Apple to allegedly pay samsung nearly a billion over iphone sales setback

Apple to allegedly pay samsung nearly a billion over iphone sales setback

Apple will have to shell out big bucks to fulfill a contract with Samsung that the company didn’t take advantage of in the first place, according to a report. That’s according to a team of analysts specializing in display technology.

According to the report, Samsung is due to pay $950 million (856 million euros) for OLED displays for the iPhone that it ordered but did not deliver. According to the Display Supply Chain Consultants (DSCC), Apple committed to purchase a certain number of screens for its smartphones, but was unable to do so due to the Corona crisis.

Money is said to have already flowed

Apparently, the money has already been paid in the second quarter; Samsung is said to have received it as a one-time gain ("one-time gain") in its display business. Earlier reports were that only 900 billion Korean won ($750 million) was at stake, but said 950 million was closer to reality, DSCC explained.

Apple had closed numerous stores since March, many countries were in lockdown. Accordingly, sales of the iPhone apparently also declined. In addition, there are economic uncertainties due to the corona virus – people bought less or did not use the available offer.

Apple quarterly figures will be exciting

DSCC estimates that Apple didn’t manage to reach the predicted iPhone sales figures – at least the OLED panels intended for this didn’t have to be taken down. In this case, contractual penalties are to remain because Samsung now has an overproduction in its warehouses.

Apple reported first-quarter revenue of $58.3 billion, up slightly from the same quarter a year earlier. However, the Corona crisis didn’t fully hit until the second quarter. Apple will report its quarterly results on June 30. June – only then will the stock market know what was actually going on.

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