When it comes to business, there can be no flaws in the parties involved. So Apple has now paid Samsung $ 950 million for failing to play its part in an agreement between the two companies.
The deal involved buying OLED panels. But Tim Cook’s company is said to have purchased less than agreed during the second quarter of 2020.
Apple paid Samsung for not buying enough OLED panels
Apple had an agreement with Samsung that involved the purchase of OLED panels by the apple brand from the South Korean giant. However, the Cupertino company did not comply with the agreement and had to pay 950 million dollars, about 830 million euros, to Samsung.
According to analysts at the consulting firm DSCC, the payment was due to the fact that Apple purchased fewer panels than expected in the second quarter of 2020.
This information became known after the South Korean company released a report last week with revenues for the second quarter of this year. At that time, the estimated value was around 900 billion South Korean won, or 750 million dollars (~ 656 million euros).
However, the DSCC has confirmed that the true figure is about $ 950 million.
One of the purposes of these OLED screens will be for the production of the new iPhone 12 from the Cupertino brand.
The fact that Apple bought fewer OLED screens from Samsung, could also be a sign of the impact that the COVID-19 pandemic is having on the business and industrial world. Possibly Apple was unable to produce the same number of devices as screens ordered, hence having to reimburse Samsung.
Samsung will release its full financial report later this month.