Samsung Display faces profit squeeze as Apple, Samsung cut orders

What happened: Samsung Electronics and Apple are cutting smartphone component orders as rising memory prices squeeze margins, threatening Samsung Display's fourth-quarter earnings. Key numbers: Samsung's mobile division asked suppliers to trim fourth-quarter component deliveries by 20 to 30 percent. Why it matters: Analysts cited in the content say losing premium OLED orders could hurt operating profit more than shipment volumes suggest, as weaker factory utilization raises per-panel fixed costs. Panel makers also face pressure for OLED discounts.

Samsung Electronics and Apple are cutting smartphone component orders as rising memory prices squeeze margins, threatening Samsung Display's fourth-quarter earnings.

Analysts cited in the content say losing premium OLED orders could hurt operating profit more than shipment volumes suggest, as weaker factory utilization raises per-panel fixed costs. Panel makers also face pressure for OLED discounts.