Having ramped up production capacity to meet demand for the latest iPhone, the first model to incorporate the panels, Samsung is now saddled with excess production capacity. Other smartphone makers, who Samsung had hoped would incorporate OLED panels, have been slow to make the transition due to their expense and are sticking to liquid crystal displays.
Making things worse, Chinese manufacturers are now expanding production capacity for OLED panels, increasing price competition. Samsung's OLED panels are reportedly priced at over $100 unit, including touch sensors. That's almost twice the cost of the LCDs used in the iPhone 8.
Display Supply Chain Consultants estimates Samsung's OLED panel factories have a utilization rate of around 50-60% due to sluggish demand. Given the overcapacity, "the price of rigid-type panels on glass substrates has been falling," said Yoshio Tamura, head of DSCC's Asian operations.
Global production capacity for OLED panels is expected to double by 2020 and it's likely that Samsung's massive 95% market share will be significantly reduced.
More details in the full report linked below...