Lower-than-expected sales of the iPhone 12 mini means Apple is likely to reimburse Samsung Display for a shortfall in actual OLED panel orders.
The Korea Herald reports that Samsung’s small OLED shipments dropped globally in January by 9 percent month-on-month to 45 million units. Market data collected by Omdia blames less-than-spectacular iPhone 12 mini sales.
Apple will likely compensate Samsung Display for missed OLED panel purchase targets, says an industry source:
“It is uncertain whether Apple would pay a penalty to Samsung Display, but considering its contract history and sluggish sales of the iPhone 12 mini, it is likely that Apple will compensate Samsung,” an industry official said on condition of anonymity.
Samsung supplied all of the 5.4-inch panels used in the iPhone 12 mini, the smallest handset in Apple’s current iPhone 12 series.
If Apple does end up compensating Samsung, it would be the third time that Apple has had to reimburse the Korean firm for missing OLED display targets.
Apple reportedly paid Samsung an estimated $683 million in 2019 and approximately $950 million in 2020 for similar shortfalls in OLED panel orders.
According to Omdia, global OLED panel shipments reached 53 million units in January, and Samsung Display accounted for 85 percent of them.