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.
Analysts also expect Apple's OLED orders to recover in the second half of the year.
Evidence is mounting that the iPhone X is a bust.
According to Nikkei Samsung will be making OLED panels for less than 20 million iPhones, 30 million less than what the initial goal was.More news: Indian lynch mob drags alleged rapists, child-killers from police station
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The Korean company is yet to decide its production target for the April-June quarter, but Nikkei speculates that a "further cutback may be in store". But the company is still expected to see a profit decline for the first half of the year, compared to 2017.
The production cut was reportedly prompted by slower-than-expected sales in the holiday shopping season in Europe, the U.S. and China.
Rather than keep the iPhone X as a cheaper option for customers - the same way it still sells the iPhone 7s and 6s - Apple will reportedly put the X out to pasture so as to not undercut the sales of its new model. Not only would that secure Apple's supply chain - given the terms of the deal apparently earmarked it all the panels it wanted - it would have a side-benefit of reducing its dependence on arch-rival Samsung. While individual device sales may not have been the greatest in number out of recent flagship iPhone launches, Apple's strategy arguably looked elsewhere to measure overall success.
Samsung is the sole supplier of OLED displays for Apple.
The move comes in line to differentiate the brand from other Chinese brands that are taking cues from Samsung on their home turf, and other markets as well.