TOKYO (Reuters) - Samsung Electronics Co (005930.KS) will slash output of its organic light-emitting diode (OLED) panels in response to its customer Apple Inc’s (AAPL.O) decision to cut production of iPhone X amid weak demand, the Nikkei reported on Tuesday.
Samsung Display, the panel-making unit of Samsung Electronics, now plans to make OLED panels for 20 million or fewer iPhones at the South Chungcheong plant in the January-March quarter, significantly lower than its initial goal of supplying panels for 45 million to 50 million iPhones, the Nikkei reported.
Samsung Display has yet to set a production target for the April-June period, but a further cutback is possible, the Nikkei reported, without citing sources.
A spokesman for Samsung Display declined to comment.
Apple will halve its iPhone X production target for the first three months of the year to around 20 million units, the Nikkei reported last month, adding to growing concerns about weak sales of the $999 phone.
The iPhone X was the first phone to get a major design overhaul since the launch of the iPhone 6 in 2015, and many expected it to lead to blockbuster sales.
Reporting by Minami Funakoshi in Tokyo; Additional reporting by Ju-Min Park in Seoul; Editing by Amrutha Gayathri