Samsung's revenue exceeded market expectations only because Apple sold too few iPhones
20
Jul 2020

Kirsten Thomas

Samsung's revenue exceeded market expectations only because Apple sold too few iPhones

Recently, according to a report on the website of Display Supply Chain Consultants, a display supply chain consultant, Apple paid Samsung a fine of up to 950 million U.S. dollars just because the number of OLED panels they purchased did not meet the original requirements. The report stated that the funds are likely to convert Samsung's operating loss in the second quarter of 2020 into operating profit.

In fact, in the past, Apple has paid Samsung huge fees to make up for their losses in OLED panel orders. However, Samsung itself did not mention the actual number of this funding. In addition, TheElec's earlier report only pointed out that Samsung had received $745 million in funding from Apple. Therefore, whether the DSCC's intelligence source is correct is still open to question.

When Apple signs a contract with a supplier, it will set a minimum purchase quantity, so that it may be possible to lower the price. However, if Apple's purchases do not reach this number, it will have to pay a fine based on the content of the contract. And this year is likely to be affected by the COVID-19 epidemic, which made the company's orders for OLED panels far lower than expected.