Samsung in its earning’s report blamed the slow growth of its display department on the lower than anticipated demand for the iPhone X. The company’s display business grew by a modest 3.4 percent, far lower than its overall 20 percent growth rate.
Samsung joins other Apple suppliers who have seen weaker growth due to slow iPhone X sales. The company in its quarterly guidance call says that its display business profit was affected “by slow demand for flexible OLED panels.” Samsung is the sole supplier of OLED panels to Apple for the iPhone X.
The Korean company, however, is hopeful of seeing demand rebound in the second half of the year thanks to the launch of new iPhone models.
Samsung said: “For the second half, OLED panels in the smartphone industry are expected to see a rebound in demand, especially as demand for flexible panels remains strong in the high-end segment.
Apple is expected to release three new iPhones later this year. Two of them will feature an OLED display of 5.8-inch and 6.5-inch, respectively, while the third model will sport a 6.1-inch notched LCD display. This third model is expected to be priced around $550-600 which should help it compete favorably against premium Android smartphones in price sensitive markets.
Other Apple suppliers that have been affected by slow iPhone sales include TSMC and LG Display. Prior to iPhone X launch, it was expected that there would be a super cycle that would see Apple ship over 100 million iPhones in a single quarter. However, that has clearly not happened, with Apple and its suppliers now struggling with slowing iPhone sales.