Samsung expected to order fewer high-end smartphone and tablet components for Q1 2016

Still negatively impacted by the demand for larger screened Apple iPhone models, Samsung is expected to reduce its orders with the supply chain for the current quarter running through the first quarter of 2016. Lower orders for components means that Samsung will probably produce fewer smartphones from September through March. Besides top-shelf handsets, Samsung is also believed to be cutting back on the production of  tablets.

In addition to Apple's overwhelming success with the Apple iPhone 6 and Apple iPhone 6 Plus, Samsung is facing tough competition in China from manufacturers selling highly spec'd handsets at affordable prices. With that in mind, Chinese smartphone producers are said to be interested in using AMOLED displays on lower priced handsets if Samsung Display is forced to cut the price of such screens, because of weak high-end smartphone sales in the country.

Last month, Samsung unveiled two of its higher-priced models with the Samsung Galaxy S6 edge+ and the Samsung Galaxy Note5. We've also seen what looks to be the Samsung Galaxy S7 undergoing benchmark tests using various chipsets. While on the surface, it seems like business as usual for the company, the momentum generated last September by Apple has continued to hurt Samsung and there is no sign with the introduction of the Apple iPhone 6s and Apple iPhone 6s Plus that this will be slowing down. As we told you yesterday, all signs point to record demand for the new iPhone models on its initial weekend of sales.

source: DigiTimes