Samsung Display faces profit squeeze as Apple and Samsung cut orders

Samsung Display is facing potential margin pressure as major clients Apple and Samsung Electronics scale back smartphone component orders. This pullback is driven by soaring memory prices, which are prompting chipmakers to redirect production capacity toward more lucrative server DRAM and high-bandwidth memory.

Industry sources indicate that Samsung’s mobile division has requested suppliers to reduce fourth-quarter component deliveries by 20 to 30 percent compared to previous plans. Similarly, Apple has reportedly reduced October orders for specific iPhone 18 Pro and Pro Max parts by 15 to 20 percent.

The reduction in orders is particularly significant because Apple and Samsung Electronics combined accounted for approximately 62.8 percent of Samsung Display’s annual revenue in 2025, totaling 18.66 trillion won ($14.1 billion). Analysts warn that if cuts target premium OLED panels, the impact on operating profits could be disproportionately large due to lower factory utilization and a less favorable sales mix of high-margin screens.