It’s an odd thing for someone to be fined for buying too few of a thing. But that’s what’s happening between Apple and Samsung. The former is paying the latter US$950 million (~RM4 billion) for not buying enough OLED displays. And this isn’t the first payment either, as it turns out.
Samsung noted in its Q2 guidance that part of its operating profit of the quarter was a “one-time gain related to its display business”. No exact amount was mentioned there, but Display Supply Chain Consultants’ sources say it’s close to the aforementioned US$950 million mark. The report also states that the payment may have turned the quarter around, from being an operating loss to operating profit. At least for the company’s display business.
9to5Mac reports that a similar penalty was paid by Apple to Samsung in the second quarter of last year as well. And for the same reason too. The iPhone maker also has agreements with other suppliers for a minimum purchase.
But not making enough purchases did seem unavoidable this year. Especially earlier in the year, where many factories were shut down due to the COVID-19 pandemic.