Apple reimbursed Samsung 800 billion won ($683 million) to cover the cost of OLED panels after Apple missed a sales target both companies had agreed upon.

iphone x oled
Apple originally said it would buy a certain number of the display panels from the South Korean company, but disappointing iPhone sales meant it was unable to live up to the agreement. The payment was made in the second quarter of this year.

The figure, quoted by Reuters, came as Samsung on Friday forecast a plunge in its second-quarter operating profits, but one-off gains like the payment from Apple helped it beat analyst expectations.

Samsung's April-June operating profit likely fell 56 percent to 6.5 trillion won ($5.6 billion), the company revealed in a regulatory filing ahead of the release of its detailed earnings figures in late July. Revenue probably fell 4.2 percent from a year earlier to 56 trillion won ($48 billion).

Samsung is on track to post year-on-year profit declines for a third consecutive quarter, mainly due to a combination of falling chip prices because of a supply glut and U.S. sanctions on Chinese telecom equipment maker Huawei, which has become a key Samsung client.

The U.S.-China trade war is also impacting global chip and smartphone markets, with rising tariffs hitting demand for electronics. In a striking example of the ongoing feud between the two countries, Seoul also cut its annual economic growth target to a seven-year low as exports continued to slump.

Tag: Samsung

Top Rated Comments

EugW Avatar
23 months ago
Ouch that must have hurt even Apple
They deserve it. Their OLED iPhone pricing is just ridiculous.
Score: 53 Votes (Like | Disagree)
EugW Avatar
23 months ago
Drop the prices, Apple.
Score: 46 Votes (Like | Disagree)
otternonsense Avatar
23 months ago
The expected outcome of Tim’s greedy pricing and industrial design stalemate. Try harder, Apple.
Score: 39 Votes (Like | Disagree)
Sandstorm Avatar
23 months ago
Good. And I hope their (Timmy & Co) obscene greed backfires even more over time.
Score: 27 Votes (Like | Disagree)
allenvanhellen Avatar
23 months ago
Make an OLED all-screen iPhone 4S-sized device. Problem solved. Bonus sales for headphone jacks and squarish edges (or maybe iPod Touch thinness).
Score: 24 Votes (Like | Disagree)
User 6502 Avatar
23 months ago
Good, maybe they’ll price them more sensibly next time round. And maybe they’ll start to innovate again, rather than recycling the same design for 3+ years.
Score: 15 Votes (Like | Disagree)

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