According to display analysts at Display Supply Chain Consultants, Apple in the second quarter of 2020 paid Samsung approximately $950 million for not meeting OLED panel purchase goals established in agreements between the two companies.
Samsung last week shared guidance on revenue and operating profit for the second quarter of 2020, which included a one-time gain related to its display business. The one-time payment is believed to be from Apple, caused by Apple purchasing fewer than expected OLED panels for smartphones during the second quarter of the year.
Samsung reported that its estimate of operating profit included a one-time gain related to its display business, according to a report at wsj.com, but did not disclose the amount. 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.
During Apple’s third fiscal quarter, or second calendar quarter, many of its retail stores in the United States in other countries around the world were closed for several months, which, along with economic uncertainty, likely had a major impact on sales.
MacDailyNews Take: The terms of the contract have been honored by Apple, as always.