Apple and Samsung have been collaborating in the OLED display supply for a long time. This cooperation is so serious that both parties impose harsh rules on each other from time to time. Apple’s extra payments are an important example.

There may still be an extra payment

Samsung The course of the OLED screen iPhone sales is closely related to the company, as it allocates a significant part of the screen production lines to Apple and adjusts the demands of its other customers accordingly.

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iPhone 12 mini production is reduced

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In 2019, Apple paid an extra $ 684 million to its partner because the iPhone XS series fell below expectations. Since there were low sales in the iPhone 11 series in 2020, Apple made another payment of around $ 1 billion this time.

According to the information received iPhone 12 mini sales remained very low, causing a 9 percent decline in Samsung Display revenues in January. While it supplies 53 million OLED panels globally, 85 percent of it belongs to Samsung.

It is estimated that the iPhone 12 mini model will not attract attention in the coming period, as Apple has reduced its orders to the supply chain. In this case, the losses Samsung will suffer will increase even more. If there is no surprise in sales for 2021, an additional payment may be raised for Apple.

https://www.sammobile.com/news/apple-penalty-samsung-display/





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