Universal Display ( OLED ) stock slid on Friday over a report that Samsung, its largest customer, is dealing with an oversupply of OLED display panels after client Apple ( AAPL ) slashed production of its iPhone X handset.
Universal Display is a leading supplier of technology and materials for organic light-emitting diode ( OLED ) displays and lighting. On Wednesday , it announced long-term OLED material supply and license agreements with Samsung's display division.
Universal Display shares were down 2.7%, near 157.65, in afternoon trading on the stock market today .
Nikkei Asian Review reported Friday that Samsung is looking for new customers for its OLED display panels after Apple cut its orders because of disappointing sales of the iPhone X, Apple's first smartphone to use an OLED display.
Samsung is "saddled with excess production capacity" after having ramped up its factories to meet the expected demand from Apple, the Japanese publication said. "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."
Samsung's OLED panel factory utilization rate is around 50% to 60%, according to the Display Supply Chain Consultants of the U.S., Nikkei said.