iPhone maker Apple recently paid a $950 million fine to Samsung. The reason? It bought fewer OLED panels from the company than was expected.
The report comes from Display Supply Chain Consultants, who say that the company’s hefty fine ended up turning things around for Samsung Display. It’s noteworthy that Samsung Display did announce that it received a one-time gain back in June. However, the company didn’t mention how much money it received, or from where. This latest report seems to suggest that that payment was, in fact, from Apple.
“Last week theelec.net reported that Samsung Display is believed to have received KRW 900 billion from Apple for purchasing fewer OLED smartphone panels than required, but DSCC sources suggest that the payment is closer to US$950 million. The Apple payment likely turned what otherwise would have been an operating loss for display devices into an operating profit”, reads the report.
The reason behind Apple ordering fewer OLED panels than expected can be chalked up to the Coronavirus pandemic. Due to the pandemic, Apple was forced to shut down its stores. Since then, the situation improved a little, but the Cupertino giant is re-closing stores in multiple US cities due to a resurgence in cases.
Moreover, it’s unclear how the iPhone 12 will be affected by the pandemic. The iPhone 12 is going to launch in September. However, people are less likely to splurge on new smartphones these days. The iPhone has always been an expensive affair. Still, there is some good news for Apple. The company’s shares have been rising steadily as people expect a 5G iPhone to perform well in the market.