And this is just for the January-March quarter, there may be additional cutbacks for April-June. The production cut was in response to "Apple's decision to reduce output of the iPhone X following weak demand". Business is good if Apple's expensive flagship phones are flying off the shelves, but with the iPhone X not looking like it would sell as much as the company would expect, an issue has come up on the supply side of things as well.
Evidence is mounting that the iPhone X is a bust.
The display-making unit of Samsung Electronics has adopted the full-screen display design for high-end flexible LED smartphones like the current Galaxy S8 but it plans to adopt the technology to other mid-tier models with rigid OLED screens.
Samsung has more skin in the smartphone game than most. On a facility that Samsung Display had dedicated to producing panels exclusively for Apple's use, it could see production rates drop to half or less.
Samsung did not immediately respond to our request for comment and Nikkei's report did not cite specific sources.More news: Say goodbye to Android Pay and hello to Google Pay
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Despite being huge rivals in the smartphone market, Apple often turns to Samsung for manufacturing duties.
For the past three months of 2017, Apple sold over 77 million iPhones, recording an absolute record of profits and revenue in corporate history. The issue of battery throttling did not impact the iPhone demand in Korea and this was in Apple's favor by a huge margin.
Reuters/Stephen LamAn attendee checks out a new iPhone X during an Apple launch event in Cupertino, California, U.S.
What may be bad news for Samsung Display, therefore, isn't necessarily bad news for Apple. "Despite innovative designs, such as the rotating bezels and circular screens employed by other vendors, Apple has pulled far ahead as it continues to focus on its core iPhone user base".