Apple’s said that the penalty amount to Samsung helped the company profit from its display business.
Why Apple paid $1 billion penalty to Samsung?
The company has reportedly paid $1 billion penalty to Samsung for failing to purchase OLED displays as required. Samsung is one of the biggest OLED supplier for iPhones. It was earlier reported that company paid Samsung around $745 million for not taking the OLED display purchase requirement. But according to new report the penalty was actually around $950 million. This payment has also reportedly boosted Samsung Q2 revenue with the company estimated to have received a one-time gain related to its display business.
Samsung didn’t disclose the amount but it’s expected to be Apple’s penalty closing in to $1 billion. This penalty payment helped overcome Samsung Display loss to a profit. It is not the first time when Apple paid penalty to Samsung, last year company faced a penalty for not buying OLED display panels from Samsung. The company paid Samsung around $684 million penalty last year. Weak demand and sales due to Covid-19 is expected to have resulted in not taking the OLED panel requirement.
Apple also planning to shift from Samsung display to China BOE Tech as it’s biggest OLED supplier for the iPhone 12 series. This year company is expected to launch four iPhone 12 models with 5G support. All four 5G iPhones will coming with OLED display according to report.