Working under the assumption that the iPhone X would sell like hotcakes, Samsung set set off to produce and deliver a huge number of OLED (or organic light-emitting diode) screens for Apple's 10th anniversary handset.
This low demand has caused Apple to reportedly reduce its iPhone X production by half, leaving Samsung with a surplus of OLED panels which the South Korean company is now unable to sell.
According to a report in the Nikkei Asian Review, Samsung is looking for new buyers who could potentially use the OLED panels on their own handsets.
Unfortunately, the potential buyers are the Chinese manufacturers who produce handsets for the budget or mid-range market and prefer to stick to low-cost LCD displays.
The iPhone X was one of the most expensive handsets launched in 2017, and its costly OLED displays were a part of the reason why — Samsung’s OLED panels cost over $100 each, which is more than twice the cost of the company’s liquid crystal displays.
To sprinkle salt on the proverbial wound, Samsung is also facing stiff competition from rival manufacturers. The South Korean giant currently controls about 95% of the OLED market, but that could soon drop with LG Display ramping up production this year, as are Chinese manufacturers like BOE Technology Group and Tianma Micro-electronics.
One way to cope with the surplus is for Samsung to use the panels in its own products — whether the company will be able to repurpose the displays for its own phones is another story, especially as it's currently developing its first foldable phone.