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Apple may owe Samsung a few hundred million dollars in penalties for single-row OLED cuts


According to ETNews, because the iPhone sales of OLED displays that Apple sold are not as expected, they are having trouble with Samsung, the partner provides a screen equipped for iPhone X, XS and XS Max. The source said that Apple is owing Samsung Display "hundreds of billions of won" of fines for failing to follow the contract because of cutting the screen output they import to assemble the new iPhone. This penalty stems from Apple's confidence in iPhone sales, and asked Samsung to build a new screen panel factory that only makes OLED exclusively for the iPhone. Apple told Samsung that every year they need 100 million OLED screens for the iPhone, but sales decline makes both Apple and Samsung difficult.




In 2017, Samsung Display's profit was 5.7 trillion won, but by 2018, this number was only 2.62 trillion won. If this source is accurate, then the preliminary 100 billion Won is about 86 million USD. The source said "several hundred billion Won", meaning that Apple may owe Samsung at least $ 170 million in fines for failing to follow the contract.



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At the present time, it is very difficult for Apple to pay this fine in cash, but instead, they will probably increase orders for OLED monitors imported from Samsung to Apple to repay the fine, on both sides. mutually beneficial. Doing this may not be difficult, and in fact it becomes reasonable when there are rumors that the screen of the MacBook, iPad and iPhone in the near future will shift to OLED technology, starting with the MacBook Pro version 16 inch may be released later this year. The use of OLED displays for not only iPhones but also for many other Apple products will be a good way for Samsung Display to find the profit that has been affected in the past 2018, and also allow Apple to carry out the penalty. Samsung came out when Cupertino partner failed to fulfill the promise in the contract.



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Currently only Samsung has an OLED screen production line for iPhone X and above. Earlier, Apple always wanted to import components from many partners, even paying LG $ 2.7 billion for them to create an exclusive production line for Apple, but the plan did not work as expected. LG had to stop producing one of two OLED panel making lines, while the OLED screen order for Apple Watch belonged to Japan Display.



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