Mike Wuerthele
A new report suggests that Samsung is "casting about" for OLED panel production, under the premise that it is being caused by soft iPhone X demand and production cuts — which don't appear to be grounded in reality.
A report on Friday morning by the Nikkei Asian Review continues to claim that production cuts in the iPhone X are causing a cascade effect in the supply chain. Allegedly, as a result of the cuts, which appear to be either false or normal seasonality, this means that Samsung is "saddled with excess production capacity" of OLED substrates and screens.
However, the report also goes on to note that Chinese OLED panel makers have expanded production capacity, and screens from LG Display and BOE Technology on the way. Data from IHS Markit quoted in the article also doesn't suggest that Apple is the prime mover of a contraction in demand — or a cut in OLED screen orders beyond seasonality.
The new report doesn't provide any more information than a previous report by the publication claiming that the iPhone X was seeing production cuts. That report is also likely wrong, given Apple CEO Tim Cook's remarks about the iPhone X sales since availability.
"We're thrilled to report the biggest quarter in Apple's history, with broad-based growth that included the highest revenue ever from a new iPhone lineup," said Cook during the last quarterly financial report. "iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November."
Other supply chain sources belie reports of any iPhone X production cut.
The Nikkei Asian Review generally provides accurate information from the supply chain, so in all likelihood, Samsung has excess OLED production because of assorted market factors. However the publication's track record on Apple-specific events, or cause-and-effect from Apple's moves is iffy at best.
Christine McKee
William Gallagher
Malcolm Owen
Wesley Hilliard
20 Comments
But … where else could a drop in demand possibly come from ?
Could it be that in the just finished year …
Apple tops worldwide smartphone vendor list in Q4 amid industry contraction, report says
Or could it be that Samsung doesn't have or is not expecting great pre-orders or future sales for its upcoming new release ?
Nah, gotta be because of Apple and the obvious iPhone X failure.
There, that was easy. Hey our analysis is now done and we can start our weekend, yippee.
everyone at at that place should be in prison. Seems they're shameless in lying nearly 100% of the time.
Considering Samsung itself may be overcapacity because they're own god damn phone are not going to be selling (or selling), the whole logic is flawed.
That's especially crazy cause it's obvious the X woudl sell less in Q3 (like Iphones do every year) and if the S9 doesn't sell well they'll be stuck with a huge amount of capacity during the summer. If anything, people should be worried about Samsung.
It's true though that phone sales cycles are extending and that's why Apple is very slowly weaning itself off them and looking at devellopping recurring revenues from their installed base
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Jony: hey Tim I think you might be holding that wrong mate.
Tim: ( under his breath ) shhh can't you see this young fella want's to take my picture ?
They must be short.