Still, many stock analysts see the business' earnings starting to grow in the July-December half, as they believe orders from Apple will recover by then.
The new target will reduce production at the plant to around 60% of the original plan.
Samsung Display is the sole supplier of OLED panels for the iPhone X. Sources familiar with the matter told the Nikkei Asian Review that Samsung had reduced the OLED panel output at its South Chungcheong plant to just 20 million units in the January-March quarter.
Samsung Display is extending its marquee full-screen display design to mid-range smartphones as part of efforts to further improve profitability, according to industry sources on February 20. Samsung has yet to confirm production targets for the April-June period. Only at the beginning of this year did Samsung's bezel-less screens make it to the company's premium mid-range phones - the Galaxy A8 (2018) and Galaxy A8+ (2018), albeit not the curved kind seen on the Galaxy S8. That's expected to form the entry-point into Apple's 2018 iPhone range as the cheapest model. That includes LG Display, which is said to be on track to deliver the 6.5-inch OLED panel Apple will use for the iPhone X Plus. Earlier reports had indicated that, rather than continue to rely exclusively on Samsung Display for OLED supplies, the Cupertino firm was looking to hedge its bets and source panels from multiple providers. Others say the reason lies in the company's decision not to produce more iPhone X after the release of the new three models in late September this year.
The production cut was reportedly prompted by slower-than-expected sales in the holiday shopping season in Europe, the U.S. and China.
Of course, "weak demand" for iPhone X doesn't necessarily translate to disappointment within Apple. For Apple, however, the focus is less on numbers of devices and more on the profit margin on each device.
Samsung isn't the only Apple OLED display provider to be hit by falling shares either.