Skip to main content

Apple pays Samsung $950 million to cover OLED panel order shortfall

11-inch iPad Pro
11-inch iPad Pro (Image credit: iMore)

What you need to know

  • Apple paid Samsung $950 million.
  • That's because it didn't meet obligations on OLED purchases.
  • The payment turned Samsung's Q2 from a loss-making to a money-making quarter.

Apple has reportedly paid $950 million to Samsung for failing to meet its OLED purchase obligations.

According to DSCC's Ross Young:

Since Apple isn't meeting its obligations on OLED purchases from Samsung Display, Apple made another large payment to Samsung. We believe this year's payment was $950M and made in Q2. The difference between losing and making money for Samsung Display.

A new DSCC report notes that Samsung beat consensus expectations for operating profits in Q2 of 2020, but that this was only carried by the mammoth payment from Apple.

Samsung reported that its estimate of operating profit included a one-time gain related to its display business, according to a report at wsj.com, but did not disclose the amount. Last week theelec.net reported that Samsung Display is believed to have received KRW 900 billion from Apple for purchasing fewer OLED smartphone panels than required, but DSCC sources suggest that the payment is closer to US$950 million. The Apple payment likely turned what otherwise would have been an operating loss for display devices into an operating profit. The Q2 payment follows the pattern from a year ago when DSCC estimated that Apple paid SDC KRW 900 billion in Q2 2019 for a shortfall in OLED panel orders.

Ross Young recently stated that contrary to prevalent rumors, their supply chain sources could not corroborate claims that the iPhone 12 Pro would feature a 120Hz refresh display. However, recent reports from EverythingApplePro and Max Weinbach suggest that Apple had not yet made up its mind regarding the decision after 120Hz failed a series of tests on the iPhone 12.

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.