Apple may compensate Samsung for low iPhone 12 panel orders
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:
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:
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.
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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
By Daryl Baxter