Samsung shares take a hit as iPhone X sales slump

Earlier this week we learned that Apple's iPhone X production cuts have left Samsung looking for more buyers of its OLED displays. Since launch, Samsung has been a supplier of OLED screens for the iPhone X and in anticipation of higher sales, Samsung reportedly made too many of them. Now it seems that this has had a knock-on effect on Samsung, causing shares to fall.

Despite being huge rivals in the smartphone market, Apple often turns to Samsung for manufacturing duties. Previously, it has been estimated that Samsung itself makes $110 off of each iPhone X sale. However, the news of production cuts has given some investors cold feet. This week, Nikkei reported that Samsung is currently set to make 20 million displays for the iPhone X, but that number could end up falling. This led to Reuters noticing that Samsung shares had fallen by as much as 2.3 percent following on from the news.

Samsung isn't the only Apple OLED display provider to be hit by falling shares either. Japanese companies like Hodogaya Chemical Co and Hirata Corp also saw shares fall. Apple itself saw a stock fall of 0.89 percent in pre-trading.

It is worth noting that while Samsung has reportedly cut back the number of OLED displays it intends to provide for Q1, the company has not yet set production targets for the April to June period. With that in mind, it could go either way, if iPhone X sales continue to fall in Q2, then further production cuts will need to be made.

KitGuru Says: While the iPhone X might be selling slower than expected, the $1000 price tag will keep it profitable over the course of the year. This does make me wonder about Apple's plans for September though. Do you guys think Apple will soldier on with the iPhone X design?

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