Apple reportedly paid almost $1 billion to samsung for faltering on order for screens

Apple reportedly paid almost $1 billion to samsung for faltering  on order for screens

Apple may have paid $950 million to Samsung for not meeting its goals in terms of the number of OLED screen it had ordered. It is a rather well known fact that the display in Apple iPhones are made by Samsung.  The DSCC report looks at the quarterly guidance release issued by Samsung. The apple payment likely turned what otherwise would have been an operating loss for display devices into an operating profit. It is required to meet the minimum order quantity or else pay penalty. According to reports, apple is now looking at a $1 billion penalty payment to Samsung display. The revenue incurred from screens was down by 7 percent for Samsung, while its operation profit was up by 23 percent much higher than expected. Most of the famous companies make deal with screen makers with a guaranted purchase of a minimum number of screen, which lowers the total cost of buying them. As  the part of the contract, inability to fulfil this imposes fine on the buyer. This is not the first time Apple has paid a hefty amount to Samsung. In 2019 a penalty was enforced by Samsung for not buying enough OLED screens.

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