In past years Apple had to pay millions of dollars to Samsung Display as a compensation for lower smartphone OLED orders. Apple is committed to buy a certain amount of displays, and this payment is a fine due to lower orders.
Due to lower OLED orders in 2021, analysts estimate that Apple, again, will have to compensate Samsung. The main fault is with lower sales of Apple's iPhone 12 mini. In total, according to reports, Apple reduced its OLED Orders for the iPhone 12 series by 20% to 75 million units in the first half of 2021.
DSCC estimated that Apple paid around $950 million in 2020 to Samsung Display. In 2019 Apple paid $684 million. Perhaps it is time for Apple to consider lowering its own targets for iPhone shipments...
Posted: Mar 24,2021 by Ron Mertens
