Samsung, Other iPhone X Parts Makers To Face Consequences Of Halved Production

South Korean companies, including Samsung Electronics, are bound to suffer the repercussions of the reduced iPhone X production target.

Industry sources told The Investor on Friday that Apple’s component suppliers for the iPhone X based in South Korea will face the consequences of the halved iPhone X production target for this first quarter of 2018. The companies started to feel the impact in the recent weeks as Apple continues to reduce the orders for its 10th anniversary handset amid disappointing sales.

Sources also revealed that the Cupertino giant has already notified South Korean parts makers that it is no longer placing additional orders for iPhone X components in the second half of 2018. This means, no additional stocks will arrive in the second part of the year.

The firms that are affected by Apple’s decision include BHflex, Interplex and Samsung Electro-Mechanics — known for providing Apple with a rigid flexible printed circuit board that connects electrical components. The profits of these companies are expected to dramatically decline in the first half.

Fortunately, some market watchers think Korean component suppliers will bounce back in the second half when Tim Cook and his team unveil and start selling new OLED-fitted iPhones. There are rumors, after all, claiming that Apple could be releasing two OLED iPhone models this year. If true, it would mean that Apple’s going to double its component orders for the two OLED models.

Back in January, it was disclosed that Apple’s iPhone X sales during the holiday shopping season last December 2017 did not really do well. It was found out that the markets in which the 10th anniversary iPhone experienced slow sales included the United States, Europe and China.

As what IBTimes previously reported, the lukewarm sales of the iPhone X caused Samsung to stall its investment in a new OLED plant. On the other hand, Apple’s Taiwanese partner Foxconn resorted to look for other opportunities and even venture into AI just to secure its own growth.