Apple has recently paid a penalty to its South Korean competitor Samsung after the United States brand fell short of purchasing OLED screens to the Asian counterpart. The company faced a fine of exactly $950 million. This was due to the agreement that both companies– Samsung Display and Apple– signed years ago. Is Apple backing down on OLED screens already?
Apple pays Samsung nearly $1 billion for OLED
An iPhone model consists of different mobile phone parts. From the software to the hardware design, Apple does not always provide their parts. It usually comes from companies that sell them. For example, Samsung Display gives out 90% of OLED screens to Apple.
“The Apple payment likely turned what otherwise would have been an operating loss for display devices into an operating profit,” the report explains.
During the Samsung’s Q2 2020, the South Korean brand announced that the operating profit for this year came from a “one-time gain related to its display business,” but it did not say how much will be the total profit. Since then, reports already said that Apple might be the “one-time gain” they were describing on the Q2.
Not the first time
This was not the first time that Apple had to faced a fine on behalf of their lack of purchase. At that time, it was not know how much was the penalty fine assigned to Apple. However, 9to5Mac said that the U.S. brand did not pay Samsung in cash, but through the awarded Samsung Display extra orders that may have costs the exact value they’re in debt with.
At the time, they were no reported explanations of the sudden failure of Apple to pay their OLED displays. However, on today’s issue, the impact of Coronavirus pandemic could have been the main reason for their fewer purchases of OLED to Samsung Display.
Is OLED important to Apple?
OLED has been a huge part of the success of Apple, especially in recent years. Devices from the 2019’s iPhone 11 series were all built with OLED screen displays. This is where the questions start to spur. Is Apple backing down on using OLED screens to their future gadgets?
No info said that Apple may have backed down on OLED panels. In fact, rumors suggest that the upcoming iPhone 12 series will be having OLED screens.
To top it all off, this may even the main reason why Apple will be selling the iPhone 12 series for more expensive prices than the iPhone 11. Other than the fact that most of their future gadgets will be designed with 5G tech.
The prices of the latest iPhone 12 series are rumored to have an additional $50 price on each model. If that is true, the upcoming iPhone 12 will start at US$749 for the base 5.4-inch model compared to the iPhone 11’s starting price of US$699.