Samsung's profits from the OLED screen in 2018 will be substantially reduced

Most of Samsung's profits in 2017 come from its semiconductors and monitors, but according to the latest report, Samsung expected OLED craze in 2018 did not materialize, Samsung is facing reduced revenue.It is reported that in the past few weeks because of the iPhone X Lower demand, Apple's OLED panel usage worse than before, it is learned that it has cut its order from the Samsung OLED panel in half, which Samsung is concerned, may not be a good thing.

According to Bloomberg reports, iPhone X sales are not as optimistic as Wall Street expected.

And according to informed sources, Samsung plans to deliver half of the original order, at the same time, the report mentioned that Samsung expects its operating profit in 2018 will be lower than the analyst forecast.

Some market analysts have predicted that Chinese suppliers that are rapidly expanding their market share will shift to OLED panels.

The Samsung is good news because of its near-monopoly on the small and medium-sized OLED panel market, but that has not yet happened.

Mentioned in the report that some people claim that Samsung is still committed to OLED technology, but also did not feel the pressure to reduce OLED panel prices.

At the same time, it hopes to keep things going with the release of the Galaxy S9, and plans to launch a folded smartphone in the future, which will also increase OLED demand.

Apple will also launch another iPhone with an OLED display this year, and Samsung may win some orders, but at the moment, LG also joins the ranks for Apple's orders.

That being said, most Chinese major suppliers, out of profit margins, are not expected to switch to OLEDs this year, as Huawei, Oppo, Xiaomi and Vivo do not seem to give up their LCD and turn to OLEDs.

According to research firm IHS Market, the 5.5-inch LCD screen of the iPhone 8 Plus sells for $ 52 and Apple's 5.8-inch OLED display for the iPhone X costs $ 110 (about $ 700 ).

Chinese manufacturers, while moving closer to Apple and Samsung, are actually turning to more expensive display panels, which they find unnecessary, after all, in key markets, where they stand apart from Samsung.

Simon Chen, an analyst with Bloomberg, rightly points out that LCD monitors are 'good enough' for many users.

And the price gap between OLEDs and LCDs remains large and handset makers in China are unlikely to be willing to shift.

The cost of the OLED panel is expected to decline in a few years, but until then Samsung will have to take effective measures when it even has to compete with emerging OLED makers in China.

It is reported that in June last year, Samsung set up a 'super OLED factory' in South Korea.

Considering the demand will continue to grow, Samsung plans to invest 925 million US dollars (about 5.7 billion yuan), but now due to the uncertainty of demand, the company decided to postpone the further investment in its OLED equipment.

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