A few weeks ago, some publications echoed a report that the KGI Securities analyst had published, a report in which he claimed that Samsung had been forced to reduce the number of panels that it was manufacturing for the iPhone X, due to the low demand that the device is having.
At the economic results conference that Apple held on February 2, Tim Cook stated that the iPhone X was selling better than expected, but without specifying again, number of sales. But it seems that there is someone who does not tell the whole truth. Bloomberg claims, according to its sources, that Samsung has reduced OLED display production for the iPhone X.
Previously, the Nikkei company claimed that Samsung planned to cut the manufacturing of OLED panels by more than half, a report that was received with considerable skepticism by many outlets, as it did not indicate which was the source that had provided this information. At the moment, there is no evidence despite these two reports, which indicate that Samsung has begun to reduce the number of panels it manufactures for Apple, and as expected, Samsung will not be the one to confirm or deny this information.
The cost of OLED panels has been one of the main reasons why the price of the iPhone X is so high compared to its predecessors. According to the company IHS Markit, the LCD panel of the iPhone 8 Plus has a cost of 52 dollars, while the panel of the 5,8-inch OLED-type iPhone X has a manufacturing cost of more than double, 110 dollars. If Apple finally releases a 6,5-inch model, the starting price of this device could become prohibitive, unless manufacturing costs have been reduced from one year to the next.
If the cost of production increases by $ 50 and the price of the terminal increases by $ 300, they have a lot of margin of loss of sales so that the numbers continue to come out, although in the long run that translates into a dangerous loss of market that makes them developers prioritize Android, and from there it's a nosedive.