Apple may compensate Samsung for low iPhone 12 panel orders

Iphone 12 Mini
Iphone 12 Mini (Image credit: Apple)

What you need to know

  • Samsung is likely to get some compensation from Apple soon.
  • That's because of low orders from Apple for iPhone 12 display panels.
  • It seems poor iPhone 12 mini performance may be to blame.

A new report says that Apple will likely compensate Samsung for lower-than-expected iPhone 12 panel orders.

From The Korea Herald:

Samsung Display Co., a major display panel maker in South Korea, is likely to receive compensation from Apple Inc. over a shortfall in OLED panel orders, industry insiders said Tuesday.Samsung Display's worldwide small OLED shipments in January dropped 9 percent month-to-month to 45 million units, according to market researcher Omdia, which added that the decline is apparently prompted by sluggish sales of Apple's iPhone 12 mini.

The report notes previous indications that Apple has cut orders for the iPhone 12 by as much as 20% for the first half of 2021. From March 10:

A new report claims Apple is cutting orders for all iPhones by around 20% in the first half of 2021, including a huge reduction in iPhone 12 mini orders of at least 70%.From Nikkei Asia:Apple is slashing its planned production of the iPhone 12 mini for the first half of this year as part of a broader adjustment to output plans it formulated late last year, Nikkei Asia has learned.The U.S. tech giant is cutting orders for all iPhones by around 20% compared to its plans in December, according to sources familiar with the matter, with the majority coming from the mini, its cheapest 5G-enabled phone.

The report notes that Samsung is the only supplier of panels for the iPhone 12 mini, which has unanimously been reported as the worst-performing model in the iPhone 12 lineup. Apple has previously compensated Samsung in similar situations both last year and the year before, to the tune of $1.68 billion total. One industry official said, "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 Display." The best iPhone in recent years, the iPhone 12 has actually been a smash-hit, and reports that Apple was cutting orders was likely based on Apple's previous attempts to get ahead of chip and component shortages, rather than as a response to waining demand.

Stephen Warwick
News Editor

Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design. Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9