Apple has just compensated Samsung 900 billion won for not buying enough OLED screens ordered?

Tram Ho

Last week, Samsung’s Q2 / 2019 business results were surprising for most people in the context of every industry in which the company is in decline. And now, Korean media has pointed out why Samsung’s revenue last quarter was so impressive.

Specifically, Samsung reported an additional 900 billion won from the screen manufacturing division. The Korean giant just described it as a temporary revenue, not explaining where it came from. However, according to many analysts, this is the amount that Apple compensates Samsung for not purchasing enough initial contract OLED screens.

In 2017, Apple is said to have signed a contract to buy 100 million OLED screen panels for iPhone X from Samsung for $ 70. However, then iPhone X did not sell well as expected and Samsung suffered as a result of spending a lot of money to invest in OLED screen production line.

Next, in 2018, iPhone XS and XS Max were not well received by consumers and continued to make Samsung Display difficult. According to South Korea’s The Elec site, Samsung Display’s A3 houses have operated with capacity below 30% for a long time. Most of the chains at this factory are dedicated to the production of OLED displays on the iPhone.

Apple vừa bồi thường cho Samsung 900 tỷ won vì không mua đủ số lượng màn hình OLED đã đặt hàng? - Ảnh 1.

It was also reported that Apple paid hundreds of millions of dollars to Samsung to offset Samsung Display’s losses. Samsung Display’s revenue decreased from US $ 4.9 billion in 2017 to US $ 2.3 billion last year. In addition, Apple also suggested ordering OLED displays for other products besides the iPhone such as iPad and MacBook.

Elsewhere, South Korea’s The Elec said Apple did not trust its Korean supplies suppliers. Therefore, to ensure the “Apples Apples” worked with an intermediary unit, LG Electronics’ Equipment and Material Innovation Center.

The center is currently accused of accepting bribes from suppliers to introduce them to customers. However, according to the director of the center, this is simply a service fee they deserve. He even said that without the guarantee of the center, Korean component suppliers would not be able to cooperate with companies like Apple.

“For example, Apple does not trust Korean component suppliers and will never deal directly with them, let alone sign contracts. Without us those contracts will never be. happened, “ director of LG Electronics’ Equipment and Material Innovation Center shared. “By way of us, suppliers can reach Apple.”

However, with Samsung nearly monopolizing high-end OLED screens, Apple had to sit down at the negotiating table and sign a contract with Samsung Display without an intermediary. It is also possible that because of the lack of trust in Korean supplies suppliers, in the contract with Samsung Apple there were several terms to ensure screen productivity. And then when Apple couldn’t buy all those screens, did they have to compensate Samsung for 900 billion won?

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Source : Genk