Apple Could Again Pay Samsung a Fine for Missing OLED Panels Purchase Target

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Apple is once again likely to compensate Samsung for not ordering enough OLED panels as per their initial contract. The shortfall in orders from Apple is being attributed to the poor demand for the iPhone 12 mini.

Samsung is the sole supplier of the OLED panels for the 5.4-inch iPhone 12 mini. The Cupertino company had previously paid Samsung $684 million in 2019 and nearly $1 billion in 2020 for not below-par OLED panel orders.

“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,” an anonymous industry said.

The poor sales of the iPhone 12 mini have forced Apple to rejig its production line and move it to the iPhone 12 Pro, which is in heavy demand. The lack of demand for the iPhone 12 mini can be attributed to its poor battery life. Despite the poor sales, Apple is still expected to announce the iPhone 13 mini later this year.

Samsung has been the major supplier of OLED panels for Apple over the last couple of years. Apple did start sourcing OLED panels from LG last year, but Samsung panels still formed the bulk of the order. Chinese OLED maker BOE is also expected to join Apple’s supply chain this year.

Apple is again expected to use Samsung’s OLED LTPO panels with a 120Hz refresh rate for the iPhone 13 and iPhone 13 Pro Max this year. Samsung is reportedly already started converting one of its OLED production lines to produce LTPO panels for Apple.

The Korea Herald]

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