Apple paid a huge fine of about $ 950 million to Samsung in the second quarter for failing to meet its obligations under the OLED panels supplier agreement, i.e., not purchasing or taking over a predetermined amount of displays that They would have been fitted to iPhones, according to insider sources Display Supply Chain Consultants. Indeed, Samsung's second-quarter financial forecast mentions a one-time, significant credit to the display manufacturing division, but whether or not this stemmed from the ominous contract was not disclosed by the company.
The decline in component purchases is speculated to be closely related to Apple's third fiscal quarter, which coincides with the second calendar quarter, was more affected than ever by the aftermath of the coronavirus pandemic. Thus, the company was forced to keep its global business network closed for months due to epidemiological precautions, and the medium-term outlook does not turn out to be rosy, just as the company is forced to close certain stores again due to the resurgence of U.S. infection.
Apple closed the second financial quarter with a small increase in revenue of $ 300 million, but the company did not issue a forecast for the third business quarter due to the health emergency. Prolonged store closures and other negative effects of the emergency are expected to paint a more accurate picture of Apple's third-quarter financial report on July 30.
due to a shipment of display panel received. The company paid the Korean manufacturer about $ 683 million a year ago to the Korean manufacturer for failing to meet sales expectations in the 2018 holiday season, primarily in the Chinese market.
Gellert is Technology Editor at Counting News Media and contributor at other major tech publications. Her interests includes testing new gadgets and reading.