With iPhone X demand falling, you’d think Samsung would be celebrating. After all, the Korean company is gearing up to unveil its Galaxy S9 at the end of this month, giving Samsung the perfect opportunity to capitalize. But according to a new report from Nikkei, Samsung has been left scrambling as it looks to sell excess OLED panel stock.
It’s a tricky situation. Samsung ramped up production in an effort to meet demand for the iPhone X. But now that the hype for Apple’s device has died down, Samsung has been left in a lurch.
The Korean company allegedly hoped that the iPhone X’s launch would spark interest in OLED technology from competing OEMs, but that hasn’t been the case. Instead, the high cost of OLED panels has reportedly scared the competition away.
Additionally, Nikkei reports that competition from Chinese manufacturers is putting pressure on Samsung to lower the cost of its OLED technology. With Apple reportedly cutting production in half due to sluggish sales, Samsung may have no choice but to bring the price down in order to get rid of remaining stock.
Apple will allegedly go deeper into the OLED rabbit hole later this year with a trio of new iPhone X-like devices. Which should be good news for Samsung, except rumors claim Apple has made a deal with LG as its main OLED supplier this year. That could put even more pressure on Samsung.
Even though they’re fierce competitors, Apple and Samsung have a hugely dependent relationship. So, while slowed iPhone X demand might seem good for Samsung, it actually affects the Korean company’s bottom line.