Samsung to slash OLED panel output

Tokyo

SAMSUNG Electronics Co will slash output of its organic light-emitting diode (OLED) panels in response to its customer Apple Inc's decision to cut production of iPhone X amid weak demand, the Nikkei reported on Tuesday.

Samsung Display now plans to make OLED panels for 20 million or fewer iPhones at the South Chung-cheong 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 Electronics stock fell as much as 2.3 per cent in morning trade, while shares of Japanese OLED component makers, such as Hodo-gaya Chemical Co and Hirata Corp, also declined.

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.

Samsung Electronics was not immediately available for comment. REUTERS