, 2013

Apple is the equivalent of Wall-Street. Whatever happens with them will influence de whole industry (almost)

2. Whitedot

Posts: 810; Member since: Sep 26, 2017

Ok, so Tim had different idea how many phone he can sell.

12. bucknassty

Posts: 1337; Member since: Mar 24, 2017

i thought this site said the x was selling like hot cakes

14. Well-Manicured-Man

Posts: 688; Member since: Jun 16, 2015

Depends on the time frame you are looking at. I am sure iPhone X sold well when it was released.

3. SIGPRO

Posts: 2817; Member since: Oct 03, 2012

Hahah the X is just a failure....period!

10. Whitedot

Posts: 810; Member since: Sep 26, 2017

Of course you been tipped by Tim him self. Otherwise how sure you would be. Just reasoning.

13. tokuzumi

Posts: 1900; Member since: Aug 27, 2009

If I started a phone manufacturing company tomorrow, and sold 25 million phones in a quarter, I'd be pretty happy.

6. Arashmahmoodi25

Posts: 132; Member since: Apr 07, 2017

I think Tim is ruining it , not yet tho he needs more time to do it completely

7. duckofdeath unregistered

Notch good for business...

8. GreenMan

Posts: 2697; Member since: Nov 09, 2015

The biggest flaw with The iPhone X isn't the fragile chassis, the notch or perhaps the sky high price-tag. The flaw is: Satisfaction (Or the lack of it). That's how an economy works! Allow me: The thing is, The iPhone X doesn't do anything remarkably better than the regular iPhone 8 or The iPhone 8 Plus. Infact, even The iPhone 6S isn't much behind The X. Now of course it has some distinctive signature features like The Animojis, Face ID or perhaps the gestures to name a few but... Do you think they're worth $400 to a normal person? I personally don't think so... Oh well, G'Day!

9. midan

Posts: 2873; Member since: Oct 09, 2017

That 20 million for this q Sounds quite right, im sure Apple didn't expect to sell 40 million X this q, that would have been insane knowing last year q2 iPhone sales combined was around 50 million. Selling 40 million X would give Apple over 90 million sales :D

15. Metalspy8

Posts: 148; Member since: Feb 27, 2012

this means apple is doing really bad. sucks. to be an apple iphone owner.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.