Tuesday, July 14, 2020

Experts: Apple paid Samsung nearly a billion dollars for poor iPhone sales

Analysts at Display Supply Chain Consultants, analyzing Samsung’s revenue in recent months, reported that Apple received about $ 950 million in the second quarter of 2020. It is noteworthy that the indicated amount is not an invoice for the goods shipped: we are talking about compensation for failure to fulfill the previously concluded partnership agreement.

Such an impressive payout, according to the source, was a consequence of the fact that Apple did not purchase from Samsung a predetermined number of OLED panels. Thus, judging by the financial report of the South Korean vendor, due to non-compliance with its obligations, the American partner paid about $ 950 million in compensation.

“Samsung said that its operating profit included a one-time gain related to its business, but did not disclose the amount. Last week, theelec.net reported that Samsung Display allegedly received $ 900 billion from Apple for buying fewer smartphone OLEDs than required, but DSCC sources said the final payment was close to $ 950 million” the report says. Display Supply Chain Consultants analysts.

Experts explain the smaller than predicted number of purchased OLED panels by the drop in iPhone sales. Many of Apple's branded retail stores in the US and other countries around the world were closed for several months due to the coronavirus pandemic. Apple plans to announce revenue for the third fiscal quarter of 2020 on July 30, which will give a clearer picture of how the iPhone and other brand products were sold in the specified period.