Analysts also expect Apple's OLED orders to recover in the second half of the year. The reason is Apple's decision to reduce production of its iPhone X model.
The display-making unit of Samsung Electronics has adopted the full-screen display design for high-end flexible LED smartphones like the current Galaxy S8 but it plans to adopt the technology to other mid-tier models with rigid OLED screens.
Despite being huge rivals in the smartphone market, Apple often turns to Samsung for manufacturing duties.
For the past three months of 2017, Apple sold over 77 million iPhones, recording an absolute record of profits and revenue in corporate history. Samsung has yet to confirm production targets for the April-June period. It means we could see more mid-range Android smartphones with OLED screens in the near future.
Frustrating the situation for Samsung may well be Apple's attempts to divide its supplier dependencies. 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.
Samsung did not immediately respond to our request for comment and Nikkei's report did not cite specific sources. One reports arrive says that Apple is slashing orders. However, the news of production cuts has given some investors cold feet.
Of course, "weak demand" for iPhone X doesn't necessarily translate to disappointment within Apple. The rise of ASP (average sale price) to more than make up for disappointing volume appears to be helping out significantly.
According to market research firm IHS, Samsung Display made up 97.8 percent of the smartphone OLED market globally in the third quarter a year ago.
Samsung is reportedly looking for other customers to pick up some of the now excess OLED production capacity.