Apple paid Samsung $ 950 million for failing to meet OLED screen order goal

Apple paid Samsung $ 950 million for failing to meet OLED screen order goal

About a year ago, we commented here on a payment of $ 683 million made by Apple Samsung because basically speaking, the demand for iPhones was below expectations. Now, according to Display Supply Chain Consultants, it happened again.

According to analysts, Apple made a payment of approximately $ 950 million rival / supplier in the second quarter of this year for failing to reach the OLED screens for iPhones. As is well known, Samsung (at the moment) is the exclusive supplier of OLED panels for Ma's smartphones; the two companies maintain a billion dollar contract for the supply of parts.

Among the terms of the contract, Apple must place a minimum order for screens each quarter, based on the expected production and sale of iPhones for that period, a very common strategy in this type of negotiation, so that the customer (in this case, the Apple) get lower prices on parts. If Ma's demand falls below the forecast, an additional payment must be made to Samsung; that's exactly what happened here, according to the sources.

In other words: if the information from the analysts is correct, it means that the sale of iPhones in the second quarter was below expectations, which should come as no surprise, considering the pandemic of the new Coronavirus (COVID-19) and the information we already have on the smartphone market in the first quarter.

The information about the alleged payment was not conjured out of the blue: at its last financial results conference, Samsung reported receiving a separate amount related to its panel business, without disclosing numbers; The The Elec it had also cited a receipt of about 900 billion (~ $ 750 million) from Samsung. The final value, apparently, even higher.

We will certainly hear more about this when Apple holds its next financial results conference on the 30th.

via MacRumors